Internet Prostitute Economics
NYTimes has a profile on a call girl enterprise that is using the internet to book reservations and as a marketing channel. Let's call it the next Expedia.
Mae Lee has over 2200 customers in the Tri-State area and 8 women in her stable. She is careful to screen every new customer by checking their home phone number as undercover cops would never give up their home contact info.
The key traits for her success are reliability, discretion, and customer satisfaction. Although she doesn't use violence, to punish her girls she sends CD-ROMs of nude marketing to their families.
If a customer books online they get a discount. Rates go for $300 an hour or $3200 for an overnight stay. The women get a 2/3 cut of he fee and fly in from Florida, California, and Canada for a five day stint. I bet they use JetBlue to keep overhead costs low. The madam makes $20,000 a week tax-free.
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