IN THE SPOTLIGHT

YNOT: Today we have a very special “In The Spotlight” for you! We have managed to drag all of the top brass from e-processor Epoch (http://www.epochsystems.com) away from their tremendously busy schedules and into our forum here for a group interview.IN THE SPOTLIGHT

YNOT: Today we have a very special “In The Spotlight” for you! We have managed to drag all of the top brass from e-processor Epoch (http://www.epochsystems.com) away from their tremendously busy schedules and into our forum here for a group interview. I had the pleasure of touring the Epoch offices here in Los Angeles recently and got to see firsthand the tight operation and the friendly atmosphere that Epoch provides. I would like to introduce Chris Mallick, Clay Andrews, Joel Hall, and Rand Pate:

Chris Mallick – CEO
Chris began with Epoch early 2000 and is now a partner with the company. He oversees all corporate policy, legal policies, and direction of the company.

Clay Andrews – COO / President
Clay is a founding partner of Epoch since 1996. He heads the Risk Management Department and oversees various company functions.

Joel Hall – CTO
Joel is a founding partner since 1996 and system architect of Epoch’s processing systems and technical infrastructure.

Rand Pate – Director of Corporate Communications
Rand began with Epoch in 1998. He oversees Epoch’s compliance division and works closely with marketing, billing support, technical support, and client services. He also publishes daily correspondence to Epoch clients.

Clay: Hello, Jay. First let me thank you for putting this together for us. It’s good to see where YNOT is going these days. You guys are doing a really good job over there.

YNOT: Well thank you very much Clay!

Clay: As for your question, Epoch’s mission has always been to provide the best credit card and online check processing services available to high-risk online businesses by offering unique and flexible products and outstanding support. Epoch specializes in recurring billing models for sites that need banking alternatives (third party processing) as well as merchants who simply need gateway services.

YNOT: What makes Epoch stand out from the other e-processors out there?

Joel: In recent months, I think we have really set ourselves apart by offering Webmasters very flexible interfaces for processing transactions and by providing unprecedented marketing opportunities for selling additional products. Epoch’s tech department has grown a lot in the last couple of years, and the innovative products that we’ve released since that time have been a direct result of listening to the wants and needs of adult Webmasters. We’ve provided the means to cross-sell, up-sell, increase retention, and maximize conversions with very successful programs available to all Epoch clients at no added charge. We firmly believe that we lead the industry with the newest and most innovative products not available from other Payment Service Providers (PSP’s).

Rand: I want to add that not only do our newest features stand our from the crowd, Webmasters tell me all the time that our technical support staff and Billing Support department are second to none. We’ve focused intensely on providing the best possible service to our clients, and to their customers. It’s paid off on many levels. After all, we are a service provider as are all PSP’s, so we want to be the best and most responsive.

YNOT: With the number of questionable websites out there, do you take any extra steps legally? Have you had any run-ins lately with all of the legal crackdowns?

Chris: We maintain an in-house legal team as well as outside legal experts to help ensure banking relationships, FTC compliance, contractual obligations, and ISP concerns are managed effectively. The biggest hurdles of the past dealt with banking in a high-risk market given the tremendous volume we process. Our banking is now rock solid and stronger than ever in Epoch’s history. Our more recent issues, as with all PSP’s, have been related to the ever changing card association rules and their impact on this industry. These are the issues that we work with on a daily basis so that Webmasters can focus on their businesses and not the intricacies of merchant banking, credit and chargeback issues, and card association requirements. We maintain a long-term view of business to insure that our services remain solid well into the future. We’ve always enjoyed our best success with Webmasters who hold that same view.

YNOT: Now, speaking on behalf of the company in general, how did Epoch come to be involved in the adult Internet?

Clay: We began in the adult business in the early days with adult websites, launching some of the very first live cam sites on the net. Soon after getting started in the business, it was apparent that credit card processing alternatives were slim and not addressing the needs of a new and evolving market. Being unsatisfied with the options of the day, we decided to look into providing a service that would better suit the needs of the adult Webmaster.

Joel: It was a daunting task and required a lot more work than any of us really anticipated. But once we began to process and get the word out, the response was literally overwhelming. We saw explosive growth and interest in our product and at one point even tried to slow the growth down a bit. We’ve seen the industry change dramatically over the years and have gone through learning curves that have prepared us for the future in ways that were inconceivable at the time. It wasn’t always a pleasant ride, but we have emerged a more powerful company that has passed the trials of time and remained a leading force in the industry. We’re stronger because of what we’ve been through.

Clay: We have positioned ourselves to be the company that we always conceived of from the beginning, a processor that provides and even caters to the unique needs of the online adult industry. Our technical abilities and infrastructure have grown to the level that we could triple our business without the need to expand. Every aspect of our services has been elevated to state of the art. Our goal is to provide the services that this industry wants and requires so that there is no reason to process anywhere else.

YNOT: Now, as individuals, can you tell us what type of work were you doing, if any, before you started in the biz?

Chris: Electronic Transactions for the Health Care Industry.

Clay: Veterinarian.

Joel: Software development projects for NASA involving spacecraft telemetry and then robotics software for Bridgestone/Firestone.

Rand: I’ve worked for Disney, Viacom, Live Television, the Movie Industry, and was a freelance photographer for such Hollywood events as the Academy Awards.

YNOT: What changes would you like to see made in the adult Internet industry? What areas need to be improved?

Rand: Realizing that this industry is innovative and always pushing boundaries, it’s a very exciting place to be. However, there are those who attempt to push it too far. This is a business. And to remain a business, fair marketing practices and responsibility must play a part. It’s always been said that if our industry does not learn to be responsible for itself, then outside forces will find their way into policing it for us. We go to great lengths to prevent fraud and insure that unscrupulous Webmasters do not find their way into our systems. We would like to encourage all programs to not only self-police, but report known fraud to PSP’s and public forums. I know this is already happening to some extent, but if this industry is going to continue to be prosperous and enjoy the kind of flexibility that it has now, we must all look out for those who are trying for the quick buck by any means necessary and put a stop to deceptive marketing practices.

YNOT: How are we going to make that happen?

Rand: It’s really up to each one of us as individuals to do our part in watching out for and reporting unscrupulous practices. Report the bad guys anonymously if you have to. I know that YNOT won’t even allow “bad guys” to post or be listed on their site. That’s good stuff and I applaud you guys for taking that position. This business is lucrative above the board. Those who seek to deceive for profit will only cause harm to the industry as a whole. It will affect us all eventually.

YNOT: Speaking again on behalf of Epoch, what do you love and hate most about our industry?

Chris: It’s easy to love the industry on many levels. There are a lot of good people in this business. The innovation is cutting edge. Profits are good. Conventions are fun. The obstacles are challenging. The dark side is always the forces of which you have no control but which adversely affect your business. Ridiculous laws which do not accommodate modern day technology, for instance. The scam artists who seek to profit by stealing from you. The banking rules which work against you. Every business has it’s pros and cons. In this business they just happen to change with lightning speed. That can be good and bad.

Joel: The worst part has got to be those Webmasters who do not approach this industry as a serious business, and those who are trying for that quick buck without any regard of consequence. If you are not in this for the long term you’re in the wrong place. Those programs, which operate as a professional business, are those that will continue to be profitable and exist as long as they want.

Chris: Look at the programs run by J.B. at Net Management, David van der Poel at Python, and Mark and Jason at Rhino. These are all great, professionally run programs, which are profitable and legitimate. These are the kinds of businessmen this industry wants and needs.

YNOT: Where do you see Epoch in the long run, and how do you plan on getting there?

Clay: Epoch will continue to focus on its core competencies and respond to the needs of a changing market. It’s tough to predict where it’s all going; however, we believe that Payment Service Providers (PSP’s) will always play a pivotal role in high-risk markets. Our goal, which relies heavily on the technology advancements of the banking world, will be to continually offer new billing alternatives. We are already in the process of developing new billing methods for foreign markets and alternatives to credit cards.

YNOT: Would you say your outlook on the future of the Adult Internet is a positive one?

Chris: There is still a lot of room for growth. Although the first windfall of new business may be over, there may be others on the way in foreign markets. Website owners who want to capture a share of this business need to begin to think about translating their sites and looking at cultural differences for content and marketing purposes. The billing methods will eventually make their way into the process, but if the sites themselves are not designed for the market it won’t make any difference. It will be very important to remember the mistakes made in this market so as not to repeat them in the next.

YNOT: Any new products or services at Epoch benefiting Webmasters that you would like to discuss?

Rand: We’ve released so many new features in recent months that it’s difficult to keep up with them all. The main thing to emphasize is that these features help you to do one of three things. Increase sales. Boost conversions. Maximize retention. We offer various tools to help with each of these areas. Try not to get caught up in the jargon and simply look at what these new features really allow you to do. Most are easy to integrate, some require no integration at all, and a few require a fair amount of integration on your end due to their flexibility.

Joel: Each one is designed to increase your bottom line and we can show you how. We’ll work with you, and… you’ll keep more of your money with us than any other Payment Service Provider. It’s what you keep that counts.

Clay: And of course, open an account with Epoch’s PSP program. We help you manage your account and make it all very easy to set up.

YNOT: Alright… now that you have all been so serious here… let’s throw back a few virtual martinis and stray away from business, and get into the fun stuff and what makes you all such cool individuals. Where did everyone grow up?

Chris: Texas

Clay: Alabama

Joel: Alabama

Rand: Tennessee

YNOT: Wow! I’ll be sure to keep my jokes about the “deep South” to myself the next time I’m in your presence!!

Where did everyone go to school?

Chris: NYU

Clay: Auburn University

Joel: Vanderbilt University & Auburn University

Rand: East Tennessee State University

YNOT: What activities and hobbies are you into?

Chris: Extreme Blackjack

Clay: Mako Tournament Shark Fishing

Joel: Flying

Rand: Sailing & Photography

YNOT: What are a few of your favorite things?

Chris: Food, Jets

Clay: Mako Tournament Shark Fishing

Joel: Flying, Travel

Rand: Boats, Cars, Travel

YNOT: Do you really like porn?

Chris: Yes… as long as it keeps making money.

Clay: No answer…

Joel: No. I read Playboy just for the articles. 🙂

Rand: It’s a means to an end. 😉

YNOT: Haha! Alright and for the grand finale here, finish this sentence… “If I wasn’t in the adult Internet, I’d be ____________.”

Chris: Coaching

Clay: Fishing every day

Joel: In software development and consulting

Rand: Sailing

YNOT: Guys, thank you so much for your time and keep kicking ass over there at Epoch! I look forward to seeing you at Internext, and you can be sure I’ll be stopping by the offices again for a visit!

Jay Kopita & Clay Andrews

For more information on Epoch please visit the site at http://www.epochsystems.com or email Rand Pate at rand@paycom.net.