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A third-party hosting website which transmits multiple webcam models' video-streams is known as a camming site.Webcam models mostly perform individually in separate video chat rooms, which are frequently referred to as rooms.Camming websites typically fall into two main categories, dependent upon whether their video chat rooms are free or private.In private chat rooms, viewers pay by the minute for a private show.The tokens can also be used to buy videos or souvenirs of the model.The websites provide the transactional platform, and then collects and distributes a percentage of the tips to the models.

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When webcam models create their live Internet broadcasts, they perform the activity known as camming.The decentralized business model of camming has upended the pornography industry in multiple ways.Camming revenue has been severely cutting into the profits of the pornographic movie business, which has also been eroded for a number of years due to piracy and the distribution of free sexual content upon the Internet.The Mitchell Brothers O'Farrell Theatre strip club is credited with the invention of the lap dance when during 1977 their new stage, New York Live, pioneered customer-contact shows with strippers that came off the stage and sat in the laps of customers for tips.Enabled with this new revenue stream for strippers, the strip club industry went through a period of extreme growth during the 1980s.However, in free chat rooms payment is voluntary and is in the form of tips, thus providing the model with an income at a minimal cost for the multiple viewers of her chat room's video stream.

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