In the amazing array of affiliate programs available to enterprising Adult entertainment webmasters, one that's sometimes overlooked is retail sales of Adult products. That's a curious fact, since the Web's inherent anonymity and privacy make it a tailor-made environment for selling dildos, blow-up dolls, x-rated movies, fetish items, and other things by which many shoppers are embarrassed in the cold, harsh light of the real world. Online Adult stores represent a veritable erotic paradise for the shy, socially repressed, or simply too-busy-to-shop surfer, and according to store owners, shoppers are flocking to well-designed, conscientious virtual facilities in greater numbers than ever before. Digital entrepreneurs who've discovered the profitability of affiliation with such enterprises say their comrades who haven't bought into the trend are missing a significant revenue stream.
One of the reasons online stores may not be a first choice in the revenue mix for many affiliate-business-model Webmasters is that store promotion requires a different mindset than promoting more in-your-face types of Adult content. Retail success hinges on a more subtle creativity than just "slapping banners on a Web site," say those in the know. Another reason is that retail commission structures aren't as impressive as those for "raw, hard sex" content sites: The highest retail commissions are only about 20 percent of net sales. Compare that to the 35 to 75 percent revenue split on some of the more traditional Adult content sites, and it's easy to see why the uninitiated might think their time is better spent promoting streaming video, image megasites, or live sex networks.
For every objection, though, there's compelling answer, and retail affiliates and their sponsors say webmasters who don't at least try folding a retail affiliate program into their revenue mix are leaving money on the table.
'Free Money'
Online retail revenues are enjoying historic levels across the board, according to mainstream financial pundits, and adult is certainly part of that trend. Anne Semans, marketing manager for Toys In Babeland (www.babeland.com), says it didn't take her company long to realize that translating its women-centric real-world approach to the virtual sphere would be a propitious move. The company's first Web site was constructed in 1996, and TIB realized a "huge" profit growth that first year – something on the order of 700 percent, she says. "The nature of what we do is built for the Internet," Semans says. "People can shop day or night, and they don't have to walk into a retail store."
The TIB affiliate program launched in 1999, and by the end of its first year in operation, it had contributed to a 147 percent increase in Web-related sales. "Obviously not all of that can be attributed to the affiliate program, but it definitely had an influence," Semans says.
As TIB's experience indicates, the question for most virtual retailers isn't "Why would someone want to affiliate with a virtual store?" but "Why wouldn't they?"
Revenue from online stores is "free money for affiliates," according to Caryn Goldberg, president of Specialty Publications, the parent company of virtual retailer Buygay.com. "They don't have to maintain their own warehouses, ship products, handle customer service. They're not taking any financial risks."
Affiliates agree. For Mr. Skin's Derek Meklir, who warehouses some, but not all, of the products offered on his Web site at www.mrskin.com, retail affiliate programs are a godsend. "They definitely bring in a good amount of money, but on top of that, we can't handle everything ourselves, so they give us more to offer our customers."
"It's a great financial opportunity, I don't care what kind of Web site you have," says David Levine, president of online retailer Sextoy.com. "[A retail affiliate program] is an extra add-on that doesn't compete with your core business, so what do you have to lose? It's free to sign up as an affiliate, there are no 'outside' links [to drive traffic away from the referring site], and if you do it right, you can make a good bit of money. Our biggest checks every month are $10,000 to $20,000. One month I sent one guy $50,000."
Of course, not every affiliate will see income of that magnitude. For most, their share of the monthly revenue split amounts to between $100 and $1,000, according to Semans. Still, the monthly income is worth the effort, affiliates say. "It's not tons of money, but we make enough to justify [continuing to promote the stores]," says John Herman, editor-in-chief of Out In America Cities Network (www.outinamerica.com), of the several retail programs with which his company's Web sites affiliate. Out In America's primary business is personal ads, and those provide most of the company's income. Affiliate revenue sharing comes in third in Out In America's financial hierarchy, behind advertising income.
Affiliates and store owners agree that what makes the difference in whether a store program performs or just takes up space is how much effort the affiliates put into their own success. "The biggest thing webmasters fail to realize is that belonging to [retail] affiliate programs doesn't automatically make you money," says Brian Sokel, online marketing manager for TLA Entertainment Group Inc. (www.tlavideo.com). "You can't just slap a banner on a Web site and expect people to click on it. You have to give them a reason to visit."
Making a Match
Of course, deciding to add an online store affiliate program to a revenue model is only part of the process. Finding the right sponsor can become a career in itself, especially if a webmaster is unfamiliar with his users or uncomfortable with the concept of retail. A good first step, according to TLA's Sokel, is to ask yourself three questions: Who are you trying to appeal to (niche surfers, lifestyle members, personality fans, etc.)? What are you trying to do with your Web site (create a community, provide entertainment, educate)? Where do you want to go (develop a network of small sites, create one giant megasite, offer your own content or market someone else's)? After that, find a retail sponsor who is dedicated to supporting your goals.
Toys In Babeland affiliates are a case in point. Most of them specialize in women's issues and entertainment, so affiliating with an elegant boutique that caters to women makes sense for them, according to Semans, noting that 75 percent of the visitors to the TIB Web site are women. The key to success for the sponsor and its affiliates, Semans says, is believing in the products offered by the high-end sex-toy store. "The Net is a liberating experience for women's sexuality," she says, "and our affiliates are loyal to what we're trying to do. So even though we can't compete on the commission percentages with the really big companies, they stick with us and they make money."
Semans suggests that before potential affiliates sign up with any program, they shop the store themselves to make sure the experience is pleasant and the products are appropriate for their users. "Going to a reliable outlet is incredibly important," she says. "If you don't trust the program operator, your customers won't either."
In addition to trust and a good product mix that will tickle consumers' fancy, what Semans calls a "design for usefulness" is of paramount importance. Products should be presented clearly with as much information as possible, and navigation should be easy to follow. "Customers don't want to be sent all over the map," she cautions. Even after a store is selected, Semans recommends affiliates make routine visits – especially if they notice a decline in revenue – to ensure the quality of merchandise or overall "feeling" of the store hasn't changed significantly. "Check frequently to make sure the experience hasn't been destroyed for your customers," she advises.
Potential affiliates also need to investigate the depth of support retail sponsors offer their partners, says TLA's Sokel. "Check to see what kinds of collateral materials they have to promote their products, because you'll be using them," he counsels. "One of the most important things you can do to sell products is to give your potential customers fresh content all the time. Does the sponsor constantly update his Web site and marketing materials with relevant new information?"
Sokel also recommends potential affiliates become familiar with the sponsor's business model. Does the store offer customized "skins" for its affiliates (so the store looks like part of their site), or does it prefer to maintain its own identity? Are product links easy to generate? How easy is it to contact the affiliate manager in case questions or problems arise? "Make sure the functionality is easy for you," Sokel says.
Perfecting the Pitch
One of the ways in which TIB affiliates make online retail work for them is by creating a personal, interactive experience for their users. "Personal endorsements are especially important for women," notes Semans. "They create a sort of 'seal of approval,' and our affiliates who endorse specific products from our catalog on their sites see a clear upturn in sales of those products." Product endorsements can take the form of reviews, user ratings, and "best seller" lists.
Buygay.com's Goldberg agrees. One of the strategies her company recommends is that its affiliates e-mail their members regularly with recommended products, staff "best" picks, special offers, even product reviews. "A personal touch goes a long way in leading customers to purchase the things that keep you in business," she says. "Tell people what they want, and they will buy it. It's basic retail strategy: People don't know they want something until you tell them that they do." For Buygay.com's affiliates – among which are some of the largest gay Web sites on the Net – the personal touch includes appealing to what she calls "the gay pride gene": a sense of community that encourages gay surfers to support each other's economic endeavors. It also includes humor. "Sex can be fun and funny," says Goldberg. "Our message – and our affiliates' approach – is 'We don't think these products are shameful, and you shouldn't think they're shameful, either.'"
Integration into a Web site's concept is an especially fruitful way to increase retail sales of relevant products. For many TIB affiliates, educational articles about sexuality and sensual "how-to" features incorporating products the reader can buy through a link embedded prominently in the copy are tried-and-true moneymakers. For Out In America's Herman, text links within erotic fiction work wonders. "It doesn't take that much time to put in links," he says, "but it definitely brings in revenue. Even if they don't buy on the first click, they might come back later and you'll get the credit."
Mr. Skin's Meklir says he posts a "buy" link with almost every one of the more than 10,000 movies listed on his "where can you see celebrities naked?" Web site. "Members see clips and pics from the films, which whets their palates to buy the DVD," he says. He offers one important caveat, though: "Make sure the items are relevant to the part of the site where you're trying to sell them. Unrelated items actually push the user away."
Sextoy.com's Levine says almost any Web site can integrate "buy" links with its content, although for some it takes a bit more planning and effort than it does for others. Sites that offer streaming video or Video-on-Demand from major Adult studios have a natural product tie-in, of course, but even amateur girls and guys can get in on the action. "Integrate toys, lingerie, and fetish gear into the photo sets or videos you shoot for your Web site," he advises. "You can even hotlink to those products at your store right in the pics. The key is to customize and integrate your store right into your site; don't think of it as an add-on, but as an integral part of what you're doing."
Even mainstream Web sites can benefit from affiliating with virtual retailers who offer Adult wares. For Richard Cranium, budding political pundit and owner of the mainstream liberal Web site The All Spin Zone (allspinzone.blogspot.com), integration of products from an online store that carries both mainstream and Adult wares has proven profitable in some unexpected ways. "What I've done is integrate discussion of products that I'm pushing into a larger context," Cranium says. "I soft-pedal the product in the larger context of the topic I'm discussing. I did that with Latter Days – a gay-oriented independent – but not gay porn – film. I promoted it in the subtext of the gay marriage issue, basically saying that if a straight person really wanted a view into what all the fuss was about, this was the video that would do it for them. My click-through-to-purchase rate using this method is nearly 1:1. If I've got someone interested enough in the topic to pursue the product, they're going to buy it when they click through to TLA Video.
"Once the customer gets to TLA Video, now they have a natural entry point to other products they might be interested in. They buy the other products – toys and gay and straight Adult stuff – just because they're there. I had a woman recently drop me an email after buying Fahrenheit 9/11, and she said 'What a great approach! I had a wedding shower coming up, and picked up a couple of other (cough, cough) things when I ordered F9/11.'"
Universally, affiliates agree that marketing online stores requires an adjustment in thinking and methodology, as well as a liberal application of the proverbial elbow grease. Store owners provide quite a bit of help in the form of special software, customized user interfaces, product images, time-limited pricing and clearances, and other sales aids, but in the final analysis, successful retail marketing comes down to the creativity and dedication of the individual affiliate. "They're only as successful as they make themselves," says Goldberg.
