Adult

How to Start a Webcam Business (and Even Become a Cam Model Yourself)

29 Aug 2019
Reading Time: 8 minutes

Learn how to be a webcam girl and start your own business today. Millions of internet users gain instant access to their favorite camming girls within seconds each and every day. This gives business owners in the webcam industry a real chance to maximize profits as their fanbase grows. And it’s a lucrative industry as well: ZipRecruiter estimates that the average cam model makes $61,983 a year.

If you’re thinking of starting an online webcam company of your own, it’s important to understand the business side of things along  with the production and acting, because the adult webcamming industry can be extremely volatile. Find out how to get started in the webcam business and how you can ensure to make money from it as you grow.

Benefits of Starting a Webcam Business

As you now know, a webcam business can be an extremely profitable one if you know how to run yours well. You also have the potential to make a lot of money in a short amount of time, and if you decide to perform as well, you may even find yourself spoiled with gifts from your viewers every once in a while.Woman using her laptop in bed

However, the benefits of starting a webcam business don’t end there.

Like any other freelancer or small business owner, you get to be your own boss. There’s no one to tell you what to do or how to do it. You can also grow other side businesses from this main offering such as beginning to sell recorded adult videos and clips to starting a chat service on your site.

Getting Started – How to Build Your Adult Camming Site

If you’d like to learn how to start camming, there are a few ways to go about doing this. Keep reading to learn how to start a webcam business.

Adult Webcam Business Model

Learning how to start a webcam business first requires registering your business with federal, state, and local governments.

The business entity you choose – whether you go with a sole proprietorship, partnership, limited liability company (LLC), or corporation – will ultimately affect your taxes and liability. In most cases, you’ll want to choose an LLC as it’s easier to set up than a corporation and offers you protection from personal liability that a sole proprietorship or partnership cannot.

Next, you’ll want to determine your business structure: a plan for your webcam business. This will help to put your business model, how your business will operate and make money, into writing. It should answer questions like:

  • How do you plan to attract customers?
  • What amount of money will you spend on marketing your business?
  • Will you be learning how to be a webcam girl or recruit cam models?
  • How much will you pay your employees and models?
  • Are you going to cut will you take from your models’ earnings?
  • Are your adult services going to be a subscription for your clients, or not?
  • Will you need equipment or support to get up and running?
  • Do you have a financial planning budget to help you overcome hurdles?

This is an important step as you solidify yourself in the business. It will help you answer basic questions surrounding advertising, partnerships, and finances. Consider that you may need to look into accounting software and employee management systems as your business grows.

Tip: Many financial institutions will want to see a business plan before working with you, especially considering the nature of your business, so having one will help to reinforce the legitimacy of your company.

Create Your Own Cam Site or White Label?

Next, you’ll need to choose the right site for your business’s requirements and goals.

Woman posing in lingerie reflected in the camera lensCreating your website yourself can take a considerable amount of money, time, and risk if you are inexperienced. The upkeep can also be a tough hurdle to overcome. But on the flip side, this option gives you much more control over the intricacies of your business site and you get to keep 100% of your earnings.

White labeling a site may be a better option for those interested in starting a webcam business right away, and save some money on website setup in the process. This option allows you to pay for a domain on a website platform and rebrand it as yours. But by doing this you are constrained into using one of their templates and you most likely pay a portion of your sales each month to use it.

Regardless of which option you choose, you’ll need the following to get started:

  • A content management system (CMS)
  • Reliable web hosting
  • A domain name and brand for your website
  • Secure way to take customer payments and tips

Legal Requirements and Policies

As the owner of a new adult business, take care to stay on top of federal and state laws.

For one, your website needs to have a page for your privacy policy and terms of service. This page will tell users how you handle their personal data and outline how users should be using your site. Among other things, it should state that only those who are 18 years and older are allowed to access your website. If any changes are made to this page, you should notify your users immediately afterwards.

You’ll need to brush up on Federal Trade Commission (FTC) adult website guidelines to ensure that your online presence is above board as well.

Of course, these guidelines are only the tip of the iceberg of what’s required in how to start a webcam business legally. Check with your state commerce department or consult with an attorney to ensure that your website, and your business in general, meets all necessary requirements, so you can avoid any legal penalties or harsh fines.

Recruit and/or Become a Webcam Model?

You can choose to recruit cam models from other sites or learn how to be a webcam girl yourself. If you’re just learning how to start a cam site, you may want to recruit experienced webcam models with a loyal following as they’ll give users a better first impression of your brand.

If you want to learn how to be a webcam girl, it’ll be helpful to observe what other models do. You can then put your own spin on things and each performance your own.

And don’t forget, you can always do both. Figuring out how to be a webcam girl and hiring other cam models may be your best way at diversifying and earning a little on the side.Camera set up to start filming

Whether you’re behind the scenes or in front of the camera, know that there will be a learning curve as you begin a camming site and learn about to your customers. It takes time to generate a following, so remain patient and consistent with your efforts as you’re growing.

How to Make Money in Your Webcam Business

A study conducted by the US Bank found that 82% of small businesses fail because of cash flow issues. So, to ensure the success of your webcam business, you’ll need to make enough money to keep it afloat.

No matter what your webcam business model looks like, the key to making money in this industry is keeping your expenses low and pricing your services fairly. To do this you can look into other webcam businesses. See how they price their site and compete with them.

Additionally, the best way to do things right and save money is to do it yourself. Becoming a webcam girl on your own site will help you make tips directly and gain loyal customers that pay to see you specifically.

This will be a guide, but ultimately it is up to you to decide.

Get An Adult Merchant Account to Keep Costs Low

Keep your expenses low and your opportunities for revenue high. One of the best ways to do this is to make sure that your business can accept debit and credit card payments at a low cost.

Your clients will want to purchase time and pay your cam models tips in the easiest ways possible. So whether that means credit or debit, you will need to be able to accommodate that without breaking the bank. The first step to doing this is to get an adult merchant account that will help you get set up to take payments. A merchant account is provided by a merchant service provider that will help you accept customer card payments electronically.

Merchant accounts are typically approved based on the industry that the business is in. Because webcam businesses are part of the adult industry, you’ll need a high risk payment processor. This is because traditional financial institutions prefer not to work with businesses that are considered high risk, like yours.

Find out what is a high risk business?

But, as soon as you find a reliable, fair, and secure processor, you will be one step closer to making money and staying afloat.

Protect Your Camming Business from Industry Risk

There are a few reasons why your adult business may be considered more risky than others. Unfortunately, this industry comes with it’s own unique risk factors which have their own ways to combat. Take a look at the most common forms and how you can begin to reduce those adult industry risks as you grow your webcam business.

Common Adult Cam Site Risk: Illegal Activity

People in any industry can partake in illegal behavior. While this issue is seen far less often than fraudulent charges or excessive chargeback rates, it’s still possible. Without the ability to monitor each individual adult webcam stream, there is always a chance for illegal activities and behavior.

The best way to combat this is to train your cam models to report this activity. This way you keep your site safe from risk and your model is out of harms way.

There are plenty of ways to do this discreetly as well, making it an easy alternative than monitoring each stream at all times.

Common Adult Cam Site Risk: Reputation

Adult companies are often seen as fringe business, ones that cannot be discussed over the dinner table or among certain company. Therefore, they’re usually an unsupported industry in many ways. Although this stigma may stem from the nature of the industry, it’s a non-negotiable aspect of learning how to start a webcam business.

The only thing you can really do is to make sure you are operating safely and according to the laws. If you see something linked to your business that you don’t like, see why it’s happening and take steps to prevent it.

See our guide on online reputation management for tips to help you navigate this area of business.

Common Adult Cam Site Risk: Fraud

Due to the sheer volume of adult entertainment available, there has been a rise in fraudulent charges as well. In 2019, the FTC received 1.7 million fraud-related reports alone through the Consumer Sentinel Network.

Fraud in any online business is on the rise. There is no way around it, but luckily, there are ways to detect and prevent it.

Man smiling as he works on his computer while sitting in bedIf you’re seeing fraud come through your business via payments, you can reach out to your processor for help. They will have the tools to identify and eliminate fraud risks in your webcam business. This is your best chance to take a proactive approach to your fraud mitigation techniques.

Common Adult Cam Site Risk: Chargebacks

Any industry that receives more than a 3% chargeback rate is often blacklisted by payment processors. This ends your ability to process payments and makes it harder to get processing down the line. However, the adult industry is notorious for extremely high chargeback rates, which make adult businesses learning how to be a webcam girl risky to these providers.

Protecting against these chargeback disputes is extremely important to your business. There are plenty of chargeback management solutions that hook up directly to your businesses merchant account. They proactively fight against current chargebacks and analyze your business to see where you’re receiving these chargebacks from with the intent to protect you from them in the future.

Payment Processing Security for Cam Model Businesses

In rare cases, webcam business owners that apply for a merchant account through a traditional processor may find their application approved. This is because these providers often pre-approve accounts without looking at your business type.

Unfortunately, you shouldn’t get your hopes up for a long-term partner with these types of processors.

Working with a high risk payment processor ensures that your merchant account doesn’t get shut down. You need to get your cam business online as quickly as possible – a high risk solution is your best bet.

Don’t cripple your business before it even begins. Move forward with confidence in your adult webcam business knowing that you have the security of an adult merchant account, a tailored website, and risk prevention tools to keep you up and running.

Bronte

Bronte Mitchell

Bronte is a designer and marketer based in Los Angeles, CA. She has been creating and promoting content for over 3 years, covering a range of topics in the payment processing industry. Bronte is currently the Director of Marketing at PaymentCloud, a merchant services provider that offers hard-to-place solutions for business owners across the nation.

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Bronte

Bronte Mitchell

Bronte is a designer and marketer based in Los Angeles, CA. She has been creating and promoting content for over 3 years, covering a range of topics in the payment processing industry. Bronte is currently the Director of Marketing at PaymentCloud, a merchant services provider that offers hard-to-place solutions for business owners across the nation.

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