Escort agencies are companies that provide escorts for the agency's clients. The agency typically arranges a meeting between one of its escorts and the client at the customer's house or hotel room ("outcall"), or at the escort's residence ("incall"). Some agencies also provide escorts for longer durations, who may stay with the client or travel along on a holiday or business trip. While the escort agency is paid a fee for this booking and dispatch service, the customer must usually negotiate an additional fee for any sex work services.
From a legal perspective, escort agencies claim that they are dispatching these individuals to provide a social or conversational service, since prostitution laws often forbid taking payment for sex or communicating for the purpose of arranging a contract for sexual services. Advertisements for escort agencies often carefully skirt the legal line, and avoid specifically offering prostitution or sexual services. This fact in turn is well-known to police and the political powers, who, where prostitution is illegal, usually prefer to act against more visible and problematic street prostitution. This has been criticized as hypocrisy, especially where governments license and tax the escort agencies. There are, however, agencies that do go by these laws and do not facilitate prostitution.
Some countries have used a two-pronged attempt of criminalizing street prostitution but permitting or licensing prostitution in brothels or via escort agencies.
Escort agencies often recruit individuals to work as escorts by placing employment advertisements in a magazine or newspaper. Escort agencies typically maintain a list of escorts of different ages and appearances to cater to the varying interests of clients. Some agencies may specifically deal in a certain type of escort. There are male-for-male, female-for-male, and female-for-female escort agencies, as well as a few male-for-female agencies. Agencies commonly specialize in only one sex. Transsexuals are available from some escort agencies.
It is very common to find that escorts enter the business through referrals from friends who have been in the business. The effectiveness of ads in weeklies or specialized sites has been questioned by some operators as there are so many that they are diluted. Typically, an escort will interview with an agency.
Once an agency decides to hire a model, she or he will provide photographs or pose for a photographer. These pictures will be posted on the agency's website or circulated among clients to promote business.
Escort agencies typically advertise in regional publications and telephone listings such as the Yellow Pages. Some larger escort agencies maintain websites with photo galleries of their escorts. Clients contact agencies by telephone and offer a description of what kind of escorts are sought. The agency will then suggest an escort who might fit that client's need.
The agency collects the client's contact information and calls the escort. Usually, to protect the identity of the escort and ensure effective communication with the client, the agency arranges the appointment. Sometimes it may be up to the escort to contact the client directly to make arrangements for the location and time of an appointment. Generally the escort is also expected to call the agency upon arrival at the location and upon leaving, which ensures the safety of the escort.
The arm's length relationship between the escort and the escort agency is designed to protect the escort agency (to some degree) from prosecution for breaking laws against prostitution. If the employee is solely responsible for arranging any illegal prostitution-oriented activities, the agency can maintain plausible deniability should an arrest be made.
Escort services aim to provide an experience that allows the operators to claim that whatever happens between the escort and the client is consensual. Operators tend to avoid discussing specifics over the telephone or via emails to avoid complications with the law.
Some escort services offer a buyout provision if a customer wishes to date an escort privately.
In 2009 the laws in the United Kingdom (UK) changed in relation to escort agencies and prostitution. In the Policing and Crime Act 2009 which came into operation on 1st April 2010. It is now a criminal offence to pay for services of a prostitute who is controlled for gain if any third party uses force, threat (whether or not relating to violence) or any other form of coercion.
In effect the new laws are attempting to combat the trafficking of humans into the sex market; however the new laws seem to have a ‘catch all’ effect on the sex industry within the UK. There is little distinction between someone who willingly and freely chooses to provide services as an escort, to someone who is controlled into doing so.
Escort agencies throughout the UK now need to demonstrate, to both; potential clients and the authorities, that their escorts are indeed providing an escort service voluntarily and of their own freewill.
As an example of such a demonstration, an escort agency in the northeast of England, primarily based around Newcastle upon Tyne, has introduced what they call their ‘concierge service’. This Newcastle escort agency is called Valentine Girls and the basic concept of their new service is to provide clients with a member’s website with an annual subscription for joining, but any fees you pay the individual escorts they represent are kept by the escorts themselves, thus demonstrating that there is no control for gain by the agency.
No doubt other agencies will also provide an alternative solution for the escort market within the UK over the coming years, but until then this new concept is unique to the Valentine Girls escort agency.
The amount of money that is made by an escort varies with many factors, such as sexual attractiveness, competition from legal and illegal sources, and the commissions to be paid to the agency. Typically, an agency will charge their escorts either a flat fee for each client connection or a percentage of the pre-arranged rate. According to police in Calgary, Alberta, Canada, the high fees charged by escort agencies may make escorting less lucrative than street prostitution, especially as agencies often also deduct the license fees directly from the earnings. 
Independent escorts may have differing fees depending on the season, or whether the client is a regular or semi-regular customer. Independent escorts may tend to see clients for extended meetings involving dinner or social activities whereas escorts who work through agencies generally tend to be split into two categories: the cheaper the service, especially if mainly based around incall appointments, (client visiting the escort at her accommodation), often only provide sexual services, and agencies that provide mainly outcall appointments, (the escort visiting the client at either their home or hotel), tend to offer services similar to that of independent escorts.
In New York City, escort services charge anywhere from $200 to $1500 or more per hour. The level of rates is usually determined by the attractiveness of the escort and her or his popularity with clients. However, it is not the case that the best looking women or men always command the highest rates. In many cases, the level and intimacy of the service can justify higher rates.
An 80-20 split between the escort and the agency is typical. Given the level of business can vary week to week, it is not uncommon for escorts to be featured by more than one agency. In some cases, different agencies may be operated by the same ownership group, but in many others, escorts work for several agencies to maximize business opportunities. Interestingly, one agency may charge a different rate than another one for the same woman or man.
Prostitution is the act or practice of providing sexual services to another person in return for payment. People who execute such activities are called prostitutes. Prostitution is one of the branches of the sex industry. Estimates place the annual revenue generated from the global prostitution industry to be over $100 billion.
A call girl or escort is a sex worker, who, (unlike a street walker), is not visible to the general public. Nor does she usually belong to an institution like a brothel, although she may be employed by an escort agency. The client must make an appointment, usually by calling a telephone number. To assist with the security and potential health risks of this profession, some escort services offer assistance and information to those interested in becoming escorts, themselves.
Call girls often advertise their services in small ads in magazines and via the Internet, although an intermediary advertiser, such as an escort agency, may be involved in promoting more upmarket escorts. The less upmarket side of escorts may be handled by a pimp. Call girls may work either incall, where the client comes to them, or outcall, where they go to the client.
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