Greetings:

I'm new to the industry, and spent almost a year researching the marketplace before coming up with a product of my own (and now have several waiting to launch as soon as this 2257 muck shakes itself out). And from all that research, I can tell you, I think you're 100% right. You probably wouldn't believe the numbers I have from some studies I paid to have done. I was shocked the first time I read them.

The gay market is WAY WAY WAY WAY behind the straight market. Our part of the industry doesn't have the caliber of product, the level of sophistication, nor it seems the business savy that the straight market has.

I see the majority of the gay marketplace still operating as if it were the early 90s, throwing up crap left and right, still thinking they'll make fortunes from it (and yes, I'm talking about sponsors and paysites, not just webmasters). To be honest, they are still profiting well from it, but only because there's not much competition out there for them yet that is operating at the higher levels. I think many companies will wake up one day wondering where all of their business went all of a sudden.

From my perspective, this makes the gay marketplace an absolutely perfect one to be competing in. It is very easy in this industry to gain competitive advantage rather quickly.

Hell, most adult gay companies are so piss poorly run, that I've found I'm gaining great competitive advantage just by answering my damn e-mail. People act absolutely shocked when they get replies the same day, instead of it taking 2 or 3 weeks.

There are very few companies in the gay marketplace that operate at what I would consider calling a "competitively viable" level. Why that is, I don't know. I'd venture to say that there are probably more people in the gay industry because of the sex, than because of the money. As such, you're not seeing the business professionals that you see in the straight market.

I mean heck. Look at the top of the food chain in the straight marketplace. You're talking about PUBLICLY TRADED COMPANIES like PlayBoy, that have the business geniuses that go along with it. The gay industry has NOTHING like that. Not even CLOSE.

I think a $200,000 investment in the gay marketplace is probably worth about the same as a $2,000,000 investment in the straight one at this point. I'm taking advantage of that, and I think a lot of other people are / will be as well.

Why don't gay companies work together? Why don't we see more strategic partnerships and the like? Again, because most of these companies aren't run by business people. They don't understand the industry even though they've been emerged in it for years and year, and they don't really even understand their own business.

Can you believe there are still people that operate paysites that believe that other paysites are their COMPETITION? Try to explain to them that porn surfers aren't like people that are buying cars. It's not as if they're buying 1 and only 1 for the next 3-5 years. There is no competition for the surfer.

The large companies in the straight market understand that, and you can clearly see the results. They form partnerships, work together, and all make more money from the user in the long run.

All that all being said, there are a few exceptions in the gay market, but not many....