profile

Country Snapshot: Russia

Nearly twice the size of Canada, Russia is the world's largest country, extending over a vast expanse of Asia and Europe.

It has the world's eighth-largest population, with some 142m inhabitants. Furthermore, Russian speakers also live in the neighboring countries that were once part of the USSR, before the Berlin wall fell back in 1989.

The subsequent transformation from communism to capitalism has made a handful of tycoons such as 'oligarch' Roman Abramovich very rich indeed — according to Forbes Magazine, he has a net worth of some $18.2 billion, and is now the UK's richest man.

The disparity between the rich and poor is enormous, with the vast majority of Russia still having to survive on pitifully low pay - the average monthly wages there last year stood at just 8,162 rubles, or about $285.

However, 16.5% of the population, about 23.7m people, are already online, and as with all developing countries, this figure is expected to continue growing exponentially in the months and years ahead.

Credit card penetration in Russia is low, with "only about five million active credit-card accounts," according to Brunswick UBS Warburg. Russians would rather use pre-paid cards, rather than credit cards, especially when buying items online.

Online fraud is still all-too commonplace, with no shortage of opportunists wanting to make a quick buck, in this, the new land of corrupt Übercapitalism, where who know is still more important than what you know.

One billing mechanism that is still relatively secure, however, is that of phone billing. Chargebacks here are practically unheard of, since failure to pay their phone bill will result in the termination of an essential utility which probably also facilitates their connection to the Internet.

Russian is the official language, with knowledge of English restricted to the educated classes who are a minority, so when pitching these surfers you must do so in their native language. Your phone processor should be able to provide you with the tools to do this – if not, switch to one that can.

Also bear in mind in mind that many Russian surfers still have relatively slow dial up Internet connections, so you should therefore consider making material available to them that they can realistically enjoy, such as pics and smaller vid-clips, to avoid excessive download times.

Chances are, Russian surfers only have one phone line; so pay-per-minute phone billing will clearly not work since the surfer needs two lines to pay you this way — one to call the premium number, the other for connection to the web.

You should therefore employ password billing whereby the surfer "buys time" in advance using their land line or cell — when he enjoys your content, the billing clock is no longer ticking.

Since the payouts available with such billing are considerably less than the usual monthly subscription rates, simply give these users less time to enjoy access to your member's area.

If you are concerned that your content will then be made available on P2P networks and so forth, ask your phone processor to provide you with DRM protection to ensure that your content is only made available to those Russians that pay you for it.

Despite the challenges, our old enemy represents a fantastic opportunity for webmasters to make money from this huge, emerging market.

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

To Cloud or Not to Cloud, That Is the Question

Let’s be honest. It just sounds way cooler to say your business is “in the cloud,” right? Buzzwords make everything sound chic and relevant. In fact, someone uninformed might even assume that any hosting that is not in the cloud is inferior. So what’s the truth?

Brad Mitchell ·
opinion

Upcoming Visa Price Changes to Registration, Transaction Fees

Visa is updating its fee structure. Effective April 1, both the card brand’s initial nonrefundable application fee and annual renewal fee will increase from $500 to $950. Visa is also introducing a fee of 10 cents for each transaction, and 10 basis points — 0.1% — on the payment volume of certain merchant accounts.

Jonathan Corona ·
opinion

Unpacking the New Digital Services Act

Do you hear the word “regulation” and get nervous? When it comes to the EU’s Digital Services Act (DSA), you shouldn’t worry. If you’re complying with the most up-to-date card brand regulations, you can breathe a sigh of relief.

Cathy Beardsley ·
opinion

The Perils of Relying on ChatGPT for Legal Advice

It surprised me how many people admitted that they had used ChatGPT or similar services either to draft legal documents or to provide legal advice. “Surprised” is probably an understatement of my reaction to learning about this, as “horrified” more accurately describes my emotional response.

Corey D. Silverstein ·
profile

WIA Profile: Holly Randall

If you’re one of the many regular listeners to Holly Randall’s celebrated podcast, you are already familiar with her charming intro spiel: “Hi, I’m Holly Randall and welcome to my podcast, ‘Holly Randall Unfiltered.’ This is the show about sex, the adult industry and the people in it.

Women In Adult ·
trends

What's Hot Now: Leading Content Players on Trending Genres, Monetization Strategies

The juggernaut creator economy hurtles along, fueled by ever-ascendant demand for personality-based authenticity and intimacy — yet any reports of the demise of the traditional paysite are greatly exaggerated.

Alejandro Freixes ·
opinion

An Ethical Approach to Global Tech Staffing

One thing my 24-year career as a technologist working to support the online adult entertainment industry has taught me about is the power of global staffing. Without a doubt, I have achieved significantly more business success as a direct result of hiring abroad.

Brad Mitchell ·
opinion

Finding the Right Payment Partner

Whenever I am talking with businesses that are just getting started, one particular question comes up a lot: “How do I get a merchant account?” It’s a simple question, but it has a complicated answer.

Jonathan Corona ·
opinion

The Taxman Cometh for Every Business

February may be the month of romance, but it is also a time when we need to think about something that inspires very little love: taxes. April is not far away, and the taxman is always waiting. This year, federal and most state income taxes are due Monday, April 15.

Cathy Beardsley ·
opinion

The Continuous Journey of Legal Compliance in Adult

The adult entertainment industry is teeming with opportunity but is also fraught with challenges, from anticipating consumer behavior to keeping up with technological innovation. The most labyrinthine of all challenges, however, is the world of legal compliance.

Corey D. Silverstein ·
Show More