Filehosts Paying Their Doom

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Snuff

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Has anyone else thought about how FileServe, Hotfile, and other filehosting companies that offer payment for downloads are making money? Will it ever stop or will it continue to grow? Does it seem mere genius or idiotic? Will there be legal consequences? Will they start scamming you? What do you think?
 
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It will continue to grow and evolve. It always has since the beginning of the Internet. Any business whether is "shady" or not, let's per say is 100% legal there will ALWAYS be legal consequences. Lawsuits all the time in any business and to protect yourself you need insurance (company insurance) which costs a lot of money. A lot of people do not think about it or attempt to get one.

As far as them "scamming you" that would be idiotic for them to do so because a revenue of monthly payment is what keeps them growing.
 
It will continue to grow and evolve. It always has since the beginning of the Internet. Any business whether is "shady" or not, let's per say is 100% legal there will ALWAYS be legal consequences. Lawsuits all the time in any business and to protect yourself you need insurance (company insurance) which costs a lot of money. A lot of people do not think about it or attempt to get one.

As far as them "scamming you" that would be idiotic for them to do so because a revenue of monthly payment is what keeps them growing.


What do you mean by company insurance?
 
It will continue to grow and evolve. It always has since the beginning of the Internet. Any business whether is "shady" or not, let's per say is 100% legal there will ALWAYS be legal consequences. Lawsuits all the time in any business and to protect yourself you need insurance (company insurance) which costs a lot of money. A lot of people do not think about it or attempt to get one.

As far as them "scamming you" that would be idiotic for them to do so because a revenue of monthly payment is what keeps them growing.

I agree with you.

Besides, why are they going to scam their advertisers ? Its proved that the method they are using to advertise is more profitable than investing in banners or ppc campaings, etc.

I dont know if this has something to do with the topic, but for example, hostgator pays $60 bucks per conversion. They are offering a $7 / mo service. In their blog they stated that they used to spent arround $90 - $100 for every singup via ppc or text ads campaing.

So, filehosts using the same method as hostgator are not only saving $$$ if not they are getting more and more popular thanks to webmasters that promote them.

Moreover, most webmasters dont reach the payment amount every month and when they reach it, they simply use part of that money to buy premium account. So filehosts earns more and more. Not even to mention the webmaster referral programs which in my opinion is fantastic for them.


This is like any other biz on internet... Today they earn thousands until a new a revolutionary idea appears. Happened to napster, then Kazaa and sooner or later to filehosts.
 
They won't last long. Lawyer that could help them to win the case doesn't exist. I mean seriously, it's more than obvious that they're encouraging people to share copyrighted files.

File Hosts are always using the same old scheme, "Share photos, documents, school projects, with other students and your family". It worked for RapidShare, and it still works. You won't see anyone from RapidShare on forums which are mainly Webmaster oriented. You won't see them offering money in exchange of uploading. Simply, they're here for good. While file hosts like FileServe, Oron, FileSonic, are here only to make a quick profit.

People aren't stupid, if FileServe was against sharing of copyrighted files, their representative wouldn't be on WJunction. They wouldn't be talking about RapidLeech. Like yeah, normal person would use RapidLeech, to download "photos from vacation."

They wouldn't be on forums full of people from third world countries, who use the Internet only for Facebook and RapidLeech (or sBorg).

FileSonic, FileServe, Oron, all of them are probably (more like 100%) registered on a fake person. Even if the government manages to seize their servers, or to get ISP's to block their IP's. Guys who were managing them would have enough money to start a legit business, and move to some country, where no one would know who they are.
 
^ RapidShare used to offer similar incentives....they've just gone through countless legal battles and have adopted a "new way of life." There's not enough information to project why or how long they will be online.

One thing you have to realize also, is file hosting is just the start. A lot of these companies are merely testing the marketing to introduce something new, something else.
 
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People who want to earn by uploading will use a specific host which pays more and is stable..uploaders will spread their files all over..that filehost will be famous.people will start to buy their premium and this cycle goes on and on untill the company gets sued like RS :D
 
Lawsuits all the time in any business and to protect yourself you need insurance (company insurance) which costs a lot of money. A lot of people do not think about it or attempt to get one.

Are you saying an individual should get business insurance to receive file host pay? Makes no sense. Either way, business insurance is dirt cheap.

Even in my line of work where I give out anticipation cheques my insurance is only a couple grand a year.

it's more than obvious that they're encouraging people to share copyrighted files.

You won't see anyone from RapidShare on forums which are mainly Webmaster oriented. You won't see them offering money in exchange of uploading. Simply, they're here for good. While file hosts like FileServe, Oron, FileSonic, are here only to make a quick profit.

People aren't stupid, if FileServe was against sharing of copyrighted files, their representative wouldn't be on WJunction. They wouldn't be talking about RapidLeech. Like yeah, normal person would use RapidLeech, to download "photos from vacation."

They wouldn't be on forums full of people from third world countries, who use the Internet only for Facebook and RapidLeech (or sBorg).
It's more of a don't ask don't tell kinda thing.

Agreed with all other points.
 
I wasn't talking about people who upload getting insurance I was talking about the OPs view on file-hosts which they should be getting insurance themselves. If you an an uploader (and most of them here upload warez) and you attempt to get insurance for what you do that would make no sense then.

Business insurance isn't cheap. I work with buildings. One small crack. Owner wants to sue you for a million dollars. We pay about 3k monthly for company insurance under one million dollar coverage. Every time we get into a lawsuit that monthly bill goes up. Is the same for file-hosts. Lawyers aren't cheap...there is no way "a couple of grand a year" is what pays them. Insurance covers that or it should.

Jason: While you may be right. That is only an assumption that file hosts are "encouraging" people to share files but they never say copyrighted files. Yes some hosts in here are getting noticed when their clients say "I haven't got paid from XYZ host" and in their signature they have their forum (that links to...etc) and later on they talk about how XYZ host is paying them.

Sooner or later though courts will have to force file-hosts to remove repeat infringers who upload and many of their files are removed due to copyright and that is how the affiliate system will crash for those whose sole purpose to get money is by uploading illegal files they do not own. If $1000 a month is a lot by risking to upload copyright materials for you then so be it. Is not worth it in my opinion IMO. There are far greater jobs out there that someone can do or study to become and make more legitimately.

And Hotfile is smart for doing it without the courts telling them to do so. Today 2/19/2011 people being banned from Hotfile. But no one talks about the trouble they are getting into if they do not do it.

http://online.wsj.com/article/APba256b5b302d4d9c9e8af569d017dba6.html
 
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