trends

Phone Billing: A World of Opportunity

They say that the Internet has made the world a smaller place, and I think that few adult webmasters would disagree. Indeed, a quick glance of most sites' web server logs will show visitors hailing in from Tahiti to Timbuktu — and everywhere else in between.

While having an ever-increasing flow of traffic to your website is vital, the cosmopolitan nature of this commodity provides some distinct challenges to operators on several fronts; including reaching visitors with cultural differences; communicating in a language your visitor's understand; and allowing your customers to purchase products or services using their preferred currency and their desired method of payment.

For a substantial percentage of the world's population, the language is other than English; the currency is not the U.S. dollar; and their desired method of payment is via charging it to a standard telephone or mobile phone account.

When many operators think of phone billing they think of dialers — a controversial phone billing mechanism that was widely abused and now illegal in certain jurisdictions. While dialers have largely been relegated to the past, other methods of phone billing, such as pay-per-purchase systems, have become popular with consumers who enjoy the predictability of the price-point and the ease and perceived anonymity of the purchase — which does not require the use of a credit card.

One such system is Password-by-Phone (PbP), which allows customers to pay for membership website access by dialing a phone number and receiving a password that will be billed to his or her land-line telephone or cell phone account. The process requires a six-minute phone call that will be charged to the user based upon the international billing rates currently in effect; he or she will then receive a password that is typically good for 30 minutes of access at the participating website. No simultaneous second phone line connection is necessary in order to use the system.

While telephone billing is not recurring by default, websites that offer compelling content may have a good chance of attracting repeat customers that enjoy the freedom of paying for only the amount of access time they want then and now, without having to bother with often troublesome subscription cancellation processes later.

Before a prospect can become a customer, however, he or she needs to be understand the purchase process; and that's where language and communication come to together.

According to Password-by-Phone's Marc Jarrett, developing multi-lingual capabilities is important to the success of adult e-commerce websites. "Given the global architecture if the Internet, it is imperative to communicate with the surfer in a language they understand — theirs," Jarrett said. "2003 was a significant turning point in the brief history of the web thus far. In that year, the number of non-English language hosts on the Internet out-numbered English ones for the first time."

This trend of non-English Internet penetration is especially true of developing countries, which are increasingly becoming more affluent, better connected to the Internet, and in many cases, already well-served by savvy marketers seeking a broader audience.

"With some developed countries already demonstrating signs of saturation, such emerging markets represent a fantastic opportunity for any adult webmaster wishing to fully capitalize on the global reach of the web and is in this business for the long haul," Jarrett told XBIZ.

One of the biggest and potentially most profitable of these emerging markets is China, which accounts for about one-fifth of the world's population, but poses some significant challenges for adult operators — both in terms of billing, as well as in regards to the well-reported censorship promoted by the Chinese government.

"With over 1.3 billion inhabitants, China is the world's most populous nation and is experiencing exponential growth in practically all areas — including Internet usage," Jarrett said. "Some 137m people, about 10 percent of the overall population, are already online, and this figure is expected to grow rapidly in the next few years — making it arguably the world's most attractive market in the long term."

Despite language barriers and other differences, communicating the purchase process and motivating reasons for membership to a global audience is not insurmountably difficult.

"The ordering process creates the revenue. Once inside the member's area, the billing clock is no longer ticking," Jarrett told XBIZ. "This way, webmasters can make money from all surfers — including those in developing countries that do not have the luxury of broadband or the two phone lines on which other phone solutions are dependent." But it's not simply just developing countries or those that do not speak English that favor alternative billing methods such as pay-per-purchase phone solutions.

"Pay-per-call phone billing works, not least since the phone is so ubiquitous — in fact, here are now more cell phones in the U.K. than there are people," Jarrett said. "In an era of increasing online fraud and identity theft, there are a whole army of people out there who have credit cards, but would prefer not to use them online."

As any experienced e-commerce operator will tell you, it's not what you make, but what you get to keep; and while credit cards and the easy recurring billing they offer are often the preferred revenue stream, they have the drawback of being vulnerable to chargebacks — which are rare in phone billing.

"With phone billing, chargebacks are negligible since calls to such numbers usually represent a small fraction of the phone subscriber's overall activity," Jarrett said. "Failure to pay will result in termination of an essential utility."

It is the universal necessity of this "essential utility" that makes it appealing as a billing mechanism that crosses boundaries. Telephones have become a truly indispensible item that increasing numbers of consumers are using for more than simply and taking making phone calls, and this is true the world over.

PbP is available as a billing option in 240 countries and is geo-targeted in 37 languages, including Russian, Hindi, Arabic and Chinese, which allows operators to capitalize on the emerging Asian markets.

"Money talks, in every language," Jarrett said.

Using the phone is the way you may be able to hear what it's saying.

Related:  

Copyright © 2024 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

How to Halt Hackers as Fraud Attacks Rise

For hackers, it’s often a game of trial and error. Bad actors will perform enumeration and account testing, repeating the same test on a system to look for vulnerabilities — and if you are not equipped with the proper tools, your merchant account could be the next target.

Cathy Beardsley ·
profile

VerifyMy Seeks to Provide Frictionless Online Safety, Compliance Solutions

Before founding VerifyMy, Ryan Shaw was simply looking for an age verification solution for his previous business. The ones he found, however, were too expensive, too difficult to integrate with, or failed to take into account the needs of either the businesses implementing them or the end users who would be required to interact with them.

Alejandro Freixes ·
opinion

How Adult Website Operators Can Cash in on the 'Interchange' Class Action

The Payment Card Interchange Fee Settlement resulted from a landmark antitrust lawsuit involving Visa, Mastercard and several major banks. The case centered around the interchange fees charged to merchants for processing credit and debit card transactions. These fees are set by card networks and are paid by merchants to the banks that issue the cards.

Jonathan Corona ·
opinion

It's Time to Rock the Vote and Make Your Voice Heard

When I worked to defeat California’s Proposition 60 in 2016, our opposition campaign was outspent nearly 10 to 1. Nevertheless, our community came together and garnered enough support and awareness to defeat that harmful, misguided piece of proposed legislation — by more than a million votes.

Siouxsie Q ·
opinion

Staying Compliant to Avoid the Takedown Shakedown

Dealing with complaints is an everyday part of doing business — and a crucial one, since not dealing with them properly can haunt your business in multiple ways. Card brand regulations require every merchant doing business online to have in place a complaint process for reporting content that may be illegal or that violates the card brand rules.

Cathy Beardsley ·
profile

WIA Profile: Patricia Ucros

Born in Bogota, Colombia, Ucros graduated from college with a degree in education. She spent three years teaching third grade, which she enjoyed a lot, before heeding her father’s advice and moving to South Florida.

Women In Adult ·
opinion

Creating Payment Redundancies to Maximize Payout Uptime

During the global CrowdStrike outage that took place toward the end of July, a flawed software update brought air travel and electronic commerce to a grinding halt worldwide. This dramatically underscores the importance of having a backup plan in place for critical infrastructure.

Jonathan Corona ·
opinion

The Need for Minimal Friction in Age Verification Technology

In the adult sector, robust age assurance, comprised of age verification and age estimation methods, is critical to ensuring legal compliance with ever-evolving regulations, safeguarding minors from inappropriate content and protecting the privacy of adults wishing to view adult content.

Gavin Worrall ·
opinion

Account-to-Account Payments: The New Banking Disruptor?

So much of our industry relies upon Visa and Mastercard to support consumer payments — and with that reliance comes increased scrutiny by both brands. From a compliance perspective, the bar keeps getting raised until it feels like we end up spending half our time making sure we are compliant rather than growing our business.

Cathy Beardsley ·
profile

WIA Profile: Samantha Beatrice

Beatrice credits the sex positivity of Montreal for ultimately inspiring her to pursue work in adult entertainment. She had many friends working in the industry, from sex workers to production teams, so it felt like a natural fit and offered an opportunity to apply her marketing and social media savvy to support people she truly believes in and wants to see succeed.

Women In Adult ·
Show More