The Business of Microstock-Ellen Boughn

THE BUSINESS OF MICROSTOCK‐UGCX       OCTOBER 21 2009     Prepared by Ellen Boughn   

Will the maturation of the microstock business  model track with the growth and leveling off of  the RF business?   A.  Yes and…  B.  Maybe not because of massive social and  technological change 

Dreamstime.com statistics for 30 months   March 2007 October 2009  Artists: 12,857  Artists: 78,359  Images: 1,025,806  Images: 6,789,737  Aver/artist: 79.78 images  Aver/artist: 86.60 images  Users: 279,880  Users: 1,711,673  Number of images/user only slightly higher in 09 vs 07   3.6 images/user vs 3.9 images/user in 09  Prices have increased significantly  Thus market is sustaining itself yet some report earnings declining.  

Only two top contributors  In 07 remain in top in 09.  In 2009 there are at least  five production companies  in the top list of contributors  In 2007 there is only Andres   who had yet to build his  operation to the levels of   today.  Dreamstime March 07      Dreamstime October 09  

Andres in 2005 

Andres 2007 

Image quality Image variety among  top sellers  Degree of chasing (copying) top sellers  What most harmed RM and RF from a creative  point of view the most? Lack of creativity 

Traditional royalty free: cost from $200/300

Degree of copying and chasing top sellers 

How to feed the beast and still succeed :  Keep overhead low by outsourcing keywording and distribution to  companies      • Lookstat  • iSydicta  • Microstock Solutions  • Keep productions simple and low cost  • Hire cheap help!  Yes, look at best sellers but don’t copy the image. The image themes  remain fairly constant   Bring your view to the theme instead  Refresh wardrobe, technology based props   Diversify‐Develop a portfolio of a widely diverse subject matter  Develop a specialty 

Photo  by Freezingpictures…still possible to  build a microstock brand today? YES   but not  as easily as it once was.  

Why have some U.S. based traditional stock producers  left the microstock market?  They say that ROI is too low for their overheads  Many top producers both with staffs and sole  practitioners are not based in the U.S. or produce off  shore  Have found secrets to keeping costs low.  Based in countries with lower costs of living, micro  income goes further.  Could perhaps signal a trend away from the U.S. U.K.  based productions. 

Pitfalls ahead for producers/photographers/companies  • Expansion into subscription by most companies ….many  more images have to license to earn the minimum payout.   Great for the microstock companies…not so great for the  suppliers.  • Oversupply of identical images  • Creative Commons‐the ultimate lack of a gatekeeper. 

By wili_hybrid 

by wili_hybrid 

by byrne7214 

Vittis from Lithuania 

From the Internet Manifesto‐www.internetmanifesto.org  12. Tradition is not a business model. … because the Internet is fiercely  competitive, business models have to be adapted to the structure of the net. No  one should try to abscond from this essential adaptation through policy‐making  geared to preserving the status quo.  What was won’t always be 

13. Copyright is a cornerstone of information  organization on the Internet... At the same  time, copyright may not be abused as a lever to  safeguard obsolete supply mechanisms and  shut out new distribution models or license  schemes.  

16. Quality remains the most important  quality. The Internet debunks  homogenous bulk goods. Only those who  are outstanding, credible and exceptional  will gain a steady following in the long  run. Users’ demands have increased.  Journalism <Photography> must fulfill  them. 

Internet Manifesto by * Markus Beckedahl *  Mercedes Bunz * Julius Endert * Johnny  Haeusler * Thomas KnÃ¼wer * Sascha Lobo *  Robin Meyer‐Lucht * Wolfgang Michal * Stefan  Niggemeier * Kathrin Passig * Janko RÃ¶ttgers  * Peter Schink * Mario Sixtus * Peter Stawowy  * Fiete Stegers /Translated from the German by  Jenna L. Brinning / *Leave a comment on the  internet manifesto! 106 comments have been  made so far.* 2009 CC‐BY  http://www.internet‐manifesto.org/ 

Announcing   The Microstock Money Shot‐Turning Downloads into  Dollars  By Ellen Boughn with preface by Andres Rodriguez  A comprehensive guide to the microstock business  illustrated with over 200 photographs  The Crown Publishing Group  II/ A Division of Random House Publishing   Available summer 2010   

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The Business of Microstock-Ellen Boughn

by Ellen Boughn

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