Typically the telephone companies would bill callers to chat lines and then remit 45% of the money collected to chat line operators.
The telephone companies placed the chat line charges on a customer's local phone bill.
Originally, per-minute billing was provided by phone companies (in the U. There was, from some services, an attempt to keep the caller aroused but short of orgasm, so he would spend more money.
(This attitude still survives among some providers.) When public (mostly female) pressure forced the phone companies to stop providing this service to sex workers, a transition was made to a manual method: pre-paid blocks of time, 10, 30, 60 minutes, whatever the customer would pay for.
If a customer disputed a charge, the telephone company would usually “forgive” the charge but block the caller from calling any other chat lines.
By 2007 only Verizon, Sprint and AT&T remained in the chat line business in the U. By 2007 Verizon and MCI had merged and only a few chat line companies remained active as a result.
This is the world portrayed in Spike Lee's movie about phone sex, Girl 6.
Later she recorded others such as Annie Sprinkle "talking sexy".
The incentives for providers were then reversed; rather than earning money from keeping the customer on the line (orgasm delayed), they earned more from bringing the caller to orgasm quickly, so as to move on rapidly to another call.
Unused minutes were rarely usable on a second call.
In concept they have a lot in common with platforms such as Ebay: the seller provides the picture(s), description, and sets the price, a percentage of which is kept by the platform.
In the sex industry, similar platforms emerged facilitating the selling of used panties and other odoriferous garments, and for "cam" video sessions, in which the customer, for a fee, can direct the woman on the video screen, and for a higher fee, have a private connection (no one can see caller or provider except each other).