Guaranteed Income Model
The owner receives a guaranteed payment per month from the management company for the use of the boat. The owner is typically given a number of weeks per year when they may use their yacht for business or pleasure. This is a more risk-averse model than the incoming-sharing model which will be described next. Programs from operators like Moorings and Navigare fall into this category of income model.
Income Sharing Model
This model is between the owner and the management company. The owner must pay all costs associated with the boat including maintenance, purchase or down payment, depreciation, interest costs, insurance etc. The owner’s share of income from the yacht goes towards offsetting these costs. The management company keeps its share of the income (usually 50%) for marketing and operational expenses.