Bridging the Atlantic
Establishing Your Business Across the Pond
by Kath Blackwell
 People outside the US - you know, the rest of the world... have a little joke that they all share behind our backs. Unfortunately the US has gained a reputation for considering itself to be the center of the universe. While that sort of sounds funny - and I'm sure many of you could laugh at yourselves and admit that this is true to a certain extent - it's actually a sad fact of life, and something that we need to work hard to put behind us. And, in contrast, the Europeans have been slow to cross the Atlantic as well. Early pioneers include IMC based in the Netherlands, Goodthinxx based in Austria, and Cytainment, now SexMoney, with several global locations.
Nowhere has this phenomenon been more prevalent than within the adult online industry. American adult content companies established themselves and became known the world over in the early days of the 'Net. While other countries may have had a slower start, they have caught up and are quickly becoming industry leaders within the American markets. We have much to learn from these businesses, whose owners have already worked hard to overcome the obstacles facing their particular countries and regions. They have an experienced knowledge of the laws and requirements in countries whose languages and cultures are still quite foreign to the average American and some Europeans, and have a greater understanding of what the customers in these countries want - and more importantly, what they'll buy.
The American market in many respects has become saturated, while the European market will be growing for many years. Both markets are filled with many options and opportunities, too much free content, and sales are not as easy to make as they were just a few years ago. Because European, Australian and other foreign markets are still growing, American companies would be stupid to ignore this revenue potential and not find some way to become involved, and a fresh European outlook in the US may spark some innovation as well. While no two markets are identical, much of what we have learned through trial and error in the United States could be applied and used when trying to sell memberships, products and services to international traffic, and the transparent stats of SexMoney have started a revolution of sorts in the US markets as well.
It Really IS a Small World
You need to look at the big picture and realize that while marketing on a global level can seem like a huge undertaking at first glance, it really isn't as difficult as you might initially think. As you expand your business, take it one language - or even one country at a time. Narrow down your objectives and choose just one target at a time - take that one thing and do it well.
There are three key elements that you need to learn in order to make a successful play at a new foreign market, in whichever direction you are crossing the Atlantic. Take these tasks one step at a time - making sure to dot all of your Is and cross all of your Ts. Follow this rule for each country - and language - to make sure that you've covered all of the essential ingredients necessary to properly target, market and service the needs of your customers.
Language - Of course this is probably the most important ingredient required in any type of foreign marketing plan. You either need to know - or at least be somewhat familiar with - the language, or partner up with some one who does. Remember that cultural differences have a huge influence on your audience's needs and behaviors - it's not just the tongue that they speak. For example, French Canadians are worlds apart from Parisians - and Spanish-speaking customers in Mexico will have different needs and interests than your customers from Spain. Culture plays a huge part in your plan - what turns your audience on, what fetishes are considered popular - or taboo - and even simple things like commonly used slang terms and popular trends have a huge influence on your end result when marketing to a specific group of people.
Legal - Definitely DO NOT overlook this part of your research assignment. You need to either hire an attorney in your country who has real experience with the adult online industry in your target country, or hire an experienced attorney specifically from that country. I stress the word "experienced" because not all attorneys are created equal. Even lawyers who deal in adult - but are not familiar with Internet-based adult laws, requirements and regulations - will not be helpful to you as you pursue business in a foreign land. Different countries have different regulations on the type of content that is allowed, the mode of "delivery" over the 'Net - and some even have complete restrictions against adult oriented content or products. You need to research this in advance before investing too much time and money into marketing to a new country.
Processing - This goes hand in hand with the legal end of things. You will want to research processing/billing requirements and regulations - as well as find out what types of processing your audience will prefer using. Alternative processing methods - some not even commonly used in the United States yet - are used all over the world. Dialers, broadband dialers, SMS, direct debit, pre-paid cards, alternative credit cards to Visa/MasterCard - even wireless solutions... there are many things to investigate, research, and explore. Your attorney can also help you to select the processing methods that will be right for you and your audience. European companies who wish to process credit cards in the US through third party processors, IPSPs, will find they need at least a US paper corporation even if they do not wish to open a US office.
Finding success for your business in the global market is all about focus and planning. If you take it one simple step at a time, you will be surprised at how easy it is to build a bridge to other countries. If you're not sure, just ask one of the many European-based companies that are finding new successes by expanding their programs, and utilizing the services of Klixxx Publishing to include US traffic and American webmasters.
Don't Just Take My Word for It
"It's helpful to look at the history of the expansion of American businesses abroad," Mitch, of NoCreditCard.com explains. "It has always been about one reason - growth. American companies wanting more customers or cheaper suppliers have been looking abroad for centuries." With the continuing strength of the Euro, European countries are eyeing the US market today, hoping to take advantage of their buying power in getting established.
"The biggest periods of internationalization have always occurred at times similar to those that the adult online industry is facing today," Mitch continues. "Growth in new adult Internet consumers has stopped in the US since 2002, where over 65% of the male population (18 and over) is online."
In addition to slowed consumer growth, Mitch also points out that it costs less for American companies to contract services or buy content and products abroad, depending on where they head. "Indian and/or Chinese programmers cost 80% less than American ones," he says.
"The difference between the internationalization of other businesses and the one that the adult online industry is going through today, is that adult websites already get an average of 50% or more of their traffic from outside their national market and outsourcing has never been easier." The key to finding success outside the US is very simple, according to Mitch who says, "To grow their profits, all American companies need to do is localize their products for these foreign consumers. They can do this by providing content in the local language and by offering local payment options - or finding a partner who can do it for them, and the same holds true for European companies seeking to expand into the US market."
Mitch knows what he's talking about, NoCreditCard.com has been a leader in "going local" to convert global traffic for adult webmasters since 1996. They have established their business in every country in the world; have translated their sites into all the major languages and offer local billing options everywhere. Because of this experience and knowledge, NoCreditCard.com has been able to successfully make the jump - and build bridges - to every corner of the globe.
Because most US-based businesses are already seeing increasingly large amounts of traffic from non-US consumers, it is essential that something be done soon to take advantage of this potential revenue. Learning more about the global market, building working relationships with successful international companies and finding new and unique ways to expand your business abroad is very important. Ignoring the traffic, or simply filtering it off to a program that barely meets the needs of this specialized traffic, is like flushing money down the drain. Businesses that want to find continued success in the coming years need to be prepared to add some sort of global marketing strategy to their business plan.
But don't just take my word for it, Mitch says: "It is very dangerous to concentrate on just one or two markets. One legal change in your main market could ruin your business. It is better to divide the risk over various countries."
Benjamin Bayr, CEO of SexMoney.com agrees: "People need to start networking on a global scale. Make new international connections... learn to understand foreign markets. The non-English speaking online population is quickly outnumbering the English-speaking population on the 'Net. If you aren't already thinking about and targeting your foreign traffic - you should be."
How to Learn More
Fortunately, there are opportunities to learn more about these international markets and find new ways to bring your business to the world. Many of these companies now visit US-based trade shows, conferences and gatherings - some have even established US office locations to try and market their programs to American webmasters. And, US companies are now beginning to broaden their horizons, attending the largest webmaster events in Europe, the Eurowebtainment Get2Gethers in Mallorca and Berlin hosted by Goodthinxx and NetVision, and the Adult Webmaster Event - Hamburg, hosted by SexMoney. If you are considering expanding your operations abroad, you must attend these shows with open inquiring minds, and a sincere desire to adapt and learn.
In 2003 we began seeing a rise in Euro-based conferences and gatherings - and 2004 has literally exploded with opportunities to travel, network with international businesses and learn more about the global market. Just in the spring season alone there are three European-based events- and many American companies are now involved in the sponsoring, attending and even speaking at these gatherings. Building a bridge from America to the rest of the world is not just about building alternative language sites or filtering off your traffic to a dialer program. It's about getting out there - traveling to other countries, meeting the people behind these programs and finding new ways to work together to create a win-win situation for all involved.
Adult Online Europe (April 25th - 27th, 2004)
This Amsterdam-based B2B conference has been running for a few seasons now and has established itself as a must-attend event for all adult-oriented businesses, particularly those involved in the telecom markets. Including some markets outside of the adult 'Net, this conference is good for anyone working in any adult-oriented field. With multiple parties and group events planned, this is an excellent way to blend work with pleasure while you network and meet with industry business owners and staff from around the globe.
AWM-Event Hamburg (May 14th - 16th, 2004)
Sponsored, supported and created by many of the leading adult online businesses in Europe, the AWM-Event is quickly establishing itself as the European webmaster's event, due to its primary focus on seminars, workshops and exhibition. This year's event will be held in the Historical Harbor of Hamburg, and provides attendees with many educational and networking opportunities.
EuroWebtainment (May 20th-23rd, 2004)
Located on the sunny isle of Mallorca, Spain, this event is the most exotic and luxurious European event on the calendar. Put on by the folks at Goodthinxx.com, one of the leading dialer/alternative revenue programs, which has also emerged in the past few years in the US market as well. Join industry folks from around the globe for fun - and business - in the Spanish sun!
Weighing in the cost of travel to these global conferences with the potential opportunities for increased business, revenues and global marketing makes attending these events worth the time and money expended. Talking with leading companies abroad via industry chats, message boards, ICQ, telephone - or by researching the work accomplished by these companies ahead of time will help you to better understand the market in advance of attending these conferences.
When attending these events, also make sure to allot time for sitting in on lectures, participating in planned group workshops as well as networking with global companies at parties and other gatherings. While networking is important - and building relationships abroad is essential - education is vital. Learn as much as you can, read as much as you can and get a basic understanding of the market and what you want to accomplish before you get started.
Whatever your focus - and whatever your ultimate plans - make sure you take the plunge into the world of global marketing. Who knows? Your company and business plan might be just the thing some other company has been looking for to improve their bottom line. The partnership that you could forge after a weekend of networking on some exotic European beach might be just the ticket to take you and your business to the next level.
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