How do talent agencies make money?

Question

I realize that individual agents make their money off of commissions but how do they pay for everything else, and how does the owner make his money?

Answer 1

In the talent world, it's usually anywhere from 10-30% commission. They make absolutely nothing when they take your pictures or refer you to an audition. Like what the last guy said, only bogus firms charge you for anything.

The owner makes money like most other business owners - if they own the firm 100%, they simply pocket the remainder of the cash made after overhead fees (electricity, phone line, taxes) are paid up. Most owners take roles as agents themselves. If the agency is successful and is recruiting lots of juicy talent thats getting work often, then the owner will hire more agents to help manage the talent, but the hired agent only gets so much of the profit.

Hope this helped!

Answer 2

Legitimate agencies get a % of the bookings and that pays for everything. Bogus ones charge the 'prospective' talent fees and set up photo shoots that they also charge for.