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If a customer disputed a charge, the telephone company would usually “forgive” the charge but block the caller from calling any other chat lines.

Originally phone sex services consisted of a managed network of dispatchers (live or automated) and erotic performers.

Performers would come to a studio where they received a cubicle, coaching, and cash incentives to keep callers on the line longer.

The provider provided (say) 10 minutes of service, but got to keep all of the money (say 20 minutes).

When the Internet got relatively mature, sale of any sexual service not involving a minor could be made to anyone not a minor.

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.