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The Insane Economics of OnlyFans

The UK has a pretty interesting system when it comes to businesses and their financials. Even private companies in the country are required to disclose some financial details, which is great news for anyone who loves a good behind-the-scenes peek at major players. AKA Me!

One very interesting to company to look up is company called Fenix International. Now, I’m very certain that most of you wouldn’t have heard the name of this company. But I’m certain that most of you have.

Fenix International is the parent company of OnlyFans.

Now, while the financial disclosures of OnlyFans are somewhat limited, they reveal enough about OnlyFans business to say that it is probably the most significant media platform founded since TikTok in 2014 and one of UK’s most successful private tech companies.

Let’s have a deeper look at the (insane) business and economics of OnlyFans.

Understanding the Business

OnlyFans’ business model is simple at first glance: creators make money by offering subscriptions to their fan base, often through tiered pricing structures. Think of it like this: you start with a free tier, and as you climb the ladder of fandom, things get pricier.

For example:

• Basic: Free

• Standard: $5/month

• Premium: $10/month

• VIP: $100/month

The more you pay, the more you get.

While analyzing their financials, one of the most interesting shifts I came across in OnlyFans revenue model is that the company is increasingly making more money from one-off or transactional purchases, rather than just monthly subscriptions.

What does this mean though?

While most users on OnlyFans are indeed there for NSFW content, a significant portion of revenue now comes from fans paying for something beyond just photos or videos. These transactions often include pay-per-view content and private chats. And no, it’s not all about the photoshoots—subscribers are often paying for the fantasy of direct communication with creators.

Interestingly, many of these interactions (especially chat) - with top-tier creators - are handled by extended teams. Remember, many of these creators are now multi-million dollar enterprises who have delegated fan interactions to offshore assistants. 

Essentially, most private chats on OnlyFans are a bunch of dudes talking to …. another bunch of dudes.

Still, it highlights an important point: many users are not just paying for the content - they’re paying for the connection (or at least the illusion of one). 

The Pandemic Effect

OnlyFans as a platform is not new. It was launched in 2016 and was designed to give fitness influencers, reality stars and travel bloggers an easier way to monetize their followings via subscriptions. 

The company however found its true Product-Market Fit with NSFW (Not Safe for Work) content. 

You see, OnlyFans was nowhere near as big even just 5 years ago as it is today. Their numbers are a testimony to this. In 2019, just before the pandemic, the platform had about 7 million users. Respectable, sure, but nothing like the OnlyFans we know today. 

Then in 2020, the world hit pause. People were stuck at home, with nowhere to go and too much time on their hands. 

Cue the explosive growth of online entertainment - and OnlyFans.

Here’s what happened next:

1. 2020: 30 million users

2. 2021: 120 million users

3. 2022: 190 million users

4. 2023: 210 million users

And it’s not hard to understand this meteoric growth. When the COVID-19 pandemic forced most of the world to stay indoors, the demand for digital content skyrocketed, and OnlyFans was perfectly positioned to capitalize on this new reality. 

With stories of creators earning thousands, sometimes millions, the platform became an attractive option for anyone with a phone and a bit of ambition. Suddenly, mainstream media couldn't stop talking about the platform and the platform just went into a viral growth loop. 

OnlyMoney

So, I’ve been telling you that OnlyFans is massive, but let’s break down just how massive. 

To put it simply—it’s raining money at OnlyFans.

In 2019, just before the pandemic hit, OnlyFans pulled in a solid $250 million in gross revenue. Fast forward to 2023, and that number has rocketed to a staggering $6.63 billion.

That’s right, $6.63 billion!

This growth is so huge that OnlyFans’ revenues are now believed to be more than double that of Aylo - the adult entertainment giant that owns P*rnhub, RedT*be, YouP*rn, and more.

OnlyFans keeps 20% (80% of it goes to the creator) of its gross revenue as its cut, which came out to about $1.3 billion in 2023. Out of that, the company had a juicy operating profit of $649 million.

And if that wasn’t jaw-dropping enough, here’s the kicker: OnlyFans runs this billion-dollar empire with just 42 employees. Yes, you read that correctly. That means each employee is averaging over $31 million in revenue per person. 

Not too shabby, right?

What Made OnlyFans So Successful?

Now, it isn’t like other platforms haven’t tried doing what OnlyFans does. So how did they manage to break through and leave everyone else in the dust? 

Well, by doing the work no one else was doing. Sure, other platforms offered subscription models, but OnlyFans managed to solve some of the biggest headaches for the adult content industry. Here’s what they got right:

• Security & Safety: OnlyFans brought a layer of legitimacy by implementing strict verification for creators. 

• Payment Processing: Handling payments in the adult content world is no small feat, but OnlyFans cracked the code, ensuring creators get paid consistently and on time.

• Legal Compliance: By managing content moderation and legal risks, the platform allowed creators to focus on what they do best—creating—without worrying about the back-end logistics.

All this made OnlyFans indispensable for creators, even with its 20% cut. It allowed them to monetize more efficiently while maintaining a level of security and legality that other platforms couldn’t offer.

But Wait—It’s Not Just About That

Believe it or not, OnlyFans is trying to diversify. Yep, the platform that’s best known for adult content is making a play for more mainstream creators. Will it work? Well, that remains to be seen, but here’s what they’re doing:

• OFTV: In 2021, OnlyFans launched OFTV, a free streaming service with “safe-for-work” content like cooking tutorials, fitness videos, and music performances. It’s their attempt to attract creators from more traditional industries.

• Attracting the Masses: They’re trying to woo creators who wouldn’t normally associate with an NSFW platform by promoting their monetization tools.

But let’s be real—it’s going to be tough for OnlyFans to shake its reputation. Most creators on the platform are still catering to the adult content market, and those who try to branch out often miss out on more mainstream opportunities like brand deals and modeling gigs. It’s hard to convince a Fortune 500 brand to sponsor your baking tutorial when your platform is synonymous with... other things.

Whether OnlyFans will successfully foray into the SFW scene is yet to be seen, but for now - I think it’s owners will have no complains being the biggest adult content subscription platform and raking in more billions.

☄️ Asteroids ☄️

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