PRICING &NEGOTIATINGCommercial & Editorial Assignments Bill Cramer/CEO
CopyrightPricing and Terminology: Licensing vs. UsageNegotiating Charging For Time vs. Usage Licensing Agreements Types of Usage Editorial Contracts Commercial Contracts Treatments Negotiating Points
COPYRIGHT▹ “The exclusive legal right to reproduce, publish, sell, or distribute the matter and form of something (as a literary, musical, or artistic work)”1 ▹ An image is copyrighted as soon as it’s affixed any media ▹ Photographers grant specific use of images to their clients using a licensing agreement ▹ Generally, photographers don’t SELL images, they LICENSE them ▹ Work For Hire ▹ Copyright Registration1”copyright” Merriam-Webster.com. 2012. http://www.merriam-webster.com (16 March 2012)
TERMINOLOGY: LICENSING VS. USAGE▹ Often used interchangeably, but there’s a subtle difference▹ License is what you grant to your client that allows them to use your pictures▹ Usage is more about what they’re actually going to do with them▹ You have to grant your clients a LICENSE to USE your pictures▹ The terms of the license are often different from the actual usage
A Photograph has no intrinsic value.So how do you quantify it? (It depends on the client, the photographer and the use.)
CHARGING FOR TIME VS. USAGE▹ Assignment fees are a function of time, skill and usage (licensing) ▹ The time it takes a photographer to execute an assignment determines the minimum value of the job ▹ Usage (licensing) determines the maximum value of the job ▹ Naturally, you’ll want to charge as much as possible ▹ Value is NOT about what it costs the photographer to create the pictures, It’s about the benefit your images bring to the client ▹ If you charge for your time but not for usage, you’re probably missing out ▹ Especially true of advertising projects where it’s much more lucrative to charge by the picture
LICENSING AGREEMENTS ▹ Client can only use your photos with a licensing agreement▹ Value is proportional to that licensing, here’s how you define it: ▹ Type of Use (editorial, commercial (publicity, collateral, advertising)) ▹ Prominence (placement, how big, how many, who is the company) ▹ Duration (how long will the pictures be used) ▹ Geography (where will they be distributed) ▹ Volume (number of copies) ▹ Exclusivity (how long before you can license them to someone else)▹ It’s like appraising a house (sq. footage, bedrooms, bathrooms, neighborhood)▹ Draw a clear box around the usage you want to allow for a certain price▹ Licensing agreement defines usage the way a deed defines a property
TYPES OF USAGE▹ (In roughly order of value)▹ EDITORIAL (newspapers, magazines, books)▹ COMMERCIAL (ad agencies, graphic design firms, corporations, institutions, entertainment) ▹ Publicity – client gives photos to publications for editorial use (press kits, press releases) ▹ Collateral – client produced and distributed (brochures, annual reports, posters, websites) ▹ Advertising – client pays to place photos in media (newspaper and magazine ads, web banners, billboards, transit ads)▹ Avoid vague terms like “buyout” or “unlimited”▹ Web isn’t a usage, it’s a medium
Editorial Collateral Advertising Advertising Publicity Type of Publications: Newspaper, Consumer Publicity What type of media? Newspaper, Magazine, Point of Magazine, Trade Magazine, Book, Other (for Corp. Brochure, Annual Report, Types of use: Media Kits, Other Newspaper, Magazine, Point of Purchase, Catalog, Purchase, Catalog, Billboard, Bus Shelter, Direct Mail, Media Kits, etc. Mag, See Collateral) Corporate Magazine, CD-Rom. Billboard, Bus Shelter, DirectInsert,Packaging, Packaging, Freestanding Mail, Other What is the title of the publication? Freestanding Insert Anticipated Space In what geographic area Front cover, back cover, inside, or both? Size of Photo(s):prominence How many photos do you plan to use, and does the company do business? Will our photos appear with others? Size of Photo(s): Are there other photos in the ad or just ours?prominence what sizes? Cover? Inside? What about web N/A Are there other photos in the ad or just ours? use, foreign language use, syndication use? Do you want these included or a la carte? What is the life expectancy of this piece? duration One time? One year? Forever? Do you want one time use of photos? One time? One year? Forever? duration One Time Use? Other? One Year? Other? One Year? Other? Local? Regional? National? Will the publication be distributed: Local? Regional? National? Local? Regional? National?geography International? ForeignNational? Local? Regional? Edition Use? Locally? Regionally? Nationally? Local? Regional? National?geography Foreign Language Use? Other? International? International? Other? Internationally? Are there separate foreign International? Other? International? editions? Separate language editions? What is the circulation of the publication? Number of insertions? Names of publications? volume What is the advertising page rate? Number of copies? Number of insertions?of pieces? publications? Number Names of volume Number of copies? What is the print run? Number of pieces? Proprietary images are exclusive forever, non- Proprietary images are exclusive forever, non- 30 days from publication or 180 days fromexclusivity Proprietary images are is less. Other. delivery, whichever exclusive forever, Proprietary images are are exclusive proprietary images exclusive forever, Proprietary images are are exclusive proprietary images exclusive forever,exclusivity non-proprietary images are exclusive non-proprietary year. Other.exclusive for one images are non-proprietary year. Other.exclusive for one images are for one year. for one year. for one year. Adjacent to the photo, or if a cover on the This is a negotiable point. Be sure to get it credit table of contents page, or if a spread, one Credit on all prints and slides. Once in the back of the This is a negotiable point. Be sure to get it when you make any other concessions. credit Credit on all prints and slides. large credit. publication is customary. when you make any other concessions.
“Why can’t we use thepictures any way we want?”
EDITORIAL CONTRACTS▹ Their contract or yours?▹ Fee plus expenses or all inclusive?▹ Day rate vs. Space or flat rate?▹ Large circulation magazines vs. small▹ Consumer magazines vs. trade magazines▹ Custom publications for associations and corporations▹ “Advertorial”▹ Typical national magazine rates 500.00 – 700.00/day vs. 500.00 – 1200.00/page▹ Rates have fallen in the past 5 years▹ More and more, magazines are offering flat fees
Case studyThe Penn Stater Magazine Cover Shoot
- Brothers. Star basketball players.- Cover, opener, table of contents.- Posed, in action, with their family.
- Brothers. Run an online wine company- One inside picture. Full page.- White background.- Sitting on wine crates. With and withoutwine glasses.
COMMERCIAL CONTRACTS▹ Itemized costs, Terms & Conditions▹ Costs: Estimate (fee+expenses) vs. Bid (all inclusive)▹ Use an estimating software like BlinkBid or at least an invoicing app like Quickbooks▹ Consult pricing guides like BlinkBid, FotoQuote, Corbis, Getty (stock vs. assignment pricing)▹ Pricing by the day, by the image, by the project▹ Bundle usage with day rate or separate the two (there is not single right way to do it)▹ Itemize everything (whether you submit it like that or not)▹ Specify items that the client is providing▹ Low bid often doesn’t get the job▹ Review with a consultant, rep or friend
ASKING THE RIGHT QUESTIONS▹ What’s the concept of the shoot?▹ Do you have a shot list and comps?▹ Who is the client?▹ What is the goal of the campaign/project?▹ Who is the audience?▹ What licensing do you need?▹ What is the intended use (this may be different from the licensing granted)?▹ What level of production is appropriate (hair/m.u., wardrobe stylists, prop stylists, ect.)▹ Who else is quoting on the job?▹ Do you have a budget? (leave this for last so you don’t give the wrong impression)
What’s a “media buy” andhow does it affect the value of a photo?
- Small multi-cultural ad agency- Large airline- 5 pictures, 1 year advertising use- 3 of people (in terminal, on plane, in city)- 2 still life (tickets, wine glass)
TREATMENTS▹ More detailed proposal for bigger commercial assignments ▹ Explains your skills, experience and client list ▹ Expands on your technical and creative approach ▹ Provides sample images including style references ▹ Details production schedule
NEGOTIATING POINTS▹ Negotiating is about finding a “win/win”▹ Don’t give up something for nothing (licensing, expenses)▹ Never give a quote over the phone▹ What’s in it for you? Portfolio, experience, relationship, money▹ Does the intended use match the licensing?▹ Production responsibilities (what can your client do to help?)▹ Bid vs. Estimate (heads I win, tails you lose)▹ Working for free or for cheap (loss leader, get something in return)
THE BOTTOM LINE▹ Understanding the value of your photography can mean the difference between surviving and thriving
More Look for a copy of this presentation on our blog this Saturday.To see dozens of examples of assignment pricing, go to our blog and type “Pricing & Negotiating: ” into the search ﬁeld
ASSIGNMENT VS. STOCK▹ Shoot a new picture or license an existing one?▹ Which is worth more? ▹ With stock, the photographer doesn’t have to do any (new) work. ▹ The client knows exactly what the image will look like. ▹ The client can get the picture right away. ▹ The client doesn’t always know who else has used a stock picture. ▹ With an assignment, the client can get a custom picture for their exclusive use.