opinion

Show Me the Money

I wrote this column for XBIZ World's billing issue, in which the vagaries of processing and transacting for adult products and services are laid bare for the edification of the industry, providing a full picture of a side of the business where, unfortunately, most of the really bad stuff happens, like ripping off consumers and fellow merchants for millions of .

It is not the sort of corrupt activity that tends to land people in jail, although it should be. In adult, people go to jail for producing content that was legal up until the moment a jury of their peers (LOL) tells them it no longer is; a pustule of a legal practice, if you ask me, a boil on the ass of our system of jurisprudence and every person who aids and abets it. And yet, it pales — pales! — in comparison to the dark side of money.

Billing, of course, also is the lifeblood of the industry. If money is the mother’s milk of politics, it is the sweet lube of porn. Nothing goes in or out without it. As an industry that more or less exists on the margins of society and profit, however, success is often a result of volume; few make a killing selling a small number of high-priced products; most sell a lot of lower or medium-priced things. As physical products move online, to either be experienced or distributed from there, profit margins have become even smaller. This is not unique to adult, but it certainly holds true for adult. There are huge upsides to the virtual life, like lower overhead, increased efficiency and data tracking, but the bottom line for many is the fact that they simply have been making less money selling the same volume of product that used to support them in the offline environment of the past.

They also are swimming with sharks. Online, if you can control a lot of traffic and also have the ability to enable financial transactions for that traffic, you are in a very good position to become a king among men, a whale among fish. Being in such a position does not guarantee success, riches and power, but one is better positioned to scoop up flakes of gold from a torrent of traffic that could conceivably flow for eons. This is the dream, the plan and the goal for some, anyway. Why go to the trouble of actually producing something if you can prosper off the production of others?

In such a pure capitalist environment, where a complex food chain of service providers demands an increasing slice of the pie, the question remains how much these slices are worth and who really deserves to get a piece, and the answers to that, it seems to me, are in a current, perhaps constant, state of flux. The problem, as I see it, is with the almost total lack of transparency within the process.

I’m not saying that everyone doesn’t know what’s really going on and the swiftness with which certain opportunities are exploited, because we hear about it and experience it sometimes for years before someone in a position to do something about it actually does. But more often than not, it is not we who fix our own problems, but the card association, through new or upheld rules, or government entities like the Federal Trade Commission, the Department of Justice, or Congress, through new or enforced laws or regulations. In the meantime, cumulative damage is done to the industry. How does that make sense to anyone who isn’t profiting from it?

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

opinion

Protecting Your Business With a Data Backup Strategy That Works

If the subject of backups sounds boring to you, maybe this will grab your attention: Without properly implemented backups, your business is vulnerable to partial or even catastrophic data loss, which could screw your company and tank your income.

Brad Mitchell ·
profile

WIA Profile: Paulita Pappel

Raised in Spain, surrounded by a predominantly Catholic community, Paulita Pappel grew up being told porn was bad. When she became a feminist, she was told her fascination with porn was not in line with her desire to empower women. This inner conflict made her feel like there was something wrong with her.

Women In Adult ·
opinion

Complying With New Age Assurance and Content Moderation Standards

For adult companies operating in today’s increasingly regulated digital landscape, maintaining compliance with card brand requirements is essential — not only to safeguard your operations but also to ensure a safe and transparent environment for users.

Gavin Worrall ·
opinion

Understanding the FTC's New 'Click to Cancel' Rule

The Federal Trade Commission’s new “Click to Cancel” rule has been a hot topic in consumer protection and business regulation. Part of a broader effort to streamline cancellation processes for subscription services, the rule has sparked significant debate and legal challenges.

Corey D. Silverstein ·
opinion

Key Factors for Choosing a Merchant Services Partner

Running a successful adult business requires more than just delivering alluring and cutting-edge products and services. Securing the right payment processing partner is essential to maintaining a steady revenue stream.

Jonathan Corona ·
opinion

Identifying and Preventing Transaction Laundering

Recently, a few merchants approached me after receiving compliance notifications from their acquirer about transaction laundering. They were unsure what it meant, and unsure how to identify and fix the problem.

Cathy Beardsley ·
profile

WIA: Alexis Fawx Levels Up as Multifaceted Entrepreneur

As more performers look to diversify, expanding their range of revenue streams and promotional vehicles, some are spreading their entrepreneurial wings to create new businesses — including Alexis Fawx.

Women In Adult ·
opinion

Navigating Age-Related Regulations in Europe

Age verification measures are rapidly gaining momentum across Europe, with regulators stepping up efforts to protect children online. Recently, the U.K.’s communications regulator, Ofcom, updated its timeline for implementing the Online Safety Act, while France’s ARCOM has released technical guidance detailing age verification standards.

Gavin Worrall ·
opinion

Why Cyber Insurance Is Crucial for Adult Businesses

From streaming services and interactive platforms to ecommerce and virtual reality experiences, the adult industry has long stood at the forefront of online innovation. However, the same technology-forward approach that has enabled adult businesses to deliver unique and personalized content to consumers worldwide also exposes them to myriad risks.

Corey D. Silverstein ·
opinion

Best Practices for Payment Gateway Security

Securing digital payment transactions is critical for all businesses, but especially those in high-risk industries. Payment gateways are a core component of the digital payment ecosystem, and therefore must follow best practices to keep customer data safe.

Jonathan Corona ·
Show More