Well the processors do not compete because they do not have to. It's an interesting situation. The entire business of adult is much more restricted, so prices for everything are higher.... but so are the profit margins.

I made one significant cost cutting decision in my business plan right from the start - don't handle money. Once you start handling money, you have a major new cost to your enterprise.

That's why I'm exclusively an affiliate.

When I started, to cut costs, I ran a T1 into my apartment and put on them my MS server for my web server, and my linux box for my email server. That way I didn't pay anyone for hosting.

One thing I have noticed from meeting people at the shows who are looking to start a site - take it upon yourself to learn html and dreamweaver. Don't pay someone to do things you yourself can do for free.

Make friends who know graphics, php, etc. For me, Austin is full of guys who know website work, networking, etc. I'm not saying be predatory or manipulative about it, but if you have friends who can do things for you when you are getting started...... you can get help on configuring a once-installed script, or other things you need.

Now, for me I never learned graphic design. So I made it a point to keep my sites mostly text, html and style sheets.... as opposed to being rich in custom graphics.

If you want to start low to the ground, pick what you can do and work it. Plus, if you work this way, if you don't get the sales you want, you are not out a big expense, so you can afford to keep plugging away at new things which may be more successful.

Steve