There has been a lot of talk lately about the almost certain recession that the world is plunging into and one of the key interests of most of the readers of this website over the years is obviously, the cam industry. I wanted to do a quick post about what effect I think this will have on the industry from my viewpoint, in terms of for the cam girls (or guys) and also for cam affiliates.
First though, a quick explanation for those of you too young, well off or, like some of you perfect people, beautiful, to have experienced and understood what a recession is. A recession is generally known among investors and those in the financial world as a correction and then a recession only once the public are running around screaming, about said correction. The term correction is a better way to think about it from an understanding point of view as that’s exactly what it is, the markets and financial world correcting a market that’s getting out of hand. In 2008 it was a correction of the market in housing, primarily in the US, that caused a chain of events that collapsed a large part of global banking. This then causes a contraction of the world’s financial markets…leading consumers to spend less and unemployment usually increases with it.
That’s a two second explanation and of course, it’s more complicated than that. However now let’s talk about the upsides and downsides for the cam industry, including the similar effects they will have on both models and affiliates.
The obvious one is that there will be less money across the board when the economy contracts, therefore there will be less discretionary spending, something that will hit the entire pornography industry. If you base, whether model or affiliate, is made up from a bulk of many lower spenders, then you will certainly see a drop on the number of users putting small amounts in. In terms of some models and affiliates this could be devastating as those 1-20 token spends are massive when added all together.
On top of this, we will likely see the big companies that run the platform such as Chaturbate and so on, make less money and therefore may start tightening commissions etc, or at the very least they will lower their marketing budgets which will then see a drop in the organic users, which will affect models the most.
Basically the amount spent and the amount of marketing invested will drop, this will hit both affiliates and models, however likely the models more. However more on that in a moment. Finally we will see a lower amount of big spends for a short period as these whales batten down the hatches. They will do this to prepare for the worst or, and more likely, to free up capital to go in full on recession vulture mode.
This all sounds like the stuff of nightmares right? Well, hold on a minute, as there are massive benefits for us all.
If you’re a casual cam girl or affiliate, basically just using it to pay for a night out once a month, this will likely be the end of your career…or perhaps the fire you needed. My point is, this is good news for the rest of us who have invested serious time and energy into this industry and pull basically a full time income from it (in some cases, a mass of wealth)…the good news is that there will be less competition. The part time affiliates and cam models will leave the nest looking for something “more stable.”
While there will be a certain amount who double down and become competition, the percentage will be in the single figures, the normal human behaviour is to see this as a time to “stop wasting time on hobbies” instead of realising that said hobby is actually the potential gold mine and solution to their issues. Basically for most of us this is a massive chance to increase figures in the long term, even if we see a short term dip in earnings.
Another benefit of this competition, for affiliates only in this case, is that as Chaturbate and other big platforms lower their marketing figures in order to spur up profits and build a war chest, they inherently free up space for us affiliate marketers to jump into. This gives us a massive opportunity to once again make large earnings in the long term, even while seeing some short term earnings loss.
The even better news for all of us, is that more millionaires are created during recessions than during any other period and by a massive percentage. This means a long term increase in big spenders, as the ones who left briefly return and new riches are added. Basically for every 5 new millionaires, it’s likely that 1 will be one of those wonderful perverts we’ve come to know and love.
Basically, it’s not all bad news. There’s a positive way to look at this, and in the long run, this recession will the spring clean a lot of us need! Happy hunting.