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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 customer's local phone bill.

(This attitude still survives among some providers.) When public (mostly female) pressure forced the phone companies to stop providing this service to sex workers, a transition was made to a manual method: pre-paid blocks of time, 10, 30, 60 minutes, whatever the customer would pay for.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.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.Software platforms were custom written to handle money collection and transfer, connecting caller and sex worker though neither could see anything but the platform's phone number, and metering the connection.

Details vary significantly from one platform to another, but the provider may be given a personal page on the platform to use however she (sometimes he) wishes.

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.

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

By 2007 only Verizon, Sprint and AT&T remained in the chat line business in the U. By 2007 Verizon and MCI had merged and only a few chat line companies remained active as a result.

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.

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