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 © 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 News

2025 XBIZ Amsterdam Website Launches With Call for Speakers

XBIZ is pleased to announce that the website for its annual European conference, XBIZ Amsterdam, is now live.

NC Governor Vetoes Bill Targeting Adult, Could Face Override

North Carolina Governor Josh Stein today vetoed a bill imposing new regulations that adult industry observers have warned could push adult websites and platforms to ban most adult creators and content.

25,000 Sign Petition to Legalize Pornography in Ukraine

An OnlyFans model’s petition to decriminalize pornography in Ukraine has amassed the 25,000 signatures required for official consideration by President Volodymyr Zelensky.

WannaCollab Joins Pineapple Support as Supporter-Level Sponsor

WannaCollab has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

FSC Unpacks SCOTUS Age Verification Ruling in Webinar

The Free Speech Coalition conducted a public webinar Tuesday to help adult industry stakeholders understand the Supreme Court’s recent decision in FSC v. Paxton, and its potential implications.

UK Lawmaker Calls for Appointment of 'Porn Minister'

Baroness Gabrielle Bertin, the Conservative member of Parliament who recently convened a new anti-pornography task force, is calling for the appointment of a “minister for porn,” according to British news outlet The Guardian.

FSC Toasts Jeffrey Douglas for 30 Years of Service

n the very same evening when the adult industry was hit hard by the Supreme Court ruling supporting Texas’ controversial age verification law, HB 1181, members of the Free Speech Coalition board, staff and supporters gathered to celebrate Jeffrey Douglas’ 30 years as board chair — a fitting reflection of his reputation as an eternal optimist.

TTS Opens UK Testing Location

Talent Testing Service (TTS) has opened a new U.K. location in Ware, Hertfordshire.

FSC: Age-Verification Laws Go Into Effect in South Dakota, Georgia, Wyoming on July 1

The Free Speech Coalition (FSC) has published a statement regarding new age verification laws set to go into effect tomorrow in South Dakota, Georgia, and Wyoming.

FSC Responds to Supreme Court Decision on Texas AV Law

The Free Speech Coalition (FSC) has released a statement responding to last week's Supreme Court decision on FSC v. Paxton, the Texas age verification law.

Show More