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 © 2025 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

trends

Multipurpose Products Take Center Stage as Pleasure Brands Face Headwinds in Europe

As 2025 unfolds, the European pleasure industry finds itself balancing between resilience and recalibration. After riding high on customer demand during the pandemic, the sector is now adjusting to more cautious customer behavior, global geopolitical tensions and shifting retail strategies.

Ariana Rodriguez ·
profile

WIA Profile: Sara Gaffoor

Though it may seem surprising to outsiders, industry veterans are well acquainted with the self-esteem, personal growth and rewarding career achievements that can come with a job in the sex toy space.

Women in Adult ·
profile

Zhe Founder Karyn Elizabeth Creates Gender-Affirming Lingerie Fashion

For years, the mainstream lingerie market has been shaped by narrow beauty standards and cisnormativity, with little room for gender diversity. Most lingerie is designed to fit cisgender female bodies, while trans people are often forced to go DIY with uncomfortable solutions like pantyhose, duct tape and ill-fitting shapewear.

Naima Karp ·
opinion

Breaking Down HB 805 and How it Affects the Adult Industry

North Carolina House Bill 805 was enacted July 29, after the state legislature overrode Governor Josh Stein’s veto. The provisions that relate to the adult industry, imposing requirements for age verification, consent and content removal, are scheduled to become effective Dec. 1. Platforms have until then to update their policies and systems to comply with the new regulations.

Corey D. Silverstein ·
opinion

Staying Compliant With Payment Standards Across Europe and Australia

So, you’ve got your eye on international growth. Smart move. No matter where adult-industry merchants operate, however, one requirement remains consistent: regulatory compliance. This isn’t just a legal checkbox — it’s a critical component of keeping payments flowing and business operations intact.

Jonathan Corona ·
profile

Neon Coyotes Sets the Tone for Trendiness With Bespoke Leather Kink Wear

If your kink wear can’t readily make the leap from a dark BDSM dungeon to a sunny, mimosa-fueled brunch, you haven’t yet been initiated into the cult of the Neon Coyotes — fresh, leather kink wear brand transforming restraints into runway-ready art.

Colleen Godin ·
opinion

Why It's Time for Adult Retail to Embrace AI

In the late 1980s, I was working in the rental car business. My first company didn’t have a single computer. Everything — contracts, inventory, employee records — was done by hand. If you wanted a report, you dug through paper files and crunched numbers on a calculator. It was tedious, but it was all we knew.

Zondre Watson ·
opinion

How to Avoid Copyright Pitfalls When Using Music in Adult Content

When creating an adult video, bringing your vision to life often means assembling just the right ingredients — including the right music. However, adding music to adult content can raise complex legal and ethical issues.

Lawrence G. Walters ·
opinion

New Visa Rules Adult Merchants Need to Know

In December 2024, I shared an update on the upcoming rollout of Visa’s Acquirer Monitoring Program, also known as VAMP. The final version went into effect in June, and enforcement will begin in October. With just a month to go, now is the time to review what’s changing and how to stay compliant.

Cathy Beardsley ·
opinion

What Retailers Gain by Partnering With Family-Run Brands

In an age increasingly dominated by corporate consolidation and faceless supply chains, choosing to work with a family-owned and operated business can offer retailers a depth of value that goes far beyond pricing and product margins.

Briana Watkins ·
Show More