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The websites provide the transactional platform, and then collects and distributes a percentage of the tips to the models.For public chat rooms, the model's portion of a tip is a little less than half.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.Since the early days of live webcasts by Ringley and Amanda, the phenomenon of camming has grown to become a multibillion-dollar industry which has an average of at least 12,500 cam models online at any given time and more than 240,000 viewers at any given time.Camming websites typically fall into two main categories, dependent upon whether their video chat rooms are free or private.Webcam models mostly perform individually in separate video chat rooms, which are frequently referred to as rooms.

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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.

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