Agency commission is a cost item when booking a model through an agency and will be charged to the model and client. A commission is a cross-industry compensation model for companies that are regularly paid based on success.
At model agencies - as a mere intermediary - the agency commission represents the sole business basis of a model agency. Commissions of more than 18% are not legally permitted in Germany. Section 2 (2) of the Broker Compensation Ordinance sets a corresponding maximum limit. Nevertheless, the commissions of the model agencies usually vary between 20% and 30%. The increased commission rates are justified with an increased administrative effort and the costs of creating presentation materials for the model sedcard.
In other European countries, these commissions or deductions are often much higher; This is not least because models abroad are not assessed as self-employed, but have to be employed subject to social insurance!