Commission Based Captains

[Sweet Caroline]

I have seen commission based captains mentioned recently and I am interested in getting some more info on this subject. I believe the concept is basically that the hired captain gets a commission from each charter they book and that is it as far as compensation is concerned. What are the going rates for this commission? What are the pros and cons to this arrangement? Any other input would be appreciated. I currently have a 24’ Shamrock WAC that may be an option for this type of arrangement. I would think this would be a good opportunity for a captain just getting started in the business or someone working part time that has their license, needs to maintain the hours on the water and still make a few dollars.

Thanks

Dave

[budddavid]

I have never participated in such an arrangement personally but I'll bring a couple of pro's and con's to the discussion.

Con's: Wear, tear, and serious breakage. You really have to work through crunch all of the numbers considering the increased maintenance cost, shortened engine lifespan and plan for worst case serious breakage. We all know that no one will care for your belongings like yourself and this is especially true in the case of chartering. The captain may run you rig harder than you would or instruct him too and charter customers are certainly hard on a boat largely through ignorance (tracking grit onto boat and grinding it into the deck, smacking the deck/coaming/everything with sinkers and rod butts) more than malicious intent. Most charter rigs need to be refinished ever 5 years or so to some extent and most production boats simply aren't built to handle such wear and tear. You also need to think about what happens when something big breaks. If the engine blows the captain is going to walk away. Alot of breakage can occur that isn't covered by insurance. Speaking of insurance, now that your boat is being run in a commercial manner your insurance policy will be totally different and probably alot of your registrations. Depending on your location/fishery the licensing of anglers may be very different than taking your buddies out.

Pro's: Depending on your tax situation being able to deduct the operating expenses and depreciation of equipment for your new business might be to your advantage. You might end up developing great friends and connections with captains and clients and become a better fisherman (more in the loop).

Wow, my pro's list seems much shorter. Good luck.