By DEBRA ALFARONE PIX11.com

9:06 a.m. EDT, August 31, 2011
NEW YORK (WPIX)—
Welcome to the world of sugar dating. The self-described sugar babies are 20-something women, willing to trade their youth, beauty and sometimes, "booty" for a predetermined-budget. The sugar daddies – men with money who want their time.

PIX 11 Morning News was invited to swanky Manhattan hotpot Hudson Terrace, inside a party hosted by the granddaddy of sugar daddy dating websites, www.seekingarrangement.com. 400 people jammed in on a Thursday night.

The site's CEO Brandon Wade says it's a popular way to date. 800,000 people have signed up on his site to find mutually beneficial relationships. Wade explains, "So what we define that as, is a sugar daddy who's wealthy, successful and a sugar baby who's somebody who's looking to provide companionship and get some financial assistance within that relationship."

The 41-year-old entrepreneur says on the site, there are 10 sugar babies to every daddy, and more and more, up to 35 percent now, are looking for money for school.

The school that boasts the most students seeking sugar? NYU. We took our cameras inside the exclusive party where we talked to babies and daddies alike, and they make no apologies. 20-year-old Channir says "I didn't have a second thought...you just come and you meet people."

Several of the daddies on the site have a net worth reaching the $10 million mark. A quick look around the 5-year-old site shows a variety of men with different goals.

One is looking for a one-time thing, a multi-millionaire says he's looking for an LTR (Long Term Relationship). Some admit they're married. One guy says he's willing to drop $10,000 to $20,000 a month on his sugar baby.

For students, the site's free. For sugar daddies and mommies – yes, there are some mommies – it costs $50 a month, so, for Wade, these sugary hook-ups are very, very sweet.

But, we had to ask is Wade making money off what some say is a thinly veiled attempt to disguise the world's oldest profession?

Wade says no, "It really isn't because prostitution is money for sex whereas in this case it's money for exchange within the context of the relationship. So imagine a very wealthy husband giving his wife money or a very rich boyfriend, or in this case a sugar daddy, giving his sugar baby money. There's nothing wrong with that at all."

Why try the site? Wade says people are upfront. On other dating sites, they may lie about their weight, or put up an old picture, here, they ask for what they want. Channir agrees, "As long as you, both of the couple, both are in agreement, everything is okay."