|The Price of Fame|
|Subject||Rationales for the firm, Types of cost, Profit maximization|
|Topic||Production and Costs|
|Key Words||Income, Cost, Commission|
Although Hollywood stars may make millions of dollars a year, they find that much of their income soon disappears. They need to look good for all the world to see: stylists can cost $2,000 a day, personal trainers up to $30,000 a year, and plastic surgery such as a facelift can cost $10,000-$20,000. Security is vital: bodyguards can run $5,000 a week, while a home security system may cost $150,000. Personal assistants cost $50,000 to $75,000 a year. A publicist may cost $24,000-$36,000 a year. Dues to the Screen Actors Guild cost $2,250 a year. Movie stars also pay taxes.
Agents collect a ten-percent commission for negotiating a movie deal. Lawyers get 5 percent in addition. Managers who help develop the long-term future of the stars may be paid 10 to 15 percent. Business managers earn about 5 percent. However, movie contracts may provide for some expenses to be covered by the studio - perhaps transportation, drivers, trailers, and staff.
(Updated June 1, 1999)
|Source||Josh Chetwynd, "The price of celebrity", USA Today, April 16, 1999.|
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