- 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.
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.