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 customers local phone bill.
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With the progress of technology it became more practical, convenient, and economical for providers to work out of their homes.
Human dispatchers — female, except for gay male phone sex — answered the advertised phone numbers, processed payment via credit card, chose who of the available performers in the dispatcher's judgment best matched the clients' fantasy (grandma, black girl, college girl, etc.), and connected the client with the provider. Either could hang up, though some services put economic pressure on providers not to do so.
Nevertheless, phone sex should not be confused with prostitution wherein money is exchanged for real life sexual services or physical interaction.
The editor of High Society magazine, Gloria Leonard, is credited with being one of the first people to use "976 numbers", then "900 numbers" for promotional purposes and soon as a revenue stream in the adult industry.
All have some way for a provider to post a picture and some text.
Big platforms as of 2016 are Niteflirt, Talkto Me, and My Phone Site; the latter also includes provision by which a manager, with the consent of the providers, could have a virtual shop with many providers under them. Customers had a variety of payment options, and pages of providers to choose from, sometimes with voice samples available.
The sexually explicit conversation takes place between two or more persons via telephone, especially when at least one of the participants masturbates or engages in sexual fantasy.
Phone sex conversation may take many forms, including: guided fantasy, sexual sounds, narrated and enacted suggestions; sexual anecdotes and confessions; candid expression of sexual fantasies, feelings, or love, and/or discussion of very personal and sensitive sexual topics.
By the end of the 1980s, nearly all of the major local phone companies in the United States, plus the major long distance carriers, were actively involved in the adult chat line business.
The telephone companies would provide billing services for chat line companies.
Leonard convinced magazine owner Carl Ruderman to purchase more of these numbers and the business began to be successful using the magazine to promote the service.