Moderated by CommerceGate's Bjorn Skarlen, the panelists included Victor Pitts from Moniker, Spike Goldberg of Homegrown Video, Michael Klein from LFP, Charles Hentrich of Wildline, Johnny V from I-Bridge International, 2000charge's Raphael Berkien and Alan Litvak from Morgan Stanley.
The lead-in from the show's promoters was simple but ambitious: "While the basic model has stayed the same, the structural details of adult Internet affiliate marketing have evolved over the years. This completely unique seminar will take you on a journey that explores every link in the food chain.
"From acquiring and securing your domain and shooting your own content to processing payments and getting traffic, experts in every step of the process will explain in concise and rapid-fire detail how their part works. The alternative title for this seminar could be: Learn Everything You need to Know About the Adult Internet Business in 60 Minutes."
Once Skarlen made his introductions, the panelists were quick to begin delivering on the seminar's promises:
First up was Victor Pitts from Moniker, who discussed ways of monetizing domain names including using search-engine friendly 301 redirects of traffic from domains with existing traffic and PageRank (PR), which may be purchased as part of a portfolio expansion or acquisition. Pitts gave special emphasis to the desirability of domain names that have keyword text in them and your ability to "own" a keyword.
"Vertical dominance has the power to bring you traffic for as long as you keep your domain renewals current," Pitts said. "The value of premium domains is appreciating 22 percent per year."
Once the issue of domain names was dealt with, the need for content was next addressed, with Spike Goldberg of Homegrown Video asking, "You've got your domain, what are you going to do now?" Goldberg then discussed the differences between licensing content and producing your own, and delved into the issues of personal taste and content marketing: "Never be afraid of something, even if it's not your favorite niche, don't be afraid of promoting it. Remember, your content fuels the fire that drives your site."
With domains and content tackled, the issue of building your brand came to the forefront, with Hustler's Michael Klein simplifying things by saying "Having a strong brand is really, really good."
"Positives of a strong brand include type-in traffic and unique key phrases for search engines, plus a higher trust level among partners," Klein said, speaking of how affiliates don't need to worry about being paid when the name on the check is "Hustler."
Branding can work against you, however; beyond the higher level of attention and scrutiny received by name-brand adult companies, is the impact of negative performance.
"If you're not delivering good content and regular updates, branding can work against you," Klein said. The bottom line, Kline added, is that "strong brands increase your revenue."
At this stage of the game, traffic will be many operators' main concern; a subject addressed by Charles Hentrich of Wildline, who led off by citing an eye-opening statistic: There are 7 billion web searches monthly, making search engines a prime source of traffic.
"Search-engine traffic is good because it brings in a prequalified visitor," Hentrich said. "Your future clients will find you through the search engines." Hentrich then went on to discuss the differences between search engine optimization (SEO) and search engine marketing (SEM) and how SEO isn't really free, as it takes either time or the money to hire a specialist. "There's a cost either way," Hentrich said.
Johnny V from I-Bridge International was next up, discussing the stigma of working in adult and how it impacts the billing process, as well as the need to use fraud filters and to focus on client relationships and customer support. The advantages and disadvantages of merchant accounts were described, with lower costs and increased control on the plus side and increased risk and support issues among the drawbacks.
"If you lose that merchant account, it's gone," Johnny V said, referring to the permanent placement of "bad" merchants on the terminated merchant file or TMF.
Rather than their own merchant account, neophyte operators were advised that third-party billing is the way to go and "a great way to leave a potentially fatal part of your business in the hands of professionals," according to Johnny V, who also advised accepting checks: "Checking is 10-12 percent of sales on average, so be flexible in offering payment options."
Flexible payment options or "alternative e-commerce solutions" are what 2000charge's Raphael Berkien is all about, and he wasted no time in explaining the different options, such as ACH and direct-debit, phone billing and stored-value cards. He also discussed the various implications of "push" and "pull" billing mechanisms and the global marketplace.
"80 percent of the world's Internet users live outside North America," Berkien said. "And a majority of Europeans around 64 percent — will not use a credit card to make payments online." Berkien also discussed the need to remove any language and currency barriers your site might have. "More options mean more sales," he said.
The final speaker didn't focus on how to make money, but what to do with it once you did. Morgan Stanley's Alan Litvak was on hand to discuss everything from tax deferment to retirement plans and other sensible uses for the wealth that many operators accrue. As Litvak put it, "When you make that money, make it last!"
If this seminar is any example of what's to come, the 2007 XBIZ Summer Forum will be remembered as a huge success.
