Transforming the Black Strip Club Game from Pay-Per-Performance to Patronage and Clienteling [NSFW]

upthegame This is another evolution in a discussion we were having about the current state of black strip clubs and the need for modernization and transformation. As society moves towards complete cashless transactions, many black strip clubs and performers are adversely affected by this financial transformation. There are also traditional practices in a black strip club model adding zero to negative value like a strip club DJ and house moms and employee-contractor violation rules. In this article, we are going to lay out the challenges of the black strip club that are based on previous discussions and provide a framework solution using technology. Why we care about black strip clubs? For starters, what we know from an economic standpoint about black exotic dancers versus corporate black women is the majority of black exotic dancers’ money is recycled directly in the black community while corporate black women immediately run outside the black community to spend their money. Black exotic dancers spend their money directly with other black people within their circle, help put food on their table and buy from local black businesses and this is a verifiable fact. That’s why we care about black strip clubs and black exotic dancers and hope that answered your question. The Problem with the Black Strip Club Game brokedk The problem with the black strip club model is like every other model just like the laundromat in the hood – assumptions were being made by basic-thinking black entrepreneurs just jumping in the business and no attempt to re-examine or innovate the business model for optimum results. There are tons of inefficiencies in the black strip club model and also how the exotic dancer career is defined. Let’s go through the laundry list of problems. Pay-For-Performance. In this business model, like a barber or hair stylist, an exotic dancer makes money based on the number of “performances” they give including tips. With that said, it can be argued that this create a fixed income situation where an exotic dancer can count the number of performances to about 40 dances maximum for example and at $10 a dance, that is $400 take home for the night and working 5 days at that pace is a ceiling of around $108,000USD per year. But there are limitations such as a dancer waiting for the next song to start a dance, the DJ play an extended version of a song, she has to take a shower, change clothes or go on stage causing overhead and less revenue. Non-Essentials in the Business Model. There is no need for a strip club DJ and that is the dumbest component I ever heard, real talk. There is no need for a house mom either and what is she good for? These are outdated components that have no place in the 21st century. The music should be automated and should not even have breaks – continuous play so an exotic dancer can start and stop on a time-based system and not a per-song system that eats up overall profits. The biggest loss revenue opportunity of a strip club and exotic dancers is the whole dumbass concept of waiting for a song to start and waiting for a song to finish. If a black strip club do the math on the wait time between a start of a song and beginning a new song and multiply the number of dancers, they would realize they are losing serious money everyday they operate in that fashion. Establishing “House Rules” Creating Employees. Strip clubs have learned that by establishing “house rules” of creating a work schedule and threatening to fine or fire exotic dancers who violate club rules are by default, creating employees and losing the benefits of having an independent contractor and have to pay up. There is a movement of lawyers engaged in class-action suits against strip clubs as a trend for the past few years. One of the biggest mistakes strip clubs are doing is actually “hiring” people instead of operating in a true “free agent” contractor scenario that would actually create a win-win for both the strip club and the exotic dancer. Cash-Based. It cost money to handle money. Money need to be stored and protected from all kind of harm whether the money is stationary in a safe or being moved to the bank. In addition, credit card processors do not do business with adult entertainment establishments. This attract all kind of dangerous elements and risk as other entities move to cashless and the cats who want to find cats with cash collectively eye strip club environments. Now, exotic dancers are going to argue they want their cash immediately but that also set them up also. Social Media Marketing. Many exotic dancers turned to asking dudes for phone numbers so she can texting dudes from a prepaid and being on social media posting up butt pics and talking about she dancing tonight and none of the guys show up because none of them don’t have any money. What happens is exotic dancers be associating too closely to broke dudes who fantasized more than they fund an exotic dancer bank account. Exotic dancers lose value and take risk self-marketing to dudes at large and using social media as her marketing channel and most important – it really don’t work like that. These are the major problems of the whole black strip club game and the core problem is the utility model of pay-per-performance. What black strip clubs want to do is look at ways to attract top talent exotic dancers that can bring in crowds spending money on clienteling and bottle service in the club, the real revenue model of a strip club. What black exotic dancers want to do is increase revenue generation beyond pay-per-performance and build social capital to bring in more net worth. Introducing a Cashless Patronage System patronage A cashless patronage system is a holistic solution proposed for the black strip club game to modernized the business model to the 21st century and maximize profits for both strip clubs and exotic dancers. This solution shifts the focus from the strip club and distribute the system between exotic dancers and strip clubs for a complete win-win and let’s explain. Exotic Dancer Strictly Free Agency. No exotic dancer “works” at any black strip club anymore and she is a complete free agent similar to EDM DJs who bring fans and drink sales to the club. The strip club concern now is to only attract the best and profitable exotic dancers at this point and schedule them and use contracts for appearance. The exotic dancer make her rounds strip club after strip club as a free agent and build up a following everywhere the same way an EDM DJ does clubs and festivals after festivals and venues. A good talent agency or management can manage these acts and book them for venues and negotiate talent and a someone build this new organization to establish the free agency market for exotic dancers and build a relationships with strip club venues. If a strip club sees a special talent that is super profitable, they can sign a residency contract with that exotic dancer like Las Vegas does with EDM DJs. Patronage System. The patronage system is where the guys can send money to the exotic dancer 24/7 using a cashless transaction system from a closed loop payment system. A service provider operate a closed loop payment system on behalf of a black strip club that allow patrons to top off with cash to get a prepaid wristband or card or a mobile phone account. So a patron can send money whether they see the exotic dancer with someone else, if she is in VIP and the exotic dancer do not wait for a pay-for-performance to get money. Many call this trickin but this is really what sugar daddys do anyway, kick a few bucks when they feel like it to their favorite girl. So the setup is a club has a cashless system and exotic dancers are paid from that system when they perform and also credited commission for encouraging patrons to get bottle service and upgrade to VIP – what they do in Japan. But the patronage system can operate by the management agency to receive patronage funds from her patrons and the exotic dancer goal is to sign up guys not to her social media but the patron service. Internet, SMS and Geofencing Marketing. The service platform has an automated system that can alert patrons when the free agent exotic dancer is performing and where and if performing near them. The message is personalized and this is important – the exotic dancer want to take pictures with patrons and welcome them back to encourage patronage. Once a dude sees a chick interested in him even on a fake level, he going to send some dough to show he likes. This frees the exotic dancer from dealing with showing her booty on social media for favs and likes and playing with prepaid phones texting dudes she don’t know asking him to show up at the club and instead allow a system to take care of all of that. Access to Analytics. A black strip club can do analytics and see which exotic dancer is not only bringing in revenue but what kind of patrons she have. Does she have professional cats coming to see her and spending dough? Or do she got local corner dope boys with dirty money showing up? Now the club can know what kind of exotic dancers to book and bring to the club and also it helps the black strip club if they want house dancers, the kind of dancers that will generate the most profits. This also help black strip clubs run their club like a sports club, trading contracts and bidding on contracts for exotic dancers and paying signing bonuses and stuff like that. The cashless patronage system removes all of the BS and guessing game out of the black strip club operation that cause money to be lost and revenue to be missed and focus instead of dealing with the best of breed exotic dancers who can raise her capital up and demand her own rates and appearance fees and limo transportation and marketing budget. All the club does is book talent and increase their revenue from the drink pour rate and VIP clienteling services. And get rid of overhead like a DJ and house mom. How to Get Started Stepping up the Black Strip Club Industry chick The truth of the matter is, Dream and Hustle already have the code and components to make this solution happen. The solution comprised of membership service which is what we talked about on this blog and put the code up on the Global Urban Collective Facebook group. The solution also consist of prepaid accounts that we talked about on this blog and put the code up on the Global Urban Collective Facebook group. And this blog talked about talent management and branding techniques for sistas that was also a discussion with presentations on the Global Urban Collective Facebook group. Black Strip Club Upgrade. Notify all dancers that they are going to be operating on a free agency basis for now but the strip club will transition to agency-represented dancers. Only sign free agency exotic dancers who have an established following and years in the game who can bring their own patrons to get the bottles popping and VIP rooms booked. Transition to a cashless system that is also a loyalty card that markets to cats and let them know the strip club is bringing in talent from East Europe and Brazil and Los Angeles to perform like acts. This is a win-win as it allow a club to get rid of the tired looking lame in-house dancers and focus on bringing in only the breadwinners. Also get rid of overhead like house moms and strip club DJs and focus on pre-recorded continuous music. Black Exotic Dancer Upgrade. Get the entertainment industry license to dance in various local counties and focus on area domination just like an EDM DJ that spin at various club, you have a tight schedule that have you dancing at several clubs and meet guys and get them ready to start the patronage system when someone get it up and running. Establish social media only to promote your acts and venues and show where you was and the crowd turnout. Focus on appearance fees and showing up at things like car shows, motorcycle spots and avoid lurking video shoots – you build your own brand up recruiting patrons passing out your card that has your social media contacts so cats know where to show up at and throw money around. Cashless Service Provider. Establish the prepaid and loyalty service for a strip club to allow patrons to pay cash and sign up for prepaid accounts that can be used for loyalty marketing. Do not be raunchy or nasty with the marketing messages – show some class. Your goal is to board black strip clubs up with these prepaid accounts and help them settle their money at the end of the day. Also keep in mind these prepaid cards can be sold and provisioned over the Internet or even at other clubs and male barbershops and stuff like that. Patronage Service Provider. Setup your system that sign up participating exotic dancer agencies as the entity and the members are guys who are going to be paying into the patronage system. If you really think about this – this is the same model as our crowdfunding discounting solution we discussed in detail and presented here on this blog, do a search for the business model. Your system work on behalf of the agency to send out marketing messages and geofenced messages using SMS, running ads and asking dudes for money like $5 in a message. Dudes should be able to subscribe and unsubscribe and you get a fee off the patronage money coming in. Trust me, it’s some cats out there that will throw that kind of dough like they some sugar daddys and you should not doubt what you don’t know. Exotic Dancer Agency. Be prepared to sign up exotic dancers and work these clubs to book and schedule dancers to appear and show up. Your role as an agency is to facilitate the void and problem of independent contractors. You are the one that stipulate the rules with the black strip club in terms of when the exotic dancer should show up, how long that dancer should stay and fines and other things. Your agency also collect a fee from the contract amount and receive funds from the prepaid accounts and be able to audit the transactions. Once your talent get big, then you negotiate bonuses like appearance fees, modeling fees and other revenue generations to help that exotic dancer get as much money as she can beyond pay-per-performance where she is an actual brand with increasing value in the game. After all of this, the exotic dancer is no longer running around just being naked earning only on pay-per-performance but is now a more classier brand like a mini-Beyonce with depth and will have increasing stock value that can be monetized. The overall goal is to repurpose the black strip club game to an overall win-win economic solution. The black strip club benefits by getting rid of the whole in-house recruiting of tired dancers sitting around being bored and planning to sue to get backpay on minimum wage claiming they were employees. The exotic dancer benefit by having multiple streams of income and have an actual growth path of a brand that she built and can leverage her patronage machine to get bigger contracts and opportunities. And service providers can find new opportunities and line of businesses creating new jobs and technology careers in the hood. All of this is win-win overall and the components are already available and laid out.

10 thoughts on “Transforming the Black Strip Club Game from Pay-Per-Performance to Patronage and Clienteling [NSFW]

  1. Really interesting. But I suspect your cashless system undermines one of the bigger profit centers in cash businesses–the ability to skim cash and not declare on taxes. The owners and strippers are some of the biggest gangsters in the club. You disagree?

    1. The cash circulation is going to dwindle which is the core issue here. There was a discussion here on this blog about the angle you are addressing.

      http://dreamandhustle.com/2012/07/how-vending-and-arcade-machines-determine-the-difference-between-dumb-criminals-and-cartels/

      This is a common theme of urban entrepreneurs not thinking smart and trying to think slick. Yes, and this is the same with the dancers and even barbershops of just wanting to take cash and hide it from taxes, garnishment orders and child support income reporting. But the problem is that if they just do it in a legit manner, they would see growth and more revenue where they do not have to BS. Remember that the bigger corporations avoid paying heavy taxes by just writing down and doing things the right way, not being slick but instead just learn to charge off and bankrupt a subsidiary through legit planning.

      Las Vegas started off on the slick level but once the real legit guys came in and focused on making it an adult playground, that is when Las Vegas really took off. From our experience, these operations are simply not profitable when cats want to try to “wash money” in utility models like laundromats, barbershops and strip clubs as the main goal – in fact they lose money. From the link we described above, the best approach was always transitional from dirty to clean money with a clear cutoff.

  2. Make the operation legit. Become profitable. Gain social/political recognition. Make a real impact in the community….

    1. This sound like a great product and solution for what we mentioned in a related article on this topic.

  3. Just came across this article while doing some research for my buisness proposal. As a former Urban strip club owner and manager you hit on great points but missed the most glaring. Security has to be the first and main focus. One, stigma alone calls for this because when blacks or the “hip hop” crown forms people get nervous. The first defense to any problems is plan view of heavy security. Onyxs in Philliy, Nikki’s , and Charollete , magic city , to name a few. This may look crazy to some but to those who frequent theses clubs see that the owners are not about to play to keep their patrons and venue safe. Two, you made great points of the technology transfer or should I said mixture basically following the “white strip club model”. Las Vegas as you mentioned did take off by using this point but also Vegas hates and is not scared to admit to the fact that they are one of the most racist cities in the country. I started in the buisness in Las Vegas and was extremely successful in terms of revenue and girls clients etc but the police were out to get me more then they would a serial killer on the loose and I mean that literally. I’ve been on the west coast for 20 years now and compare to the mid-west, east coast and down south there is no comparison. No matter how many jobs you create, taxes you pay to the city, contributions to charities that will never over come the color of your skin point blank period. I’m in a fight, a solo fight against a city of many but I feel our contribution to this nations entertainment community should be fought for and be provided for us to enjoy in any city. Thanks for taking the time to research and make some very valid points ED.

    1. Thanks for your comments as there have been active progress and moves being made behind the scenes.

      Compliance and clienteling as well as the management agency should address your concerns. In 2016 clubs I know are moving towards clienteling and the dancers also have to operate as an independent entity that brings patrons and drink revenue and tips – like the acts at the Las Vegas hotel.

      Security at black clubs is mostly due to poor accommodations and solutions such as parking lot improvements and group VIP segregation in design can remedy this.

      I will provide and update but it does look like a business league structure with a draft, multiyear contracts and signing bonuses of $500,000+ is realistic. .

  4. Seriously? GTFOH ! Who ever wrote this has clearly NEVER worked at an actual Black strip club. 1. Many of the patrons who keep things afloat are cash based ( hot boys) they pay things with cash! 2. The element of making it rain. That’s how 95% of the money is made! Patrons come in, and they make it rain hundreds and sometimes thousands on group of dancers of their choice. These patrons want to be seen doing this! It’s a look at me culture! Cashless idea would KILL most urban strip clubs!

    1. Feel free to remain anonymous on this subject because I would have not allowed this anywhere else. However, please don’t make ignorant and uneducated statements. Everything you wrote is total bullshit based on sideline observation and being caught up in image and nothing to do with the day-to-day operations of a strip club, especially a black one. To say that’s how 95% of the money is made means again, you might be some 17-old goofy ass kid that get to text-type in the Dream and Hustle comment section, nothing more.

      The element of making it rain – where did you get this bullshit from? This rarely happens and furthermore, proof you don’t know much of shit about what you talking about. Who making it rain in a black strip club with loons in the parking lot outside? You better have a security crew for that. Had you been around the block, cats get ambushed on the way home or followed – you ain’t in the life talking the way you talking.

      Black strip clubs are not driven by drug dealers making it rain – they are actually driven by older and loyal patrons over the long term. Had you had any real world knowledge, you would know any crew of brothas going in a strip club are cheap and cause problems as a distraction, not a true cash cow. In terms of cashless, you are once again putting on the stupid hat. Cash-based operations is going away whether you fucking like it or not and strip clubs are aware of this. Banks don’t do business with strip clubs or pawn shops which is why most are cash-based. But in reality, dudes are sending money back and forth over their phones with chicks so once again, you are talking out the side of your neck, probably watching a Vice documentary on strip clubs over the Internet before running to pornhub to jerk off while coming here pretending you know what you talking about and trying to lecture.

      Go sit your ass down and learn how real research and business modeling is done before opening up your damn mouth again. Because one of us is an anonymous punk while another one of us is a real person in Atlanta making moves you ain’t in this space. Another dumbass typing 3AM in the morning instead of actually having a woman next to him worth staying asleep next to.

      This is why I don’t want simple cats like you involved in this because you don’t know what the fuck you talking about and making stereotypical assumptions. Wannabee cats like you end up in the trunk or dumped in the trees off the highway trying to fuck around in this industry talking shit so if you ain’t about it, stay the fuck out of this conversation. This ain’t some Coli BBS board clown take your shit talk back over there..we do real work here.

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