opinion

Working With 3rd-Party Service Providers

For many companies the question of “how can we save money and reduce overhead?” arises as part of an internal optimization process that typically involves the re-negotiation of services with third-party providers, as well as an analysis of other operational costs.

They say that “the customer is always right,” and when dealing with third-party service providers, whether they are IT functionaries, billing, design or hosting companies, accountants, outsourced support staff or other necessary “help” for your adult business — you are the customer that “is always right.”

Outsourcing and third-party service providers allow many companies to cost-effectively leverage staff and expertise.

This doesn’t mean that you should adopt an adversarial attitude with service providers or attempt to dictate terms to them, but as the customer, you should not be afraid to ask for what you want, to negotiate the best terms, and to be willing to walk should the terms not be adequately met.

For example, you may be happy with your current hosting company, but notice that a competitor offers a similar hosting package at a lower price. This gives you three choices: switch hosts or stay with your current host and continue paying higher-than-market prices — or ask your web host for a better deal.

Likewise, you may be paying X amount per unique visitor for traffic to your website from a broker. Perhaps you could arrange a buy-back deal where the broker would take the exit traffic back from your site — mitigating some of its initial purchase price while replenishing the broker’s inventory — a win-win situation.

It is this seeking of mutual benefit that is at the heart of successful negotiations, for if there is no benefit to one party, there is no motivation for that party to seal the deal.

For example, if your service provider is already offering you a slim-margin deal, or at the limit of its technical capabilities, then perhaps no deal can be reasonably made; as not all customers are worth keeping.

Communication is vital in this process, as is having something to offer in return.

For example, “buying in bulk” is a proven way to lower acquisition costs, whether you’re dealing with bandwidth, traffic, or billable hours. Perhaps a service contract with a longerthan-normal term (a two-year vs. a one-year deal), or an exclusivity clause may be the key to sealing a deal.

Co-branding, ad swaps and other incentives can also help when re-negotiating deals.

For example, a high-volume affiliate asking for a higher payout rate from a sponsor might be placated with some custom content, such as the affiliate site logo on shirts worn by performers in a select scene: great win-win branding and benefits for both parties.

Take this further with the sponsor scheduling several scenes, each with top affiliate logo-clad models, and then turn the production over to prospective shooters to do on spec or as “audition reels.”

This saves the sponsor money, while a new shooter gets his foot in the door ...

However you decide to go about it, periodically re-evaluating your relationships with third-party service providers and then finding, unique, win-win ways to improve deals by providing mutual benefits, is a great way to lower costs and to increase your company’s strength through more solid business relationships.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

The 'Wall of Shame' in Adult Retail: Deterrent or Dilemma?

Retail theft affects all kinds of businesses, but adult retailers face unique challenges when it comes to loss prevention. One of the more controversial strategies some retailers have adopted is the “wall of shame,” a public display of shoplifters caught in the act.

Rin Musick ·
profile

Segpay Marks 20 Years of High-Risk Triumphs

Payment processors are behind-the-scenes players in the world of ecommerce, yet their role is critical. Ensuring secure, seamless transactions while navigating a rapidly changing regulatory landscape requires both technological expertise and business acumen.

Jackie Backman ·
opinion

The SCREEN Test: How to Prepare for Federal Age Verification

For those who are counting, there are now 20 enacted state laws in the United States requiring age verification for viewing online adult content, plus numerous proposed laws in the works. This ongoing barrage has been exhausting for many in the adult industry — and it may be about to escalate in the form of a potential new AV law, this time at the federal level.

Corey D. Silverstein ·
opinion

Mitigating Retail Shrink Through Intelligent Video Solutions

Retail shrink isn’t just a cost of doing business — it’s an existential threat. Theft, fraud, operational inefficiencies and employee mismanagement chip away at profits in ways that many business owners don’t even realize.

Sean Quinn ·
opinion

How to Master Team Dynamics for Business Success

Having the right team in place is everything. Whether getting a startup off the ground and thriving, or safeguarding an established company, the right — or wrong — people can mean the difference between a successful venture and a failed dream.

Juicy Jay ·
opinion

The Power of Authenticity in Selling Pleasure Products

I’ve been working in the pleasure industry for more than two decades. For a significant chunk of that time, I thought that to be successful in sales, I had to fit a mold. I assumed that selling meant following a formula: say the right things, use the right voice and present myself in a way that was guaranteed to convert.

Kimberly Scott Faubel ·
opinion

Eight Steps to Fast-Track AI Site Approval for Processing

Artificial intelligence is a hot topic these days. AI technology is speeding up the way we do business across all industries and offers numerous benefits, from automating processes to increasing efficiency and scalability.

Cathy Beardsley ·
profile

Dennis DeSantis on Building a Blockbuster Career in Adult Retail

The adult industry and the mainstream Hollywood scene often intersect, and few executives are more familiar with that crossover than Dennis DeSantis.

Ariana Rodriguez ·
opinion

How to Secure High-Risk Transactions With Network Tokenization

Ensuring the security of data as it moves through digital channels is the foundation of safe transactions, and crucial for your success. If your business can’t secure transactions, you’re exposed to myriad processing traumas.

Jonathan Corona ·
profile

'Pleasure Professionals Place' Facebook Group Marks 5 Years of Fostering Connections

Where can you find the pleasure industry’s most tantalizing, trending and relevant conversational banter? For once, we’re not talking about a trade show after-party!

Colleen Godin ·
Show More