Making Money with Piracy

In the Power of YouTube and the Money of YouTube I blogged about the legal way to make money in the internet. The possibility with videos and online marketing.

But we all know there is a “dark side” of the internet.

“The Piracy” or the “Black Market” Sites.

Here you can find Movies, Series, Music, Games etc. and they are all for free. A huge pain in the a** for all the Entertainment companies.

By the way I stumble about a study of the Swiss government about this subject, that i found quit interesting / funny.

But that should not be my topic for this blog post. This blog post is about a question my little cousin raised, a question that I never really sort about.

Why do they make that? Why people offers illegal data for free? Why risking been charged or anything like that?

Ellen Seidler wrote a nice and explaining blog post about this subject.

So what is the purpose?

In Ellen Seidler opinion this whole piracy is driven by one thing

“…the thing that has motivated mankind since time began—the desire to make money.  “

And she states that with some good evidence.

Let me explain what I have learned from her blog post and with self experience. If you want to download a file on one of these special sites, easy to find on Google etc., you will always be getting a link to a file hosting service like Filesonic, Fileserve, Rapidshare, Mediafire, 7x.to, etc.

This hoster provides you than with the chosen file, which is called, if it is illegal, Warez.

But where is the money?

And now we come to the question >Where do they get money from?<

If you are an Uploader to one of this file hosting sides, you get money from downloads. So simple is that.

Ellen Seidler adds to that “Simply put, the more downloads you generate for your file, the more money you earn.”

But, why?

Because this hosting sides depends on traffic to make money. And with this money “reward” for the uploaders, they want to encourage their user to share their files.

So how do they turn traffic into money?

I will give you one simple word Advertising. With that they make the big money.

They also generate money from offering premium accounts, in which user has high-speed and parallel downloads and so on for a fee.

And that all brings me back to the sides, which provide this links. These sides are often relate to one of this file hoster, so that they promote, by often use their site to store warez contend.

This sides make also money, like the hosters, throw their advertisement.

Please feel free to leave comments, if you want to know more about this subject or if I let something out that raised your interests.

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3 thoughts on “Making Money with Piracy

  1. I ask myself practiclly the same questions than your cousin.

    I was always wondering how people make money through this web sites, through downloads and advertising, but I still cannot understand it. Could you explain me into even easier words, if possible… or maybe I am just not clever enough to ever get it 🙂

    I mean the uploaders are the one who earn money through sharing this files, right?.
    How is that they earn money through advertising? are they the ones that put those ads on the webpage? is because the linked it? how??

    If you can help me would be great, if no is like I said before, maybe my destiny is to never get it!…

    • hi Gaby,

      thx for your comment, that show me that i didn´t make my point right.
      The filehoster earn money throw adds.
      They get more money if they have a high traffic of users.
      It´s like real adds in the streets, on a busy street with many many people coming throw, the price to plant an add there are higher than on quit streets. To encourage the traffic, they need interesting stoff on their sides.
      So to encourage the users to upload interesting things, they give them rewards, if they create bigger traffic.
      Because if the traffic is high, they can get more money from the adds.
      And the possibility that user will buy premium accounts will rise, because more users want faster downloads, and that means more money for the filehosters.

      So the reward for the users is like a bonus or a commission for their “work” to create traffic.
      I hope I brought a little light in the darkness. But please ask again if I didn´t answers your question in the right way.

      Best regards

      • Thanks Björn!!!
        Now I can say I understand really how they make money!
        You picture it in a really nice way… so thank you very much from taking me out from my ignorance :-). Cheers!

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