There are many different niches in the adult Internet arena and each carries
its own issues. The variations can be so extreme that we contemplated forgoing
this page because it is difficult to know where to begin. Being lawyers,
however, we never pass up a chance to talk endlessly or, in this case, peck away
madly at the keyboard. With that in mind, following are a number of questions we
receive frequently.
Q: What does "obscene" mean and is there any way I can
protect myself?
A: The term "obscene" is hard to nail down for a variety of reasons.
Initially, whether sexual imagery is considered to be obscene can only be
determined by applying the local community standard for the location in which
the images are viewed. If someone located in San Francisco looks at your
images, there is less chance of any complaints being made to the authorities.
Unfortunately, the same images may be considered obscene in Georgia. In short,
there is simply a certain element of risk involved in this industry. Whatever
you do, however, stay away from beastiality, child pornography [under age 18],
and rape fantasy.
Q: Should I open free or membership sites if I am just starting out?
A: There is no "legal" answer to this question. Our experience,
however, has led us to the opinion that it is best to start cheaply. One
option is to put together a small free site promoting various affiliate
programs and submit it to an age verification site [AVS]. By taking this path,
you can avoid significant outlays of your money while you gain practical
experience in the field. You can also play around with creating and submitting
thumbnail posting pages, but you should note that the traffic you will get
from these pages would convert at a very low rate. If you have a very
particular niche that you are promoting, however, it is often best to go
directly to a pay site so that you gain the advantage of the "new
idea".
Q: Is all bulk e-mail considered to be spam and are there laws against
it?
A: No. If a person has given you permission to send them information by
opting-in to a service or site you are providing, then this is not spam. For
instance, we have a newsletter for AdultInternetLaw.com. We can mail in bulk
to those who elect to receive it because we have their permission. Harvesting
emails from newsgroups, etc., and then sending out unsolicited emails is
generally considered spamming. Currently, approximately 18 states have laws
against doing such unsolicited mailings, but there is no federal law on the
subject as of April of 2002. The laws of each of those states allow bulk
mailing, but it must be done in a particular way.
Q: If you [AIL attorney] were getting into the business, what area
would you pick?
A: Again, there is no legal answer to this question and each of us disagree as
to the best option. Generally, we feel that a highly defined niche membership
site or a content production company would be the best way to enter the
industry. On the other hand, you can make money in any part of the industry if
you apply yourself.
Q: Can I trust what people say on the boards of such and such site?
A: We are often amazed that people will abandon their common sense when they
undertake an Internet effort. As with any industry, there are good and bad
apples who contribute to the boards of any particular resource site. It is
best to look at the overall discussion going on and then draw your own
conclusions. Alternatively, YNOTBob at YNOTBob.com
is generally an excellent source for information and is very helpful. Unlike
our firm, Bob doesn't charge you an hourly fee!
Q: Should I go offshore to get extra protection?
A: As of April of 2002, our opinion is "No." The cost of going
offshore is simply too expensive for most adult businesses. More importantly,
the offshore industry is in a major state of upheaval and we cannot
confidently recommend any jurisdiction as being stable at this time. We expect
this situation to resolve itself by the end of 2002, at which time we intend
to publish articles on possible strategies.
Q: Should I go to the trade shows or is it a waste of money?
A: If you are new to the industry, we strongly suggest that you attend at
least one trade show in your first year. The wealth of information is amazing,
particularly since people are there for the express purpose of networking.
Unlike most industries, the participants in the adult Internet business will
openly discuss technical, marketing and other issues you may have. If you are
honest with them, they will often provide you with more information then you
could ever receive in another industry. The various parties are also
entertaining, but make sure you do not miss the next day of the show due to
"excessive networking".
Q: Can I still make money in the adult industry?
A: Absolutely. Sex has, does and will always sell. As with any business,
however, you have to be smart. You cannot put up just any site and wait for
the money to roll in. Before wasting your money, take the time to learn as
much as you can about the industry by reviewing resource sites such as
YNOTmasters.com. By taking the time to research the industry, you will avoid
the typical pitfalls that occur and gain a realistic view of the industry and
the profits that can be made. Obviously, you have already begun your research
by looking at our site.
Q: Should I buy a turnkey site?
A: At the risk of being fire bombed by various providers, we do not believe
turnkey sites are generally going to result in a profitable business. There
are so many adult sites on the net that you really need to focus on a niche
within a niche. By definition, turnkey sites will have a similar design and
content to other sites on the net. If you accept this assertion, what will
make a surfer join your turnkey site versus any other? When you find a good
answer to this question, please let us know.
Q: Why do I need a contract?
A: Regardless of which attorney you talk with in this industry, you will
always be told that you need a contract if you do business with another party.
The reason for this is that oral agreements carry little weight in the
courtroom. You say the other party promised this and they deny it. In short,
the dispute turns into a liar's contest. How often does a Webmaster feel he
has been ripped off? We get at least two inquiries a week that involve an oral
agreement that cannot be enforced. You will save yourself a lot of aggravation
by simply doing things right from the beginning. Remember, every industry has
scam artists.
Q: If I pay a model to perform for a content shoot, is it
prostitution?
A: You will not be prosecuted for prostitution if you shoot an adult film. The
courts have recognized that these performances are not undertaken as forms of
prostitution. That being said, you should make sure the models sign written
model releases and provide proof of identification. Most prosecutions in this
industry are based on the use of underage models and issues of obscenity.