Expert: Jim Boyd - 4/17/2008

Question
Hi Jim,
In my research I have found that most people consider making money in the adult movie industry a very difficult thing to do. Others say it's extremely lucrative.  What would you say is the profitability margin for new producers and the type of profits to expect in the first few years of producing?

Answer
Hi Bill,

It is extremely difficult for new producers to turn a profit during the first few years of operation. The debt incurred with the original startup cost combined with the fact no one (talent, agencies, other producers) wants to do business with you until you have established yourself makes it exceedingly difficult to even remain in operation much less turn a profit. This is why so many up-start companies fail within the first couple of years.

If you are asking me for some kind of figures as to the profit one could expect in the first few years, I’m afraid there are just too many variable to even guess at one. However, I can tell you that it took me almost 4 years to start showing any real profit. The first 2 years I operated at a loss, the 3rd showed only a marginal profit at best and the 4th produced enough money to reinvest in better equipment. After that, profits have increased steadily year after year but making that happen has NOT gotten any easier.

Quite simply, IF you make it through those early years the business can be very lucrative. However, contrary to popular belief, this is defiantly NOT a quick/easy money business. This is a very demanding Industry that caters to an quickly changing market. It requires a lot of time, effort, resources and hard work to succeed.

Jim Boyd