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p.1 #4 · p.1 #4 · Calculating commercial licensing fee for images | |
Hi Sheri,
Thanks for the link. Based on the website, store description, location and photos they probably do $2 million a year, maybe over $2.5M and their advertising budget is likely to be at least $80K to as high as 225K.
I know very little about licensing image rights but factors to be considered are:
How do they plan to use your photo or photos – ads in newspaper, magazine, tv? …in-store mural, etc?
How long will they have usage rights and what time of the year?
What’s the size of the audience and territory?
Exclusive to them?
…and so on.
A quick stab using Getty’s pricing calculator suggests $3,765 for the following conditions: up to full page newspaper or magazine ads for 3 months beginning today, 1,000,000 circulation in the United States.
http://www.gettyimages.com/pricecalculator/sb10069475ab-001
Those pricing tools generally heavily favor the licensor/artist so the number is probably high and if you consider the client, it’s unlikely they’d allocate 4% of their budget for short term use of your image.
So, what to do from here? Surely other FMers have experience with this but in their absence, I would suggest getting a sense of how the client plans to use your photography. Is it a nice-to-have backdrop for ads really driven by other content or are they wanted to build a campaign around your images?
If the former, charge them $500 for non-exclusive rights to one image, if the latter, $18,000 for exclusive rights for two years (I’m not being literal, just tossing out points). Is there an opportunity for co-branding – your coverage of their customers’ weddings – Sheri being the preferred wedding photographer of XYZ jewelers and they create an ongoing campaign around it, etc.
Lots of things to consider. If it looks like a promising relationship I’d try to make it easy to get started with you and build from there. As you mentioned in PM, they’re new to this too so you don’t want to freak them out, but you should be able to help them imagine possibilities and begin setting expectations for an ongoing, mutually beneficial relationship.
Keep in mind that small businesses like this generally have crappy visuals or use canned images that their customers couldn’t care less about. The idea of professional work commissioned or licensed by them takes them up several notches in prestige – particularly images tied to the community and exclusive to them. They probably understand that and want to test those waters.
Good luck with it all. Let us know how it goes.
Chuck
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