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A webcam model often performs erotic acts online, such as stripping, in exchange for money, goods, or attention. Since many webcam models operate independently from their homes, they are free to choose the amount of sexual content for their broadcasts.

In 1996 an American college student and conceptual artist, Jenny Ringley, created a website called "Jenni Cam." Her web camera was located in her dorm room and automatically photographed her every few minutes.

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When webcam models create their live Internet broadcasts, they perform the activity known as camming.

A third-party hosting website which transmits multiple webcam models' video-streams is known as a camming site.

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.

Enabled with this new revenue stream for strippers, the strip club industry went through a period of extreme growth during the 1980s.

And in the early 20th century sociologist Paul Cressey noted that within the hundreds of taxi-dance halls of America, "the traffic in romance and in feminine society" would become available when taxi dancers would offer their companionship and "the illusion of romance" for ten cents a dance.

Tips are electronic tokens that viewers can buy from a camming website, and then give to the models during live performances.

The tokens can also be used to buy videos or souvenirs of the model.

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.

Since the early days of live Internet broadcasts 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.

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