How to Start an Escort Business (2024)| Step by Step Guide
Wondering how to start an escort service business?
Then you’re in luck because the escort service industry is a booming business with increasing demand across the globe, especially with the arrival of the Internet.
Despite the popularity of dating apps like Tinder and Bumble, the escort service market has not declined but rather expanded as it provides customers with direct and hassle-free solutions to their needs.
Recommended: Start Your Own Escort Business Using xScorts by Adent.io
However, before you dive into this industry, it’s crucial to plan and strategize to ensure a successful venture. You need to have a well-thought-out business model, sufficient planning, and enough resources in place to run your escort business smoothly.
In this comprehensive guide, we will take you through a step-by-step process on how to start an escort business. Additionally, we’ll provide you with an overview of how much does it cost to start an escort business so you can make an informed decision.
7 Things To Know Before Starting an Escort Business
Starting an escort business is an exciting venture, but before diving in, it’s important to be aware of several crucial factors that can make or break your success.
Let’s explore each of these factors in detail to ensure you have a solid foundation for your escort business.
1. Understand your local laws for escort business
First and foremost, you need to find out whether running an escort business is legal or not in your state and country.
For instance, if you take the USA, the legality of escort services is a bit complex. There is no federal law in the United States that specifically addresses the issue of escort services.
In general, prostitution is illegal throughout the United States, except for certain counties in Nevada. However, escort services are legal in some places and illegal in others. Under federal law, escorts are not prostitutes, though they can fall within the category easily.
Escorts cannot offer a sexual service or act, as it is illegal. That is why the mere solicitation of prostitution is a crime in most states. It is offering or agreeing to commit prostitution. In some states, escort services may be legal as long as there is no money exchange for sex.
However, even in states where escort services are legal, other laws may apply. Also, it is important to note that escort companies are sometimes subject to sting operations by law enforcement and police officers. So, make sure to consult with a legal counsel before diving into this industry.
2. Comply with the escort service regulations
If you’re serious about how to start an escort business, then you need to understand the regulations that come along with this industry.
In California, for example, escorting is legal but requires a license. In most states and cases, ladies need permission before engaging in these activities.
Obtaining these licenses requires an extensive background check by authorities to make sure that there is no criminal history connected to prostitution. Once the person has a license, escorting is generally legal, whether as independent contractors or workers in an agency.
Another regulation in the escorting business is advertising. For instance, in New York, it is illegal to advertise sexual services or to operate a business that provides sexual services.
You should also not schedule meetings or services between 10:00 p.m. and 9:00 a.m. It is important that you inform the Police Chief of your city and the City Manager or their representative of a physical location where your escort business operates and dispatches escorts.
This location can be within or outside the city, but it should be authorized and officially notified to the authorities. Likewise, there are a lot of rules and regulations surrounding the escort business.
So, make sure to review each one to avoid legal penalties.
3. Know your major competitors
Knowing your local competitors before starting an escort business is crucial. By understanding who your competitors are, you can determine who your potential customers are and tailor your escort services to meet their needs.
This helps you develop unique selling propositions and marketing messages that will likely resonate with your customers.
For example, let’s assume your major competitor priced $250/hour as an average price for in-call escorts. You can improvise in this area by providing discounts and also offering unique customer service to capture the market.
In addition, analyzing your competitors’ offerings and strategies can provide valuable insights into what works and what doesn’t in your local escort industry. You can learn from their mistakes and apply best practices to your own escort business, setting yourself up for success.
4. Decide whether to start from scratch or buy a franchise
Deciding whether to start an escort business from scratch or buy a franchise is a key element in the success of your entrepreneurial journey. Consider these factors when making your decision:
Starting from scratch:
Uniqueness: If your escort business idea is groundbreaking and cannot be replicated by an existing franchise, starting from scratch may be the best option.
Flexibility: Starting from scratch also allows you to shape your business according to your available capital and resources and gives you complete independence in framing the system.
Buying a franchise:
Proven business model: Escort franchises offer a tested and successful business model, which can reduce the risk of failure for first-time entrepreneurs.
Brand recognition: When you buy an escort franchise, you benefit from the immediate brand recognition and customer trust associated with the parent company.
The decision you will make ultimately depends on the type of business model you plan to implement, your unique selling points, and the financial resources you possess.
It’s important to carefully consider these factors and evaluate their impact on your overall strategy before making a final decision.
5. Choose a type of escort business
There are different types of escort businesses, and the services they offer can vary depending on the location and legal regulations. So, you must choose one before you actually start to build your escort business empire.
Here are the types of escort businesses you can choose from:
Escort agencies: These businesses provide clients with companionship services for a fee. Clients contact the agency and describe the type of escort they are looking for, and the agency suggests an escort who might fit that description.
Escort directory: Escort directories allow individual escorts to post their services on their platform. Users (customers) can easily navigate these directories and search for suitable escorts by preferences, location, prices or other relevant criteria.
6. Dealing with inappropriate customers
Starting an escort business comes with certain risks if you’re starting out as an agency. There will be some rogue customers you may come across and have to deal with it.
Here are some tips that can help you in those situations:
Set clear boundaries from the beginning: If a customer begins to engage in behavior that deviates from what was previously agreed upon, causing your escort to feel uncomfortable, it is crucial to establish clear boundaries and communicate to them the specific behaviors that are not acceptable. This will help maintain a professional and respectful relationship with the customer.
Stand your ground: Sometimes, even if you set boundaries, customers may not listen and continue to act inappropriately toward your escorts. In such cases, it’s important to stand your ground and not budge on the boundaries you’ve set and contact relevant authorities.
Strategically place security personnel: Have security members deliver and receive escorts. This presence can deter potential troublemakers and ensure a quick response to any incidents.
Establish a good relationship with local law enforcement: Regularly communicate with local law enforcement agencies to address any security concerns and ensure a quick response in case of emergencies
These are some of the important things you need to keep in mind when you start an escort service business. That being said, let’s understand some of the business models you can use for your escort business.
The Business Model of Escort Business
So, there are basically three types of escort service models that are popular in the market and help you make more money. Depending on your research and location, you can choose one or more of these models to make money from your escort service platform.
1. Subscription-based model
One of the popular models is the subscription-based model, where escorts and customers can become members and access more benefits, such as affordable services and frequent orders.
For example, you can offer a subscription for escorts that would help them enjoy benefits such as gaining a prominent position on the home page, search list and feature page.
2. Commission-based revenue model
Another revenue model is the commission-based escort service model, where you charge the escort a commission for every order done through your platform. This model is known to be safe and can provide a steady income for your escort business.
3. Escort-bidding business model
Lastly, there is the escort-bidding business model. This model allows escorts to post their services on the platform, and customers can bid their prices. The customer with the higher bid wins, and as a platform, you can take a commission from the bid. This model provides more flexibility for customers and escorts alike.
Now that you understand the business models of escort business, let’s get into the process of how to start an escort business in detail.
How to Start an Escort Business? 7 Simple Steps
Starting an escort business can be a great idea, but creating a solid platform can be quite a challenge. However, following our guide can help you make the process easier and also make it done within your budget.
Step 1: Write a business plan
The first step is to create an escort business plan that outlines your goals, market research, and financial projections. This plan will help you keep track of your progress and provide a framework for marketing and planning your business.
To start, jot down a general outline of your escort business and make notes about how you will select an escort. This will help you come up with a list of skills that can translate into customer service.
Also, think about the most requested services by your clients, such as dirty talk, erotic massage, or even cosplay. Once you have identified several areas where you can offer multiple services, you can integrate them as your USPs in your business.
Step 2: Choose and register a business name
It’s really important to choose a memorable name for your escort business. Don’t rush this step! Take your time to find a name that stands out from the rest.
Once you have your name, you’ll need to register your escort business in your local area. The process is slightly different in each country, so make sure you do your research.
You’ll also need to choose a business structure. There are a few different options to consider based on your needs and preferences.
If you want to run your own escort business solo, you can go for a sole proprietorship (U.S., CA) or a sole trader (UK, AU). But if you have a couple of friends who want to share the business leadership, then you can form a partnership (U.S., CA, UK) or a joint venture or co-operative (AU).
If you want to protect your personal assets and reduce business risk, then you can incorporate as a limited liability company or LLC (U.S.), corporation (CA), limited company or limited partnership (UK), or company (AU).
After that, you should apply for a business license and also an escort license so you can legally work in your area. This will vary depending on where you live, so it’s best to check with your local Chamber of Commerce or the Small Business Administration.
Finally, make sure you have an employer identification number (EIN) if you choose anything other than a sole proprietorship. This is super important for filing taxes with the IRS.
Step 3: Create an escort service website
If you want to expand the reach of your escort business and make a lot of money, you need to have an escort service website.
Creating an escort service website is not a challenging and expensive task, if you use the right method.
What we’re talking about is using a readymade escort agency software like xScorts by Adent.io to build your website. With xScorts, you can create a fully customized escort booking website with all the necessary features and revenue streams with ease.
You will get a premium profile feature where you can highlight your popular escorts, a cutting edge booking system with an in-built payment gateway and an admin panel where you can fully control the website.
What’s more you can get everything at a cost-effective price of just $399. So use xScorts turnkey software to build your escort booking website.
Step 4: Hire talented escorts
To run an escort business you need talented and skilled escorts. But where do you hire them? Because, if you’re just starting out then you probably have no escorts under your belt.
Here are several ways you can hire escorts to your business:
Find escort agencies to contact: You can search for escort agencies online, either through a Google search. Look for agencies that represent escorts with the look you need for your business.
Approach escorts directly: Find out where most of the escorts hang out in your local area and approach them with your business pitch. Poach them into your business by giving appropriate benefits, because this will make them loyal to your escort company.
Online Adult Job Platforms: Utilize online adult job hunting platforms like SexyJobs, Adult Entertainment Job, or social media to connect with escorts.
Networking: Go to your local bars, nightclubs, strip clubs, adult industry events and porn conventions to meet potential escorts.
Remember that hiring escorts involves not only finding the right talent but also treating them with respect and professionalism. It’s essential to establish a positive and ethical working environment to create successful and long-lasting partnerships.
Step 5: Price your services
As you establish your escort business, it’s crucial to identify the services you will offer your customers, and provide a detailed description of what each service entails.
It’s essential to consider any equipment, props or costume required for each service, as well as the estimated time each service will take to complete.
Once you have determined your list of services, the next step is to establish a pricing model that aligns with your business goals. You could opt for a pricing model that’s prevalent within your industry, or choose from the following pricing strategies:
- Hourly rate: Charge your customers based on the time taken to complete the service.
- Flat rate: Charge a standard fee for each service.
- Distance: Charge customers based on the location of their request.
Regardless of the pricing strategy you choose, it’s crucial to factor in all costs, including escort charges, overhead expenses, materials, and profit margin. Proper pricing will ensure that your escort business is sustainable and profitable in the long run.
Step 6: Get small business insurance
As an escort business owner, it is important to safeguard your company against potential risks and uncertainties.
One way to do this is by purchasing liability insurance, which provides coverage against legal liabilities arising from injuries or damages incurred by others on your business premises and your escorts.
Liability insurance also protects your customers against potential legal claims resulting from accidents that occur during incalls and outcalls.
In addition to liability insurance, it is recommended that you also consider purchasing property insurance for comprehensive coverage. Property insurance provides protection against damages to your physical assets, including your business premises and other buildings, caused by external factors.
Step 7: Promote your escort business
That last step on how to start an escort service business is marketing. For reaching and attracting potential customers, consider these marketing ideas:
- SEO: If you can improve your website’s SEO, you can rank higher in search engine results. To do that, incorporate relevant keywords into your content, headings, and meta tags, but avoid keyword stuffing. Ensure that your escort website is easy to navigate and that your URLs, page titles, and headings are descriptive and user-friendly.
- Social media: Social media is a vital marketing tool for escort businesses. So it is essential to set up a Facebook page, Twitter profile, TikTok account or a Subreddit depending on where your ideal customers spend time online.
- List your website: There are a lot of adult online directories such as The PornDude, where your potential customers search for an escort service.
- Network: Network with other escort business owners to expand your reach. Attend any escort industry events, join local escort business associations, and promote your escort business frequently.
You can also consider getting a unique business card for your escort business. These types of brand materials help your escort business look more professional and polished.
How Much Does It Cost to Start an Escort Business?
The cost of starting an escort service business can vary widely depending on factors like location, scale, and legal requirements.
If you only want to build an escort directory without hiring escorts on your own, it can only cost around $700 — $1000.
However, if you want to start the business as an agency with your own legal team and escorts, it can cost anywhere from $30,000 to $80,000.
Conclusion
Starting an escort business can be an excellent way to make a lot of money, but it requires a lot of effort to establish the business and attract potential clients.
This blog post provides a comprehensive guide that outlines the necessary steps on how to start an escort business successfully. By following these steps, you’ll be able to build a solid foundation for your escort business and attract customers with confidence.
You can also build your escort booking website with the help of our escort agency software xScorts. It’s flexible, futuristic, and budget-friendly, so make your right choice and start making money in this lucrative industry.
