Adult Site Broker Talk Episode 186 with Attorney Nick Zargarpour – Part One

Adult Site Broker Talk Episode 186 with Attorney Nick Zargarpour – Part One

Bruce, the adult site broker, host of Adult Site Broker Talk and CEO of Adult Site Broker, the leading adult website broker, who is known as the company to sell adult sites, is pleased to welcome adult industry attorney Nick Zargarpour in part one of a two-part conversation, as this week’s guest on Adult Site Broker Talk. 

Nick Zargarpour is a California attorney who has over 20 years of legal experience in business and business litigation and over 35 years of business in the starting and running of successful small businesses.  

He has been handling clients in the adult industry for two decades and brings a wealth of knowledge about both the operation and legal aspects of the industry.  

In addition to being a trial lawyer, Nick is also a professor teaching business plan writing at UCLA Extension.

You can reach Nick on his website at zarlawfirm.com 

Bruce, the adult site broker, host of the show, and CEO of Adult Site Broker, said: “It was great to have Nick back on Adult Site Broker Talk. He once again gave us valuable insights on our industry and the law as it relates to the business.”

Adult Site Broker is the most experienced company to broker adult sites. They’ve sold and helped people buy more xxx sites than any other broker.

Adult Site Broker is the leading company to sell porn sites and buy porn sites. They help their clients work out equitable deals. 

Check out their brand-new website at www.adultsitebroker.com, the leading destination to broker porn sites.

Adult Site Broker also has an affiliate program, ASB Cash, at https://asbcash.com, where you can earn 20% referring people to buy adult sites and sell adult sites to Adult Site Broker, the porn website broker.

For more information, please visit us at www.adultsitebroker.com to help you broker adult sites.

Listen to Nick Zargarpour on Adult Site Broker Talk, starting today at www.adultsitebrokertalk.com

Bruce F., host of the show and CEO of Adult Site Broker said:

“It was great to have Nick back on Adult Site Broker Talk. He once again gave us valuable insights on our industry and the law as it relates to the business.”

Tabs

This is Bruce Friedman of Adult Site Broker and welcome to Adult Site Broker Talk where each week we interview one of the movers and shakers of the adult industry and we give you a tip on buying and selling websites. This week we’ll be speaking with adult industry attorney Nick Zargarpour. Just to let you know I’ll be at the upcoming shows in LA and Vegas. Next week I’ll be at X-Biz in LA and starting the 24th the Adult Site Broker Road Show moves on to Las Vegas for AVN and Internext. If you’d like to sit down and talk business drop me a line on our contact page at adultsidebroker.com. Speaking of events we’ve added an event section to our website. Now you can get information on B2B shows on our site as well as special discounts reserved for our clients. Go to adultsidebroker.com for more details. Would you like an easy way to make a lot of money? Even sellers or buyers to us at adultsidebroker through our affiliate program ASB Cash. When you refer business to us you’ll receive 20% of our broker commission on any and all sales that result from that referral for life. You can make $100,000 or more on one sale for some of our listings. Check out ASB Cash.com for more details and to sign up. At adultsidebroker we’re proud to announce our latest project thewaronporn.com. You’ll find articles from industry websites as well as mainstream publications from around the world. It’s designed to raise awareness of our industry’s plight in the war on porn and the numerous attacks on our industry and online free speech by hate groups, the religious right and politicians. You’ll find all that and more at thewaronporn.com. Now let’s feature our property the week that’s for sale at adultsidebroker. We’re proud to offer an amazing opportunity. If you’re in the live cams, model management or fan site space or want to get into any of these spaces we have a private listing that may be just right for you. This company works with all the major cam sites and has access to hundreds of US based models. We’re offering very limited information at the seller’s request in order to maintain privacy. We anticipate multiple offers for this very rare listing. For more information contact us at adultsidebroker.com. Now time for this week’s interview. My guest today on adultsidebroker talk is adult industry attorney Nick Zargarpur. Nick thanks for being back with us today on adultsidebroker talk. Great to meet back with you Bruce. Great to have you. Nick is a California attorney with over 20 years experience in business and business litigation and over 35 years of experience in the starting and running of successful small businesses. He’s been handling clients in various legal aspects of the adult industry and brings a wealth of knowledge about both the operation and legal aspects of the business. In addition to being a trial lawyer Nick is also a professor of teaching business plan writing at UCLA extension. So Nick we spoke a couple of years ago. What’s new with you in your practice? Well Bruce we’re handling more creators now. I think two years, three years ago when we last spoke we were handling a lot of the companies and now creators have become their own little mini businesses and a lot of them ended up forming LLCs and mini corporations back in the last three years in California when California required everyone not to be independent contractors. Anyways, long story short we’re handling in the adult industry more creators than we did in the past. Got it. Now along with that I’ve heard of new US federal laws and this one’s called the Corporate Transparency Act. Tell me about that. Yeah, this is an interesting law. It’s basically a new federal law that applies to almost every small business in the country. It doesn’t apply to publicly traded companies. It only applies to small businesses and that pretty much covers all of our businesses because in the US any business under 500 employees is considered a small business. So what this Corporate Transparency Act requires starting January 1st of 2024, every company in the United States, practically every company in the United States except for non-profit and big companies and certain companies that have additional laws that they have to follow and registrations with the federal government that they have to follow like banks and other entities like that. The smaller companies that don’t have these additional requirements now have a requirement to register with the federal government and they have to provide the following information. They have to basically say basic information about their company and then they have to identify the beneficiaries of that business. Benefit of that business is not just the stockholders. It’s who is their president, who is their executive officers in the company, anyone that actually benefits the bottom line person that actually benefits from money that the business makes. Interesting. Or the money that their business doesn’t make and sometimes people lose. So you need to identify and you need to have their name, their address, their date of birth. This is going to have a bunch of other information and it can be very intrusive for certain people. I’m in the process of checking their requirement for privacy because in our industry, a lot of people have stalkers, a lot of creators have stalkers and people like that that we don’t want that to get out there. So I’m in the process of checking to see what privacy protections they provide. Sure. So if I’m a US small business and thank God I’m not, what do I do now? It all depends on you. By the way, I forgot to say at the beginning of this thing that this is not legal advice for everyone. This, what I’m giving you, the advice I’m giving you is very generic. You do need on a case by case basis, have an attorney of your choice or a CPA of your choice choose what they need to do. I like your disclaimer, Nick. That’s very good and very compliant. Well, we have to. People go, "I heard this podcast say, you know, this one, no, no, it doesn’t apply to you." If it’s just, let’s say if you’re a creator, okay, let’s call you Sally. You’re creator Sally and Sally has an LLC. As an LLC. This LLC is pretty much run by Sally, owned by Sally and no one else is involved. The compliance would be relatively easy. You go to the website, you basically put in that you have a company, what the information about the company is and who the beneficial owner is and the beneficial owner is you. Sally provides her real name, real information, home address, all these other stuff. Now, if you’re a more complicated company, let’s say you have three or four owners and now you have multiple percentages, someone owns 50%, someone owns 40%, someone owns 10% and another person owns 10%. So you got four owners, everyone owns different amounts. Then it becomes more complicated. You have to now decide whether those 10% owners are considered beneficial owners under this law and whether their information needs to be provided or not provided. If you’re a 10% owner, usually you don’t need to provide it because it’s under 25%, which is what the law requires. But if that 10% owner is the president of the company, guess what? You got to report that person’s information. There’s going to be a lot of people who are going to say, "I don’t want to provide them my home address and what companies I own, but unfortunately it’s not. The penalties are $500 per day and two years prison time." Okay, so why does this sound to me like an intrusive act that was pushed through by the IRS? Maybe because it is an intrusive act that was pushed through by the IRS, the DEA. There’s a Fincon that is basically a financial branch of the government that this law was passed in 2020. So it was passed during the Trump administration and it basically is supposed to find out who the beneficial owners of companies are for various reasons. And I’m sure they can compare data between the IRS and themselves. My concern is not what they do on that end. My concern is I don’t want Billy to get on the computer and be able to find out what Sally’s real name is and Sally’s home address is. That’s what I really care about. I would think that there’s going to be no public database of this, right? I’m hoping so. Yeah, they said they’re going to protect it in privacy and access is only allowed by certain entities, but they didn’t identify the entities. So I got to go dig deeper into that. Yeah, wow. I mean, it’s interesting. They’ve got something here called the, well, if you live offshore, it’s called the FABAR. That’s awfully close to FABAR, by the way, just to point that out. Fucked up beyond all recognition for anyone who doesn’t know what FABAR means. And the FABAR, you have to fill out if you have an interest in any foreign companies, bank accounts or properties. I have to do a FABAR every year for my offshore bank account, which is the only thing I really need to do a FABAR for. That’s interesting for sure. What are some of the other legal issues you find yourself spending the most time on now? Well, since we’re business, business litigation people, we don’t do anything like immigration, criminal or even personal injury stuff, but we deal a lot with the breakup of businesses or disputes between the owners of businesses when they can’t get along anymore. That obviously is a ripe area for litigation and people get into that. And we usually, hopefully they came to us first when they formed the company, because like I said last time, when you meet with me, I worry about the divorce. I don’t worry about your wedding. You guys be all happy about what you want to do and how many millions of dollars you’re going to make. I’m basically writing agreements that when the partners or the owners of the business don’t get along any further, how we can make sure that most of the stuff is already decided by the parties. And Nick, that is why I do not have business partners. Thank you very much. My dad always told me he was an entrepreneur pretty much his whole life. And my dad always told me, "Never have partners." Yeah, no, I know. I know. But you do have to determine all that upfront, right? Yeah, you know, if you’re forming a corporation, you write the bylaws. If you’re having an LLC, you have to write operating agreements. And these operating agreements and bylaws, a lot of the things can be decided when everyone likes each other. Now if it’s a 50/50 company, we can decide who makes the decision when there’s a tie. We can decide it now at the wedding stage. If it’s a 75%, 25% company, then the 25% owner and the 75% owner need to get together and say, "Well, certain things that 75% owner can make the decision on their own." And others, the 25% has to be involved. Now California law, I’m dealing with California here, has certain protections for a minority shareholder of a company. But they don’t always apply to you if you have, let’s say, under 5% of ownership or under 10% of ownership. Usually they apply when there’s over 5%. So more laws apply if over 10% additional laws apply. But this is an area that we need to do. A lot of people go in there and let’s say three of them get into this business together and they each own 33% of this business, 33 and a third percent of this business. And they just order something from legal Zoom or something like that and they get it. And the standard form is 51% decides everything. That means two of those people can pretty much do whatever they want to that third person. Not everything, they can’t give themselves money and not the other person money unless that was negotiated away. But certain things that person can do. So that’s why once you have partners or once you have investors that are going to come into the business, you really need to have a lawyer write this operating agreement or this bylaws for your company in order to make sure that we are coming across and everyone knows what they’re getting from day one. The 33% owner may agree that 51% decides everything, but as long as they know it. As long as the 49% person agrees to it up front. Exactly. And it’s the 33% because then the other two people can gang up on each other. You know, then then yet definitely you need to know what you’re headed for. Surprises are only good for birthdays. Honestly, that’s it. So that’s what people forget is that you hire a lawyer to tell you what is going on in certain situations what will happen. You hire a lawyer to scare the shit out of you. So basically you get ready for the worst case scenario. So you’re ready for it. Well, yeah, that’s one thing. The other thing you have to understand is lawyers. We’re not there to tell you what to do. People ask lawyers, Hey, what should I do in this situation? It’s all the business decision. What the lawyer is supposed to do exactly is tell you what the ramifications are. If you do it and what the, you know, if you do it the right way, or if you do it the way you think about doing it, you know what the ram, what the benefits are, what the ramifications are and you as a business person will decide what action to take depending on the level of risk you’re willing to take. So if you were risk taker and you was, you know, let me do whatever I want, then you do it, then you just understand that, you know, this can be, you know, people can say, I don’t want to file anything with this corporate transparency act. I don’t want to file anything. You know, I’m not going to tell them who the beneficial owner is. No problem. But you got a potential 500 dollars per day and potential two years in jail. I honestly believe though that they’re not going to just show everyone in jail unless there’s additional crime. If they suspect you of other crimes, then they’re going to add this to it because this is easy to prove you either did it or you didn’t do it. Yeah. I think so many other laws, it’s like a lot of them never get enforced. And in this particular case, quite frankly, I think it’s just a reason to be intrusive to find out more about people so the tax man can come with. And the DEA, don’t forget, this is more mainly passed as something that they want to find out if, you know, there’s a business that they find that is drug dealing, is doing drug dealing or is doing something illegal. And at that point, they can come in there and say, well, the beneficial owner was Sally. And so Sally, let’s have a discussion. And where’d you get this money? Where did this $5 million come in that day? How did you make $5 million out of, you know, running an only fan site? Yeah, but you know what? I mean, let’s face it, okay? If somebody’s selling drugs, they’re not going to be stupid enough to put it through their bank account. I mean, oh my God. But you know, I never, I should never discount the way that people are stupid when they do things. I’ve heard about people selling weapons on Facebook out here. So I mean, yeah, they do, yeah. Yeah, people do all kinds of stuff that you can’t, all kinds of stuff that you can’t control. But again, it’s all up to you, what level of risk you’re willing to take. If you’re okay, you’re reported, you’re applied. By the way, I’m getting a lot of calls where people in the industry are having their bank accounts frozen and turned off because all of a sudden they’re saying, oh, we can’t verify where you’re getting your money from. So something like this happens on a day to day basis. And financial discrimination is obviously a whole other matter. And the FSC and sex work SEO or our CEO rather did a big report on this. And you know, the FSC is doing a really nice job of dealing with it, which we all appreciate. We all should be members of FSC. I know I am. Yep. Either be a member or if you have a business, you should be a sponsor. And we’re actually working towards a sponsorship right now. So. Let’s go back to the question you asked other things. You know, I told you about businesses, but I’m a partnership dispute. Other things that we do, and that’s a moving area of law right now is we write privacy policies in terms of conditions for websites because privacy policy laws in the US are changing all the time. California just changed theirs again. It used to be the CCPA now it’s the CPRA. So those are some moving target right now. So we need to basically update your websites, privacy policies and terms and conditions. You have to understand anyone that has a website, your terms and conditions are the rules. They’re the agreement you have with your users. That agreement that you have with your users should limit your liability as much as possible and force the user to come to the place of your business and save you costs, you know, in that regard. So limit your liability and save you costs. So not only do you not get sued for millions of dollars because you didn’t, you know, just because something collapsed on the website, you know, something didn’t work the way it was supposed to work. And they say, oh, because I didn’t get this result or this this thing that I was looking for in your website, I got distraught. I was driving my car. I crashed my car. I caused a million dollars in damage to myself. You put language in there that limits you and please everyone, I know everyone gets this great idea of, you know what, I’m just going to go cut and paste my competitors terms and conditions. There’s dangers with that because you’re not in your competitors position. Your competitor is a hundred million dollar company. You are, let’s say less than a million dollars in sales. The hundred million dollar company can handle an attorney’s fees clause that in case you lose, you have to pay the other side’s attorney’s fees. But you would under a million dollars, you may not be able to handle that. So you change the facts, you change the law. Things got to be written for you. And you know, a lot of this comes down to what we talked about the first time. The adult industry is a business. A lot of people in the adult industry don’t realize or don’t want to acknowledge they’re in business. And if you’re in business, you need to talk to lawyers. You need to have agreements. You need to comply with all the laws. And if you’re not willing to do that, then you shouldn’t be in business. Or unless you’re one of these red bull people that likes to accept as much risk as possible. Well, I’m not going to change what I said. I think quite frankly that if you’re not willing to comply with laws and have your website, when they go to your website, privacy policy, terms and conditions in the case of a pay site or any content site, two, two, five, seven statement, in any of those instances, everything should be there. So, I found a guy and he has a very large website. I mean a huge website. He had none of those. Okay. He wrote some stuff on his home page that kind of alluded to some of it with the content. But I can tell by looking at it that none of this was compliant. He certainly didn’t have an attorney right. And if he did, he should fire his attorney. So I said to him, I said, dude, you’re setting yourself up for all of this. All kinds of legal trouble. You might not know it, but there’s people out there that are just looking to sue you. So maybe you’ve been lucky so far, but if I were you, I would get XYZ done. And he’s not even a client of mine. I just looked at it. I was just looking at his site for something else and I was going through the bottom of his site for something that I was looking for and I went, oh, shit, no privacy policy. And he’s in Europe. No terms and conditions. Are you kidding me? A multi-million dollar business with no terms and conditions. So basically there’s no rules on your website. Oh my goodness. So yeah, it was really shocking. And I went, just oh, it’s yourself. Dude, talk to an attorney. If you need one, let me know. I’ll send you to somebody. Send him to you, Nick. Well, not, yeah, thanks. But again, it’s not just, you know, it boggles my mind that you, because every, like, for example, look at venue, just a venue clause, like where you consume, let’s say your website out of California. And it takes me a total of maybe 20 seconds to write. And if there is a dispute between user and website, you shall, you know, the, the, any dispute shall be handled in the course of, you know, let’s say Los Angeles County Superior Court. That took what? 15 seconds to write. That saves thousands and thousands of dollars. And a lot of time. Well, the time is money, you know, paying your lawyer in order for me to not, you get sued in, let’s say, Texas, then I have to file a motion in Texas. Texas, how about if they’re out here? You know, how about if they’re in Thailand? How about if they’re in the UK? I mean, can you imagine having to pay your attorney to go out there? No, that’s just your attorney. I mean, we have to hire a local counsel in Thailand, but then you’re paying two attorneys and then the attorney in Thailand has to file something saying, no, no, no, no, no, you know, this has to be filed in the US and they say, well, what does it say that? And then if you have attorney conditions at 15 seconds, you’ll be in and out of court. So the lack, the lack of it is really setting yourself up for an expensive mess. Yeah. It just, again, 15 seconds of work saves thousands of dollars. So don’t be penny wise, pound foolish. That’s what happens with this website terms and conditions. And by the way, I see terms and conditions on websites that are different fonts. At one point, they refer to the website as website and then other paragraphs switch to company and other paragraphs switch to enterprise. And I can tell that they just cut and pasted it for seven different websites. And I’m like, okay, this is not gonna make any sense. This doesn’t make any sense. I mean, truth be known, when I first started in the industry, I copied and pasted terms and conditions, but all I had to do was have one legal dispute. And I think that one cost me $40,000. And I was like, okay, I need to hire a lawyer. Now, could I have hired a lawyer for under $40,000 to do my agreements? You’re damn right. I could have. Had that agreement, I probably would have between hiring the lawyer and what the guy owed me, I probably would have ended up netting $35,000. So you have again, Pennywise and pound foolish Nick. I mean, God, people just, they don’t get it. And you will have legal disputes. And the longer I’m in this game, I mean, there’s going to be disputes. I now have disputes probably on the average every three months where somebody tries to get over on me and I have to sit there and go, okay, is this one worth it? Is that one worth it? I got another, I got an example here. I had some websites I had listed. I mean, I had a buyer for it, right? And I didn’t hear from the guy. And for a month and a half, the guy was completely ghosting me. I don’t know if he was dead. I don’t know what the deal was. Finally, he got in touch with me and he says, I’m not going to be selling my sites now. I found God. I went, oh, I didn’t know he was lost. No, I didn’t say that. Well, under my breath. So wait, he doesn’t want to sell it because you found God? He doesn’t want to sell it. He wants to kill it now because he found Jesus. Now, look, I don’t begrudge anybody for becoming religious or being religious, but I have to say that was probably the most odd reason for not selling their site. And all I could sit there and go was, Bruce, do you want to collect your commission? And my answer to myself was, no, let him enjoy his time in church. But again, if you have a good agreement that is enforceable, that it will reduce your exposure, because a good agreement, a good terms and conditions will prevent the wasted money of like having to file a motion somewhere to have the trial moved or the loss was moved. All of these things are there to save you then. But at the same time, even if you have a great agreement, sometimes you make a business decision that you know what? I have a good agreement. I can enforce it. I can make sure this guy pays me my commission or at least a portion of it, but I don’t want to do that. And some things are just not worth it or you don’t feel good about. It’s also about being a good person. And we try to do everything with integrity and we call ourselves the ethical broker. And because of that, I got to live that way, right? We can’t do it as a slogan and then just all of a sudden go, oh, no, I’m going to do whatever the fuck I want because it’s me. I’m not going to do that. I had a professor that said something that is politically incorrect, but it’s so applicable. And we’re going to get in trouble for saying this. And he always said, and I think it’s pretty mellow, but still I’m going to get in trouble for saying this, but he always used to say, integrity is like virginity. You lose it once. Well, hey, at the very, I’m going to use that at the very least, I’ll have a great story for the trade shows. You can just imagine looking forward to this in LA and Vegas in January. So let’s move on here in Miami. We talked about your work with creators and we had a nice dinner and thank you again for that. And we discussed that with actually with one of your creators. And what are the differences between working with companies and working with creators? It’s hard to distinguish between creators and companies because I’ve got some creators that are just amazing business people that are organized, that are proactive, that make sure things are done the way they’re supposed to be done. And I’ve got, like you said, you know, a million dollar website owner who should be proactive, should be organized, should be taking care of their, you know, rear garden making sure. And so, so it’s kind of hard to say and I have creators that are very sloppy about the way they work and I have business people that are sloppy in the way they work. It’s the type of problems that they have that comes up that’s a little different for creators than it is for companies. But creators are business people, you know, they’re business people. They have to think themselves as this is my business. This is my fact. It’s not just how much money I made today and how much money I spent today, but I have to make sure that the documentation is good. I have to make sure that I’ve got the test results properly. I’ve done this. I’ve done the proper model release forms. I’ve done collaboration agreements. I’ve gotten all of those things done. That’s what creators get in trouble with sometimes when they don’t follow those things. And what they forget is that without getting those model release forms and all of these things, if tomorrow you decide on selling your content to the third party, you’re just to let’s say a goldmine of content and turned it into junk because you can’t sell it without proper model release forms. You can’t sell it without having followed some of these rules and regulations. So that’s the difference with creators. Creators also have some issues with, you know, they have some more personal issues like my Twitter account just got terminated. We just revived the 300,000 follower Twitter account. How’d you do that? Well, it took a while. I would say persistence worked. And we wrote a very detailed letter to X, Twitter, excuse me. We wrote it to X and to the right department, to with the proper citation to their terms and conditions. We use their own terms and conditions. We say this and my client had made a mistake and we fell on our sword on that mistake. And we said, yeah, we had one point, we did do this, but that only lasted a month and we fixed it and then we got terminated three months later. Were you able to tell me what the mistake was? I’m trying to remember the facts. They had an intern come in or some lower level person that came in and the lower level person said, oh, I can get you more followers using this robot software or something like that that gives you more followers. And it took X about two, three months to figure that out and boom, they got the axe. By the way, we don’t know if that’s why. We don’t know why our client got terminated. Because they never tell you. They don’t tell you. We assume when I went through all of the checklist of did you do this? Did you do this? Did you do this? Did you do this? Oh, you did this. Okay, but we did a mea culpa on that one. We explained the situation and we basically were able to, you know, you have to know the terms and conditions of their website. And with only fans and Twitter and Insta, I know their terms and conditions. You know, people go to some sites or the pie, it gives them from following people they want to follow and stuff like that. I go to the sites for their terms and conditions and their privacy policies like, ooh, lawyer porn. Oh, hell yes. But the bottom line on it is if you have a dispute with a social media company, you really don’t have a leg to stand on, right? What you really are hoping for is for them to take some pity on you and put you back on, right? I would say it feels like that. But the way we’ve approached it was in a more technical manner. It’s not just please reinstate me. Some of my businesses, you know, we’re getting it for Twitter. What I’m saying is though, let’s say you sue them for financial loss. You can’t do that. No, you can’t sue them for financial loss. No. Can you sue them for anything? You can sue and you can in discovery figure out why they got terminated. If I would have done that for this client and they had violated that area of law, that area of the terms and conditions, okay, and then what kind of a loss would I have had? Because even if that wasn’t the reason why they terminated them by the time we did discovery, they would have probably found out about what stuff we did that violated their terms and conditions. And these terms and conditions are written very broadly. And because of that, they would then point to that violation and say, yeah, I know we told you we violated A, but in reality, you violated section H. And we still would have had the right to terminate you. So you still would have ended up in the same place. So what are you going to do now? How much of it does it have to do, do you think, with the fact that they got an attorney’s letter because attorney letters can really make shit happen sometimes? It can, but it’s also sometimes, you know, you know, some people, I’ve had a case, I have a case right now that’s going to arbitration. And I can tell you that we are very happy for it to see the inside of the arbitrator’s room, the arbitration room, because we have good facts on our side. But the other side, they’ve dug their heels in and they’re saying, nope, nope, nope, nope, nope, nope, despite not having a single document, despite not having a single reason why they’re making their claims. The last time someone did this to me, we had a small matter of $38,000 owed and we filed a small case right here in Los Angeles and they filed a half a million dollar claim against us without any justification. But I had to defend that because I had a half a million dollar lawsuit. By the time it was all well and done, I not only won the $38,000, I think I put an extra $100,000 in attorney’s fees on top of that $38,000 and because we had an attorney’s fees clause in the agreement. And the best part about it was initially the lawsuit started between company A, my client, and company B. But we saw so many pattern of financial self-dealings and all of these things that these guys had done where we were able to pierce the corporate bail and I stuck the $138,000 judgment not just to the company, but to the two owners. And these guys were young guys, so they’ve got this judgment following them for the next 20 years and these guys were in their 20s. So they didn’t pay? No, but they didn’t. Well, hold on. If they didn’t pay, it would have been basically stuck. I go to bring them in. I can do debtors’ exam on them, which I’ve done, where I’ve taken people’s iPads away, I’ve taken watches away, I’ve taken cars away from them. Part of a settlement, we took part of the retirement plan away. Trust me, this person, I don’t feel any bad. I have no bad feelings about doing this to this person because this person basically was a sister who made her own brother homeless, so I couldn’t care less. She basically went out of her way to harm my client, which I represented the brother. Anyway, so these two young guys now are opening themselves to this kind of examination, this kind of work. And plus, if they buy a house in the next 20 years, we put a lien against that house. And in California, we’re getting 10% interest. Better interest than I can get out there. That’s awesome. So what are some legal issues related to creators you’re seeing? Legal issues other than the ones we discussed ex-Twitter, Instagram, and OnlyFans getting determinated. We’re also seeing all kinds of landlord-tenant disputes, whether creators are tenants and either the landlord finds out what they do and wants them out or neighbors find out what my clients do and wants them out. In one situation where the landlord said my clients were two adult film stars, were making too much noise when they were having sex. That’s one of the reasons why they wanted them out. But we knew that it was because one of the neighbors found out what these guys do, and they were basically wanting to discriminate against my clients. Yeah, more than everybody else. I’m sure they do. Yeah, right. No, I turned to the landlord and I said, fine. We can prove there was no noise on any of these things. It’s not illegal right away to have that. And going to the law to me that this is a problem and this is a continuous problem. And tell me, and I would love to go through every single one of your communications with that tenant, with the other tenant and all these other stuff and all your internal things. And once I did all of that, they withdrew their notice. Of course they did. It’s ridiculous. What else? Ah, God. A lot of issues with other content collaborators. For example, I had a dispute that got very nasty, where a creator and her boyfriend were making content with another female. And basically they agreed to put the item up for a certain price point in their respective accounts. And the independent girls decided on doing it on her own, like putting it at a lower price. And they said, well, why are you putting it at a lower price than your normal price? Because it’s creating a problem for us because everyone sees that we’re selling it for more than you are, things like that. But that being said, the girl then started making accusations. The independent girls started making accusations against the boyfriend and against this. So I’m now having to, before I represent anyone, because I do not represent anyone that’s been accused of such actions. I was watching all the videos and all their pictures pre and post content creation just to see what has happened. What actually happened, because again, I did not want to represent someone that was accused of that kind of, I would say, crime. And the thought that it didn’t seem to me that there was anything on towards, everything was done with authorization and with the proper paperwork. And luckily, and this is what I advise all creators to do, and all companies, all production companies, you have to have a camera. Go buy, go pro. Put it maybe not in the highest definition setting, but the second highest definition setting, maybe 1080p. Put a nice long chip in there, like a two terabyte chip in there. Plug it into the power cord, put it on a stand and put it on set. The moment the first person shows up, the moment the last person leaves. And this is really good because you see what the interactions are. I have a client of mine who goes even one step further. And aside from having that camera, my client gives everyone on set that’s not in front of the camera a personal body cam to wear. They wear these body cam. And then if anyone says this person said this to me or I didn’t like what the way this person talked to me, now we have video. Boy, everybody’s becoming a cop. It’s amazing. It’s unfortunately protection for yourself. If you have something that gets rid of the problem right then and there, the cost of what? Seven body cams prevents accusations, ridiculous accusations. And they actually had a situation where someone made a ridiculous accusation against someone else and they had the camera. And the camera showed that this person didn’t do what they said the person accused them of was not even close to what they accused them of. And we have the video and we said, you want to go see the video? We’re absolutely more than happy to provide the video to you, but none of what you said happened. Yeah. Well, I think it’s necessary in the post-ron Jeremy era. I think that there have been issues ongoing, not a lot, but isolated issues here and there. And I think it’s always been important that people are able to prove that there is nothing going on and putting a still camera at the back of the room. Many of the people I know do that and I think that’s fantastic. It has to be kind of centered where you can see everyone. But that being said, what’s the cost to you? At most five body cams nowadays will cost you maybe $2,000, you know, the long-term ones. At most, you know, you buy a nice, I have a GoPro knockoff, I guess I would call it a knockoff, which is a small camera. I bought it for $70 on Amazon and works magnificently. Great quality, great everything, long battery life, everything about it is fantastic. And what’s wrong with that? Just buy these things, you know, forgive it to people and then sleep easier at night. Exactly. That’s what it all comes down to, Nick. Bruce, if you think about it, Shakespeare, every play that you wrote when you wanted to talk about someone that was tortured, sold because of something they had done wrong, it was always lack of sleep. That’s the key to life. My broker tip today is part four of what to do to make your site more valuable for when you decide to sell it later. Last week we talked about keeping your site up to date and making sure everything works. Next, find new ways to monetize your website, such as sell advertising. If you’ve got a free site like a tube, that’s the best way to monetize your site. If you have a tube, another way to make more money is to sell premium memberships, offer free users one level of content, and for premium users, you can do things like give them higher quality or longer videos or both. You can also make the site ad free for premium members. Start an affiliate program. If you have a pay site, this is a great way to increase your quality of traffic and get more joins. With all sites, you can figure out other upgrades and products you can sell to your users. Pay sites can also sell pay per view, where people have the option of paying by the scene for content they can’t get on the site. This is also another way to charge users as opposed to a monthly fee. Sell them other products like toys and novelties. Increase your business. Do things to improve your search engine results. There are some great SEO consultants out there who can help you get higher search rankings in Google. If you want some recommendations, contact us on our site. List all the benefits of your site and your marketing and how they affect the user. And of course, hire a great marketing consulting firm such as Adult B2B Marketing, which we also happen to own. We’ll talk about this subject more next week. And next week we’ll be speaking again with Nick Zargarpur in part two of our interview. And that’s it for this week’s Adult Site Broker Talk. I’d once again like to thank my guest, Nick Zargarpour. Talk to you again next week on Adult Site Broker Talk. I’m Bruce Friedman. [MUSIC PLAYING] [MUSIC PLAYING] [MUSIC PLAYING] [ Silence ]

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