Are you looking for OnlyFans stock? To be perfectly up front, you currently cannot buy shares of OnlyFans. It's a privately run company that's owned by a parent company called Fenix International Limited.
Fenix is actually somewhat of a mysterious company based out of the U.K. Little is known about Fenix except that it does own OnlyFans. So a privately owned social media platform is gaining international headlines. In fact, it's seen a spike in new users during the coronavirus pandemic.
It seems like the perfect formula for a company to eventually go public, but let us take a deeper dive into what OnlyFans actually is and what it would mean for it to be a publicly traded company.
What Is OnlyFans and Is There OnlyFans Stock?
- All jokes aside, OnlyFans is a content subscription service platform that allows content creators to post their work that users can access via their subscription. The tongue-in cheek joke here of course is that a vast majority of content creators on OnlyFans are adult entertainers or sex workers. Making the brand synonymous with pornography. Even though there is a portion of the site that isn't explicit.
So is OnlyFans just an online purveyor of pornography? The mainstream does treat it this way. But at its core, OnlyFans is a site that helps adult film stars and sex workers provide their service to clients; while keeping them safe.
It gives many of these workers a chance to go from being called porn stars to actual content creators. Creators who are able to control their own material and how it's distributed.
Because of its adult nature, users must be 18 years of age to register and provide government identification to confirm their age. Although, OnlyFans stock isn't here yet, we can get the memes going.
1. Why OnlyFans?
As mentioned earlier, many adult film stars and sex workers prefer to use a site like OnlyFans because they can do so in the safety and comfort of their own homes; which keeps them safe.
Another benefit for these creators is that the content they do post is protected by the OnlyFans site. Meaning users cannot record or screenshot material and repost it on other sites.
One of the biggest problems in the adult film industry is that streaming sites can theoretically freely stream videos and films that adult stars don't get reimbursed for.
But it is not all peachy for content creators on OnlyFans. Many non-celebrity creators complain that it's very difficult to gain a following on the site without constantly churning out new material.
Even then, subscription fees have to be kept low or else most users won't bother paying for a subscription. On top of the difficulties in creating a substantial following, OnlyFans does take a 20% cut from all fees that the content creators make.
Which means that less successful creators get even less money for their work. Maybe if there was an OnlyFans stock, they could invest in it.
2. Who Is OnlyFans’ Competition?
It's difficult to come up with direct competition to OnlyFans since it operates in such a niche market on the internet. In terms of content creation, there are other social media platforms that could be seen as competitors.
For example, TikTok, Instagram, SnapChat (NYSE:SNAP), or Twitch, which is owned by Amazon (NASDAQ:AMZN).
In July, Facebook (NASDAQ:FB) rolled out its own content creation subscription platform. It helps support content creators who post their media on their Facebook page.
While it hasn't gained much publicity so far, we know that Facebook has a pretty explicit no nudity or adult content restriction on any of its pages. As a result, OnlyFans does have a leg-up on Zuckerberg there.
There's a new site where people can watch girls play video games in the nude. If you're interested it's called Nude Gamer.
While it pretty much crosses the line over into pornography, it focuses on very specific genre or fetish. One that includes sexy girls who play videogames without clothes.
Before Twitch changed their rules to no longer allow nudity, plenty of girl gamers made money from people who wanted to watch them game in the nude.
In terms of companies traded on the public markets, Snapchat would probably be the closest thing to competition. That is until a company like TikTok goes public.
There aren't too many adult entertainment companies being traded. However, one of the originals, Playboy, is coming back to the public markets via a SPAC IPO with Mountain Crest Acquisition Corp (NASDAQ:MCAC).
Therefore, we could see that tempting for an OnlyFans stock.
Does OnlyFans Have a Stock?
- If you're looking to trade OnlyFans stock, you're going to be disappointed. They're not a publicly traded company. As a result, you'll have to wait to add them to your investment portfolio. That is, should they decide to file for an IPO.
1. Who Uses OnlyFans?
There are quite a few well known internet celebrities and adult film stars who've started OnlyFans accounts in order to directly profit off of their own content.
There are some pretty big celebrity names that have OnlyFans accounts; including rapper Cardi B, Tyga, Blac Chyna, Amber Rose, Jordyn Woods, Aaron Carter, and Austin Mahone.
Some of these celebrities do post some NSFW pictures. However, a majority of them just use it as another way to interact with their fans on a more direct and intimate level.
The real hustlers on OnlyFans are the adult film stars and sex workers. They provide their exclusive content behind paywalls. They fulfill specific and individual requests for much higher prices.
Adult stars like Riley Reid, Nicole Aniston, and Alexis Texas are all amongst the most subscribed to and most visited OnlyFans sites. Of course, you can argue that pornography is free on the internet.
However, interacting with these stars directly and accessing exclusive content gives that extra incentive for fans to subscribe.
Perhaps the most famous and publicized creator is former Disney actress Bella Thorne. She proceeded to break OnlyFans when she joined.
The traffic to her OnlyFans page was too much for the site to handle. She gained over 50,000 subscribers in her first week and allegedly made over $2 million.
The kicker here was that none of her photos were nudes. As a result, thousands of people demanded refunds from OnlyFans.
2. Potential for OnlyFans Stock as a Public Company
It's difficult to gauge just how well OnlyFans would do as a public company. Everything about it is relatively unknown in terms of how profitable this type of company can be in the long run.
Content creator channels on sites like YouTube or Instagram depend on ad revenue. OnlyFans creators depend on subscriptions and individual requests to bring in revenues.
The ad revenue and site traffic model are much more reliable and proven. The top YouTube creators can net six or even seven figures annually.
The financials behind OnlyFans are fairly straightforward. The site takes a 20% cut from every dollar that comes through the site.
Which means if a content creator makes $100,000 in a year in subscription fees, OnlyFans gets $20,000 of that simply for being the avenue in which the content gets sold.
It doesn't take an expert to see that a subscription model is great and the percentage that OnlyFans takes is substantial. But the site truly depends on the content creators to continue funneling that revenue into OnlyFans’ wallet.
3. Will Onlyfans Stock Be the First One on the Market?
The danger of being a first-mover in a space is that someone can come and do it better. Especially if they have a bigger brand or deeper pockets.
The single best advantage that OnlyFans has going for it, is that companies like Facebook, Amazon, or Google probably want nothing to do with being tied to a pornographic site.
Still, there are other companies out there that could provide these content creators with more opportunities. And while only taking a 10 or 15% cut of subscriptions. At that point, the OnlyFans revenue model completely falls apart.
But OnlyFans is creating quite a brand for itself. Even though at times it can be the punchline of a joke. It's near universally recognized as the true first-mover in personalized adult content subscriptions.
Subscription revenues do work. However, this is hardly in the same category as a SaaS company with a subscription model like Snowflake (NYSE:SNOW) or Fastly (NYSE:FSLY).
OnlyFans will need its content creators to continue to pump out new content all the time. And yes, creators signing up to the site have increased significantly during the COVID-19 quarantine. But what happens when the pandemic is over?
4. What Can We Compare OnlyFans To?
During COVID-19, the increase in working from home has caused a massive spike to the gig economy. For a lot of creators, OnlyFans is something they can do from home, in their spare time. Perhaps on their lunch break or after work.
In that way, can we compare OnlyFans to a company like Fiverr (NYSE:FVRR)? Fiverr has been a Wall Street darling this year returning over 600% to investors year-to-date, compared to the S&P 500’s 7.69%.
Fiverr reported an 88% year-over-year revenue growth in their recent Q3 earnings call. And a 37% year-over-year increase in active buyers.
It's a very comparable model as Fiverr also takes 20% off completed orders from content creators. But it's generally thought of as a sort of finder’s fee for sellers.
Fiverr has posted outstanding growth in revenues and has established itself as the premier name in the gig economy. Can OnlyFans follow suit?
Some advantages Fiverr has is the wide range of skills that can be offered on the site compared to OnlyFans. Almost every skill can be found on Fiverr. The only one not offered being one of the only ones OnlyFans does offer: sex.
But sex does sell. And if OnlyFans can continue to expand and establish its brand, it should garner plenty of interest from investors if it were to ever make itself public.
OnlyFans Stock Final Thoughts
There's nothing more interesting to investors than speculating on a successful private company that could be brought to the public markets. OnlyFans has been one of the few winners from the COVID-19 quarantine
It should continue to be as long as the virus extends its stay. As of September, there were over 30 million registered users and over 450,000 content creators actively using the site. A number that only stands to grow exponentially over time.
But no analysis is complete without assessing some of the risks. OnlyFans has already suffered through a data breach that caused large amounts of private content to be leaked to the internet.
Beefing up its cyber security detail should be a top priority for OnlyFans if they want to maintain the trust of its content creators.
It's still a very niche market. Eventually, OnlyFans is going to have to expand its offerings to grow its total addressable market. There's only a certain segment of people who're still willing to pay for pornography; especially on the internet. So OnlyFans may have to get creative with increasing its demand.
Will OnlyFans ever go public? Perhaps. There isn't a long history of adult entertainment companies doing well as publicly traded companies though.
So maybe we think of it as a social media platform or a gig economy site instead. Either way, a recurring revenue stream for subscriptions is a proven model for businesses.
And what it'll always come down to in the end, is how the company maintains those subscriptions over the long-term. OnlyFans has proven it can sell sex.
But to truly become a great and profitable company, it needs to sustain the user presence in its ecosystem. And ensure that those users stay subscribers for a very long time.