You may have seen the adverts, like the one above, or the headlines:

‘A quarter of a million’ UK students now using sugar daddies — BBC

Meet the sugar baby who’s had 10 sugar daddies - and has found love with one — Mirror

For those of you who aren't aware of what is going on here exactly, let's end your virginity on the matter.

This will be a non technical, yet comically financial style review of the rapidly growing industry, the areas which will be covered are the following:

1. The market securities (Students) 2. The market participants (Old men) 3. The market exchange (SeekingArrangements) 4. The market regulations (SeekingArrangements Blog Tips) 5. The effects of the marketplace on society (Why this is bad…)

* * *

1. The Market Securities

The marketplace has several asset classes ranging from single mothers to males, but more recently a new asset has been added.

Students

Students differ somewhat to existing securities due to their inherently different risk profile. Said differently, this is how much they cost compared to what they can in theory ‘deliver’ to the purchaser.

The method on which they have arrived in this marketplace is also different, they have been cornered, and now are being exploited.

Without further ado, let's introduce the asset class formally:

Sugar Babies, Female

A sugar baby

These securities are the supply element of the marketplace. There has been a recent spike in supply with over 250,000 UK students recently joining. Currently the most active tranches (among UK Universities) can be seen below:

The fresh inflows are quickly assimilated into the marketplace, thanks to near insatiable market depth. The young, high yield securities are then bought, consumed, transferred between their counter-parties, then discarded (usually, but not always).

Sugar Guide for new Babies

They will typically set the buyer back $600-$2000 per month. Securities (Students) which have recently had an IPO (they signed up to a sugar daddy platform), can often be purchased for below intrinsic value (they don’t know how much money to ask for). However although an enhanced entry opportunity is present, they carry an unrated risk profile.

2. The Market Participants

The solid backbone to the marketplace; providing great market depth and consistent demand. The market participants are typically male, ranging from 30–50 years in age, with a dash of social instability. They are called Sugar Daddies.

Sugar Daddies

A not so gentle Gentleman

These form the demand within the marketplace; the counter-parties to Sugar Baby securities. They look to strike an ‘arrangement’ if the securities features fetch the right price.

Their investment profiles (desires) are clearly defined, and they look to acquire a portfolio of as many securities as needed to fit their risk / reward ratio.

However, Sugar Daddies have been known to crowd securities, forcing valuations higher. This often leads to a undesired skewing of a risk profile which can end up with undesired consequences, as can be seen here (they fell in love?!).

3. The Market Exchange

SeekingArrangements (the market exchange) first launched in 2006 and now boasts over 2.6 million Sugar Babies (male & female) across 139 countries. Of this figure over 1.4 million were students as of 2014 (this figure has since grown considerably).

There are incentives for Student securities to list their assets on this exchange, this is clearly given away by their tasteful advertisement.

The benefits for Students:

Free premium membership to those who signup with their university email address

Extra support, advice, and ‘tuition’ for students - convincing them to join (see video below)

No, this is not a joke, this is big business and makes $10 million a year in revenue.

The founder of the site, Brandon Wade - a borderline sociopath - has a few quotes & comments which I would like to throw in:

“There direct correlation between ‘Sugar Baby’ sign-ups and increased fees for students”

“When I created Seeking Arrangement it really was for my own benefit.”

“I think all relationships start off in a very superficial manner.”

“It will become more normal to make financial exchanges in relationships more explicit.”

And one more from another of Brandon’s totally-not-like-prostitution platforms Carrot Dating:

“Carrot dating is the first mobile application that combines dating with bribery … on Carrot Dating, if you see someone you like you offer them a bribe. And if they accept the bribe, you’re on your way to a first date.”

I’ll leave you to come to your own conclusion on this… back to the security investment platform.

Sugar Baby selection window

Sugar Baby Securities

Its just like online shopping for humans. There are plenty to choose from and each comes with a differing price tag which can be negotiated.

Unfortunately some of these Sugar Babies are here because they have been buried alive in student debt. They are now being actively convinced, enticed and persuaded this is the best way to pay it off.

Don’t “waste your time”. Sell your body instead.

4. The Market Regulations

Turning to the regulatory side, we are faced with a very bizarre setup. The UK is one of the most PC, red tape laden and moderated countries. With ads being banned for being too sexualized… which was targeted at 18–24 year olds anyway.

However, the SeekingArrangements market exchange is allowed free roam to solicit its services and functionality in a crude manner. Drawing in those barely over the age of 18 to sell their bodies to old men in order to pay off debt. Does that sound okay to you?

“Much better”

Now looking at the rules within this market exchange, I visit no truer source of information than SeekingArrangement’s blog, see below for some of my highlight quotes & image with their links:

Let the preying begin…

Post source, POT is a Sugar Daddy

“Be mindful of your age, some POTs won’t be interested in someone that can’t meet them for a drink at the bar.”

“Be sure to carry pepper spray…”

We'll come back to this.

Is it a pet or a relationship?

Post source.

“Terms of Agreement—We recommend some contractual, legal document where the terms of your living arrangement are spelled out”

“Give Her Space—She is not a prisoner so be mindful of her accommodations. A live-in Sugar Baby should have her own room”

Sex is a baseline expectation?

Post source.

“Let’s be honest, ever since 50 Shades of Grey exposed kink to the mainstream, women are opening up to ideas outside vanilla”

“…light choking, spanking, dirty talk etc can be a great conversation opener and a way to gage her interest”

Post source.

“…monogamy isn’t the norm for everyone”

“It’s not cheating if you’re honest, right?”

“…you want her to hate the game, not the player”

At last, but not least, we have the 8 things that every sugar baby should have in their purse, one thing stood out: Pepper Spray - If your transaction ends ugly this is a must have in the purse.

Pepper Spray

5. The Effects Of The Marketplace On Society

This is what most market-focused people are interested in as individual agents not currently buying or selling on the exchange (SeekingArrangement).

Some crude observations:

Students are taking on increasing amounts of debt as tuition fees continue to rise It’s becoming more difficult to secure work straight out of University, alot of people end up behind a bar Students are increasingly targeted and taken advantage of with their naivety and unfortunate circumstance, looking to escape somehow Young female students are ushered into physical exchanges intermediated with a monetary bribery / lure, often not on their own terms—having originally arrived there out of desperation This leads to bizarrely legal scenario with a base axiom of sex for cash!

As we recently put it, it’s the “modern day hooker economy”. Don’t be fooled with the soft wording, Sex is an integral part of the transaction. This has been reiterated by multiple active users, with escorting services naturally setting up on the platform before eventually being caught out.

The key issues arising from this are:

Polarisation towards sexual behaviour. We are covering up mens nipples one minute (!), then encouraging a 18 year old student to sleep her way out of debt next. Unhealthy relationships encouraged. The norm on here is having multiple partners, intermediated with cash, and relationships with socially inept men (old enough to be their parents in some cases). How is this a good foundation for future relationships? Increasing numbers entering sex work. This has undeniably lead to a path for students in to the sex-work industry via selling their bodies.

To end this article on a formal note: the marketplace is highly efficient and lucrative, however it has an unethical slant by targeting Students (Securities).

Whilst the operation is legal for now, if it were to be replicated not via the internet or by a snazzy app it would lead to people being locked up.

The adult entertainment industry is a long running theme with an understandable attraction and harmless backdrop, but issues arise when those who are most vulnerable are targeted in pursuit of growing company profits. Furthermore, when a platform advertises a girl under the title of being a student, they are instantly labeled as prey. They need money, they will do most things for it, this is why they are here.

Students were ushered off to University to study, only realizing later the full extent of the massive financial commitment.

While in previous articles we have joked with how females could pay their way out of their debt faster by sleeping with someone older than their dad, judging by the rise of modern day "sugar daddy" exchanges, it's not that funny a joke anymore.