How Bail Bondsman Make Money

Video Transcript

"In this financial environment that we find ourselves in, crime rates are going up a lot. And as a result, many people are finding themselves becoming part of a growing industry, becoming a bail bondsman. Just exactly how does a bail bondsman make money? Basically, bail bondsman once they post a performance bond and get appropriately licensed by the state authorities, they can present themselves to the law enforcement associations and authorities in their given town. And when people require a bail bond because they have been arrested for an infraction, these individuals can post bond and they receive cash from the accused individual or their family, to be sprung out from jail or custody. The way this works is there is a premium paid by the family to the bail bondsman and presumably there is not flight risk where the individual will skip bail as it's known. If they do, then the bail bondsman, of course, has the risk that is based on the underlying bond. And then there's another merging growth industry called a bounty hunter that will go off find the individual that has violated bail. This is how a bail bondsman makes money. And this is financial advisor Patrick Munro."