Pixiq

Licensing

I use the word “license” instead of “sell” when talking about making money from images. In general, professional photographers do not sell their images. Instead, they allow a client to use an image for a specified time and usage. This is called licensing, and specifically we are licensing usage rights. Why is this important? First off, you are the copyright owner of any work you produce, unless you work for a company (like a newspaper) and you have signed a contract that says otherwise. But let’s assume you have not signed a contract or given your copyright away, which I would avoid at all costs. If one client finds your image useful, then the odds are good that several others will also. By licensing your images over and over to multiple clients, you can maximize the profits from a photo shoot. Maybe the image was shot on assignment for a magazine, or on your last surfing trip with good friends. Either way, it doesn’t matter. It is your image and as such it is yours to license to any client of your choosing.

One of the things I hear way too often from young photographers is, “Oh, I am just starting out so my images aren’t worth as much as someone who is more established.” I’d like to dispel that myth right here and now. If a client wants to use your image, no matter if you are just starting out or have been shooting for three decades, that image is just as valuable as any other image of similar quality. Yet another trap that many photographers trying to get started make is to give their images away for free for the exposure. Be aware that if you start out giving your images away for free, you won’t get a whole lot of respect as a businessperson and you will have a very tough time getting paid in the future. My advice: Don’t do it. If the client wants your image that badly, then they will pay for it. In light of that, let’s talk about pricing your work.

Pricing

Pricing your images is a complex calculation. How much is an image worth? Even more to the point, how much is the usage of an image worth? Images are priced according to several factors: the circulation of the publication, the size it will be published on the page (be it a website, book, or magazine), the length of time the rights are extended, and the difficulty involved in creating the image.

Let’s give a concrete example. In this case, let’s say a client sees one of your images on your website and thinks it is perfect for an advertisement they are running in the next issue of Backpacker magazine. They call you and ask if the image is available and what it would cost to license that image for their ad. The first thing you need to do is ask some questions. How big is the ad going to be in the magazine? Is it full-page, halfpage, or smaller? And how large will your image be used in that ad? Is it the entire ad? For this example, we are going to say it is a full-page ad and your image will be printed full-page as well. The next question is: How many times will the ad be run? For multiple insertions, the calculations get a bit complex as you charge a percentage of the first ad price. (I won’t get into this here because I want to keep this example as simple as possible.) For our example, let’s say the ad will be run one time. Once you have the information from the client, tell them that you will calculate the price and get back to them.

Before you can quote a price, first figure out what Backpacker magazine’s circulation is. You can ask the client (who may or may not know), or look online where there are many resources that list magazine circulation. The Editorial Photographers website (www.editorialphoto.com) has an excellent tool that allows you to see the circulation and standard rates for just about every magazine out there. Knowing this information, you can look up the standard pricing for this usage using either FotoQuote (www.cradocfotosoftware.com), or a book like Jim Pickerell’s Negotiating Stock Photo Prices. I highly recommend both of these, as they will pay for themselves on your first sale. I have used both but prefer the book, as it is easier to use and also includes one of the best discussions on negotiating prices to be found anywhere for the pro photographer.

Doing research reveals that Backpacker has a circulation of approximately 303,000. In this case, the pricing guide—which is just that, a guide or starting point for pricing— says the standard pricing for this usage is $1,310 for a full-page ad. Depending on the client and the uniqueness of the image, you might adjust this price up or down. Once you quote a price, you won’t be able to get more than you ask for, unless the client wants more usage rights. For a lot of clients in the outdoor industry, they will start negotiating with you to lower this price. In my experience, most magazines and outdoor clients do not pay FotoQuote rates but many will pay rates that aren’t much lower. Be aware that in most cases the client knows what the image is worth. They know all about pricing images and how it is done. So stick to your guns. Also, this is where the online forums really come in handy because you can ask how much money others have received when they licensed images to certain clients.

Some clients, mainly magazines, but also many companies in the outdoor industry, have fixed image pricing that they ask photographers to agree to before submitting images. In many cases, it is a take-it-or-leave- it offer. But remember, you are the owner of your images and you set the pricing. Stand up for yourself and price your images so you can stay in business. If a client comes to you and asks for unlimited usage and wants to pay peanuts for it, do yourself and everyone else a favor and say no. If they really want the image, they will come to their senses and bring their price up. More often than not, they are likely testing you to see if they can get it for cheap. Of course, there is a lot more that I could say about pricing your work. Check out the references mentioned above to get more in-depth information.