pricing & negotiating for commercial photographers | asmp new orleans

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  • 1. PRICING &NEGOTIATINGCommercial & Editorial Assignments Bill Cramer/CEO

2. CopyrightPricing and Terminology: Licensing vs. UsageNegotiatingCharging For Time vs. UsageLicensing AgreementsTypes of UsageEditorial ContractsCommercial ContractsNegotiating Points 3. COPYRIGHT The exclusive legal right to reproduce, publish, sell, or distribute thematter and form of something (as a literary, musical, or artistic work)1 An image is copyrighted as soon as its affixed any media Photographers grant specific use of images to their clients using a licensing agreement Generally, photographers dont SELL images, they LICENSE them Work For Hire Copyright Registration1copyright Merriam-Webster.com. 2012. http://www.merriam-webster.com (16 March 2012) 4. TERMINOLOGY: LICENSING VS. USAGE Often used interchangeably, but theres a subtle difference License is what you grant to your client that allows them to use yourpictures Usage is more about what theyre 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 5. A Photograph hasno intrinsic value.So how do you quantify it?(It depends on the client, the photographer and the use.) 6. 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 determinesthe minimum value of the job Usage/licensing determines the maximum value of the job Naturally, youll always want to charge as much as possible Value is NOT about what it costs the photographer to produce thepictures, Its about the benefit your images bring to the client If you charge for your time but not for usage, youre probably missingout Especially true of advertising projects where its much more lucrative tocharge by the picture rather than by the day 7. LICENSING AGREEMENTS Client MAY ONLY use your photos with a licensing agreement Value is proportional to that licensing, heres 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) Its 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 8. 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, pressreleases) Collateral client produced and distributed (brochures, annual reports, posters,websites) Advertising client pays to place photos in media (newspaper and magazineads, web banners, billboards, transit ads) Avoid vague terms like buyout or unlimited Web isnt a usage, its a medium 9. Editorial Collateral Advertising AdvertisingPublicity 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, OtherWhat is the title of the publication? Freestanding InsertAnticipated 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?prominencewhat 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 foreignInternational? Other?International?editions? Separate language editions?What is the circulation of the publication?Number of insertions? Names of publications? volumeWhat 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 fromexclusivityProprietary images are is less. Other.delivery, whichever exclusive forever, Proprietary images are are exclusive proprietary images exclusive forever,Proprietary images are are exclusiveproprietary images exclusive forever,exclusivitynon-proprietary images are exclusivenon-proprietary year. Other.exclusivefor one images arenon-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 itcredit table of contents page, or if a spread, oneCredit on all prints and slides.Once in the back of theThis is a negotiable point. Be sure to get itwhen you make any other concessions.creditCredit on all prints and slides.large credit. publication is customary. when you make any other concessions. 10. Why cant we use thepictures any way we want? 11. 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 12. Case studyThe Penn StaterMagazineCover Shoot 13. - Brothers. Star basketball players.- Cover, opener, table of contents.- Posed, in action, with their family. 14. Case studyInc. Magazine Portrait 15. - Brothers. Run an online wine company- One inside picture. Full page.- White background.- Sitting on wine crates. With and withoutwine glasses. 16. 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 doesnt get the job Review with a consultant, rep or friend Price can vary wildly depending on the photographer 17. ASKING THE RIGHT QUESTIONS Whats 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 dont give the wrong impression) 18. Whats a media buy andhow does it affect the valueof a photo? 19. BLINKBID 20. FOTOQUOTE 21. GETTY & CORBIS 22. Case studyAirlineAd Campaign 23. - 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) 24. NEGOTIATING POINTS Negotiating is about finding a win/win Dont give up something for nothing (licensing, expenses) Never give a quote over the phone Whats 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) 25. MoreLook 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 eld 26. Questions? 27. Thank you!(The End)