Did you know that models work as contractors?
News to many, we know! This means, you need to set yourself up as a business and get an ABN – Australian Business Number. No stress, this is all very straightforward and is done through your Tax File Number, the business structure is also the simplest and you set yourself up as a ‘sole trader’. For more information on this, you can sign up to the ‘Finances‘ module of the Online Model Course, and if you are enrolled in our Comprehensive Model Course, your trainer and agency booker, Sage, will teach you all this.
In this blog though, we are going to discuss how models get paid. Whether you are a freelance model, or an agency signed model, you will be paid per job. The only difference here is – an agency takes commission, whether a freelance model invoices the client and get paid directly by them. So, if you are signed with an agency, how will the payment structure work?
Well, the client books in models through the agency, who negotiate the job rate on your behalf with the client. Your agent will then send you all the details for the gig, and when the job is done they will invoice the client. You however, will invoice the agency for your time. The client will pay the agency for the invoiced amount and only then the agent will pay you, after they take out their commission, aka agency commission.
I hope the above explanation is not too confusing, so I have also included the video for further demonstration of how the payments with agencies work. This is a little snippet of the Online Model Course’s ‘model basics‘ chapter, and our Comprehensive Model Course students of course learn this in their very first class and then more in depth in the ‘finances’ module. You can watch the video here:
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To your success,
The AAM team