What to charge for image "Buy Out"?

I'm doing a bid right now for a shoot. the client want's to have

unlimited usage of the images taken at the shoot. In total there

will be about 10-14 shots. Besides my day rate, what do I charge

for the image "buy outs"?

 

Thanks

 

www.rosswordhouse.com

Unlimited usage does not mean buy out. If they do want <i>exclusive <b>and</b> unlimited</i> usage, I would define terms that allows you to retain copyright and think about language that limits terms of use for the life of the company involved. Also, I would ak them if they really need exclusive and unlimited, they might just have come up with that without good reason. As for a fee, look at estimators on the Editorial Photographers' site and on Seth Resnik's site. It is gonna be much higher (several times) than normal because of the value you are selling the client for a wide ranging usage and for the potential loss of income from selling rights for other uses.

Ross, It would be helpful if you could provide a bit more information about the client, images and intended usage of the images.

 

Without more info, I can just give you some perspective from the buyer's side. In my marketing role I contract with photographers for product and concept images for use in advertising (in industry journals) and point-of-sale literature (brochures, etc.), trade show graphics and internal documentation. The industry I work in is high-tech (serving the pharmaceutical/biotech industries), with business-to-business sales and medium sized (a couple of billion $/year market size). The products photographed range from the size of a coffee cup to the size of truck. I'm usually seeing day rates in the range of $1000 to $2000 which include (pretty much) exclusive, unlimited usage a some number of images (something like 5-10 images per day contracted) with fees of $50 to $150 per additional image, plus any extra Photoshop/prep time at $75 to $150/hour.

 

This is just one example. It could (should) be different for different industries, different audiences (ie. consumer vs. BTB), different usage (national ad campaign in mainstream magazines/bilboards/etc vs. industry journals), among other factors.

 

For your own protection, I would not use vague terms with the client like "buy out". Be specific. You can grant your client very, very broad usage without giving up ownership of the work. No need to get hung up on terminology, but it should be described clearly in the agreement. You have the ability to control the usage rights granted over time (one time/for defined period of time/unlimited), location/region (local/national/worlwide), intended use (web/ad/editorial/company literature/unlimited) and exclusivity (exclusive/limited exclusivity/non-exclusive). You will probably want to make sure that you retain the right for you to use the images to promote yourself and your business. Of course I have to add the standard disclaimer that I am not a lawyer and you should consult with one in your area for advice and proper drafting of a business agreement/contract, preferably one that has experience with copyright/licensing issues.

 

Hope this helps. --Mike

Ross,

 

Without an idea of how long, where, and in what capacity the images will be used, it's

impossible to suggest a price. Realize though, that your client may want the buyout just

for convenience - so he doesn't have to call you anytime he needs to use something.

 

Other clients may be trying to save money or rip you off.

 

I would suggest offering either exclusive or non exclusive unlimited usage for a set period

of time. Try and figure out what they will be used for and then price based on your

suspicions of usage, and add 50 or 100% for the privelege of a buyout.

 

A sophisticated client will not usually ask for a buyout, because any photographer with

sense will fight like hell to avoid giving them one. It is usually a bad deal for the

photograher. And more expensive than just paying for the usage you want.

 

It is a much better idea to find out what they plan for the images, and settle on a rights

package in advance.

 

Obviously if they're going to use them for a national ad campaign over a 10 year period it's

more expensive than using them in their company newsletter!

 

Mike Levitt

Sorry for being so vegue in my post. This is my first time doing

unlimeted usage of my images and I'm new to freelancing my

photography.

 

The job is shooting a National Chain Hotel in my area. It will

consist of 4 exteriors and about 8-10 interiors. The shots will be

used in all forms of marketing. The images will be used in the

local market, maybe national usage on their website.

 

I'm charging $1000 for my day rate. Not sure how much to

charge for the photos that they want unlimited usage on.

Ross, I've been thinking about this for a few days. I don't think that I can supply you with the magic bullet - ie. "you should charge $X and 37 cents per photo!". I don't know what the going rate is for exactly the situation you described (and nobody else has offered any direct help either). So, the best suggestion that I could give is as follows (it's vague, but simple) - try to figure out the following:

 

a) At what price you would feel satisfied that you've been reasonably compensated for your work, given the "unlimited" use option that's been discussed above.

b) At what price would you walk away from the job.

 

If you can negotiate something around the "a" price, then who cares what others charge, you've done right by yourself. And if the negotiations start veering towards the "b" price you can bail with a cool head, and not feel like you've been stuck with a loser job after the fact. I bet a lot of people go into discussions without really knowing where their personal "bottom line" is and wind up taking jobs that they are sorry they took after the fact.

 

The nice thing about this approach is that it's flexible. You're basically going to them and saying, Price "a" gets you these features and list them out (exclusive use for X years for a) secondary web pages on the national chain's site, b) brochures (up to X,000 copies), c) ads in local/state newspapers and magazines, etc.). If they balk at the price at this early point, you are basically talking to them about reducing features to reduce the price. It works pretty well, because it's a basic concept that everyone can understand "Everything costs something, if I want it to cost less, I get less." For example, you might start out with your list of features that includes use of the photos for these purposes "forever" and "for whatever they want", then the next step may be to suggest that the limit is something more reasonable like 3 to 5 years - how often do they remodel, they'll probably want new pictures then, right? Wouldn't be bad if they called you back to do the next pictures. Talk to them about exactly what they MIGHT use them for, then suggest a smaller package of rights that covers the 80%-90% of the things that they REALLY want to use them for.

 

In the end you'll learn a lot about the client, you'll get paid about what you want, the customer will have photos that they can use for what they need. Birds will be singing, the sun will be shining and all will be good throughout the land. Good Luck! --Mike

I am not a professional, so I have little to contribute from the selling side. But what would a photog want with a picture of a Cincinnati hotel? Is is for stock use?

 

Suppose the hotel wanted to put the pic on the space shuttle for advertising for $1M placement fee. Would that make the shot worth more? Because it was better?

 

I can probably take a shot of the hotel to put on the space shuttle that is "good enough" and I would do it for an all expense trip (maybe not to Cincy, but you get the idea). So that makes the pro's photo worth "more", but a LOT more???? I don't get it.

In response to "not professional Dave"/ as far as giving him a break...will your photo have these items covered for your rate? Will you be there at the best time of day that your 'artistic sense' tells you? Will you get all the permits from the city to have the exact street traffic that the hotel wants (don't forget the client, Dave). Will you have the exact lights on in the hotel?

Will you get the proper pedestrian street traffic so you're not showing a hardly visited hotel? Are you going to pick out their wardrobe that your styist selects for you or will you hope they'll bring the right garments for your clients taste? Will you suggest having a few extra potted plants or flowers to add to the beauty of the facade? Will you have your assistants sweep the street of any garbage, or are you going to charge the client extra for your talents in photoshop? Will you get the city or a private water service to hose down the street for a real cool reflection? Will you schedule a limo service (what if the limo doesn't show...do you have a back-up plan) or have the perfect cars simply appear in front? Will you have refreshments for the crew and client if it's a scourcer? You know it could be a 100 degree day. Are you going to compare your digital expertise to a successful pro for over 30 years, that has been shooting digital for over 12 of them. Excuse me Dave, but I think you probably a nice guy, but in this case, the shot that you will willy-nilly pop off for the hotel is an accident waiting to happen. My seminar if over now, because I've just scratched the surface of what I and my studio would do for the hotel. Have a nice day.