This Businesses' Challenges - Stated Logically

The purest form of an adult business transaction is a girl or guy doing something sexually stimulating for direct compensation.

This transaction involves Talent and a Customer.

The simplest form of an adult product is:

A girl or guy being captured (live, streaming, drawn or written about) doing something sexually stimulating for compensation. The capturing can be in the form of photo, video, voice or text and can be live, recorded, drawn or written about. The captured product is known as Content and the capturer would be the Producer. A dating profile would be content.

This transaction involves talent, a producer (the talent and the producer can be the same) and a customer.

The talent, Producer and Customer transaction is the foundation of this industry. It is this Core Transaction that every reputable company and person in this industry should strive to preserve and protect.

Scaling these transactions offline or online requires peripheral products and services. Some are absolutely necessary and some are optional.

I have identified three tiers of support products.

1st Tier ? Necessary for any measure of scale
? Domain Registers (online)
? Hosting companies or Landlords
? CMSs or storefronts
? Banks, credit card processors and gateways
? Government regulatory agencies

2nd Term ? optional but necessary for greater scale
? Affiliate solutions (NATS, MPA3) ?could also be first tier
? Resellers - Affiliates
o Review sites
o Tubes
o Other producers
? Advertising Networks
? Traffic Resellers

3rd Tier ? optional but necessary for optimization
? Stats tracking
o Nifty Stats
o Stats Remote
? Adult Industry Publications
o Xbiz
o GFY
o YNOT
o JFK-FUBAR
? Misc. services
o Chargeback Help
o Fraud Detection

The top three problems that face this industry are:
? Content theft and Copyright Violations
? Fraud
? Predatory Entities: Patent Trolls- TLDs such as .XXX could also be an entity which extract assets without adding significant value ? conservative political parties.

The problems above arise as the stake holders of the core transaction engage the 1st Tier of support products to scale their business.

If the Talent, Producer or Customer is creating the problem it is most likely fraud, however if a third party is creating the problem then they are most likely extracting from the core transaction stakeholders illegally and using the 1st Tier support services to monetize that theft.

While all tiers as well as the stakeholders of the core transaction have power, ultimately the choke point of all these issues in scale resides in the 1st Tier of support services.
It is these Tier one companies that need to commit to fixing the problems and return the extracted value back to the core transaction and ultimately the 2nd and 3rd Tier providers as it trickles down.

That is logical, it is right and I believe that in the long run this legitimate state of the industry is ultimately the most profitable.

Solving these problems will certainly have a cost and that cost may need to be passed along to the core stakeholders and additional tiers. However I believe this cost would be justified and will have a solid ROI in the future.

Who are the top people in that first tier that can make this happen? Will those people stand up to the ?bros?? Those are the important questions.

The first tier providers are who needs to buy in to fixing this industry. Whomever does so needs to do so with money, time and strong public actions, always keeping in mind the explicit goal of protecting the core transaction at all costs.

The protection of the Core Transaction effectively needs to be the Prime Directive for this industry. Anything less is catering to the leeches on the core transaction whom are extracting value from anyone trying to engage in legitimate business.