The Pay Scale | How Commissions Work At Pandora Modeling
Pay scale means, "What percentage of the money spent you get." It's really important.
Since our company started we've fought to push the pay scale for models higher and higher, with tremendous success. In 2010, when we started, average rates for models on Flirt4Free were 22-23% of gross sales.
In 2017, models at Pandora were paid 33.84% of gross sales on average. Simply put, that is a difference of millions of dollars paid to models.
Our latest iteration of a pay scale rewards models for putting in more effort on cam, and here is how it works.
Hours-Driven Pay Scale
First, a quick note. Many people notice quite quickly that the hours listed here exceed the total number of hours in 2 weeks. The "hours" that are counted towards the pay scale include the hours of any other models you've referred to the company, which we'll dive deep into in the next chapter.
The Pay Scale:
note: This pay scale includes attributable referral hours which we discuss in detail in the next chapter.
This pay scale represents the best financial arrangement for any model or studio in the adult video chat industry.
Model Referral Program
While we'll cover all of this in detail in the next chapter, we wanted to reference specifically how our referral program works relative to this pay scale within this article.
Attributable referral hours means that an individual's pay scale is determined by their own hours + the hours of any models that they have referred to the company.
For example, if Model A refers Model B to the company and they each work 50 hours per pay period. Model A's total hours for the pay scale are counted as 100 (and they receive 31.5%). While model B is at 29% for their 50 hours.
The way our referral program works is that Model A would earn the difference in percentage between their pay scale rate and their referrals' pay scale rate as commission. So in this case it would have been 2.5% of the total credits Model B referred.
More details on this in the next chapter.
Alignment Of Incentives
We believe that this pay scale represents a well balanced alignment of incentives for any individual model, any model that is interested in earning money by referring new models to the company, and any large scale referrer.
The pay scale for anyone who simply wants to be a performer and never utter the words Pandora to another human is an astonishingly lucrative pay scale, far better than anything we've ever offered before.
The pay scale becomes more interesting for a model that wants to do some amount of referral activity to make more money. Bringing a friend or two to the company can meaningfully increase the commission rate you earn on your own activity, while making you a few dollars in passive income. Situations like an extra $50 per month in referral income but an extra $200 per month in commission from their own earnings have been common.
Our response to "LOL XYZCAMS PAYS 70% U A SCAM"
We encourage everyone to do their homework before signing up to cam anywhere, even here. There is a lot of misconception surrounding commission rates for models on various sites, in some cases rightfully so. So we want to take a minute to clarify the meaning of some terms and numbers.
A 30% commission rate at Pandora Modeling means that for every $100 a customer spends in your chatroom, you receive $30.
Some sites say 70% commission and do in fact pay 70% of the sales, $70 per $100. Generally speaking, no one really makes any money on these sites.
Some sites pay 50%, some sites pay 35%.
Other sites advertise paying 85%, but actually mean that "from what the network pays our studio we will pay you 85% of it." This is a more common practice in Europe, we have no idea why.
You should always ask up front. Although it should be publicly stated on the site clearly, if it's not, buyer beware.
At the end of the day, affiliation with any professional video chat network often leaves new models thinking that it's a ripoff, scam, etc. "I do all the work, and someone else keeps 70% of the money?" the thinking goes.
If your goal is simply to maximize your percentage, you should bypass sites altogether. Use Skype and have your clients mail you checks, you'll get 100%. You could probably use PayPal and Square Cash as long as you're sneaky about it. Plenty of people attempt to do some version of this.
The only flaw in that business plan is that attracting clients to pay you to get naked on your webcam is extremely difficult. It's not impossible. It's just really really hard. Our site has over 600,000 users per day. Even models ranked last on the site get 100+ users per hour visiting their room. Try to get 100 people to add you on Skype in an hour and you'll have some sense of the value that a network provides.
How does our network get 600,000 users per day? By paying affiliates a legitimate fortune (not a small fortune) every year to send traffic exclusively to the network.
At the end of the day, we've only ever cared about what activity gets the most money into models' bank accounts, a metric that we track by dollar-per-hour earnings for models. In 2017, our models had an average hourly rate of $49.80. That isn't adjusted, that's our entire roster. Including all of the many people that tried it out for 1 hour, made nothing, and stopped.
If there was a strong market for directly sourcing clients and doing cam shows via video chat apps like Skype, Snapchat, Discord, etc, we'd be doing it. There isn't. Instead, there's a lot of wasted time, banned Instagram accounts, banned Twitch accounts, banned YouTube accounts, and no longer updated Twitter accounts. Because it's really hard.
Honestly, even if you'd somehow built a big audience already, going solo is prohibitively difficult in most cases.
So, if someone accepts that some form of collaboration will help, then the question is which is the right one? What is the cause of the difference in percentages across sites?
The variable comes from the same variable that would cause you to need to use a cam site in the first place. Spending to acquire customer traffic. The costs to run a cam network are roughly comparable for anyone. There's the infrastructure and all that. There's the 15% credit card swipe fees for high-risk merchant accounts (that's really where 15 cents of every dollar spent goes). Then there's the question of how much goes to broadcasters (models/studios) versus how much goes to affiliates (the sites/companies sending traffic to the network).
Our network sends roughly 30% to the affiliates and 30-35% to the broadcasters. Tack on the 15% swipe fees and around 20% goes to the network to run the network.
So, if XYZCAMS is paying 70%, they're still paying 15% swipe fees for merchant accounts, that's 85%. They're presumably hoping to make some money themselves. So what % is getting allocated to customer acquisition? The answer tends to be 0-1%. The sites get filled with unqualified, low-cost traffic from overseas to make it appear busy. No one spends money. High turnover rate, time wasted, sad models, etc.
A site that pays 50% to broadcasting could presumably make it work if they kept their own margin/costs quite low and had a good media buying strategy. We don't think anyone is currently fulfilling these criteria. Earnings on any site are heavily weighted towards the top models. And based on our experience, the top models across the major networks tend to earn comparable amounts (low to middle 6 figures per year).
But we care a lot about the other 99.9% of models that are on the site. And that's where Flirt4Free wins. There are thousands of people making $25-50/hr on Flirt4Free each month and a lot more making a bit less, and of course the small handful making a lot more. We haven't seen another network capable of sustaining those numbers. And we've looked.
The Reality for Pandora Modeling
For our business model, a site that pays less to broadcasters and spends the difference on additional customer traffic has been the best play.
We've never heard of anyone making more in a year than our top models, on any site. Though it's possible that someone from another site has but didn't brag about it. But beyond that, the rest of our roster just slays everyone else and it's not even possible to imagine that it's close.
$49.80 earned per hour broadcast by our models last year means that roughly $150 was spent by users every hour any of our models were online. Which they were for about 34,000 hours. If any of the major networks could claim that, they would be a Fortune 500 company based on their revenues alone.
For some reason, we've demonstrated a superior capacity to help models succeed. We don't want to misrepresent ourselves as being altruistic. We're not. We're a for-profit company intent on maximizing our earnings. But we insist we do it a principled manner, such that we generate not just profits, but good profits. We believed when the company was founded that if we could make a company that treated performers ethically and put their best interests ahead of our own and really worked to create value for them, then we would find a receptive marketplace - that was what adult video chat pornography needed in 2010 and we believe what it will always need.
Transitioning to an hourly pay scale model is one more way in which we're adding even more transparency and fairness to our business.