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 © 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 Adult Businesses Can Navigate Global Compliance Demands

The internet has made the world feel small. Case in point: Adult websites based in the U.S. are now getting letters from regulators demanding compliance with foreign laws, even if they don’t operate in those countries. Meanwhile, some U.S. website operators dealing with the patchwork of state-level age verification laws have considered incorporating offshore in the hopes of avoiding these new obligations — but even operators with no physical presence in the U.S. have been sued or threatened with claims for not following state AV laws.

Larry Walters ·
opinion

Top Tips for Bulletproof Creator Management Contracts

The creator management business is booming. Every week, it seems, a new agency emerges, promising to turn creators into stars, automate their fan interactions or triple their revenue through “secret” social strategies. The reality? Many of these agencies are operating with contracts that wouldn’t survive a single serious dispute — if they even have contracts at all.

Corey D. Silverstein ·
opinion

Building Sustainable Revenue Without Opt-Out Cross-Sales

Over the past year, we’ve seen growing pushback from acquirers on merchants using opt-out cross-sales — also known as negative option offers. This has been especially noticeable in the U.S. In fact, one of our acquirers now declines new merchants during onboarding if an opt-out flow is detected. Existing merchants submitting new URLs with opt-out cross-sales are being asked to remove them.

Cathy Beardsley ·
trends

How to Handle Payment Disputes Without Sacrificing Trust

You can run the best-managed and most compliant website out there, but that still doesn’t completely shield you from the risks tied to payment disputes. Buyer’s remorse, an unclear billing description or even a simple misunderstanding can lead a customer to dispute a transaction. Accumulate enough disputes, and both your reputation and revenue could be at risk.

Jonathan Corona ·
trends

WIA Profile: Taylor Moore

With a 70-person team and a growing slate of tools for content creators, the Teasy Agency has developed a reputation for putting talent first. That commitment owes a lot to co-founder Taylor Moore’s own experiences as a cam model.

Jackie Backman ·
profile

WIA Profile: Cathy Turns Creator Platform Experience Into a Model-First Playbook

As both a model and industry executive, Cathy lives in two worlds at once. “Since I do both things, I can act as the liaison between the model community and the rest of the SextPanther team,” she tells XBIZ.

Jackie Backman ·
opinion

From Compliance to Confidence: The Future of Safety in Adult Platforms

In numerous countries and U.S. states, laws now require platforms to prevent minors from accessing age-inappropriate material. But the need for safeguarding doesn’t end with age verification. Today’s online landscape also places adult companies at uniquely high risk for inadvertently facilitating exploitation, abuse or reputational harm, or of being accused of doing so.

Andy Lulham ·
opinion

What Adult Businesses Need to Know About Florida's Age Verification Law

The rise and proliferation of age verification laws has changed the landscape for the online adult industry. A recent and compelling example is the state of Florida, where Attorney General James Uthmeier has filed multiple complaints against major platforms as well as affiliates accused of violating the state’s AV law.

Corey D. Silverstein ·
opinion

Maintaining Brand Trust in the Face of Negative Press

Over the last year, several of our merchants have found themselves caught up in litigation over compliance with state age verification laws. Recently, Segpay itself was pulled into the spotlight, facing scrutiny over Florida’s AV statute, HB 3. These stories inevitably get picked up by both industry and mainstream news outlets.

Cathy Beardsley ·
opinion

How to Switch Payment Processors Without Disrupting Business

For many merchants, the idea of switching payment processors can feel pretty overwhelming. That’s understandable. After all, downtime can stall sales, recurring subscriptions can suddenly fail, or compliance gaps can put accounts at risk. Operating in a high-risk sector like the adult industry can further amplify the stress of transition.

Jonathan Corona ·
Show More