The firms counter that they are following the law since they provide their models with a variety of management services, beyond just finding them work. Critics say that by doing this, they are skirting the state law that limits employment agency fees. To charge these high commissions, some attorneys argue that companies based in New York, the heart of the modeling industry, are masquerading as "management companies" instead of employment agencies. Another model, for example, saw a $10,000 job shrink to less than $4,000 after taxes, commissions and expenses. 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. But this is before any other expenses are taken out. A $5,000 job, for example, would typically result in a $2,000 windfall for the agency, which can end up being more than what the model herself would take home in some cases.Ī 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). Not only do agencies usually charge their models a 20% commission, but they charge the model's client a similar amount, according to models and attorneys. In its ongoing investigation into alleged labor abuses and lack of regulation in the industry, CNNMoney interviewed dozens of models who say it's these outrageous fees and expenses that make it so difficult - and in some cases, impossible - to get ahead.ĭouble-dipping and double-digit commissionsĬommissions are the bread and butter of the modeling industry. Several agencies, which often prefer to be called model management companies, told CNNMoney they invest significant resources to help their models succeed, and that the costs models face are just part of the business.īut models don't always see it this way. Read more about the dark side of the modeling industry here These include everything from expensive plane tickets and group housing to the many promotional materials - like websites, headshots and portfolios - required to land jobs with clients. And this means that even after paying their agencies fat commissions of 20% or more, models often have to foot the bill for business expenses. Instead, they are often considered independent contractors. Models typically aren't treated as employees, so they usually aren't guaranteed to receive minimum wage, overtime, lunch breaks, prompt paychecks or many other protections that are common in the workplace. Meanwhile a young female model saw almost six years of earnings shrink from $74,000 to less than $30,000. One male model, for example, showed CNNMoney a statement where a $500 catalog shoot turned into a $15 check. workers, models regularly see huge chunks of their earnings - whether it's a third, more than half, or even entire paychecks - disappear right before their eyes. But most of all, it can be prohibitively expensive. By Blake Ellis and Melanie Hicken Modeling is a time-consuming, demanding and cutthroat profession.