Chargebacks: What Are They And Why Do Models Have Them?
When your agency issues your checks, based on the compensation received from your clients, you will notice that there are deductions. These deductions are known as “chargebacks.”
Chargebacks are advances the agency makes on your behalf, which could include:
- Portfolios
- Prints.
- Comp cards.
- Agency promotional packages.
- Test shoots.
- Website maintenance fee.
- Airline tickets.
- Hotels.
- Model Apartments
- Car Service.
- Courier fees.
When your client requires you to travel for a job, or another agency invites you to work in their market, the agency may advance the cost of the flight and accommodation. You should make sure to keep track of all the advanced expenses so that you have a record to compare to the deductions made from your check. The accounting department in any agency, upon request, will give you a list of your chargebacks.
In the event that your contract is not renewed or is terminated by your agency, any remaining chargebacks will be due and payable at that time.
As in any career, your investment, whether it is in promotional materials or travel to different markets, enhances your ability to become a successful model.
Don’t forget to consult your accountant to find out which chargebacks, if any, are tax deductible.
