If someone is arrested and cannot afford bail, a bail bond company may be their only option for pretrial release. But many people wonder how these companies operate—and more importantly, how they make money.
So, how do bail bond companies make money?
Bail bond companies make money by charging non-refundable fees—usually 10% of the total bail amount—to post a surety bond that secures a defendant’s release. What determines a bail bondsman’s income significantly includes the number of clients they serve and the average bail amount in their operating area.
As a criminal defense attorney, I regularly work with individuals navigating the bail system. Below, I’ll explain how bail bond agents work, how they get paid, and when hiring one might be necessary. The bail bonds industry operates under state regulation which affects how much money agents can make and what risks they assume.
What Is Bail and How Does It Work?
Bail is a financial guarantee a defendant provides to the court to ensure they’ll return for future court appearances. Bail is a standard part of the criminal justice system in the United States. If the defendant attends all hearings, the bail is refunded (minus administrative fees). If they fail to appear, the bail is forfeited.
Key Factors in Setting Bail:
- The severity of the charge
- The defendant’s criminal history
- Whether the person is a flight risk
- Ties to the local community
- Employment status or family responsibilities
Sometimes bail is set at thousands—or even tens of thousands—of dollars, making it unaffordable without assistance.
What Does a Bail Bond Agent Do?
A bail bond agent (also called a bondsman) helps people secure release from jail by posting a surety bond on their behalf. Instead of paying the full bail amount upfront, the defendant (or their family) pays the agent a percentage of the bail—typically 10%. A bail bond is a contract involving the bail bondsman, the court, and the defendant, ensuring the court that the defendant will appear for trial.
A Bail Bond Agent’s Role Includes:
- Posting the surety bond to the court
- Assessing risk to determine eligibility
- Collecting collateral, which can include cash, property, vehicles, or jewelry, to protect the bondsman in case the defendant fails to appear in court. Collateral serves as a safeguard for the bondsman, ensuring they can recover losses if the defendant skips bail.
- Monitoring the defendant with regular check-ins or third-party services
- Locating the defendant if they skip bail (fugitive recovery). If a defendant skips bail, the bail bondsman can hire bounty hunters to locate them and reduce financial losses, ensuring the court’s requirements are met.
In short, bail agents act as financial guarantors—and they assume risk if a client fails to appear in court.
How Do Bail Bonds Companies Make Money?
Bail bonds companies earn income by charging what’s known as a bail bond premium—a non-refundable service fee paid upfront to cover the cost of issuing a surety bond. The bail premium is the primary source of income for bail bonds companies.
| Example | Amount |
|---|---|
| Total Bail Set by Court | $10,000 |
| Bondsman Fee (10%) | $1,000 |
| Amount Paid to Court by Agent | $10,000 |
| Fee Earned by Company | $1,000 (non-refundable) |
Even though the agent posts the full amount with the court, they are only paid the 10% fee, which they keep whether or not the defendant is convicted. If the defendant fulfills all court obligations, the collateral is returned to the original owner, but the fee is non-refundable.
Other Ways Bail Companies Generate Revenue:
- Payment plans with interest or service fees (Bail bondsmen may offer payment plans to clients who cannot afford the upfront fee.)
- Additional fees for late payments or missed check-ins
- Forfeiture recovery fees if a defendant skips bail
Is the Bail Bonds Fee Refundable?
No. The bail bond fee is non-refundable—even if the defendant is found not guilty or the charges are dismissed.
This fee pays for:
- The agent’s time and risk
- Operating costs (office rent, licensing, insurance)
- Administrative expenses
- Legal and investigative resources
Just like an insurance company charges a premium regardless of whether a claim is filed, bail bondsmen keep the premium as compensation for their services. The fee paid to the bail bondsman is non-refundable, even if the defendant appears for their court date.
Is the Bondsman Fee Part of the Court Bail?
No. The fee you pay to the bondsman is completely separate from the actual bail amount.
The court sets bail based on the seriousness of the offense and risk factors. The bail agent’s fee is a private business charge to post a bond for that amount.
In essence, the agent is taking on financial responsibility for the full bail. If the defendant doesn’t show up, the bondsman can be forced to pay the full bail to the court. The value of the collateral must be equal to or greater than the bail amount. If a defendant fails to appear in court, the bail bondsman has the right to seize and sell the collateral to recover their losses.
Why Do Bail Companies Charge Higher Fees in Some Cases?
While 10% is standard in Michigan, bond companies may charge higher fees or require additional collateral in cases where the risk is elevated.
Higher Risk Factors Include:
- Serious charges (e.g., assault, weapons offenses, or drug trafficking)
- Prior failures to appear in court
- No local employment or housing
- Known gang affiliations or out-of-state ties
Some agencies offer discounted rates (e.g., 8%) for low-risk defendants, veterans, or when legal representation is already secured.
When Should You Use a Bail Bondsman?
If you or a loved one is detained and cannot afford full bail, a bondsman may be the fastest and most affordable way to get out of jail. Without bail bondsmen, many individuals would remain incarcerated simply because they cannot afford bail. This allows defendants to:
- Return to work or care for family
- Consult with their lawyer freely
- Gather evidence and prepare for trial
- Avoid unnecessary time in pretrial detention
However, bail is not always required. In some cases, a judge may allow release on personal recognizance (PR bond)—especially for first-time or low-risk offenders. The bail bond system helps reduce jail overcrowding and enables defendants to prepare for their trials while remaining at home.
Can a Bail Agent Refuse to Post Bail?
Yes. Bail bond agents are private business operators, not court officers. They have the right to refuse service if they believe:
- The defendant is a flight risk
- The client cannot afford the premium or provide collateral
- The crime is too serious (e.g., murder or CSC charges)
- The client has a history of missed court appearances
Agents perform risk assessments before issuing a bond—and if the risk is too high, they can decline to get involved. Bail bondsmen conduct thorough background checks to minimize their risks when determining if they will take on a client. They assess flight risks by evaluating a defendant’s background and history before providing services.
Need Help Posting Bail in Michigan? Contact D.G. Moore
If your loved one has been arrested in Michigan and bail is unaffordable, you may have options. At D.G. Moore Law, we can help you:
- Understand your bond conditions
- Connect with reputable, licensed bail bond companies
- Negotiate lower bail or recognizance release
- Protect your rights through the entire criminal process
Call 269-808-8007 now for a free consultation with a Michigan criminal defense attorney.
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