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What's Hot - What's Not! A Wrap Up of 2003 Trends
by Kath Blackwell

The adult Internet industry changes faster than most - at the speed of broadband - with new fads, new ideas, new niches, new concerns and new solutions that affect us all in one way or another. We always tend to look back at how far we've come - and how far we have yet to go - at the end or beginning of a New Year. But in this ever-changing business where entire niches and focus elements can literally change overnight, it's definitely in your best interest to take that look behind and ahead every now and again.

So...what topics are hot in 2003? What changes have come about that have affected us - and will continue to affect us all the way through the end and on into 2004? What are the biggest concerns that are plaguing today's new webmasters - and haunting the stalwart veterans? What new problems are lurking around the corner - and what solutions are being implemented? These are some of the questions that we hope to answer in this mid-year update that discusses what's hot and what's not!

IPSPs - The Email Still Heard 'Round the World
Of course the 4 little initials that were on everyone's minds in 2002 are still at the forefront of discussion in 2003. The changes handed down by VISA to the processing companies - and ultimately to the webmasters and businessmen that use those processing companies - are still a source of major confusion and frustration to today's online entrepreneur.

These changes dramatically affected the power of the Third-Party Processor. IPSP is the new term used by VISA to identify these Third-Party Processors. Clients - webmasters, paysite owners, etc. - are now known as "Sponsored Merchants" and became required to complete an extensive registration and application process in order to work within the perimeters of these new requirements. A $750 registration fee and an ongoing $375 annual fee were charged and Sponsored Merchants were required to give data to VISA such as company name, address, transaction counts, dollar volumes, URLs, Tax ID or Social Security Numbers. Basically, most of the appeal of the Third Party account versus the more traditional Merchant account was dissolved with these new mandates.

The cry of Chicken Little and the "Sky Falling" was perhaps heard most loudly during this time of uncertainty and change. Many webmasters "abandoned ship," selling off their websites - some getting out of the business for good. Message Board rallies of "Boycott VISA" were made by frustrated webmasters - but at the same time a small voice of businesses claimed that it was "about time" that VISA stepped in to validate our industry by placing such strict requirements on our processors.

Whatever your stand on this major hot topic - the new VISA regulations are still on the tips of everyone's tongues at the industry conferences - and will be for some time to come.

Processing - Part of a Bigger Picture?
Perhaps not completely a separate issue from the VISA regulation changes, but a new topic trend that is growing among webmasters is the Processing Companies themselves. This was even discussed openly in public forum at the Phoenix Forum this past April - it is the fear that the Processing Companies are not as stable as they used to be. Particularly as a source of worry are the "Big 3" - EpochSystems.com, CCBill.com and iBill.com. Webmasters worry that it won't be VISA or MasterCard that actually "pull the plug" on the adult Internet industry, but the Big 3 will be responsible for it through their internal problems and issues.

In response to this discussion at the Phoenix Forum, Chris Mallick of EpochSystems.com and Ron Cadwell of CCBill.com stated that their companies are currently doing great business and were in better shape than ever before. iBill.com was not present at the Phoenix Forum conference.

International Traffic
One of the hottest topics in the industry today - International Traffic has been likened to the Gold Rush of the late 90's. American webmasters are finally starting to stand up and take notice of the growing global market and are becoming more savvy in finding out what it takes to work within markets outside their own.

Overcoming obstacles such as language, payment options, currency preferences and cultural interests are just some of the new issues that webmasters who want to work with the global market are having to face. It's more than just "throwing up a dialer program," adult webmasters have to become educated to the needs of their non-English speaking audience.

European surfers in particular, do not use credit cards the way that their American counterparts do - in fact, they do not like using credit cards over the Internet at all. Everyone automatically thinks "dialer" when they think of foreign traffic, but truth be told, not all Europeans approve of the dialer method either. Alternative billing options such as reverse SMS, direct debit and pre-paid tokens are just some of the methods being used by today's global traffic program leaders.

Seminars and workshops at 2003 industry events are already including International Traffic and Global Marketing topics - and webmasters are attending in droves! European conferences are becoming hot this year as well - the spring season boasts three Euro events: one in Spain, one in Amsterdam and another in Germany.

This is definitely a trend to watch as webmasters explore - and exploit - this growing trend within the industry.

Pop-Ups - Are They on Their Way Out?
As mainstream continues its fascination and over use of the pop-up window or exit console, ironically, the adult industry - who gave birth to the hot ad tool, is debating its value and continued use. With the barrage of pop-up killer programs, new browsers that stop the pop-ups in their tracks from Macintosh and Netscape - even Internet Service Providers (ISPs) like MSN and Earthlink - does the pop-up really stand a chance?

Some webmasters argue "yes" and say that the pop-up will never go away. It is a useful marketing tool - when used properly - and that surfers will get tired of not being able to fully use websites that require pop-ups for navigation. Bank websites - Bank of America being one of the largest - use pop-ups for log-in capabilities to check account balances, do online banking or transfer funds.

Other webmasters say "no" and truly believe that the pop-up will go the way of the dinosaur. They feel that the frustration that is caused by over use of the pop-up window, multiple layers of pop-under windows and exit consoles - primarily by adult webmasters - is enough to force them off the 'Net completely.

Whatever your thoughts about the hated pop-up window, change is in the wind. Either the pop-up killer trend will take hold or the pop-up killer will meet it's own doom. Regardless, this is a trend to watch.

Hardcore on the 'Net - Harder Than Ever?
Another topic that is on everyone's minds lately is the amount of hardcore - or the extent of hardcore content that has flooded the Internet. No longer is the debate about "too much free porn" but it has now turned to "too much free hardcore porn." In an industry that already faces elimination by a conservative right-wing government, the last thing we should be doing is tightening the noose that is already around our necks.

So why are webmasters putting more hardcore porn out there for the masses? Because the surfers are DEMANDING it - that's why. One webmaster spoke up at the recent Phoenix Forum conference in Arizona and said that in the past couple of months he's seen more hardcore come through on his TGP than ever before. Another webmaster - a portal site program owner - said that he had recently added a hardcore section to his site, intentionally NOT showing it to his lawyer because he knew it would be rejected. So why did he do it? Once again - the demand is there and if webmasters want to make money and sell their sites, it seems a little harder core preview is now required.

So how do we fight this? Can we fight this? Do we even want to fight this? The answers are - we don't, we can't and nope. It's like closing the barn door after the horses have already escaped - it's useless. It's just like the free porn everyone was complaining about at the 2002 conferences - you can't put it back in the bag. Once it's out there, it's out there.

So what does this mean for our industry? Will this bring faster, swifter and harder justice down on those who "break the rules" and push the lines of obscenity as they try to please their ever-desensitizing audience? At a time when industry groups such as ASACP.org try desperately to get webmasters to self-regulate and get on board with positive, proactive programs, it seems silly that we are even considering adding more hardcore to our sites. Unfortunately, marketing and business don't always make logistical sense - you need to go with the flow.

Gay Sites - They're Here, Get Used to It!
Not unlike the British Invasion by the Beatles a few decades ago, the gay webmastering community has invaded mainstream and is becoming more and more the "niche to watch" even among webmasters who previously didn't even try to tap this side of the industry. Event conferences are popping up all over - the State of the Gay Webmaster Industry conference at Internext was well attended, well staffed and quite informative. The recent Phoenix Forum welcomed more gay webmastering companies, programs and webmasters than ever before.

So how does the "straight" webmaster tap into the gay market? How do you learn the right way to do things and avoid the wrong way so you won't offend your audience? There are a number of gay webmaster resource sites popping up all around the 'Net these days, but huge gay Internet portals like CyberSocket.com are still tops. Learning what's "in" and what's "out" as well as understanding what the gay porn community wants and how to properly market it to them are all the rage these days.

But are gay webmasters telling? Some say they aren't, and that they gay webmaster community is tight-lipped and less approachable to non-gay webmasters who want to learn the niche. Others say that simply isn't true - and just attending one of the industry event seminars, one finds the panelists to be quite informative and forthcoming.

The gay Internet industry is no different from the straight market when it comes to basic design, marketing and webmastering skills. It's like any other niche that you are unfamiliar with - you need to research, educate yourself about and understand it before you can begin to properly build and sell it. If you apply yourself, look in the right places and get some genuine input from people who know - there's no reason why you can't find success within this unique and dynamic market.

So - What State is Our Industry In?
The adult Internet industry is always changing, growing and evolving. New trends, new ideas, new problems and new solutions are always popping up when we least expect it. Trying to predict what is coming next is like trying to predict an earthquake - impossible. The best advice that a webmaster can take is to make sure he/she is working well within the legal parameters in their local community as much as is possible. A good webmaster also needs to keep their eyes open for new trends and niches - and to stay on top of financial situations and solutions to avoid getting caught "holding the bag" the next time some industry powerhouse decides to change things on a whim. When working within such a "risky" industry, having the foresight to protect oneself and insure oneself for the future is the best security measure of all.

So keep reading, keep learning and keep growing. Gone are the Gold Rush days of yore - it's time to put on our thinking caps, roll up our sleeves and get to work. Hard work, creativity and persistence are the real keys to success on the Internet in today's market. Remember that and you might become the next "Big Guy" of the 'Net.

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