Traffic does not equal paying traffic.
But... it can; and it does... actually. Here is some proof from two of my MFC accounts (I have 4 - mainly incase the ones with BAF got banned it wouldn't be my "real" account that I actually buy tokens and chat via!).
Number of Free Accounts Registered: 637
Number of Premium Accounts Registered: 189
Bonus Tokens Pending: 460
Tokens Credited Account: 50540
Number of Free Accounts Registered: 659
Number of Premium Accounts Registered: 178
Bonus Tokens Pending: 560
Tokens Credited Account: 48780
Those are people signing up to MFC as basics, and then how many of those converted from basics to premium.
Okay, the samples aren't MAHOOSIVE - but it still shows a near 25-30% conversion ratio of basic -> premium members. Obviously I have no indication as to how many went onwards to being
repeat spenders, nor how many
guests there were (perhaps it's 1:1, 10:1, 100:1, 1000:1 conversion of guests to basics!).
But yes, advertising and getting people in the front door
works. The above figures are derived from people searching a model name, finding
my site, joining and then going premium. How did they find the model names? Probably via forums and tube sites.
Incidentally, also how I found MFC. Now I've got approx 30,000 rewards points across two accounts - and then when you add the below on top... that's a
shit load of tokens that came from just lil old ME finding Mary (Goldenlady, Crazysysy, Crazy_m) back in 2010? That doesn't even start to account for how many of those 367 premium members spent more than $20 either!
All because 1 guy saw a free video of Mary, and joined MFC.
"Traffic does not equal paying traffic" - not necessarily no; but it
can. And a percentage of it...
does.
Before anyone thinks I'm advocating piracy - I'm not. I have a very strong belief and annoyance at people who use the line "But I wouldn't have bought it anyway" with regards to movies/games. The feeling of self entitlement based on "But I wouldn't... so it doesn't cost anything..." is insane.
But there are nuanced differences in business models, and I have no doubt that tube sites and/or various sites does indeed bring in far more than basic advertising can achieve. Do I agree with en-mass hosting of content? No. But I do believe that (perhaps) in not being majorly vigilant, they're actually gaining traffic, profit, and some models livelihoods... where otherwise there would not have been any.
If it hadn't been for MFC's free model I wouldn't have ever stayed. And all the above would have never happened...