Does the global economic crisis impact the sex-industry?

Yes and no – with caveats.

Just like every other business in operation, there is always some level of impact in response to global economics, however, the sex-industry typically shows different trends compared to other industries (based on a number of reasons).

Generally, people regard the sex-industry as a ‘luxury service’ or ‘entertainment’ – business sectors which show the most volatility during economic upheaval. It is natural to assume that the sex-industry would behave similarly. The truth is that in many ways, sex-work would be classed as an ‘essential service’, sometimes even more so during difficult times. Viewing sex-work as a simply a ‘luxury service’ or ‘entertainment’ minimises the benefits that intimate connection, affection and personal contact have on a person’s wellbeing and mental health – primary reasons many seek services from establishments like Discreet Gentlemen’s Club.

That is not to say that there aren’t venues (and private/independent workers) not impacted negatively, however this of course is predicated upon many factors: business model, location and management. As with all businesses, those that diversify their model find better capacity to weather market pressures.

It is worth remembering though, that this article is primarily related to the full-service sex-industry.

The “sex-industry” is a broad term and encompasses full-service sex work, erotic massage, stripping, adult cam-work and sex-toy sales.

Businesses that more readily fall into the ‘luxury service’, ‘entertainment’ or ‘retail’ categories are far more susceptible to fluctuations in the economy.

Are the days of full-service venues numbered?

It’s probably a question asked since the first brothels came into existence (ancient Sumerian texts describing brothels have been dated from 2400BCE).

But again, yes and no.

Despite existing for millennia, the societal position and role of full-service venues has varied greatly over the ages. Ancient civilisations saw the human sexual experience as integral to personal wellbeing and there are several texts that describe “sacred prostitution” – religious devotion through sharing sexual experience, where priestesses that performed these rites were revered and held a high place within society.

Realistically, venues are going nowhere, however their place in society and the services offered may change.

Although it is doubtful that the temples of sexual devotion of ancient times will arise again, our understanding of human sexuality, sexual experience and psychology continues to evolve. Likewise, the way people think about sex continues to change and the industry will adapt to meet these changes.

The 2023 Banking Crisis and the Sex Industry

Asked recently about my opinion on how the banking crisis will effect the industry, I couldn’t help but laugh…

Probably one of the few times where discrimination against the industry has inadvertently protected it.

Banks have little to do with the sex-industry.

Although being decriminalised in the 1990s in NSW, and legally treated like any other business since, the sex-industry continues to experience discrimination from the finance sector. American Express explicitly lists the adult industry as a ‘restricted industry’ and does not provide payment, likewise many banks do not provide services to the industry at all. Businesses utilising banking services run the risk of ‘de-banking’ with sudden termination of merchant facilities (i.e. eftpos and credit card processing), freezing assets/accounts, releasing personal information to various agencies and/or blacklisting businesses and individuals.

Criteria in the finance sector has always been notoriously opaque, meaning punitive measures are often enacted arbitrarily. Buzz words like “high risk sector”, “ESG risk profile” and the like are routinely used to explain sudden actions towards a business or individual, without having to provide any evidence or release the metric to be determined “high risk”. Something as innocuous as processing more card transactions in a week can be reason enough, regardless of there being years of banking history to suggest otherwise (e.g. no history of credit card chargebacks or fraud).

Sex-Work and Finance

UK-based ‘OnlyFans’ is a social media platform where content creators can sell subscriptions to their private content – a favourite of many sex-workers to monetise their videos and gain access to a wider audience. Virtually synonymous to self-produced amateur pornography, OnlyFans created a multi-billion dollar empire from adult content, however in 2021 that very same content was banned from the platform (albeit briefly). As users abandoned the site for competitors, OnlyFans backtracked on the ban, citing pressures from big finance threatening to remove payment facilities.

Private/Independent FSSW (full-service sex workers) have also experienced further discrimination, even as a by-product of that already experienced with finance. Several high-profile international escort directories (online advertising sites for escorts) require sex workers to provide photo identification and/or disclose legal names for the purpose of payment verification, while not a major issue per-se, many (particularly those hosted in the US or with parent companies based in the US) will readily release this private information to government agencies. Sex-workers have been unduly persecuted and/or deported from the US and other countries, purely for being identified as a sex-worker (regardless of if they are travelling from a country where it is legal or if they are not travelling for work).

A common misconception is that the preference of cash suggests underlying nefarious or illicit intent by the industry. The real reason is the unreliability of banks to provide any services to the industry, which creates a general wariness of them.

Banks will also not lend to the industry – looking to buy your own venue? ..maybe start up your own escort agency? Approach a bank for a loan and see how that conversation goes. This is why most high-profile venues require vendor-finance to facilitate the sale, unless the prospective new owner can buy the business outright (many are worth millions for the property alone). It means that the most prominent brothels in Australia change hands between the same people and why it is a very small community. Vendors will not risk a sale to someone not industry-related, who is not established as being capable of running such a business.

That’s the real risk in brothel ownership – there are very few that can run this type of business and even less that can do it well.

How to make the most of your service, as a client

While venues might be okay to weather the storm, you might be feeling the pinch.

How can you make the most for your dollar and get the best ‘bang for your buck’?

1. Understand your goals: what are you hoping to achieve? You need to work out what your primary motivations are and the reason you are seeking these services. If you are primarily after companionship – you should find someone that is personable, if your are interested in trying something specific – you should pick someone that offers that service, etc.
2. Be realistic: eyes bigger than your libido? Although when you are presented with a smorgasbord of services, your first response may be to try everything on offer – realistically though, are you really capable of going 6 times in 30mins while doing acrobatics and holding up someone while in the shower? Understand your capabilities and try not to go overboard – you can always extend your booking or add on services later if you still feel like trying them.
3. Pick the right service provider: the ‘hottest’ one may not be the ‘best’ one for you. Although physical attraction is of course a factor when selecting who you would like to see, you must also factor in the services offered – there’s no point seeing someone who doesn’t offer the services you are after or isn’t suited to your needs.
4. Be polite, but upfront: after a specific service? Ask. I guarantee we will not be offended if you are genuinely after something, in fact, it’s appreciated as it takes the guesswork out and allows the service providers to tailor the booking to suit your needs.

Be honest with yourself and with the ladies and you will definitely have a much better, more pleasurable and fulfilling experience.