Everything I ever needed to know for business, I learned in strip clubs.

Over the years, I have spent my fair share of time in strip clubs. Mostly for fun, but sometimes for business, every strip club I have ever been to (no matter the physical location) tends to have the same formula.

A main stage for the feature dancer or the a rotation of dancers; a series of smaller tables with chairs (always on rollers); a private VIP area and a set of private rooms or stalls for the girls to perform private dances.

Most strip clubs seem to do relatively well financially, and other than Las Vegas, seem to stay in business regardless of economic times.

But, thats not what interests me.

Whats interesting to me is how the dancers themselves work. Each girl is a little mini-business and a entrepreneur in their own right.

In the past two years, I have gone to two separate clubs. One in Dallas and one in Las Vegas. Each time was for an extended period of time (Dallas was about 5 hours, and Las Vegas was about 3 hours) completely sober (yeah, dont ask…).

I spent the majority of my time in each one watching the girls interact with their customers.  (And to be completely fair, I spent my fair share of time with the dancers themselves.)

Here is how it works for me:

• I sit down at one of the smaller tables (never at the stage. mostly because the dudes sitting around the stage are pretty slimy).
• I order a red bull (there is usually some sort of drink minimum);
• over the next 30-45 minutes, dancers will tap me on the shoulder and ask if they can sit down and talk. I tend to refuse (mostly because I want to get settled in, and to a certain degree have to get up the courage to interact).
• Finally, once I am ready and I find a girl that is attractive to me, I will accept the invitation to sit down.
• We talk for a bit, she dances for a bit, and then she usually pitches me on a private room, which I refuse, and she eventually moves on.
• Then the process repeats.
• Sometimes, a particular dancer and I will get along and she will either spend an inappropriate (remember she is there to work) amount of time with me, or kinda swing by periodically through out my time at the club.
• This seems to happen more often than one would expect, and through out the night, I tend to learn all about the dancer’s history, family, etc. In Dallas, I learned that the girl was a blogger and had spent time in Thailand working with Amnesty International on some sort of drug case. (I just remember it was very Midnight Express). Another dancer came from a family of dancers. Both of her sisters and her mother danced at a rival club, but since she was only 18, she couldnt dance in a club with alcohol.
• At the end of the night, I leave. After all, it was just a night at work for her, and usually, a night at work for me too.
• (if you are wondering, I used to get a lot more stripper phone numbers than I do now. Probably because I am sober.)

I have often wondered why one particular dancer over another would select me to engage with. Was there something in how I carried myself? Was it because of how I looked? What was it?

The process of customer selection by the stripper is really interesting. I spent a lot of my time these past two times at a club really watching the process.

1) Dancers seemed to be more likely to talk to a customer that had just walked in. Almost before he could get settled.

I imagine that this is due to the fact that new customers have the potential to have the most money. After all, if the dancers are good, most of the customers that have been there for a number of hours are probably tapped.

2) Dancers tend to approach the same type of men. This is more pronounced by the race of the dancer.

Each race of stripper tends to have a similar shtick. I know that sounds racist, but it really makes sense. If men are attracted to certain types, then those type of women will learn that they get the biggest reaction from those type of men, when they act in a certain manner.

For example, I seem to predominantly attract minority dancers. Sometimes a heavily tattooed white stripper will swing by, but almost never the “all-american” types. Makes sense given my general look and the tattoos.

When Asian stripper approach me, they often talk about how much they like a “big man,” Latino and Black strippers will comment on “how strong I must be,” and tattooed strippers, of course, talk about my tattoos.

3) Every action, including feigned interest, is designed to generate revenue.

There is not a single thing a dancer does that isnt designed to separate a customer from his money. A stripper looks at their time at the club as revenue/minute. When they arent hustling, they are losing money. Its that simple.

In New York City, the famed club Scores is a master at this. First of all, all cash is converted into “Scores Dollars” which is not a 1:1 direct conversion. Then, every 30min or so there is another Scores product to buy (Calendars, videos, tshirts, etc). Even drinks can be bought with the funny money. Also, you can only buy “Scores Dollars” in groupings of $10 or $20 (I think). But, nothing works out to a round amount, so you are either sitting on the sidelines, or buying more fake money. Ingenious.

4) Customers that are cheap or refuse the company of a dancer, will soon find themselves completely shut out.

I doubt there is a bulletin board in the back room that states “skip the dude in the black shirt with the tribal tattoo,” but there is an almost natural way that dancers mark a customer as a dud. It could be the drunk guy, or the extra touchy-feely guy. Or just the guy that doesnt seem to pony up enough cash quickly enough. But, it happens, every single time, there is some guy that just gets shut out.

5)  Customers that feel special will spend more money.

There is a real connection between how valuable a customer is to the dancer and the amount of attention given by the dancer. Have money? Continue to get smiles. Get too drunk? See the dancer move away. Pay for your friends? Get attention. Get your friends to pay for you? Nada.

It is a set expectation when you enter a strip club that you are entering a business establishment with unwritten rules for conduct and transactions. Want attention? Spend money. Its that simple.

So, how do I apply these five rules to business?

1) Dancers seemed to be more likely to talk to a customer that had just walked in. Almost before he could get settled.

Be attractive to new customers, but understand its easier to keep the regulars. Make sure that new customers immediately feel important.

2) Dancers tend to approach the same type of men. This is more pronounced by the race of the dancer.

Know your market. Explain your value in an easy way, that is understood by the market you are selling to.

3) Every action, including feigned interest, is designed to generate revenue.

Always be generating internal value. I used to tell people that worked for me that for every dollar I paid them, they should generate three.

4) Customers that are cheap or refuse the company of a dancer, will soon find themselves completely shut out.

Dont waste time on customers that will not generate revenue or internal value. ‘Nuff said.

5)  Customers that feel special will spend more money.

Make the right customers feel special. Have a VIP list. Be transparent about the value specific customers bring.

All I ever needed to know in business, I learned in a strip club.

Its really that simple. There is not that much different between a dancer in a strip club and a startup or huge multinational corporation. One just ends up with all your money at the end of the night, and the other gives you lap dances and covers you in glitter.

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