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The websites provide the transactional platform, and then collects and distributes a percentage of the tips to the models.

The term "camwhore" was first used in print in November 2001 According to the web traffic analysis service Compete.com, Live Jasmin generates more than 9 million unique viewers a month.Kari Lerum of the University of Washington suggests that men are more open and vulnerable in cam rooms than in strip clubs, and can become very invested in relationships which only exist on the screen.The term webcam is a clipped compound used to combine the terms video camera and World Wide Web.However this is not the first time that conversational interaction had become a boon for the erotic entertainment industry.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.

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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.