According to a post in xBiz.com, “FriendFinder Networks Inc. has begun the process of shutting 5,000 co-branded websites, calling them ” too cumbersome and cost prohibitive” to continue operating”.
“The move, announced today during a conference call on 2nd quarter financial numbers, shifts the focus of an affiliate network strategy to one that supports the further development of primary brands, which number about 100.”
“Previte noted that the company still operates about 28,000 websites, but that the co-branded sites have given it the most problems”
“Closing the 5,000 sites will allow FriendFinder to develop its own brands and buy its own keywords, Previte said.”
The interesting issue is always at the bottom “revenue for the second quarter of 2012 was $81.1 million, but that it saw a loss of $7.4 million in the quarter.” How did they lose out with so much revenue……………….and no bricks or mortar.
I am not sure what they mean by Co-Branding? are these affiliate “Whitelabel” sites or sites that FF actually ran themselves?
MikeMann, they also own Penthouse magazine.
Their adwords costs are enormous plus they have pretty significant logistics given the number of affiliates they have, both content producers and marketers.
Anyway, just like EPN, just like online poker, just like Mesothelioma leads, eventually, cams will tighten up. This appears to be the first taste of that.