Entertainment NewsHow Scam Modeling Agencies Rip Off Models

How Scam Modeling Agencies Rip Off Models

Date:

Modeling agencies rip off models by giving out loans, taking commissions and charging for expenses.

A new CNNMoney investigation is breaking down the doors and revealing how modeling agencies and model management companies earn millions upon millions of dollars while their talents are left struggling. Apparently, it all comes down to 20% commission fees and “double-dipping” – where agencies charge not only 20% commission and the model’s client another 20% fee.

A pay stub from one model showed how a big $30,000 payday became only $6,475 after a 20% commission and a big tax hit (though she’s hopeful she’ll get some of that back at tax time). Yes, this may sound like a lot. But this is before any other expenses are taken out. And because the pay is wildly inconsistent, many models are forced to rely on a one-time payment like this for months or even longer. Another model, for example, saw a $10,000 job shrink to less than $4,000 after taxes, commissions and expenses.

According to the report, in order to charge these high commissions, some attorneys argue that companies in NYC, are acting as “management companies” instead of employment agencies. This allows for modeling agencies to avoid state laws and employment agency fees. Consequently, making a lot more money. In fact, 10 years ago, a class action lawsuit challenged these commissions and talent agencies paid out millions of dollars in a settlement. However, 20% commissions is still a standard across the modeling industry.

In addition, certain modeling agencies charge their talent for walking lessons, dermatology visits and photo shoots. Consequently, models are left in a “perpetual state of dependence,” as model management companies loan out money to their talent and charge 5% interest.

“Advances were the only way you could actually afford to get anything,” she said. “They are still making money off of you, but it’s like I need to eat and pay my bills.”

From CNNMoney:

 “[Cash advances] kept the models in a perpetual state of dependence,” attorneys at Quinn Emanuel wrote in court filings. “This practice is particularly insidious because the models only needed the advances in the first place because of defendants’ unlawful practice of not paying a model his or her wages until many months after the work had been performed (if ever).”

While not all modeling agencies engage in this type of scam, manipulation and abandonment, there are plenty that rip off the dreams of thousands of aspiring models.

Read the full report here.

Via CNNMoney

What do you think? Share with us your thoughts in the comments below.

spot_img
Megan Diane
Megan Dianehttps://www.projectcasting.com
Hi, I'm Megan Browne, the Head of Partnerships at Project Casting - a job board for the entertainment industry. As Head of Partnerships, I help businesses find the best talent for their influencer campaigns, photo shoots, and film productions. Creating these partnerships has enabled me to help businesses scale and reach their true potential. I'm excited to continue driving growth by connecting people with projects they're passionate about.

Share post:

Popular

spot_img

More like this
Related

How to Get Cast on Netflix’s ‘Avatar: The Last Airbender’

Looking to break into the world of acting by...

Celebrity Trainer Refutes Steroid Accusations Targeting Jake Gyllenhaal’s Road House Physique

Key Takeaways: - Hollywood star Jake Gyllenhaal's body transformation for...

Dua Lipa Finds Emotional Support in John Cena on Her Acting Journey

  Key Takeaways: - British singer-songwriter Dua Lipa explores her acting...

Bob Odenkirk Opens Up About Surviving a Deadly Heart Attack on “Better Call Saul” Set

Key Takeaways: - Actor Bob Odenkirk experienced a heart attack...