Economics and Monetization

Our technology has already been battle tested and deployed for production use across various Web2 platforms. Rarely does anyone even question that the content they are seeing is AI generated. And that is the point - as AI improves exponentially, the quality will become so good that there will be no discernible difference between a human person vs. an AI-generated person online.

Just a few examples of extremely common reactions to our AI models

Economics of OnlyFans Explained

During the process of testing our technology in real world situations, we've had the opportunity to engage with many OnlyFans agencies. Because of this, we have quite a good understanding of the workings of this industry.

First of all, what is an OnlyFans agency? These are entities that sign business contracts with OF girls ("models") and are responsible for driving traffic, organizing content creation, and often times managing conversations with subscribed fans. In essence, the girl creates the product (sexual content) and the agency markets and promotes said product. The revenue split is somewhere in the ballpark of 40% (agency) - 40% (model) - 20% (professional chatters). Chatting is actually very important and is usually outsourced to professional chatting agencies (i.e. VAs in South East Asia).

Contrary to popular belief, the OnlyFans industry is more often than not quite professionally organized. There are many moving parts that need to work in tandem, from the content creation to the traffic sources to the quality of the chatting and when they do, the results are incredible. A somewhat normal model can be expected to generate $10,000-$20,000 in monthly revenue. A model of Lush's caliber in terms of attractiveness can be expected to generate above and beyond $40,000/month, provided the traffic sources are dialed in. Keep in mind that this is one of the businesses with the highest margins in the world - the cost of creating the "product" (i.e. content) is close to 0.

Yet all is not as good as it seems. The churn rate of the industry is extremely high. Many of these girls are young and inexperienced and usually quit within 1 year if not the first few months due to a myriad of "human" reasons (lack of motivation, getting caught by friends & family, loss of interest, etc.) This presents a big problem for the OnlyFans agencies because they must invest significant time & energy in optimizing the marketing and traffic for each model.

Lush's Value Proposition and Monetization Potential

While the phenomenon of OF is often times mocked and belittled, we believe that it represents a large unmet need in the (sexual) marketplace. After all, the transfer of money from Fan to Model is purely voluntary. That means that the Fan is indeed getting value in return in order for him to willingly part with his hard earned money. As discussed throughout the previous sections, the value that the Fan receives is attention and sexual gratification from a physically attractive woman in the digital realm, things that he cannot obtain from the traditional (in-person) sexual marketplace. The significant earnings potential of OnlyFans models (and by extension IG and TikTok models) speaks volumes to just how distorted the traditional sexual marketplace has become and how much demand there is for virtual companions in our hyper-digitalized modern world.

We believe that Lush is well positioned to capitalize on these trends and capture a significant portion of value in the process. Our AI models are a 10x improvement compared to human models in many ways. They:

1. Are of the highest standard in terms of physical beauty, forever immortalized in time

2. Are able to generate content 24/7/365 from anywhere in the world in a fraction of the time at virtually 0 cost.

3. Can provide a much more fulfilling and intimate conversational experience for "fans" or "subscribers"

Lush's AI companions can not only provide a better experience for end users, but also solve a major pain point for OnlyFans agencies. Building their traffic and marketing strategies around AI models is a much more sustainable long-term strategy because it eliminates the biggest risk factor in the entire business model - the fickleness and high churn rate of a human model.

What lies ahead for existing human models? They'd do well to "upload themselves" into our AI and produce an AI version of themselves, which Lush can offer as a service as well. We do not anticipate human models to disappear overnight, as this technology still has a ways to go (the final frontier would be something along the lines of responsive live-streaming powered by generative AI). However, AI is developing at an exponential rate, and something like this is perhaps only a few years away. Therefore, we anticipate human models in the business of "providing and monetizing feminine sexuality" to lose significant market share to AI models in the near future. This should be seen as a net positive for society because as human OnlyFans/Instagram/TikTok models get out-competed, their labor and energy will be reallocated to more productive uses in society.

The monetization potential should now be clear. By being able to replace both the model and the chatter in the 40% (agency) - 40% (model) - 20% (chatters) equation, Lush will be able to capture 60% of the value for each model. Now consider the fact that Lush can scale essentially infinitely in terms of models to satisfy any and all preferences (Caucasian, Asian, Black, Curvy, Skinny, Short, Tall, etc), and you can start to see the significant opportunity at hand. To put it in perspective, OnlyFans alone generates $5B+ in transactional volume annually.