PRICING & NEGOTIATING Commercial & Editorial Assignments
Bill Cramer/CEO
Copyright
Terminology: Licensing vs. Usage
Charging For Time vs. Usage
Licensing Agreements
Types of Usage
Editorial Contracts
Commercial Contracts
Negotiating Points
Pricing and Negotiating
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 Registration
1”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 always want to charge as much as possible ▹ Value is NOT about what it costs the photographer to produce 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 rather than by the day
LICENSING AGREEMENTS ▹ Client MAY 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 or views) ▹ Exclusivity (how long before you can license them to someone else)
▹ It’s like appraising a house (square 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
EditorialType of Publications: Newspaper, Consumer
Magazine, Trade Magazine, Book, Other (for Corp. Mag, See Collateral)
PublicityTypes of use: Media Kits, Other
AdvertisingWhat type of media? Newspaper, Magazine, Point of Purchase, Catalog, Billboard, Bus Shelter, Direct Mail,
Packaging, Freestanding Insert, Other
prominence
Anticipated SpaceHow many photos do you plan to use, and
what sizes? Cover? Inside? What about web use, foreign language use, syndication use? Do you want these included or a la carte?
N/ASize of Photo(s):
Are there other photos in the ad or just ours?
duration One Time Use? Other? One Year? Other? One Year? Other?
geographyLocal? Regional? National?
International? Foreign Edition Use? Foreign Language Use? Other?
Local? Regional? National? International? Other?
Local? Regional? National? International? Other?
volume What is the circulation of the publication? What is the advertising page rate?
Number of copies?Number of insertions? Names of publications?
Number of pieces?
exclusivity 30 days from publication or 180 days from delivery, whichever is less. Other.
Proprietary images are exclusive forever, non-proprietary images are exclusive
for one year. Other.
Proprietary images are exclusive forever, non-proprietary images are exclusive
for one year. Other.
creditAdjacent to the photo, or if a cover on the table of contents page, or if a spread, one
large credit.Credit on all prints and slides.
This is a negotiable point. Be sure to get it when you make any other concessions.
PublicityMedia Kits, etc.
CollateralBrochure, Annual Report,
Corporate Magazine, CD-Rom. What is the title of the publication?
AdvertisingNewspaper, Magazine, Point of Purchase, Catalog,
Billboard, Bus Shelter, Direct Mail, Packaging, Freestanding Insert
prominence In what geographic areadoes the company do business?
Front cover, back cover, inside, or both? Will our photos appear with others?
Size of Photo(s): Are there other photos in the ad or just ours?
duration One time? One year? Forever?What is the life expectancy of this piece?
Do you want one time use of photos? One time? One year? Forever?
geography Local? Regional? National? International?
Will the publication be distributed:Locally? Regionally? Nationally?
Internationally? Are there separate foreign editions? Separate language editions?
Local? Regional? National? International?
volume Number of copies? What is the print run?Number of insertions? Names of publications?
Number of pieces?
exclusivityProprietary images are exclusive forever,
non-proprietary images are exclusive for one year.
Proprietary images are exclusive forever, non-proprietary images are exclusive
for one year.
Proprietary images are exclusive forever, non-proprietary images are exclusive
for one year.
credit Credit on all prints and slides.Once in the back of the
publication is customary. This is a negotiable point. Be sure to get it
when you make any other concessions.
“Why can’t we use the pictures 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 study
The Penn Stater Magazine
Cover Shoot
- Brothers. Star basketball players.
- Cover, opener, table of contents.
- Posed, in action, with their family.
Case study
Inc. Magazine Portrait
- Brothers. Run an online wine company
- One inside picture. Full page.
- White background.
- Sitting on wine crates. With and without wine glasses.
COMMERCIAL CONTRACTS ▹ Costs, Terms & Conditions
▹ Costs expressed as an Estimate (fee+expenses) or 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 hour, 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
▹ Price can vary wildly depending on the photographer
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/make-up, wardrobe stylists, prop
stylists) ▹ 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” and how does it affect the value
of a photo?
BLINKBID
FOTOQUOTE
GETTY & CORBIS
Case study
Airline Ad Campaign
- 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)
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)
More Look for a copy of this presentation on our blog next Saturday.
To see dozens of examples of assignment pricing, go to our blog and type “Pricing & Negotiating: ” into the search field
Questions?
Thank you!
(The End)
