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.  Y...
Dreamstime.com
statistics
for
30
months






March
2007                              October
2009

Artists:
12,857
      ...
Only
two
top
contributors

                                                       In
07
remain
in
top
in
09.


           ...
Andres
in
2005

Andres
2007

Image
quality                  Image
variety
among

                               top
sellers




  Degree
of
chasing
(co...
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 
 
...
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...
Pitfalls
ahead
for
producers/photographers/companies


• Expansion
into
subscription
by
most
companies
….many

more
images...
By
wili_hybrid

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
fi...
13.
Copyright
is
a
cornerstone
of
information

organization
on
the
Internet...
At
the
same

time,
copyright
may
not
be
abu...
16.
Quality
remains
the
most
important

quality.
The
Internet
debunks

homogenous
bulk
goods.
Only
those
who

are
outstand...
Internet
Manifesto
by
*
Markus
Beckedahl
*

Mercedes
Bunz
*
Julius
Endert
*
Johnny

Haeusler
*
Thomas
Knüwer
*
Sascha
Lob...
Announcing


The
Microstock
Money
Shot‐Turning
Downloads
into

Dollars

By
Ellen
Boughn
with
preface
by
Andres
Rodriguez

...
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The Business of Microstock-Ellen Boughn

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



  2. 2. 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

  3. 3. 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.


  4. 4. 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


  5. 5. Andres
in
2005

  6. 6. Andres
2007

  7. 7. 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

  8. 8. Traditional royalty free: cost from $200/300
  9. 9. Degree
of
copying
and
chasing
top
sellers

  10. 10. 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

  11. 11. Photo

by
Freezingpictures…still
possible
to
 build
a
microstock
brand
today?
YES


but
not
 as
easily
as
it
once
was.


  12. 12. 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.

  13. 13. 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.

  14. 14. By
wili_hybrid

  15. 15. By
wili_hybrid

  16. 16. by
wili_hybrid

  17. 17. by
byrne7214

  18. 18. Vittis
from
Lithuania

  19. 19. 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

  20. 20. 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.


  21. 21. 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.

  22. 22. Internet
Manifesto
by
*
Markus
Beckedahl
*
 Mercedes
Bunz
*
Julius
Endert
*
Johnny
 Haeusler
*
Thomas
Knüwer
*
Sascha
Lobo
*
 Robin
Meyer‐Lucht
*
Wolfgang
Michal
*
Stefan
 Niggemeier
*
Kathrin
Passig
*
Janko
Röttgers
 *
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/

  23. 23. 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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