Quote:
"The business model has always been in favor of the agency," Porizkova said. "It's like the publishing business or the record industry: The company makes sure their ***es are covered, and you only make money if you make them a lot of money. Trust me -- in the 20 years I spent in the business, most of the girls I knew fell by the roadside. They all lasted a year or two, then ran into debt."
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well this is correct, but except to live in candyland, everyone can understand why it is like that. And the record industry is as said exactly the same, and exactly for the same reasons...
A record company or a model agency...they take money risk on talent, and it is them who gonna advance all the pennies needed to launch the talent, in accepting the risk that the money invested can be completely lost, and in many case...it is lost.
so to cover all the lost, they must obviously takes money where it is possible to take.
A part of the system is that all the expenses, are lightly overcharged to the models, so there is a category of models, who for themselves dont earn anything, but who just make enough for the agency to earn on them.
The exemple of record company is very good and is maybe more easy to put numbers on.
when a CD is launch, in accounting, maybe the break even when the record company will start to earn will let's say be at 50.000 CD.
BUT...at 50.000 CD, the artist will still not earn, caus like a model he has been overcharged of some expenses, so maybe the break even he will start to earn will be 75.000 cd.
it is like that for models, and like that in all business which invest on talent, and it is normal it is like that, if not the business in itself could not just be profitable at all.