Brothel - Brothel Business Models

Brothel Business Models

Brothels are sex businesses and vary in size and style, as do the range of sexual services each offers. They operate using a variety of business models:

• the prostitutes can operate as contract workers who split their earnings with the brothel. They can at times be expected to "tip" support staff (cleaners, limo drivers, etc.). They will usually receive no benefits, such as health insurance, and no withholding for taxes.
• the prostitutes can be employees who receive a small fixed salary and a portion of the money paid by the customer, the balance of which is retained by the brothel.
• the prostitutes pay a fee for use of the facilities, with the brothel owner not being involved in the financial transaction between a prostitute and client.

In a brothel, sexual activity involves a prostitute or sex worker providing sexual services to a client. In most cases the prostitute is at liberty to determine whether she or he will engage in a particular type of sexual activity, but forced prostitution exists in some places around the world as does sexual slavery.

Prostitution and the operation of brothels is legal in some places, but in other places it is illegal. In places where prostitution or the operation of brothels is illegal, establishments such as massage parlors, bars or strip clubs may offer sexual services to patrons. Even in places where prostitution is legal, it is subject to many restrictions. For example, forced prostitution is usually not permitted nor is prostitution by or with minors. In some countries, brothels are subject to strict planning restrictions and in some cases are confined to designated red-light districts.