I get this question all of the time. "How much this Airbnb take from the host?" Like,
how do they make their money? How much are they taking? What is their cut? Well,
we're going to talk about it on this episode. Stay tuned. Airbnb
is the number 1 home sharing platform out there. They have millions of guests
and so they are taking a cut of all of your money and I want to talk to you
about what that cut is and why it matters to you. Trust me, I was completely
shocked when I found out how much they were taking and what they do with the
money. And so, I'm going to give you the 3 things that you need to know about
what and how Airbnb gets paid. I'm going to explain to you exactly how they get paid,
exactly where they get their money from and what they do with it and how it
affects you. I'm going to give you the exact percentage that Airbnb takes from its
host and give you that information and let where you can find it. I'm
going to tell you exactly how they get the money from you. When they take it and I'm
going to give you some secret ways where you can get money that they don't get a
cut of. Airbnb is the number one platform where you can list your properties for
free and they will take their cut from the money that they get when people book
your properties. So, it's an amazing way for people to start investing in real
estate, have properties with a low barrier to entry. Essentially you start
your account, you set it up, you list your property for free. And in a matter of
minutes, you have a property on Airbnb s website that people are searching for
and people can book instantly in some cases. Again, you get to decide if people
booked instantly or if they have to ask you. So, let's talk about how Airbnb makes
their money. So, like I said, it's completely free for you as a person with
a property to list their property on Airbnb. So, the question that I get all
the time that everyone needs to know is "Well then, how does Airbnb get paid?" Well,
the answer is super simple which is why they are the number one platform. They
simply take their cut which is just 3% from the
of your booking. So, just using a round example if it was $1,000, they're taking
30 bucks. Simple. Not a lot of money. $30 if it was $1,000. That's their service
fee. And the great thing about it is they deduct it from the guests that books. So,
they paid the $1,000 not you to book your property.
Airbnb takes their cut. They also take depends on where you are, the fees and the
taxes for the county or the city that you're in. Because some places, you know,
laws, they have fees. They have taxes that need to be paid. And so, the great thing
about it is Airbnb handles that for you. So, you don't even have to worry. They
know the laws they know what the taxes are and they automatically have it built
in their system where it comes out of your money and you just get the rest.
So, Airbnb charges fees. That is how they make their money. They charge what's
called a service fee. If you look on the Airbnb platform, there will be the
nightly rate that people are charged and then they will have what's called a
service fee. There's lots of other fees that you can charge. You can charge for
extra gas, you can charge for pets, you can charge for extra nights. You can
charge for early check-ins, late check-ins. You name it. You can charge for
it if it's something that people need. And if it's something that is usually
charged for at a hotel. So, if they need extra beds, air mattresses, things like
that, you may provide some of those things for free or complimentary. But
things that they would typically pay for at a hotel, then you could also charge
for as well. So, that's how they get their fees and anything that you charge the
guest, Airbnb will go ahead and they will take a portion of and they will just
take that directly from the money paid from the guests and then they give you
the difference. Now, there are 2 ways that you can be paid through Airbnb. They
have what's called your payout. That is how you receive your money. You can have
your money directly deposited into your bank account or you can hook it up to
PayPal. Now, I'm going to give you a secret. I think that you should hook it up to
PayPal and I'm going to give you 2 real good reasons why you should do that.
One, because as I said, Airbnb is charging a fee. They're charging their service fees
that's how they make their money. But they connect it with PayPal and then
they'll put your portion after they deduct their fees directly into your
PayPal. Or your bank account. Well, why I'm going to tell you to use
PayPal is because those transactions are counted as sales through PayPal. PayPal,
if you're not familiar, I'm not going to give you this whole long thing. They're
what's called a merchant processing company. So, people pay with their credit
card, they process it, they give you your money. They charge a fee. Just like Airbnb.
So, we have all of these websites that offer a service and they charge a fee.
But let's talk about what's in it for you because that's what's important, right?
What is in it for you? Well, with Airbnb, they're taking their fee. What's in it
for you is they have insurance, okay? So, someone comes to your home, they destroy
the house, they burn it to the ground. Luckily Airbnb has insurance. You can
literally file a claim with Airbnb. You don't have to contact your own personal
insurance company. So, this is a great benefit for homeowners that want to list
their properties on Airbnb. And this is why entrepreneurs like me love Airbnb.
So, let's talk about what's in it for you by putting your money into PayPal. Okay?
PayPal charges you a fee. So, you know, they're going to take their cut not when
the money is deposited, okay? So, when the money is deposited from Airbnb, PayPal is
not going to take any money. However, if you do other transactions with PayPal, they
will charge a fee. But the benefit, what's in it for you? PayPal has money to lend
small businesses, okay? This is a secret that not a lot of
people are talking about. Something I probably could make an entire video on.
But when you have that money deposited from Airbnb directly to PayPal, PayPal is
going to see that money going in there and in like 3 months,
they're going to start offering you business loans. Business loans. Not just
personal loans in your name. Literally business loans. So, if you set up your
PayPal correctly, in your business's name, you have sales coming from Airbnb and
now PayPal is going to reward you and offer you money for your business. So you
can grow your business and do what? Get more properties, okay? So, this is how we
scale this business. This is how we start to grow our businesses really quickly
and start making a lot of money and this is how we use Airbnb
combined with PayPal to do it. And then here is the best and best best thing
about Airbnb. Like I said, they take 3% of the nightly
rate. So, your nightly rates $100. Just be prepared, you're giving them 3 bucks. You
get it. But there's extra fees that you can charge. Like, I said, you're going to
charge for cleaning. You're going to charge for extra gas. You're going to charge for
late check-ins, early check-ins, pets, whatever. You name it. You can charge for
it in your business. If people are have a demand for it and they want it, you
should charge for it and offer it to them. And the great thing about it is
Airbnb does not take a portion of that money. However --however, you should run
that money through Airbnb. They have a button on all of your listings where you
can request money, okay? So, give you an example because this just happened to me
the other day. I had someone booked one of my properties and they asked if they
could check in early. I usually don't like early check-ins because I usually
stay very booked and I have someone checking out you know at 10 A-M and I
have somebody checking in at 3 P-M. So, we got to get those properties cleaned
and ready to go. But this was a great occasion when I didn't have someone
checking right in. So, when someone asked one of the guests asked me if they could
check in early, I was like, "Sure, but it's a $20 fee." They were happy to pay it. All
I had to do was go into the Airbnb platform. Type in request money $20. Put
what the money was for and send it right over to the person and they paid it. Now,
again, I do this with pet fees. I do this with early check-ins, late check-ins,
whatever. You request the money directly through PayPal...
I'm sorry, directly through Airbnb. They pay the money through Airbnb so that
they can trust it. It's not you calling someone asking them for extra money or
anything like that. You do everything through the Airbnb platform and the
great thing about it is that's your money. So, this is the bonus. This is how
you get extra money without having to pay any fees. And again, at the time of
this recording, they're not charging fees. I can't tell you what they're going to do
in the future. But this is what you want to do so that you can make extra money
on your Airbnb and this is the secret. That extra money is yours. Okay, guys. I
think you got exactly how Airbnb gets money, how they
take their money from their host and how much money that they charge. Hopefully
this video helps you out so much. I love helping. Please, please, please go ahead
and subscribe to my channel. Take a moment and like this video. If you have
any comments, I read all of them. Please write them below especially if this is
your year I feel like 2020 is a year for Airbnb. If this is your year, comment that
below. I read all of them and I'll see you next time.