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

profile

Spicerack Market Offers Indie Brands a Launching Pad

Spicerack Market is an ecommerce platform with the heart of an artisan crafter and the soul of a kinkster. On the website, independent sex toy makers, lingerie seamstresses and kink gear craftspeople can set up a personalized shop to sell their handmade wares, unhindered by censorship or bans on adult products.

Colleen Godin ·
opinion

Strategies to Bring Pleasure Brands into the Spotlight

Every brand dreams about landing a feature in The New York Times or Men’s Health — and pleasure brands are no exception. After all, mainstream media coverage isn’t just a vanity milestone. It builds trust, attracts new audiences and opens doors to connecting with retailers, partnerships, and investors.

Hail Groo ·
profile

WIA Profile: Salima

When Salima first entered the adult space in her mid-20s, becoming a power player wasn’t even on her radar. She was simply looking to learn. Over the years, however, her instinct for strategy, trust in her teams and commitment to creator-first innovation led her from the trade show floor to the executive suite.

Women in Adult ·
opinion

How the Interstate Obscenity Definition Act Could Impact Adult Businesses

Congress is considering a bill that would change the well-settled definition of obscenity and create extensive new risks for the adult industry. The Interstate Obscenity Definition Act, introduced by Sen. Mike Lee, makes a mockery of the First Amendment and should be roundly rejected.

Lawrence G. Walters ·
opinion

Is Your Retail Business Sextech-Ready?

Sextech isn’t just a niche novelty anymore; it’s the future of sexual wellness. From wearable sex toys that provide biofeedback to interactive sex toys with AI capabilities, sextech has made significant progress over the past few years.

Kate Kozlova ·
opinion

What US Sites Need to Know About UK's Online Safety Act

In a high-risk space like the adult industry, overlooking or ignoring ever-changing rules and regulations can cost you dearly. In the United Kingdom, significant change has now arrived in the form of the Online Safety Act — and failure to comply with its requirements could cost merchants millions of dollars in fines.

Cathy Beardsley ·
opinion

Top Product Launch Tactics to Boost Q4 Sales

According to recent industry insights, over 70% of sexual wellness brands finalize their Q4 lineups between July and early September. This is a high-stakes window for launching new products.

Matthew Spindler ·
opinion

Understanding the MATCH List and How to Avoid Getting Blacklisted

Business is booming, sales are steady and your customer base is growing. Everything seems to be running smoothly — until suddenly, Stripe pulls the plug. With one cold, automated email, your payment processing is shut down. No warning, no explanation.

Jonathan Corona ·
opinion

Scroll-Stopping Social Media Strategies to Capture Short Attention Spans

Attention spans are shrinking across all types of media. No matter how innovative a concept may be, if it doesn’t stop the scroll, it’s quickly forgotten. That’s why Netflix has intentionally been simplifying its content, with executives directing writers to create scripts that are less complex and nuanced, and more second-screen-friendly.

Naima Karp ·
opinion

The Hidden Cost of Letting Retail Define Pleasure Brands

Not long ago, spotting vibrators and lubricants at a national chain like Target or CVS might have raised eyebrows. Now, it’s almost expected.

Rin Musick ·
Show More