Victoria Givens: Porn is not Recession Proof

[RawAlex]

Reducing credit limits is a pretty normal part of the CC business, especially in times when the value of the assets people have is dropping. I am suspecting that the credit card companies are being very vigilant on every account, especially any account that shows a major shift in balance (up or down) to make sure that the credit limits are in line with what they feel is right.

My personal feeling is that if your entire business model is based on the need to recur, then you are likely to feel the pinch in the near term future. It may even be a bigger issue in the next few weeks, as people attempt to scrape past christmas to give their children the impression that nothing is wrong, but at the same time running their cards right to the wall. I am suspecting that January rebills in the adult world won't be as good as normal.

I am wondering why more programs don't offer closed end fixed price memberships - pay one price for 90 days access, no recur, and the rate is significantly lower than the recurring price would be - so example, if you are charging 24.95 per month, why not do a one time 49.95 instead for 90 days? Even if you are paying out $35 per signup, you are already in the green day 1, and whatever other upsells, exits, or internal ups you might offer would be all to the good - and then come up with a system to recontact these users at the end of 90 days and re solicit their business for another 90 days or offer them other choices?

$50 in the bank today beats the heck out of maybe $75 if you are lucky 3 months from now.