Starting this sort of business isn’t very challenging maybe because the service is illegal in several places, and there is no well-defined path on how to start his business and make it flourish. Escorting and prostitution are not the same thing, and while most people consider them both to be unethical, one is a perfectly legal business opportunity while the other is not.
It is advisable to educate yourself on the spheres that make escorting a viable business option. Note that the more you know, the less likely you are to run into trouble with the law.
Steps on How to Start an Escort Service Legally in 2022
Table of Content
1. Conduct Market Research
Before you start an escort service business it is imperative to understand your legal responsibilities and also if there is a demand for your services in your location. If you want to start this business in an area where there aren’t many tourists, then know that your business won’t succeed at all.
To succeed, an escort service business will have to be set up in an area where there are several tourist attractions, and also where there are enough notable firms where people visit for business purposes. You also need to know the rules. If necessary, consult a solicitor and get information about the legalities of running the agency.
a. Target Audience for an Escort Services Business
It is not ideal to appear at the reception of “higher” bohemian society alone, therefore successful and wealthy people always try to appear accompanied by a wonderful companion who can easily charm and support an interesting conversation. Nonetheless, those who require the services of these businesses include:
- Corporate executives
- Adults of working class
- Young adventure lovers
b. Is Escort Services Business a Profitable Business?
When run well, escort service is a profitable business with a lot of money to be made. Note that people now gravitate to escort services because they are tired of the social norms where they are expected to follow the traditional dating service.
Most people do not want to waste time sending messages or getting to know someone. They want a personalized service that makes it easy for them to find what they are seeking. With more countries and cities legalizing escort services, you should consider starting the business.
c. Are There Existing Niches in the Escort Service Industry?
Yes, when venturing into the escort industry, you must understand the different types of services available. You can provide;
- Massage Services
- Trans-Escort Services
- Girlfriend Experience Services
- Medical Escort
- Loyal Intimacy
- Faithful Companion
- Dinner dates
- lap dance
d. Who are the Major Competitors?
- Global escort
- Artisans of Leisure
- 888 Companions
- Cinderella Escorts
- Aban Offshore
- Global Elite Escorts
- AirTran Holdings
- Elite Model Club
- Crown Resorts
- The Girls of KC/EOA
- Grupo Tampico
- VIP LA ESCORT
- VIP Companionship
e. Are There County or State Regulations or Zoning Laws for Escort Services Business?
No. While starting and running an escort business might be as simple as launching an adult website, there are numerous aspects of the business you need to keep in mind. You should understand the legal status of the business, the location of your business, the team members, the cost of services, and so much more.
f. Is There a Franchise for Escort Services Business?
No, there is no franchise for the escort services business, especially in the United States. Note that the rise in dating apps, in one way or another, has hampered the expansion of escort agencies, and most people who venture into this business start from scratch. You can start this business on your own as long as you can stand out from the competition in the modern escort industry.
g. What Do You Need to Start an Escort Services Business?
- A Feasibility Report
- Business Plan
- EIN (Employer Identification Number)/Federal Tax ID Number.
- A Corporate Bank Account
- Adequate Capital
Choose a Memorable Business Name for Your Escort Service
- Sugar & Company
- Temple Baron
- Exotic Partner
- The Caress
- Ladies in Style
- Tushmanny VIP
- Quartz Terrace
- The Kings Club.
- Black Satin.
- Big Guard
- Perfect Peach.
- Accompany Palace.
- Duchess of Choice
- Night Company
- Smooth Operator
- Blue and Red Light
- Horny bees
Register your Business
a. What Type of Business Structure is Best for Escort Service Business?
There is no perfect fit for any business, and your choice will depend on your business concept and size. However, it is common to consider an LLC mainly because it helps protect you from lawsuits. Other benefits of LLC include;
- Limit Your Personal Liability
- Avoid Double Taxation and Pass-Through Deduction
- Less Administrative Hassles and Paperwork
- Flexibility in Sharing Profits.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open an Escort Business?
- General Business License
- Other State or County Specific Licenses
d. What Type of Certification is Needed to Open an Escort Business?
In the United States, you do not need any type of certification to start and run an escort services business. While a first aid certification might be beneficial, it is not mandatory or needed to start an escort business.
e. What Documents are Needed to Open an Escort Business?
If you are planning to start an escort business in the USA, you will need the following legal documents;
- Certificate of Incorporation
- Insurance Policy
- Operating Agreement
- Client Terms and Conditions
- Employment Agreement and Staff Handbook
- Contractor’s Agreement
f. Do You Need a Trademark, Copyright, or Patent?
Ideally, you don’t need to apply for a patent to run an escort services business because you might not have any cause to challenge anybody in court for illegally making use of your company’s intellectual properties. However, you might need to trademark or copyright the logo of the company, its slogan, or even information you find valuable about your website.
Do your Cost Analysis and Budgeting
a. How Much Does It Cost to Start an Escort Business?
Starting an escort service is as easy as starting an adult website. You don’t need office space to start as this business can be done right from your home with a start-up cost of around $2,000 to $4,500.
b. What are the Costs Involved?
- The total fee for incorporation: $200
- Liability insurance and business license: $500
- Business cards and other miscellaneous expenses: $500
- Launching of a website would cost: $200
- A business computer, phone, file cabinet: $1,000
- Other operating expenses: $1,000
c. What Factors Determine the Cost of Opening an Escort Business?
- Business location
- Business Size
- The Cost for Insurance Policy Covers
- The Additional Services Offerings
- The Cost of Hiring and Paying a Website Developer
- Cost of Recruiting and Training Your Models
- The Cost for Grand Opening
d. Do You Need to Build a Facility?
No, you don’t need to have a physical office where customers can come to visit you as almost all your business will be online. Owing to that, your website is one of the most vital aspects of your business. Note that without an efficient and attractive website, most people will consider you shady. You need to carefully design your website to give off the right notion.
e. What are the Ongoing Expenses for Running an Escort Business?
- Staff salaries or wages
- Budget for escort business marketing
- Insurance costs
- Business supplies
- Cost of running an online portal
f. What is the Average Salary of your Staff?
- Agency Manager: $67,273 /year
- Marketing Manager: $56,884 / year
- Model Coordinator: $51,635 /year
- Administrative Assistant $37,849 /year
g. How Do You Get Funding to Start an Escort Agency
You require adequate capital to start and run an escort service. You can either save or raise money from third-party sources. While most businesses can settle for business loans, an escort service may not be accorded the same right.
The main reason is the nature of the business. A good number of banks don’t see an escort service as a legitimate business because it just doesn’t fit into their criteria. This makes it very challenging to convince them to approve a loan for the business. The only sure way to obtain money to start an escort service is to pitch to your acquaintances, friends, or maybe some investor.
Write a Business Plan
a. Executive Summary
Suitable Company is a Nevada-based corporation that will offer escorts/dates to clients throughout the United States. Suitable Company is owned by Mr. Johnson Francis and we intend to leverage detailed marketing strategies that will help us reach people within our target market.
We intend to register with online portals to enable potential customers to easily reach the agency. We also intend to develop our website and also maintain a sizable amount of print and traditional advertising methods.
b. Products and Service
- Outcall Services
- Trans-Escorts Services
- Girlfriend Experience Services
- Faithful Company
c. Mission Statement
At Suitable Company, our mission is to attract and maintain extraordinary models and customers. When we adhere to this maxim, we believe that every other thing will fall into place and our services will exceed the expectations of our customers.
Our vision is to provide outstanding escorts and dates throughout our business area.
d. Goals and Objectives
- To create a client-based escort services company whose main goal is to exceed customers’ expectations.
- To increase the number of our clients by 20% per year through providing astonishing escorts and word-of-mouth referrals.
e. Organizational Structure
- Agency Manager
- Marketing Manager
- Model Coordinator
- Administrative Assistant
a. SWOT Analysis
- Our unique service offerings
- Diversity in our choice of models
- Healthy escorts
- Detailed promotional and advertisement plans
- Handling the legal side of the business.
- Creating short- and long-term business plans.
- Building and consistently updating a powerful, easy-to-navigate website.
- Putting together a group of top-quality and reliable clients.
- Nevada is the gambling and entertainment capital of the United States
- Unlimited business opportunities
- Strict regulations
- Security Issues
- Lack of insurance carriers
b. How Do Escort Services Businesses Make Money?
- User Booking Fee
- Escort Feature Listing Fee
- User Subscription Fee
- Banner Ads
- Escort agency consulting services
- Escorts training and tutoring
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- We intend to hire an Escort Marketing Company
- We will also make Relevant Connections with business travel agencies around our business area
- Leverage Advertisements on Adult Sites
- Focus on On-site SEO and Off-site SEO
- Place our ads in yellow pages of telephone directories.
- Place our posters at different occasions – dinner dates, parties, theatre dates, banquets, special occasions, etc.
- Place our posters at airports, railway, and bus stations.
- Run a small classified print ad in one or two popular newspapers in our business area
- Leverage Escort directories to our advantage.
- Online Reputation Management (ORM)
a. How Much Should You Charge for your Service?
Note that the price you charge in this business will depend on the model, their appearance, portfolio, and work experience. However, the average price is usually $17.50 per hour. To be confident in customers, a good number of agencies maintain a database with white and black lists by the criterion of reliability. Most times, girls can count on tips from customers, but these are individual cases, their size is unknown in advance.
c. How Much Profit Do Escort Services Business Owners Make a Year?
Truth be told, there are no industry data or statistics to proffer the amount of profit an escort service business owner can make a year.
d. What Factors Determine the Amount of Profit to Be Made?
- Business location
- Class of clients
- Number of models
- Array of services offered
- Business management
- Network and connection
- Advertising and marketing strategies
e. What is the Profit Margin of an Escort Service?
The profit margin of an escort services business is not steady and will vary from business to business depending on the factors mentioned above. There are no well-defined industry standards and the services offered by models are known to be very subjective.
f. Sales Forecast
Note that this sales forecast was made with the idea that it will take at least six months before the business starts picking up. However, we expect sales to continue to grow through year three.
- First Fiscal Year (FY1): $120,000
- Second Fiscal Year (FY2): $270,000
- Third Fiscal Year (FY3): $385,000
Set Up your Office
a. How Do You Choose a Perfect Location for Your Escort Agency?
To start and run a successful escort service business, you need to target big cities since they have the most potential. Note that in these cities, mature and intelligent people live a modern lifestyle and it makes it less complicated to recruit escorts. In small towns, people, mostly women, tend to be quite conservative and reserved.
Nonetheless, one con with big cities is the issue of industry competition. Unless you can offer a unique, valuable, and engaging angle along with a plethora of benefits, your escort business might not draw in big clients. The specific location that you choose should have a high demand for escorts and should allow the escort business to run legally.
b. What State and City are Best to Open an Escort Service?
- Portland, Oregon
- Seattle, Washington
- Denver, Colorado
- Miami, Florida
- San Francisco, California
- Dallas, Texas
- San Bernardino, California
c. What Equipment is Needed to Operate?
You will need laptops, internet facility, telephone, fax machine, and office furniture (chairs, tables, and shelves) amongst others.
Recruiting classy escorts presents another challenge in running an escort service business. You will also need to train them well and let them know exactly what the job entails. Just like in any professional activity, the girls that work with escort agencies have certain requirements:
- Beautiful and well-groomed appearance (neat manicure, pedicure, haircut, clean skin, pleasant and discreet make-up);
- Sociable, broad outlook, ability to keep up a conversation;
- Positive attitude, sense of humor, lightness, friendliness;
- Literacy, tact, knowledge of etiquette and manners, punctuality;
- The ability to flirt gently, to catch male interest.
An extra bonus is the presence of higher education, knowledge of a foreign language, and a pleasant voice.
Launch the Business Proper
You can dream about starting a business all you want, but you have to get to work if you intend to make these dreams come true. Even an escort business requires a lot of time and research to get it just right. Note that starting an escort business may not be very challenging, but it does need some work to be done.
Advertising and good service are the keys to becoming successful in this business. It is also important to research properly to understand the working procedure of the escort industry. Also, take your time to research relevant portals or directories from where you can search for the right escorts for your services. Always remember that the more traffic you attract to your website, the more chances to show ads, sell stuff, collect data, get sponsorship, and make some great money.
a. What Makes an Escort Services Business Successful?
Note that the key to success in this line of business is to provide a needed service while providing a flexible means of compensation to both your escorts and clients. The wishes and tastes of customers will generally vary. Owing to that, a single canon or template of beauty does not exist. Note that you can most times find women of over 40 working in this field, luxurious and quite successful. Companions of an elegant age tend to create the perfect loyalty effect on a man.
b. What Happens During a Typical Day at an Escort Business?
Running an escort business may not be as simple as we make it sound, as it tends to require a lot of work done under stress. However, you must be very comfortable doing that. A typical day at an escort service will involve holding job interviews, exchanging ideas with escorts, and taking reservations. Note that your evenings will involve coordinating the operations and the drivers who accompany your escorts. You will also have to work weekends and into the night
c. What Skills and Experience Do You Need to Build an Escort Business?
- Problem-solving skills
- Writing skills