Licensing Fees for Commercial Work

[nataliaborecka]

<p>Hello everyone,<br>

I've been discussing licensing fees with a number of photographers, as well as doing some research online and it's amazing how inconsistent and confusing it all is. There seems to be a lot of information for licensing stock images, and this is a good starting point for pricing individual images.<br>

What in your opinion, is a fair "usage" price to ask a commercial client (relatively recognizable brand, moderately sized company) for catalog, web, and advertisements (print/web) in North America, and Asia? They're asking for 8 images for 1 year. I've had WILD variation in the price range. From $2000 to over $10 000.<br>

I'd love to hear your opinion on this!<br>

Thanks,<br>

N.</p>

[ellis_vener_photography]

<p>It never hurst to start at the high end it leaves some room to move if you need to.</p>

<p>Remember two things that are very important in negotiating licensing pricing: </p>

<ul>

<li>You don't have a handle on how valuable your specific images are perceived by someone on the other side of the table as being necessary for the success of the marketing and advertising campaign. </li>

<li>Most photographers (I'd say 99.99% ) have no clue as to the actual value of their work <em>to the client.</em></li>

</ul>

[nataliaborecka]

<p>Thank you for your response Ellis. In this case, the client actually offered to pay me a flat licensing fee of $1500 for the images, exclusive usage. That's clearly not a fair price given the extensive use they're going to get out of the images.</p>

[ellis_vener_photography]

<p>8 x $1500 or $1500 / 8?</p>

[john_a5]

<p>Every client and situation is different. Even who the agency is can have some effect on value. If I were to license an image for one year use for advertising et al, I would probably start at about $15,000 for essentially what appears to be unlimited use for the year. I might temper that fee for the volume of images they are requesting and what else I might know specifically about the client and their market.</p>

<p>Generally, I just say that "I would normal charge about $15k per image for one years use like this, is the sort of number you were looking at?" It generally gets a rise out of them but you would be surprised how many times they go "sure, that is about what we expected". But if you don't throw it out, you don't get it. Now, it may be that they are only thinking a few thousand each--depends on your reputation and how they found you, quite honestly as well as the agency's and client's positioning in the market-so lots of factors are in the equation. (if they found your images on a photo sharing site, they might think you will be cheaper than if they found your images on a professional looking website through your promotional efforts--lots of factors--it is sort of a game and you always want to leave yourself a reason to come down--like well "for 8 images I can be a bit more flexible")</p>

<p>(I just read their offer--that is ridiculously low I think even if per image--but again,who is the client?)</p>

[john_a5]

<p>You might have to consider volume and what kind of market the work is aimed at. If it is to a trade versus consumers, then that might temper the value. Also, you need to sort of feel out what kind of advertising they are going to do--trade magazines and maybe 8 ads over the year? That is certainly different than full page ads in the Wall Street Journal or popular consumer magazines. $1500 per image might be the value to them if it is just trade use and fairly infrequent placement--like one ad a month or quarter.</p>

[micah_robinson]

<p>FotoQuote say's $10,349-$20,698 for unlimited print and web advertising for 1 year within the US +1 country... per image.</p>

<p>This is no surprise that it falls into John A's prise range as well.<br>

They do extensive research before they update their pricing.<br>

Good program, you should check it out.</p>

<p>So in short;<br>

If this is a company I would know... $1,500 (even if it is per image) is way too little for the rights they are asking for.<br>

Even if you are not a well know photographer, they must see something in you to want your photos.<br>

I would price it much higher... But in the end you are the only one that can decide.</p>

<p>If they are telling you that $1,500 is all they have to spend then try and work out MUCH less rights.</p>

[nataliaborecka]

<p>John A, this company wanted to pay me $1500 FLAT FEE for all these usage rights, not per image. This is why I got so confused. I thought that no company of their stature would be crazy enough to offer so little. I started wondering if I was the crazy one. But the price-range you gave me is much more than even I expected to hear! Glad to know I'm not crazy though.<br>

Thank you SO MUCH for your replies. These are exactly the kind of answers I was looking for. I just needed to see a reasonable licensing price range for commercial work of this kind. And I understand that it varies depending on a number of factors. This particular company won't be advertising in many consumer magazines (mostly trade), and they'll be doing large posters all over the place including Nordstroms, and a catalog.<br>

I definitely undercharged them. I won't be making this mistake again.</p>

[john_a5]

<p>It's a bit hard to understand the posters in Nordstrom and the trade ads, but you don't have to clarify.</p>

<p>I don't think I would be too happy about $1500 for one image for just doing a poster(point of purchase?) for anyone who would advertise in Nordstrom--consumer goods, so yes, they are way off.</p>