What does a late-night talk show host do to top guest appearances by President Obama on one night, Bill Clinton the next night, and Madonna the following week? Well, if you’re David Letterman, you go on air and admit to having sex with your employees. The confession came last night when Letterman announced he’d been the victim of a $2 million extortion plot to expose sexual relations he’s had with female staffers. He first learned of the plot three weeks ago when he found a package in the backseat of his car one morning on his way to work. The package included “proof” of “terrible things” Letterman has done and a blackmail letter explaining a plan to write a screenplay about Letterman and his affairs unless he forks over $2 million. Letterman called the cops, they caught the guy with a fake check, and Dave testified this week in before a grand jury. His response to the claim that he’s banged female staffers? “My response to that is, yes I have. I have had sex with women who work on this show. Would it be embarrassing if it were made public? Perhaps it would, perhaps it would. Especially for the women.” He then says he wants to protect these people, his family, and hopefully his job. It’s just a hunch here, but I’d say his job is pretty safe. Clip above.

We’re not fans of the “sex scandal” road to success. (Ya hear, Levi Johnston?) But that doesn’t mean we still can’t learn something from a D-lister who paid the rent because the notches on their bedpost.

Former D.C. staffer Jessica Cutler got herself a book deal (The Washingtonienne) from having anal sex with Bush employees for money and blogging it. So The Daily Beast has turned to Cutler for her sage counsel after news this week that a married, born-again Christian senator, John Ensign of Nevada, wasn’t quite as into “family values” as he purported to be. (Ensign recently admitted to an affair with Cynthia Hampton, who is married to an aide in the senator’s office.)

But you don’t have knocked boots with a hypocritical politician to appreciate Jessica’s scandal-snuffing tips. After all, nearly everyone’s cell phone has a camera on it and lots of ex-boyfriends act like dicks!

After the jump, let’s see how Jessica’s advice for “scandalettes” in the public eye can work for us normal folks and our everyday dramas. [The Daily Beast]

The Frisky just started tooling around on Twitter and a few of our staff have iPhones, which we kind of know how to use. But maybe we could learn a thing or two about putting these handy-dandy technologies to use in business by talking to one of our local streetwalkers. Apparently, the internet has become a useful tool for sex workers to spread their gospel, and, in the wake of the Eliot Spitzer scandal, also do a little public relations spinning. “Sex workers are sentient beings and we are very capable of speaking for ourselves,” Audacia Ray, sex worker advocate and author of Naked on the Internet: Hookups, Downloads and Cashing In on Internet Sexploration, told Wired magazine. “We are organizing politically and we do have opinions about the ways that sex work could be responded to differently by government and media.” When the Spitzer prostitution ring story broke, sex workers who are actively involved in the community wanted to have their voice hear on the issue, and used devices like the iPhone and programs like Twitter, Google Docs, and RSS feeds to be on top of hearing and responding to the breaking news. When did hookers become so…nerdy? [Wired]

A political sex scandal is a headline writer’s dream. So, were they creative enough when typing up this week’s big bombshell about now former-New York Governor Eliot Spitzer?

Frankly, we’re a little disappointed. The NY Post, after all, is the paper that came up with the headline “Close But No Cigar” after the Senate failed to convict President Clinton in 1999. However, the aftershocks of this scandal are sure to be felt for at least a little while longer, so maybe they’ll take it up a notch.

While every celeb in America has got a promotional sex tape—from rock grandpa Gene Simmons to Paris Hilton—in Hong Kong it is career suicide…and then some. Edison Chen, 27, a strapping leading man in Chinese cinema, collected suggestive photos and videos he had taken with many of China’s top female celebrities. Over 1,000 sexy shots were stolen off his computer while it was being repaired and then posted online, creating a surge in internet activity all across Asia.