Around this time last year, the world was hit by the fiercest force ever faced by mankind – the Novel Coronavirus. The impact of the global pandemic was so worse that the whole world went into a highly restricted lockdown.
The result of the precautionary lockdown was devastating, to say the least since several businesses were forced to shut down both temporarily and permanently.
The Novel Coronavirus and the ensuing global lockdown created a domino effect resulting in people losing their jobs and ultimately an economic meltdown. However, there was one business enterprise that was completely unaffected by the rough patch in the timeline and that was Onlyfans.
While several business organizations were shut down and struggling to keep afloat, Onlyfans was earning billions of dollars in the same year.
Onlyfans earned a whopping $2.4 billion in 2020, also the number of registered users exceeded the 120 million mark. If you are wondering as to what is Onlyfans and how did it manage to make so much money, especially during these difficult times, read through this blog and you will have the answers for most if not all business-related queries pertaining to COVID-19.
What is Onlyfans?
OnlyFans is a London based premium subscription-based social media platform that connects artists and content creators across all genres with their fanbase. Onlyfans has an unrestricted content policy and therefore is a safe haven for adult entertainers to share their content. The artists and content creators are in it to monetize their content through various subscription plans as well as a pay-per-view model. The Onlyfans app now has over two million content creators and over 120 million registered users.
How Was Onlyfans Profitable?
The profitability of Onlyfans is no secret. There are several parameters that influence the profitability of the Onlyfans app.
- Unrestricted Business Model:
As mentioned earlier, Onlyfans has an unrestricted content creation policy; therefore, artists and content creators from all backgrounds including the adult industry are a part of Onlyfans. The vastness of the fanbase of the adult industry serves to be a great source of income.
The policy to upload nudes is being capitalized not just by those from the adult industry but by celebrities as well such as fitness trainers, singers, dancers, social media influencers, etc.
- Hosting Commission:
Onlyfans charges a commission of 20% from the celebrities and content creators for hosting them on their subscription-based social media platform. While the commission figure in itself may seem too little when compared to their earnings, it actually charges 20% of the earnings of each subscription or pay-per-view earnings from each of the content creators.
You don’t even have to do the math to know that it is actually a highly rewarding revenue generation model.
- Growth of Content Creators:
Due to the Noel Coronavirus and the lockdown several content creators, celebrities, and adult entertainers lost their jobs and were looking for an alternative source of income. In pursuit of an alternate source of income, they registered themselves with Onlyfans.
Along with the celebrities and adult entertainers, their fanbase also signed up with Onlyfans, which is why the number of registered users grew from 90 million to over 120 million in 2020.
- Increase in Pre-Tax Profits:
The business model of Onlyfans is developed in such a manner that it makes high amounts of pre-tax profits. In the year 2020, the company’s pre-tax profits crossed the $70 million mark.
Tim Stokely, the CEO and co-founder of Onlyfans stated that he is expecting the company’s pre-tax profits to exceed £300 million which is equivalent to $417 million in the next financial year.
- A Gateway During Lockdown:
Being confined to the house for a long period of time is not an easy task. In addition, it was even more difficult for those who were diagnosed positive for COVID-19, since they were confined to their rooms as part of the self-isolation protocol.
Onlyfans proved to be a gateway for such people to unwind by connecting with their favorite celebrities and their posts. This increased the business traction for Onlyfans and thereby the revenue generation during the lockdown
The success of Onlyfans during the lockdown was a welcome change as numerous business organizations suffered huge losses. In addition, the success of the Onlyfans app resonated with several Onlyfans clone apps who also were quite successful in their own range.
One such Onlyfans clone app that was successful during the lockdown was FansForX. The aftereffects of COVID-19 and the global lockdown still haven’t faded out. Therefore, it is the right time to launch your own Onlyfans clone app and FansForX is the right business proposition for you. Contact us now to know more.