Wall Street Journal Gives Mainstream Primer on Online Affiliate Marketing

NEW YORK — Wondering why there is so much porn on the Internet, the Wall Street Journal turned its attention to the engine that drives the online adult entertainment industry — affiliate marketing.

Calling affiliates the “lifeblood of the online porn industry,” Wall Street Journal writer David Kesmodel surveyed the commercial and legal concerns for the Internet business model popularized by the adult entertainment industry.

“You have 10,000 people trying to push your product for you," James Seibert of HotMovies.com told the Wall Street Journal. "It's the ultimate guerilla marketing.”

“The entire industry revolves around this relationship,” XBIZ Publisher Alec Helmy said.

While Kesmodel’s article highlighted the upside to affiliate marketing, including a section on how mainstream companies such as Payless Shoes are adopting the model, he also focused on the legal issues that grow out of an extremely competitive affiliate landscape.

“Affiliates are also responsible for some of the things that frustrate Internet users,” Kesmodel said. “Because competition is fierce and affiliates get paid only when they get a user to click through to a porn site, affiliates often use aggressive tactics. Some have been behind massive spam campaigns, while others design websites that ‘trap’ visitors with a never-ending stream of popup windows.”

According to Federal Trade Commission attorney Jon Kraden, who Kesmodel interviewed for the article, government prosecutions under the 2003 Can-Spam Act serve to put affiliates as well as paysite owners on notice that illegal tactics used to drive traffic will not be tolerated.

Setting aside the legal issues borne out of a competitive affiliate environment, Kesmodel also fixed his attention on the day-to-day business of marketing adult content online.

“Affiliates have been so successful at driving traffic to porn sites that purveyors spend a good deal of time and money keeping them happy,” Kesmodel said.

According to his interview with Vivid Entertainment Group affiliate manager Vivid Mike, 60 percent of the site’s 100,000 unique daily visitors come from affiliate-generated traffic.

“We spend a lot of money getting new ones and keeping existing ones as well," Mike said, adding that he had taken several affiliates to Nobu for dinner at the recent XBIZ Summer ’06 Forum in Las Vegas.

Clark Chambers, who manages affiliate programs for OlderWomen.com and AuntJudys.com, confirmed to Kesmodel that in addition to commissions ranging from $5,000 to $8,000 per month for top affiliates, expensive gifts were also a common practice to lure affiliates capable of driving the most traffic.

“Mr. Chambers, based in Los Angeles, said he recently sent a $3,000 TAG Heuer watch to an 18-year-old in Moscow who runs a handful of affiliate websites,” Kesmodel said.

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 News

Wisconsin Governor Vetoes Age Verification Bill

Gov. Tony Evers on Friday vetoed AB 105, an age verification bill that would have allowed anyone to sue adult content providers for damages over alleged failure to age-verify users in Wisconsin, with penalties of up to $10,000 per violation.

FSC Releases Statement on Wisconsin Governor Vetoing AV Bill

The Free Speech Coalition has released a statement on Wisconsin Governor Tony Evers' veto of the state's age verification legislation.

AV Bulletin: West Virginia Enacts AV Law, Ohio 'Innocence Act' Advances

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Woodhull Survey Reveals Concern Among Sex Educators Over AV Laws' Impact on Access

A national survey of sex educators by the Woodhull Freedom Foundation found that a majority of sex educators and sexual health professionals are concerned that age verification (AV) laws will negatively impact access to information and resources.

Clips4Sale Wins Trademark Infringement Case Against Fraudulent Domain

The World Intellectual Property Organization (WIPO) has ruled in favor of content platform Clips4Sale in a case against a website using a similar domain to impersonate the site.

Pineapple Support, SextPanther to Host Stress Management Support Group

Pineapple Support and SextPanther are hosting a free online support group focused on stress management for performers.

Goddess Tangent Launches New Site Through Grooby's Blue.xxx

Goddess Tangent has launched her new membership site, TangentOD.com, through Grooby's website management company Blue.xxx.

Keiran Lee Guests on Chaturbate's 'Sex Tales' Podcast

Keiran Lee is the latest guest on Chaturbate’s “Sex Tales” podcast, hosted by Melissa Stratton and Vanniall, and streaming on the company’s “Camming Life” YouTube channel.

FSC Talks Age Verification on Capitol Hill

The Free Speech Coalition (FSC) has published a blog post detailing the organization's talks on age verification on Capitol Hill in Washington.

Show More