Charging a commission to the talent

July 5th, 2008 by admin

Some agencies double-end their fee by charging a commission to the talent based on their fee and a mark-up to the client on top of the gross fee.

Talent discounted fee = $350 (normally $500)

Add Mark-up = $150

Fee charged to the client = $500 plus mark-up = $650

Using this method, the agency earns a profit of $300, double the commission of most of the other methods. While tempting, this double-dipping method is extremely uncool and unfair and I, Randy Charach from Synergy Talent, do not recommend it.  There are better ways to improve profitability without being greedy.  Remember that taking an ethical approach to your business dealings can only help your credibility and reputation among talents and clients.

Posted in Reference