AEE attendees interested in building an online presence or expanding their current one gathered Wednesday afternoon to discuss building and marketing websites as well as legal issues with three industry experts at a seminar entitled “Add To My Cart — Secrets to Success at Online Retailing.”
Most of the questions were directed to Anh Tran, co-founder of Wantedlist.com, a site that rents adult DVDs using a similar business model to the one that Netflix pioneered. Nolan Williams, director of franchising at Adam & Eve, offered expertise to brick and mortar businesses looking to expand into the online marketplace. And Larry Walters, a First Amendment attorney specializing in Internet law, answered all legal concerns.
Walters began the discussion by pointing out the difficulties webmasters face with current obscenity laws — in particular the Miller test which was written before the advent of the Internet and which is based on local community standards.
“The notion that geography dictates morality is becoming outdated," Walters noted. The attorney stressed the use of an online agreement, noting that when a customer clicks “Agree” the contract is binding in court.
The other major legal issue facing webmasters, Walters pointed out, is restricting minors from accessing adult material. Walters suggested using a third party age verification service as a better solution than using a credit card to verify age — particularly since some credit card companies market their cards to minors.
Williams added that Adam & Eve opts not to carry some videos because the niche market to which they appeal is not worth the risk of shipping the product over state lines. And some customers, he added, send cash through the mail — which makes it impossible to verify age. In those cases, Adam & Eve does not ship the product and instead returns the money.
Most of the questioning, though, eventually turned to Tran. Many in the audience were most interested in the marketing strategies used to turn Wantedlist into such a success.
“When you master your traffic reports, you master your website,” Tran told the audience. Finding out how customers get to your site, what search terms they use, which pages they visit and by which pages they leave is at the heart of assessing where the website works and where it does not. Wantedlist uses proprietary software to track customers from search engines through the site in order to determine which search terms lead to the most sales.
As for driving traffic to the website in the first place, Tran notes pay-per-click and affiliate networks as the best solution. “They offer the most bang for your buck, especially if you’re on a limited budget,” said Tran.
Both Tran and Williams also discussed the “white label template solution,” a program both Wantedlist and Adam & Eve offer. A white label website is basically a franchise of the parent company’s site, offering the same services as the parent company but branded to the individual business. All age verification, credit card processing and fulfillment is handled by either Wantedlist or Adam & Eve and the branded company is given a percentage for driving traffic.
Although the online business models look toward the future, the basic business practice is still the same.
“Deliver on your site whatever you promise,” noted Williams.
“Select a brand that is trademark-able and strongly protect that trademark,” warned Walters.
“Focus on your core competencies early,” added Tran. “As your business grows, grow with it.”
Photo of Tran, Williams and Walter by Hewman Being.
