opinion

Working With 3rd-Party Service Providers

For many companies the question of “how can we save money and reduce overhead?” arises as part of an internal optimization process that typically involves the re-negotiation of services with third-party providers, as well as an analysis of other operational costs.

They say that “the customer is always right,” and when dealing with third-party service providers, whether they are IT functionaries, billing, design or hosting companies, accountants, outsourced support staff or other necessary “help” for your adult business — you are the customer that “is always right.”

Outsourcing and third-party service providers allow many companies to cost-effectively leverage staff and expertise.

This doesn’t mean that you should adopt an adversarial attitude with service providers or attempt to dictate terms to them, but as the customer, you should not be afraid to ask for what you want, to negotiate the best terms, and to be willing to walk should the terms not be adequately met.

For example, you may be happy with your current hosting company, but notice that a competitor offers a similar hosting package at a lower price. This gives you three choices: switch hosts or stay with your current host and continue paying higher-than-market prices — or ask your web host for a better deal.

Likewise, you may be paying X amount per unique visitor for traffic to your website from a broker. Perhaps you could arrange a buy-back deal where the broker would take the exit traffic back from your site — mitigating some of its initial purchase price while replenishing the broker’s inventory — a win-win situation.

It is this seeking of mutual benefit that is at the heart of successful negotiations, for if there is no benefit to one party, there is no motivation for that party to seal the deal.

For example, if your service provider is already offering you a slim-margin deal, or at the limit of its technical capabilities, then perhaps no deal can be reasonably made; as not all customers are worth keeping.

Communication is vital in this process, as is having something to offer in return.

For example, “buying in bulk” is a proven way to lower acquisition costs, whether you’re dealing with bandwidth, traffic, or billable hours. Perhaps a service contract with a longerthan-normal term (a two-year vs. a one-year deal), or an exclusivity clause may be the key to sealing a deal.

Co-branding, ad swaps and other incentives can also help when re-negotiating deals.

For example, a high-volume affiliate asking for a higher payout rate from a sponsor might be placated with some custom content, such as the affiliate site logo on shirts worn by performers in a select scene: great win-win branding and benefits for both parties.

Take this further with the sponsor scheduling several scenes, each with top affiliate logo-clad models, and then turn the production over to prospective shooters to do on spec or as “audition reels.”

This saves the sponsor money, while a new shooter gets his foot in the door ...

However you decide to go about it, periodically re-evaluating your relationships with third-party service providers and then finding, unique, win-win ways to improve deals by providing mutual benefits, is a great way to lower costs and to increase your company’s strength through more solid business relationships.

Related:  

Copyright © 2026 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 Retailers Can Turn AI-Assisted Reporting Into a Scheduled Workflow

If you have been following this series, you know I have been climbing a ladder. First, I asked an AI model to do a task. Then I got tired of explaining the task every time, so I wrote a skill, a reusable set of instructions, and put it in a project folder with everything the task needed.

Zondre Watson ·
opinion

Retailer Tips for Making Trade Show Travel Pay Off

When sales slow, retailers understandably start looking for ways to tighten the budget. Every expense gets another look, and travel and trade show attendance can quickly end up on the list of things to cut.

Rin Musick ·
profile

BranditScan's Aerie Saunders on Fostering Creator Knowledge, Confidence and Community

Aerie Saunders is firmly in her season. When she sits down with XBIZ, a fall-scented WoodWick candle burns in the background, pumpkins decorate her desk and the first signs of spooky season are already on display. Not that Saunders waits until autumn to embrace the macabre.

Jackie Backman ·
opinion

Why Adaptive Pleasure Belongs Across Every Adult Retail Category

For too long, accessibility in adult retail has been treated as a side conversation. When it appears at all, it is often tucked away in a hard-to-find website category, framed as a special accommodation or treated as a medical add-on rather than a legitimate pleasure category. That approach misses the point.

Hail Groo ·
opinion

What Mastercard's Scam Monitoring Program Means for Adult Merchants

Mastercard's Scam Merchant Monitoring Program (SMMP) has introduced a new, investigation-led framework that works very differently from the ratio-based chargeback programs the industry has relied on for years. It applies to card-not-present merchants globally, and Mastercard's guidance on business models warranting closer attention includes adult content and dating platforms, along with subscription services, digital goods and forex.

Len Garcia ·
opinion

Why Retailers Need a Clearer Conversation About Margins

With rising manufacturing costs and living expenses, manufacturers’ suggested retail price (MSRP) no longer aligns with the actual costs of operating a business. This situation calls for a discussion about the current industry pricing landscape, potential adjustments, and how companies can make an impact.

Mersy Love ·
opinion

Why the Right Merchant Category Code Matters for NSFW AI Businesses

You explained exactly what your NSFW AI business does to your payment processor and they seemed to get it. The underwriting process felt thorough and exhausting, but it was well worth it because you began processing.

Jonathan Corona ·
profile

WIA: Perfect Fit Brand's Cee Cee Peters on Building a Lasting Career

For much of her decades-long career in the adult products industry, Cee Cee Peters let her work speak louder than her name. While she built relationships with retailers, became a top salesperson, and watched the business evolve from a movie-dominated marketplace into today’s sexual wellness industry, Peters deliberately kept a relatively low public profile. Raising children during the rise of the internet made that decision especially important to her.

Ariana Rodriguez ·
opinion

How Local Payments Can Expand Access and Reduce Friction at Checkout

Global adult platforms often enter new markets with a familiar assumption: If their checkout accepts major cards, they're ready for local customers. In reality, payment habits vary widely by country. Dutch consumers use iDEAL for online shopping, BLIK is a leading e-commerce payment method in Poland, and India's UPI handles billions of transactions each month.

Mitch Platt ·
profile

A Look Inside CC Wellness' Production Process

Stepping through the front doors of CC Wellness’ 215,000-square-foot headquarters, you first encounter the lubricant manufacturer’s comprehensive process in the company’s wall of plaques, which celebrate more than 25 formulas that have received FDA 510(k) clearances for medical devices.

Ariana Rodriguez ·
Show More