The overhead costs of a high end escortservice

Insight into the overhead costs of our high end escorservice

As the loyal followers of our blogs now know; we like to be open and transparent. We recently filed our tax return for the last quarter of 2023 and we thought... why don't we tell you more about the overhead costs of our high end escortservice?

Overhead costs are all costs we incur 'to keep the business up and running'. This does not include the purchase costs, which in our case consist of the rates we pay to our high end escorts as compensation for the booking. Although this fee is around 55% at many escort agencies, we pay our escorts a lot more, around 65%. We can keep our mediation rates relatively low because we enjoy some economies of scale due to our larger size and years of experience. A client reaps the benefits of this, without this being at the expense of the compensation paid to our escorts.

IT related overhead costs

Although we have an office, our website is our calling card to the outside world and not a physical store. We spend about 30K annually on office costs and about 40K on our website. In years that we develop a new website, this is more than double. In addition to a beautiful website, we work with a custom application for the administrative processing of bookings, managing the availability of the escorts and much more. Building the application cost us 150K one-time and the maintenance and improvements entail an annual cost of more than 20K. This application and website must be hosted, for which we also pay our server manager 20K annually. In addition, we spend more than 10K annually on pen testing by a cyber security expert.

Marketing and promotion

We regularly appear in the news, on blogs, newspapers, magazines and television to talk about this high end escortservice. These interviews do not concern so-called 'sponsored content' that you pay for, but are interviews to which we are invited. With the exception of a few industry-related websites, we do not pay for listings. This does not mean that our marketing costs are zero. Because the beautiful photos of our escorts and gigolos also fall under marketing and promotion costs. We believe it is important to offer an up-to-date and extensive portfolio, this is an annual cost of approximately 20K. The findability of our website is also a marketing cost item. We spend 45K annually on SEO experts.

Transportation

Contrary to popular belief, we do not have a huge fleet of luxury limousines with which we transport our escorts to and from bookings. We also do not send a bodyguard to the booking. The majority of our transportation costs are in train and flight tickets for international bookings. Because we pass these on to the client, these are actually purchasing costs. Even though our escorts are down to earth and fly economy (comfort), we (or our clients) spend more than 50K on tickets every year. Speaking of down to earth; owner Marike does most of her business appointments by bike or in her modest city car.

Administrative and legal costs

We use an accountant and lawyer to respond to social developments, changing laws and regulations and to (continue to) meet our obligations as a company. Fortunately, we rarely need this lawyer in court, but we do need this to keep our Terms and Conditions up to date, to draw up and check contracts and to think along with us on other legal issues. Our accountant helps with our administration, such as VAT returns and annual reports. In addition to our regular lawyer and accountant, we regularly hire experts with a more specialized field to support us in other ways. The total costs we spend on administrative and legal experts are around 40K per year.

The total picture with our high end escortservice

Anyone who has done a bit of math will soon arrive at several hundred thousand euros per year for the most important overhead costs. Can you imagine that there will also be taxes? We pay 21% VAT on our turnover and also income tax and healthcare insurance premium on the escort's compensation. If there is still some profit left after all these taxes and costs, we also pay corporate tax on any profits, which is between 19% and 26%. However, you don't have to feel sorry for us because, in addition to an above-average salary, we get a lot of pleasure from our work!