- So, first off, how much would it cost to build an OF-like platform? I know that basic cookie cutter video hosting websites go for 20 to 50k USD. Now triple that for extra gimmicks, lets say then 60k to 150k.
Unless I’m widely wrong about how much it costs to build a personal platform like this, why are all of these rich celebrities joining OnlyFans and accepting the 20% cut taken from them?
My hypothesis:
- They for some reason actually want to be associated with OF as a marketing trick.
- They want to be associated with OF due to a political agenda. What would that agenda be?
- They expect to attract more subscribers from OF than on their own, due to people already having OF accounts to begin with, which streamlines subscription.
- There is enough internal traffic on OF so that the platform itself can serve as an advertisement vehicle. OnlyFans has an estimated 1.25 million daily active users. I would imagine this is nothing to most of these celebrities, though, which already have comparable or higher followings elsewhere.
- I’m wrong about costs.
Disclaimer: I don’t use OnlyFans, and I’m only vaguely aware of how it works, so there is that.
It’s a nightmare tax wise especially with VAT on digital services. You are essentially liable for collecting and remitting VAT on behalf of your users and any non compliance is your risk. Not the only reason but one of the main ones.
Good point, but tax compliance in the major markets would only run at about 100k initially, and then some 30k annually, maybe 60k if they also sell physical merch. I think this is peanuts for most celebrities.
Who are these celebrities joining onlyfans you speak of?
I think it is “5.”
As you haven’t consider the biggest cost involved in creating OF-like platform with 1.25 million DAU. It is, without a shadow of doubt, the marketing cost.
That line item in the cost sheet is the trickiest to quantify.
Because there is a first mover advantage involved. If you can identify a valid niche, it costs very little. People just come to you because there is no where else to go. Like starting a forest fire in summers.
But if you are the second app that is trying to be the new OF, or the 10,000th marketing agency trying get clients, your cost will hell lot more.
Thing is, they wouldn’t be trying to be a new OF in this case, they would just be launching their own content through their custom platform, not hosting other people’s content like OF does. There is some intersection between these businesses, but they are not in direct competition, in my view.
How does not hosting other people’s content reduce the marketing cost?
These people are already famous, they are their own marketing. All they have to do is create the platform and point their fans towards it. Its not like they are creating an entire platform and personal brand from scratch - they already have one and just need a means to distribute and monetize it.
Can you give an example? I want to know how many fans they have? And how many DAU you think will be enough?
As someone with a keen interest in the technical aspects of digital platforms, I’d like to offer an insight into why celebrities and high-profile individuals might prefer using an established platform like OnlyFans over creating their own. While the initial build cost for a custom platform similar to OnlyFans might seem manageable, estimated between $60,000 to $150,000, this figure barely scratches the surface of the total cost of ownership and operation.
Firstly, ongoing maintenance and operational costs can be substantial. A stable and secure platform demands continuous investment in hosting, cybersecurity, software updates, and technical support. This aspect alone can rack up significant expenses, often exceeding the initial build cost over time.
Secondly, user acquisition and marketing are huge considerations. OnlyFans already boasts a large, established user base and significant brand recognition. Building a similar audience from scratch requires not only a substantial marketing budget but also time and strategic efforts.
Moreover, the legal and regulatory compliance aspect, especially when it comes to content moderation and financial transactions, adds layers of complexity and cost. Ensuring secure payment processing and adhering to various financial and privacy regulations is no small feat.
Then there’s the issue of scalability and reliability. As the user base grows, the platform needs to scale accordingly, which involves additional infrastructure, resources, and investment.
Lastly, the network effect plays a crucial role. Platforms like OnlyFans benefit from their existing large community. For a new platform, creating and nurturing a similar community is a challenging and costly endeavor.
In summary, while the upfront cost for a platform might be in the ballpark of a few hundred thousand dollars, the ongoing costs – maintenance, marketing, legal compliance, and scalability – can push the total project cost into the millions. This doesn’t even account for the intangible costs of time and effort needed to establish a new platform in a competitive space. Hence, for many celebrities, leveraging an existing platform like OnlyFans, with its established infrastructure and user base, presents a more practical and financially sensible option.
Frankly, I’m not convinced about the cost argument. There are thousands of small porn businesses hosting videos on their own websites and accepting payments via CCbill or alternative payment processors. I doubt they are all running expenses in the millions of dollars, since they wouldn’t be profitable if that were the case.
Running expenses aren’t that bad, it’s the development/maintenance cost that will set you back. Those places probably have in house tech/founders.
Digital Solutions Developer here.
The only thing you need to worry about if you know what you’re doing is scalability and marketing. Everything else is basically best practice and you can start free.
20% seems cheap… Apple Appstore takes what? 30%?
Commissions in life insurances 5-10%… Commissions in instrument sales anywhere from 5-15%…
i think you answered your own question.
Well, all except i fail to see how politics could possibly play any part in it. Seems like the “discussion” or “issue” would usually start and end at “porn good” vs “porn bad” for x many reasons
Don’t underestimate #4. It’s not easy to get people to sign up to a whole new system/site. OF is a known entity. Plus, running an entirely new business (software business) is not easy. Several of the celebrities that have done this are B-listers at best, not always the most informed/managed and good with money. Real A-listers steer clear and don’t want to be associated with that brand.
One thing that comes to mind is customers know onlyfans isn’t going to steal their credit card info lol