🔎 OnlyFans, Bad Blockbusters and Tesla is in China

Welcome to The Jungle: The BusTech newsletter that is as satisfying as hitting the bullseye on your first shot!

Here’s what Tarzan has for you today:

• OnlyFans Operations: Making money off the horny!

• Office Teasers: Tisk Tisk Blockbusters!

• CyberQuad Chaos: Karens ruining the fun for everyone!

OnlyFans, more like OnlyProfits!!

From the outside, OnlyFans, for most people is the taboo app that you don’t speak about - especially if you are using it (as a payer or a creator!).

But, the business model behind the company is making some serious dough! How does that old saying go - “sets sells”? No, that's not it - it will come to me!

Catching you up: OnlyFans has become a lucrative subscription platform for creators to publish exclusive content, especially among adult entertainers. Think Instagram, but subscribers have to pay to follow you - so your content better be spicy! 🔥

Their main revenue source: 20% of all funds paid to creators on their platform goes into their pocket.

Their revenue numbers: OF has over 190 million active users and has generated revenue of $2.5 billion in 2022. That is up from $1.2 billion in 2021 and $375 million in 2020. Talk about growth 📈

What investment funding did they use to start and grow?: $0!!! The founders own 100% of the business themselves. Well, they used to - they sold 75% off in 2018. In other words, the founders are set for life.

Why the model is cool:

• They spotted a gap that other social media platforms don’t offer direct cash from subscribers for the content.

• Instead of competing with other platforms, they leveraged the followings of their creators on other social platforms to funnel traffic to OF.

• 80/20 split allows OF to make a serious amount of money while allowing their creators to still get the majority chunk!

• They keep all the data! Potentially one of the most valuable parts of the OF business is that all user data does not belong to the creator (ie. the creator can’t re-engage with subscribers through email or other forms as they do not have their subscribers’ information besides their OF handle). But OF sure does! they can sell whatever they want to over 190 million horny subscribers!

True entrepreneurs have created spin-off businesses that add value to OF. One, in particular, is called OnlySearch. Some smarty pants realised that OF needed a search function for the eager subscriber looking for their “type”.

OnlySearch adds OnlyFans creators to their search engine for a fee. Once on the search engine, the creator’s page can be more accessible for subscribers looking for that specific type of content. Kind of like the Google search of OnlyFans.

If I was the owner of these businesses, I definitely couldn’t look Granny in the eye on Christmas and tell her about the company I started. 👵

But, whether you morally agree with their platform or not, they sure are making millions and millions! 💰

Teasers for the office

Office teasers are here for Tarzan to help you stand out in the office or through virtual interaction with your colleagues - it’s a pleasure!

BlockBuster turned down an opportunity to invest in a one-year-old company for $50 million - you know which company it was?

Netflix!!!!! Yes, the company that destroyed Blockbuster’s whole business model. Blockbuster execs apparently laughed at the partnership that Netflix brought to their table. Netflix currently has a market cap of around $149 billion now! I bet those Blockbuster execs are still crying.

Tesla’s CyberQuad finds a new market🏍️

One of Musk’s companies, Tesla, created a CyberQuad for kids which was unveiled in the US in 2019.

But now they are only making money off of sales to the Chinese population.

Here’s why:

• The CyberQuad was based on Tesla’s Cyber Truck and allows kids to hit speeds of 16km/h (10mph).

• The target market was kids between the ages of 8 and 12 weighing less than 68kgs (150lbs).

• But 10 months into the release, the US axed the product due to the suspension and tyre pressure requirements. Every CyberQuad had to be recalled.

• Seems like simple fixes - but what really got the recall going was a 36-year-old Karen. She rode the quad with her 8-year-old child and flipped the CyberQuad THAT IS MADE FOR KIDS (not 36-year-olds).

• Nonetheless, she complained about her bruised shoulder and added fire to the recall fiasco.

• Now, no US kids can enjoy the fun of the CyberQuad! Thanks Karen!

Soooo, they had to sell it somewhere. Tesla launched the product last week in China for R30,000 ($1,670) each. 

If this becomes a successful product in China - maybe the US will change their frame of thinking?? 💰

We will keep an eye out and let you know!

ICYMI

💥Massive explosion in Joburg - Bliksem boet, I felt that one hey!

📺 Derek Watts is leaving Carte Blanche - It’s been 35 years with uncle Derek!

💰Lottoland SA takes on Google - Google is like “who?” 😆

Meme of the day

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