Territorial empires directly occupy territories with their armies, throw out the old rulers, and annex the land. In hegemonic empires, the internal affairs of conquered areas remain in the hands of their original rulers, who become vassals. Territorial empires are tightly controlled but costly to maintain; hegemonic empires are inexpensive to maintain, because the original local rulers incur the costs of administration, but the loose tie between master and vassal encourages rebellion.
