Live cam business models

August 29, 2016

Over the years the business models in the adult live cam industry have been evolved due to new technologies and smart marketing techniques.

Each business model has its own characteristics and effects the behavior and earning model for studio partners and webcam performers.

For starting studio partners and webcam performers its useful to understand these business models.

USED BUSINESS MODELS LIVE CAM INDUSTRY

Here in this blog post we will give you a detailed break-down about how each business model is being used in the live cam industry.

DIRECT ACCESS

Pay to have direct access

The “Direct Access” model is the oldest and originates from the time when consumers had to dial in by phone to get instant access to a webcam performer’s chat room.

Now its based on a virtual wallet where members can buy coins by phone, credit card or other alternative payment methods.

Only paying members can access a webcam performer’s chat room to have some online fun.

Most of the European live cam sites are still using this business model.

Studios and webcam performers will receive a revenue share over their generated minutes.

PREMIUM

Not everything is free

Mostly international live cam sites are based on a “Premium” business model.

Members can join for free and access most of the available public live chat rooms.

To have some private fun with a webcam performer the consumer needs to have a positive e/wallet.

The consumer is charged per second for a live private video chat session with one of the available webcam performers.

Premium cam sites also provide other entertainment services like group chat, nude chat, spy chat and video on demand.

Also here studios and webcam performers receive a revenue share over their generated minutes.

FREEMIUM

Everything is free

The “Freemium” business model is at the moment popular among consumers, studios and webcam performers.

This business model offers private live video chat shows based on a pay-per-second model but is unique because of its “Tip Goal” feature.

Webcam performers can define a “Tip Goal” and show something for free for each tip they receive.

Once they reach their “Tip Goal” they will do the related action in their public chat room.

Example:
Room topic: 250 coins = 5 minutes public masturbation show | 20 coins = boob flash | 30 coins = pussy flash | 30 coins = Doggy style (every tip counts for the final tip goal)

We know from experience that this business model works very well for webcam performers.

Short action shows in their public chat rooms stimulates other members to start a private video chat session with a performer.

Webcam performers can also make money with their photo albums and video clips once members purchase the unlock code to access their content.

Also here studios and webcam performers receive a revenue share over their generated minutes.

The revenue share % for studios and webcam performers are higher compared with “Direct Access” and “Premium” business models.

CONCLUSION

The newest cam platforms are all based on a “Freemium” business model. Some of the established “old” cam platforms try to adapt a “Freemium” model into their online activities.

“Freemium” live cam sites generate a lot of traffic and engages consumers to purchase coins/tokens and spend money on one of their favorite webcam performers.

The tipping feature results that webcam performers make the same money with short public actions as when they do long private shows.

Webcam performers are representing their own brand and have now-a-days all the cards in their hands to influence their earnings.

By using social media platforms and investing in themselves, pro-active and smart webcam performers can make some good money.