To continue to point out some differences using WMS's analogies:
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An agency will cover the "business" expenses: advertising, phones and internet, apartment rent or hotel room, towels, laundry, furnishings, snacks, ... booker, phone girl (East Coast) / phone operator (PO; West Coast), etc.. The Provider doesn't have to TCB on the B side, just the client side. That is, the Provider doesn't need to own and operate the restaurant, just provide the service (like a waitress) for a portion of the total bill. Tips make up some of the difference. (In the strip club industry, it used to be (still is?) the case that dancers would have to pay a fee TO THE CLUB just to get a shift! She starts the shift down $50 or $100 and has to dance her ass off just to break even!)
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An indy has to "own" the restaurant, run all aspects of the biz, pay for the "room" herself (out of the fee), ads, phone, internet, provide any needed extras (snacks, ambiance (candles - I hate candles!), etc.) herself (out of the fee), pay someone else for additional services (accountant; sometimes a personal assistant), and so on.
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Both agency and indy Providers should be paying taxes (as discussed in many threads) and the agency Provider will NOT have a lot of business deductions (just lingerie, makeup, pro hair stylist, pro mani-pedi, etc.) to determine her NET income but an indy will have many biz deductions to determine her NET income. Those legitimate biz deductions (same as agency girl and MANY more) might start to (almost) bring the NET incomes closer together.
Posted By: WIMissScarlet
Re: The biggest downside to NOT tipping . . .
Yes, I have heard this as well. If you go through any agency, brothel, massage parlor instead of independent you should consider it the same as if they are a waitress or bartender. Their wage is much smaller and tips are more expected. Tips are a nice gesture when you are seeing someone who is independent like myself, but I keep 100% of what you give me so never necessary or expected.