When I left Mogul Networks in March, 2003 I was pretty much at a loss as to what I was going to do in adult, if anything at all. I had developed a friendship with goodgirl, and she had opened
Sex Pictures Pass AVS about 6 months earlier.
When she heard that I had left Mogul she immediately presented me with a very generous offer to take a majority share of SPP-Productions, Inc. making me CEO and president.
At the time SPP was a revshare AVS, that only charged the surfer $10 a month, with a $5 payout to the affiliates. There were only about 25 affiliates and 200-300 sites in the system, so I wasn't really sure if this was something I wanted to get into. We had an AVS when I was at Mogul, but its results were kind of so-so. While I was deciding whether or not to accept the offer, they got a signup.
I took it as a sign. If this little AVS could get signups with so few affiliates and sites, maybe I could do something with it, so I agreed to the offer, and completely restructured the business model.
I had made many contacts while working with Mogul, one of them being with the good people at FlyntDigital. After a brief discussion with them, and Gary Kremen at Sex.com I knew I could make it work.
We went from revshare to PPS, increased the payouts to a sliding scale of $20-30 each, added a $5 webmaster referral program, and offered incentives to SPP affiliates.
We now have close to 900 affiliates, and 7,000 sites in the system, and are preparing to open two new AVS's.