
TABLE OF CONTENTS
- Why Are Adult Businesses High-Risk?
- Legal Requirements to Sell Adult Videos
- Privacy Concerns When Starting a Porn Company
- Build a Brand and Fulfill a Niche
- How to Start a Porn Site to Sell Sex Videos Online
- Start Production to Sell Adult Videos
- How to Make Money Off Selling Porn
- Credit Card Processing for Your Porn Production Company
- Prepare for the Adult Industry
- Merchant Account for Your Porn Production Company
Starting a porn site is an inherently precarious endeavor. Despite its high-risk status, the adult industry remains quite lucrative. As with any growing trade, aspiring entrepreneurs are jumping at the opportunity to join this controversial industry.
Naturally, there are hurdles to overcome regarding production and sales before you can tap into the market. However, when it comes to starting your own adult video production company and/or porn site, there are fewer requirements at play than one might think. The requirements that do exist are ones merchants should consider carefully.
Below, we will explore the basics of how to start a porn production company, as well as how to start a porn site so you can get your adult videos out to paying customers ASAP.
Why Are Adult Businesses High-Risk?
Adult industry merchants often face a cultural stigma that prevents them from accessing the right payment processor. Many banks do not want to work with any business operating in the adult entertainment sector. Even the word “pornography” sets off alarms in certain circles. By taking time to understand the process, you can save yourself a lot of time and heartache when searching for an adult merchant account.
Adult-oriented businesses are seen as high-risk primarily for reputational reasons. Banks see businesses that traffic in age restrictions and allegedly disreputable offerings as a potential liability. These same banks often uphold strict terms of service that do not cover taboo industries.
Legal Requirements to Sell Adult Videos
First, you must be legally eligible to sell adult videos. This means that you and any business partners must be at least 18 years of age. Federal law regulates explicit content and outlines the stipulations for selling adult videos in its 2257 Compliance Requirements.
These aforementioned requirements apply to all adult content performers, regardless of filming or distribution locations. Failure to comply with 2257 is a federal offense.
Privacy Concerns When Starting a Porn Company
For better or worse, what’s posted online stays online. No matter how much effort you put into scrubbing a piece of content from existence, a fragment will likely still exist somewhere.
For this reason, rendering your personal information private is essential; the same is true of your adult industry collaborators. This means:
- Don’t use real names. Use an alias to protect your identity and preserve the integrity of any future business practices. If you ever wish to pivot from adult content to non-adult content, this will endear you to a broader audience.
- Never reveal your location. Revealing your location could open you up to unwanted advances from unscrupulous third parties looking to exploit you or your work.
- Only work with trustworthy performers. The adult industry is full of performers with checkered and even problematic reputations. To ensure your collaborators’ physical and emotional safety, refrain from working with any individual known for toxic or abusive behavior.
When it comes to starting a porn site, you can never be too careful when it comes to taking privacy into account. In summation:
Build a Brand and Fulfill a Niche
Creativity is a plus in any industry, including adult entertainment. Adult performers are encouraged to develop a name and persona that helps them stand out from the crowd.
Performers should establish ground rules and build their online brand, whether it’s a girl next door, an assertive dominatrix, or something in between. Doing this allows performers to fulfill an industry niche. There are too many categories in adult entertainment to keep track of. Many actors pick one category and become the best in that vertical.
How to Start a Porn Site to Sell Sex Videos Online
The first step to building an adult site is registering a domain name. Adult merchants must register for state taxes and apply for an EIN when the time is right.
When designing your website, merchants must adhere to federal, state, and local laws about the age of consent. Integrating KYC (know your customer) APIs into your registration process is a method through which you can confirm the age of your customers. You can also incorporate OTP (one-time password) verification to authenticate individual users as an additional measure. To monetize your site’s content, you’ll need to accept payments online with a payment processor.
Next, let’s discuss how to promote your site.
Promoting content and advertising
Starting a porn site is only a lucrative venture if people can actually find you on the web. However, restriction from search engine advertisements should not be synonymous with lack of outreach.
Below are a few options for how to advertise your site:
- Join online fetish communities
- Add your bio to other adult sites
- Use affiliate marketing on external sites
- Offer referral bonuses to fans
There are many ways to promote your business; it’s all about finding the method that works for you.
Start Production to Sell Adult Videos
Producing porn typically begins with a concept. This can extend to a take on an existing Hollywood film (though you have to be careful with issues related to copyright and intellectual property) or a single high-concept scene. Coming up with the idea itself is tricky enough. However, the logistics of shooting can present an even more daunting challenge.
When creating porn content, be sure to bear in mind:
- Length – whether it’s a few minutes or feature length, the duration of your video content matters.
- Budget – consider the production value and whether you’re spending too much.
- Actors – determine the exact number of performers involved in the production and how they’ll be paid.
Performer compensation is a critical consideration. Basically, you’ll have to shell out more money if you’re hiring known stars. It’s usually worth the investment, as these stars generally have name recognition and dedicated fans that can draw more eyeballs to your project.
You should have a target market, which you can identify by performing a target market analysis. This will help you determine your ideal consumer, thus helping you build a loyal clientele.
Upgrade equipment to make your own porn
Lighting, sound, and video quality can make all the difference in porn production. Well-made productions ultimately amass bigger audiences and attract more viewers.
Adult merchants should consider cinematography integral to producing well-made adult videos. Will it be a POV production? In this case, you’ll need a small, portable, high-definition camera. Set up a tripod to reduce the shaky-cam effect and take behind-the-scenes photos. Research the best equipment within your price range and choose the gear that best suits your aesthetic.
Porn production: in-studio vs homemade
The filming location of your adult videos is vital to establishing your in-house style.
Generally, porn is either shot in a studio or on location. Films shot in studios tend to be of higher quality due to the added layer of quality control. Elements like lighting and sound are less vulnerable to issues like inclement weather and construction noise. However, filming at a proper studio requires that the producers rent the space. This can be a costly undertaking, particularly for amateur productions.
Shooting on location won’t necessarily add to your budget, as the space may or may not have to be rented. If producers do have to rent it, it will likely cost less than a studio. However, using these locations often yields lower-quality content. In certain instances, diminished production quality may work in your favor, as it creates a lo-fi, voyeuristic style preferred by some viewers.
Go solo or bring a partner
As with any major Hollywood production, attaching big names to your project can boost its profile. If you already have a following but want to diversify your reach, consider bringing in amateur actors to spice things up. If you’re working with actors who aren’t quite porn stars yet, you may want to partner them with someone who has more clout or industry experience.
Consider taking content requests
If you’re stuck for concept ideas, take requests from your viewers. This tactic appeals to niche audiences while also satisfying your day-one fans.
If you have customers willing to pay extra for a specific subcategory of adult content, take advantage. Charge more for longer videos, videos with substantial production value, or videos stacked with big names. Listen to your audience’s needs and respond accordingly.
How to Make Money Off Selling Porn
Setting up your own site is the most straightforward way to make money in the adult industry. Here, you can sell niche and personalized content and build your brand as your audience grows. You can sell pay-per-view videos or charge for a login to access restricted media.
Another option involves selling adult content to hosting sites. In this case, you profit from the original sale but do not monetize in perpetuity. No matter your business structure, you should have a clear action plan before moving forward to the production stage.
Alternative ways to monetize your video production
Webcam performances
If you’re an adult content creator with your own site and equipment, another way to build a revenue stream is to start camming. Giving your viewers access to a live feed is a great way to earn extra cash and tips.
Set up a channel and schedule the times you’ll be live. After implementing a schedule, the viewers will start to roll in steadily. This strategy is generally tailored to performers with a pre-existing fanbase, so don’t be discouraged if it starts slow: all good things take time.
Offer content request options
Keep fans engaged by listening to their requests. If they want to see you co-featuring in scenes with a specific performer, why not grant their request if they’re willing to pay extra?
Adult photography downloads
If you have equipment that can produce high-quality, professional-looking videos, guess what? You can also take striking, high-resolution BTS photos. Adult photography can absolutely supplement your video production business in the right circumstances.
Subscription fan club
What better way to learn how to start a porn site than to jump into a tried and true business structure? If you have fans wanting more than what you currently provide, let them subscribe to access exclusive site content. Subscriptions can include access to full clips, the ability to make personalized requests, or notifications for when a performer is going live. Just be sure you’re offering your subscribers enough content to justify the price tag.
Sell products or novelties
You can also sell adult novelties and sex toys online by adding an eCommerce store to your site. Another option is becoming an affiliate referral partner for products that you use.
Credit Card Processing for Your Porn Production Company
The adult industry is controversial, which is why some firms will either charge you higher fees for every transaction or flat-out reject your application due to potential reputational risk. With that in mind, you’ll need to find a high-risk payment processor that you can rely on.
At the same time, a surplus of premium fees can put a serious strain on your account. You’ll want to avoid specific processors, either because they don’t work with adult merchants or do so in a significantly limited capacity. These companies are traditional, tier-one providers such as Square, PayPal, and Stripe.
These more conventional providers tend to approve merchants relatively quickly. This aspect of approval actually puts high-risk industries at risk of closure. In this circumstance, the processor performs underwriting months after approval. They will immediately shut you down when they realize what your business is selling. You can circumvent this issue by going directly to an adult credit card processing service.
Prepare for the Adult Industry
A payment processor will almost always ask for credit details before opening your high-risk merchant account. Before you find yourself in this scenario, you’ll need to clean up your FICO score.
Liens and outstanding payments affect your credit in ways that aren’t always obvious. You can address specific incidents on your credit report by directly contacting the credit reporting agencies. Enjoy services like quasi-cash handling, remote deposit, and eChecks to help manage your cash and keep business operations running smoothly. The right merchant services provider will help you determine precisely which resources you need and which you may be better off without.
Below are steps you can take to make acquiring a merchant account easier.
- Manage your credit history by paying all your balances and liens in full. The goal is to boost your credit rating, which can take months to reflect in your FICO score.
- Start saving money ASAP. You may be required to set up a reserve account that the merchant account provider can access in the event that your business fails.
- Brace yourself for fees. Since your business is high-risk, you will pay more fees than your low-risk contemporaries. With that in mind, do your due diligence and find a company that doesn’t charge you an arm and a leg.
- Keep track of all necessary documents, such as your business license, utility bills, valid government-issued identification, and articles of incorporation.
When opening a merchant account, you must be completely transparent about the details of your business. You may be asked if you’ve had any merchant accounts closed in the past. Be prepared for any and all questions thrown your way.
Some of the most desirable payment processing options are industry-specific. Your best bet is to opt for a processor that works with other adult content companies. You’ll also need to find a specialized adult payment gateway—after all, payment processing isn’t a one-size-fits-all concept.
Merchant Account for Your Porn Production Company
You’re bound to encounter obstacles in opening an adult merchant account. For better or worse, this is just the nature of this intensely specific industry. It’s tough out there, but eventually, with the right combination of luck, persistence, talent, and hard work, you will likely find the proper merchant account to help get your business off the ground.
Finding the right adult-friendly processor means you won’t spiral into a panic if and when your virtual terminal gets shut down. Processing high-volume sales also gives your business more negotiating power. Adult merchants can also reduce the margin for risk by utilizing the right payment gateway to mitigate the roadblocks of their chosen trade.
You deserve to work with payment gateway providers who understand and are eager to support your business. At PaymentCloud, we help merchants in the adult sphere turn their dreams into a reality. Don’t waste another second with processors who don’t understand your vision—connect with our team of experts and set up an adult merchant account today!