If any suckers think model scam (search) america is in this for anything but the money... Read on
This is what it all boils down to... MONEY.
We hope no one actually believes that Model Search Organizations are out there just trying to help hopeful talents get a start. Though very few actually do get a successful career... It's all about the Benjamins.
Many searches say they charge fees to cover their costs and this is true. What they don't tell you is that they charge so much that they more than cover their costs and make a HUGE profit.
This is a general breakdown of Model Searches' actual costs compared to thier actual income. We will use the formula for what is probably the most successful Model Search business. This is a common formula that most of the searches use.
The open call, it is free to all but yet is has some costs to the model searches. (Calculated on approximately 30-40 open calls per convention)
1. Small-Medium hotel banquet hall & travel expenses (Hotel rooms and banquet halls are packaged deals - average corporate rate - $250 per O.C. X 35 = $8750 car rental plane fair food =
$15,000
2. Radio Advertising - group city coverage - average 3 Day flights @ $6000 x 10 flights needed =
$60,000
3. Radio Production (1 time fee -it is modified at stations to cater to specific city) =
$5000
4. Collateral - (registration forms, brochures, flyers, etc) (one time production fee) We'll go high with
$10,000
So, for putting together the open-calls to recruit for the regional convention it cost approximately
$90,000
Now we have to figure out his cost for these conventions.
1. Large banquet hall for 2 and a half days =
$2000
2. Cost to bring in Agents & speakers (interesting, if these are all prescreened talents, it should be a great opportunity for the agents to find a potential money-maker, and then many of these agents charge the "wanna-bes" for unpromising services, yet they are paid???) So lets say air travel, accommodations, and agent / talent fee @ $750 each x 40 =
$30,000
So now, $90,000 for open calls 32,000 per convention =
$122,000
That sounds like alot. But lets look at what they bring in for revenue.
1. Money made from mailing list compiled via registration forms,
$200,000 annually, but per quarter and relative to conventions, we shall say
$50,000
2. Registration fees: Average 1250 per convention at $395 =
$493,750
3. Guest fees: Average 800 guests per convention at $95 = $76,000
4. Merchandising: If half the guests and participants only spend $20, x 1025 =
$20,500
So, add up our four categories on income and you get...
$640,250
The difference between income and expenses is
$518,250
That is pure profit.
For just one convention.
They have several conventions a year.
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