trends

A Recipe for Success

When Margaret Morgan started Platinum Media out of her home in Waterville, Maine, she didn't have a business plan. And although the company, which specializes in amateur content, recently signed a distribution deal with Cezar Capone, the go-with-what-makes-sense approach still holds up, she said. There was no sitting down and writing down a business plan or reading books — creating a web-only storefront was the move that enabled Platinum Media to sell its DVDs and steadily grow its business until the deal with Cezar Capone came about.

"We just kind of rolled along with things and checked on the feedback," Morgan said. "We took some of our personal taste and the customer taste and made that our foundation."

Platinum Media is hardly alone in going back to the drawing board. Overall, dramatic changes in the Internet landscape brought on by the explosion of social networking sites and Web 2.0 applications have caused adult businesses to change their business models. Still, a solid idea followed by extensive marketing research ensures that there is "win-win margin" should be at the core of any adult company's business plan, said Craig Tant, billing company CCBill co-founder who is working on a new kind of company within the adult space.

Once a company's idea takes off, figuring out how to stave off copycats becomes increasingly important. If business takes off, a growth plan that focuses on reinvestment of profits back into the business is critical, rivaled only focus on top-notch customer support, Tant said.

A good resource for start-up companies is the U.S. Small Business Administration's website, which offers a step-by-step business plan overview at SBA.gov.

"A business plan should be a work-in-progress," according to the website, which continues that "even successful, growing businesses should maintain a current business plan."

Not far behind the homepage is a list of 10 areas that every successful business plan should have, which the SBA considers "the essentials": executive summary, market analysis, company description, organization and management, marketing and sales management, service or product line, funding request, financials and an appendix.

(For those still inclined to read books on the matter, a quick Amazon search reveals "Business Plans Kit for Dummies," which retails at $23.09 new or as low as $5.09 used).

For Triple 10 Vault, which operates an affiliate program network, the business plan came together the old-fashioned way: through research and getting to know people, said Triple 10's CEO Luca Bizzotto.

"Once we were comfortable, our plan was to get noticed, so we had a huge launch at Internext Miami two years ago," Bizzotto said.

Triple 10 also gambled on a chance that offering up gender-bending content to straight surfers can drive traffic to an affiliate program's network of sites. The company took a gamble on a tranny site when it observed that curious straight surfers would peek in, stay, and then proceed to the straight sites.

Following the launch, the plan called for rolling out sites only after they were reviewed by industry veterans — the "go-to guys," as Bizzotto calls them.

"We love criticism," he said. "Basically as we grow our plan is to have a variety of sites with all different niches. We thoroughly study the niches we enter to make sure we develop a quality product that will convert. We strive to keep the trial cost for the member as low as possible to get them in the door because we stand behind the quality of our content."

Elsewhere, the advent of tube sites is causing old business plans with DVDs and affiliate programs at the center to go away entirely. While many content producers and distributors keep marching on, a number of companies — and even performers — are finding ways to branch out, brand and create business plans that adult industry has never had before.

Out of necessity as much as innovation, more and more performers are building businesses around their brands, bringing into the adult industry their passions from outside. Whether its sought-after Latin performer Marco Banderas recording music and even shooting a video (for a song called "Porn Life") or veteran talent Sinnamon Love's plans to launch a website later this year that will combine adult and mainstream content.

"Having the porn background I hope people recognize me as a legitimate journalist," Love said.

Even the adult industry's most formidable brands aren't prone to going through rapid change. Having decided to go out of the DVD business all together, Playboy Enterprises Inc. has hired streaming video specialists from the mainstream world to help revive its brand on the Web and in the process attract the young male demographic. To that end, the company has hired former employees from Heavy.com. Another Playboy executive, Timothy Sabo, has created a kiosk that utilizes USB Flash memory as storage for adult content. Flash N Go kiosks were to debut at trade shows this month, following a test run at strip clubs in Southern California.

Finally, with all the new developments, old business models still manage to hold out in the winds of change. That's because companies such as Adult Developments, which operate affiliate programs NichePay and ArchiveCash, still believe they can tap into "taboo fantasies of average people" with sites such as the recently launched RedneckConfessions.com and several celebrity sites, said DJ, Adult Developments' affiliate manager.

Redneck Confessions, in particular, offers exclusive interracial content that "proved very successful using the same process for conception" applied at the network's other sites, DJ said.

Over in Maine, Platinum Media's Margaret Morgan — who started out with no business plan — may just have the last word on the essentials that make up the ingredients of any solid business plan.

"We're self-investing, with my husband and I always putting our own income into our company," Morgan said. "We combine passion and dedication and find people that we can work with."

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

WIA Profile: Lexi Morin

Lexi Morin’s journey into the adult industry began with a Craigslist ad and a leap of faith. In 2011, fresh-faced and ambitious, she was scrolling through job ads on Craigslist when she stumbled upon a listing for an assistant makeup artist.

Women In Adult ·
profile

Still Rocking: The Hun Celebrates 30 Years in the Game

In the ever-changing landscape of adult entertainment, The Hun’s Yellow Pages stands out for its endurance. As one of the internet’s original fixtures, literally nearly as old as the web itself, The Hun has functioned as a living archive for online adult content, quietly maintaining its relevance with an interface that feels more nostalgic than flashy.

Jackie Backman ·
opinion

Digital Desires: AI's Emerging Role in Adult Entertainment

The adult industry has always been ahead of the curve when it comes to embracing new technology. From the early days of dial-up internet and grainy video clips to today’s polished social media platforms and streaming services, our industry has never been afraid to innovate. But now, artificial intelligence (AI) is shaking things up in ways that are exciting but also daunting.

Steve Lightspeed ·
opinion

More Than Money: Why Donating Time Matters for Nonprofits

The adult industry faces constant legal battles, societal stigma and workplace challenges. Fortunately, a number of nonprofit organizations work tirelessly to protect the rights and well-being of adult performers, producers and industry workers. When folks in the industry think about supporting these groups, donating money is naturally the first solution that comes to mind.

Corey D. Silverstein ·
opinion

Consent Guardrails: How to Protect Your Content Platform

The adult industry takes a strong and definite stance against the creation or publication of nonconsensual materials. Adult industry creators, producers, processors, banks and hosts all share a vested interest in ensuring that the recording and publication of sexually explicit content is supported by informed consent.

Lawrence G. Walters ·
opinion

Payment Systems: Facilitator vs. Gateway Explained

Understanding and selecting the right payment platform can be confusing for anyone. Recently, Segpay launched its payment gateway. Since then, we’ve received numerous questions about the difference between a payment facilitator and a payment gateway. Most merchants want to know which type of platform best meets their business needs.

Cathy Beardsley ·
opinion

Reinventing Intimacy: A Look at AI's Implications for Adult Platforms

The adult industry has long revolved around delivering pleasure and entertainment, but now it’s moving into new territory: intimacy, connection and emotional fulfillment. And AI companions are at the forefront of that shift.

Daniel Keating ·
profile

WIA: Sara Edwards on Evolving Clip Culture and Creator Empowerment

Though she works behind the scenes, Sara Edwards has had a front-row seat to the evolution of adult content creation. Having been immersed in the sector since 1995, she has a unique perspective on the industry.

Jackie Backman ·
profile

Segpay Marks 20 Years of High-Risk Triumphs

Payment processors are behind-the-scenes players in the world of ecommerce, yet their role is critical. Ensuring secure, seamless transactions while navigating a rapidly changing regulatory landscape requires both technological expertise and business acumen.

Jackie Backman ·
opinion

The SCREEN Test: How to Prepare for Federal Age Verification

For those who are counting, there are now 20 enacted state laws in the United States requiring age verification for viewing online adult content, plus numerous proposed laws in the works. This ongoing barrage has been exhausting for many in the adult industry — and it may be about to escalate in the form of a potential new AV law, this time at the federal level.

Corey D. Silverstein ·
Show More