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Adult Premium Rate Entertainment
Despite the media's attitude towards Adult services, they remain one of the
single most dialled services in the country. The English establishment may not
like to admit it, but the fact is that millions of people in the U.K. love to listen to
erotica, talk dirty on the telephone, and they are happy to pay for it.

The demand for Adult Entertainment services remains huge and there is
absolutely no sign of the demand slowing up. The fact is that literally millions of
people call these services every week. In the early days of premium rate
services the vast majority of the money generated was from adult services and
the bulk of the callers were male.

THE CALLERS AND THE PREMIUM RATE SERVICES
Although there are no detailed studies of those who call adult services, the
information that exists suggests that three quarters of the callers are married
men, and they call to talk to someone who is prepared to be more open and
honest about sex.

Two main types of phone sex services exist
* pre-recorded messages - offering a wide range of sexual interests.
* live one-to-one services where the caller talks to a "live" person.

Why they call will be different for each type. Men who call a pre-recorded
message are usually reacting on impulse after reading an advert which appeals
to their special interests. The callers to live phone sex services are seeking a
personal relationship, however removed, with a person who will understand their
sexual fantasies.

Figures suggest that:
* 25% of the callers make reference to cross dressing - transvestites.
* 50% of the callers focus on topics related to their being dominant.
It is generally accepted that the main reason for men calling these services is
their fear of sharing their sexual fantasies with their partner. And the more
important the relationship the more difficult it is for the man to share those
fantasies.

The expert opinion is that live sex services are utilized predominantly by men
currently in relationships, who are afraid to share their fantasies with their
partner.

The telephone provides an alternative to physical intimacy. The medium
facilitates surrogate sex through the illusion of intimacy.

THE GROWTH IN PREMIUM RATE ADULT SERVICES
The fantastic growth in adult services in the early days resulted from the ease
with which money could be earned. The early adult I.P.s generated vast profits
mainly due to the novelty of such services and the huge demand.

Adult pay-per-call started in 1986.
Initially, virtually all of the adult services were recorded services and so great
was the demand for this type of entertainment., it was not unusual for the adult
services to make a 20 to 1 return for each pound spent on advertising.

Condom Testers Required
A classified advert which appeared in 1987 seeking 'condom testers', and which
cost under ten pounds, generated a call revenue of over THREE THOUSAND
SIX HUNDRED POUNDS. And this was achieved on an out payment of only
18 pence a minute

Premium rate soon included live adult services, which resulted in considerably
longer call hold times compared to recorded services.

However, the huge returns rapidly diminished as Phonepayplus - the newly appointed
industry regulator bowed to media pressure and imposed stringent regulations
on the advertising of the adult services. In addition, the media, having become
aware of the high profits being generated, increased their advertising rates to
grab the majority of the excess profits. Advertising rates charged for premium
rates adverts were often charged at up to 10 times the normal rate.

After 1990, profits dropped to more realistic levels as the novelty wore off,
advertising charges and competition increased. In addition, as companies and
individuals were hit with high premium rate bills they began blocking access to
these services. By 1992, returns were down to 5 to 1, and then maybe 3 to 1
by 1993. Now, a 20% to 30% return on monthly advertising expenditures in
more the norm. Even so, this is still a substantial return compared to most
businesses.

If you really understand the sex market, it is still possible to earn up to a 2 times
return on your advertising. But this requires expert understanding of the market
and the ability to invest for long term returns in the right media, at the right price.
More importantly, as with any information or entertainment service you are more
likely to succeed by selecting a specialist service to advertise.

Current Restrictions
Today, rules imposed by Phonepayplus restrict I.P.s, offering adult services, to
advertising in 'top shelf' publications. The result is severely restricted ad space,
only available at high prices.

Half a dozen publishers virtually control all the adult ad space available, and
many of these publishers also promote their own adult services.
Furthermore, many of the main distributors such as W.H. Smith, restrict the
number of adult magazines they will sell in their stores, with the result that it is
virtually impossible for new publishers to enter the market.

MAKING MONEY TODAY
To make money in sex services today, you must use a bureau or advertising agency
which can advise you on adult advertising. Your selection of the right adverts and
media will determine your success.

For example, a full page ad in Hustler, Club or Penthouse might cost twenty
thousand pounds, but the right one-third page ad can pull just as well for a
fraction of the cost. The ad layout, copy and graphics - particularly the "picture"
of the beautiful woman are critical to the effectiveness of the ad.

If you are using full or half page adverts, it is to important make full use of the space
by offering a range of fantasies in each advert. Using a single premium rate
number in the ad will not generate sufficient response. Every advert should
display several numbers offering different "fantasies" and girls. This provides the
callers with a range of choices, and hopefully one or more will appeal to their
particular need. Thus a quarter page ad should carry at least 4 numbers, whilst
a full page ad may have as many as twenty.

In your Adult adverts you should offer not only premium rate services but also the
option of dialling an 0800 number for credit cards, plus an international option.
Giving callers several choices increases call revenue substantially in the adult
industry.

Live or Recorded Premium Rate Services
Without question, Live services will provide a better return for each advertising
pound spent. The reason is simply that the hold times for live services are three
or even four times longer than for recorded services.

On average a recorded service has hold times of 2 to 3 minutes, whilst live
services average over 10 minutes, and with the right staff you can regularly
achieve hold times of 20 minutes or more. In addition, if you have good live
operators they will build up a rapport with callers, who will then call them on a
regular basis. These repeat callers are an essential element of your adult
business, they are the ones who can make it very profitable. For this reason
ensure that the girls answering your callers are correctly trained and can exude
enthusiasm for their work. The callers will soon drift away if their calls are
received with boredom and indifference.

Multiply Your Call Income
As discussed in the Section on Creating a Script, it is important to use the
marketing technique of tagging another premium rate or international service
onto the service which is being called. The purpose is to generate more calls
from the same caller by promoting that second service.

ADULT ADVERTISING
In the early years you could spend a few thousand pounds on adverts and make a
killing within a month of publication. For the several reasons discussed above
this is no longer possible.

Today, to have any chance of succeeding in promoting adult services in the top shelf monthly magazines you must have sufficient funds to cover at least several months of advertising. The reasons being that there are long lead times between placing an ad, publication and receiving any income.

Having placed and paid for the ad it may be up to two months before the magazine hits the street. Then there is a 30 day period when the advertised services are called, then a further 30 days before you receive payment from the carrier or bureau. So it can take up to 5 months before you have any money coming in.

Mix Your Media
To improve cash flow, you need to mix your advertising between the top shelf
magazines and the weekly magazines and daily newspapers - these should include
Sport Newspaper and weekly magazines - Exchange & Mart, Loot, Forum, etc.
The lead time for placing adverts in the weeklies is much shorter, and the waiting
time for payment is much shorter.

However, pound for pound, your return from the men's magazines will be far
greater. The reason being that these magazines have a long "shelf life." Adverts
in the top shelf magazines will often continue to generate calls for as much as two
years after publication. Purchasers of these magazines seem to retain them
them for years, and will continue to call the adverts month after month.
In fact, whatever income you generate during the first month after publication,
can confidently be multiplied by eight, as the total revenue you will generate
from the ad over a period of two years.

On the other hand, the daily or weekly publications have a very short shelf life.
The dailies are dead within 3 days, whilst the weeklies seldom produce any calls
after a month. This is simply because the publications are seldom retained for
reading in the future.

Monitored adverts in most top shelf magazines, and based on the TRUE READERSHIP FIGURES, the call response levels will generally be consistent for all top shelf magazines. Thus if a £1600 ad in Jugs returns £3200, a £16,000 advert in Penthouse will return £32,000. But don't expect these returns at the start.

If you break even on your first month you've hit the jackpot. Normally you will break  even after 5 to 6 month. This is a business based on residual calls, your profits  come from repeat callers. It will take several consecutive months of repeat advertising before you begin to achieve a positive cash flow, but once you do,  you will have established a solid income base from
which you can rapidly escalate your business and call revenue.

LIVE PREMIUM RATE ADULT SERVICES
Subject to the Phonepayplus Code, adult services can be promoted without any
restrictions as to content. The Regulator has taken the view that provided the
adverts for such services are restricted to top shelf publications, then if people call
such services then provided they remain within the law, there should be no
restriction of what can be said on such services.

Who provide the live adult services?
The vast majority are provided by call centres who specialise in providing such
services. They employ women of all ages, shapes and sizes who enjoy earning
money by talking on the telephone. There is no stereotype or typical profile of
an operator for an adult services. Obviously, they are not particularly shy about
talking about sex with complete strangers! They can work out of a call centre
with numerous other operators, or they can be on a schedule to answer the
phone at home. Both methods are used successfully.

The quality of the operators can make a big difference to your call income.
A good operator can keep the caller on line for 15 to 20 minutes, and is
frequently able to establish a relationship with the caller, ensuring that the
person will call back again and again.

Experience proves that you can run an ad and send the calls alternatively to two
different operators. One could achieve hold times 5 times greater than the other,
which means 5 times the income for the same advertising budget.
If you intend to invest in live services and maximise your income, you must
constantly monitor your operators. A good operator can double your profits, a
poor one could destroy you.

Nowadays, I.P.s seldom employ their own live operators. It's simply too time
consuming because it is a 24-hour service which requires personal control and
hands-on management. I.P.s normally contract with a specialist company that
employs a group of operators, using their services on a per-minute basis.

Choose Your Bureau With Care
Inevitably there are good and bad Live Service Bureaus offering such services.
Before you commit to a bureau check that they do have the personnel to handle
your service. You should check their reputation within the industry.
Unfortunately, there are a number of wealthy bureau owners who have grown
rich by ripping off their I.P.s. This is simply achieved by instructing their
operators to persuade callers to dial a different premium rate number if they
wish to call back in the future. The result is that they receive all the residual
calls which would otherwise have been paid to the I.P.

Whichever bureau you decide to employ, make a determined effort to call your
service at least once a day as a punter to discover whether the operators have
been instructed to divert your callers to another service. If the bureau knows
you are constantly monitoring the calls they are less likely to act improperly.
Remember that with modern technology the bureau and the operator knows
which service each caller has dialled.

SOPHISTICATED LIVE CALL CENTRES
Today, call centres provide their operators with very sophisticated equipment.
Now, when an operator receives a call, the computer screen tells her what type
of service is to be provided - be it an 0800 credit card call with no restrictions,
or a premium rate call to non adult service, tarot or psychic service. This is
achieved by the call centre computer identifying the DDI number dialled and
then flashing an alert to the operators screen. When the operator picks up the
call they already know exactly what type of service is required. In this manner
a whole range of services can be efficiently handled by each operator.

How Much Should You Pay A Bureau
If you decide to use a bureau to provide the personnel for your live services you
will need to establish their charges and terms of payment.
If you are using your own premium rate numbers and collecting the revenue
directly from the carrier, the bureau will almost certainly ask you for an up-front
payment to cover the anticipated minutes you expect to generate over the next
month. The bureau normally has to their staff on a weekly basis and therefore
need the payment to avoid cash flow problems.

This presents a difficulty when negotiating the bureau charges. As with most
bureaus the more minutes you generate the lower the charge. However, if you
claim that you will be generating a huge you will be faced with a hefty
pre-payment.

If you are new to the business it is probably wiser to be realistic about your
response levels, pay the higher charges and keep your pre-payment at a reasonable
level. Once you have build up some volume you can always
re-negotiate the terms, or move your business at a moments notice.
Remember you control the numbers and where the calls are delivered to.
Currently, the bureau charges for providing live adult services range between
25p and 35p a minute. Although it is possible to negotiate a lower rate if you
promise to generate millions of minutes a month. For adult live services you
should charge a pound a minute, which means that after deducting carrier and
bureau charges you will net 45p to 55p a minute. Even with a relatively low
hold rate of 12 minutes, each call will generate an income of 12 x 50p = £6.00.

ALTERNATIVE BILLING FOR ADULT SERVICES
Currently there are three main ways to access adult services. Premium rate
(with carrier billing), 800 (with credit card billing), and international numbers
using with 00 prefix. These latter services terminate in foreign countries,
including Israel, Holland, Hong Kong, Dominican Republic, Sao Tome, Moldavia
and a few others. These international services tend to attract services which
would not normally be permitted in the country in which they are advertised.
They include chat lines, business opps, and adult sex lines.

LIVE PREMIUM RATE SERVICE REGULATIONS
All Live Services require prior authorisation from Phonepayplus, please ensure that you
read the relevant section in this Manual and in the Code of Conduct.
Should you decide to use a bureau to provide the live operators you will still be
required to adhere to all the regulations and restrictions imposed by Phonepayplus,
and failure to do so will result in a substantial fine.

OPERATING AN ADULT PREMIUM RATE SERVICE WITH A SERVICE BUREAU
Although Adult Services are eagerly called by millions of men - time and time again, so make money in what is a highly competitive market place requires experience and understanding.

Operating on your own, starting from scratch you would be faced with the following tasks and costs:
* writing/recording scripts - £80 per story, you need a minimum of 10 stories.
* creating artwork for adult adverts - copy & adult photos £200 per advert
* buying space in top-shelf magazines - if you don't know the market you can easily lose most of your advertising budget.
* installation of premium rate lines £1,500
* purchase of Premium Rate equipment £6,000
* for Live Services payment of the Phonepayplus bond £20,000

When you register with a service bureau for an Adult Service you will receive all the following:

* full bureau service with a choice of recorded or live services
* library of hundreds of professionally recorded adult fantasy stories from which to choose - includes recordings for both the heterosexual and gay market. So, whatever you wish to promote - gay, lesbian, domination, s&m, etc. we have the stories ready to go on line.
* selection of powerful adult display adverts ready for you to place in top-shelf magazines.
* advice and contact details for placing your adverts in adult magazines.

continued ................ Premium Rate Telephone Marketing Services ..............