Licence Fees: What to charge?

Hi all, I have been approached by a leading corporation that want to licence and display a photo from me in 530 stores worldwide for the next 2 years. What do I charge them? Thanks in advance Paul

Hi all,

I have been approached by a leading corporation that want to licence and display a photo from me in 530 stores worldwide for the next 2 years. What do I charge them?

Thanks in advance

Paul

The whole concept of a market economy is founded upon two basic principles: Sellers will charge as much as buyers will pay. Buyers pay as little as sellers will accept. The starting point for your negotiation with this company might be along the lines of "what would you normally pay for this?". Then they, not wanting to give anything away, might respond, "what would you normally charge?" Impasse!. So, to establish a starting point, work out the lowest figure you would be willing to accept and double it. The information you have given in your post does not really allow anyone else to tell you what they might charge for something similar. You would really need to include the purpose of displaying the image, the locations of display, the size of the image, the value of the goods being advertised, the market positioning of the company and the product, etc. For example a photograph of a £10,000 watch on the wrist of a top super-model being displayed at poster size in 530 top-class jewellers should be worth more than a photograph of a £2 packet of cornflakes being displayed at A4 size in 530 Aldi mini-markets (or maybe not).

The whole concept of a market economy is founded upon two basic principles:

Sellers will charge as much as buyers will pay.

Buyers pay as little as sellers will accept.

The starting point for your negotiation with this company might be along the lines of "what would you normally pay for this?". Then they, not wanting to give anything away, might respond, "what would you normally charge?" Impasse!.

So, to establish a starting point, work out the lowest figure you would be willing to accept and double it. The information you have given in your post does not really allow anyone else to tell you what they might charge for something similar. You would really need to include the purpose of displaying the image, the locations of display, the size of the image, the value of the goods being advertised, the market positioning of the company and the product, etc. For example a photograph of a £10,000 watch on the wrist of a top super-model being displayed at poster size in 530 top-class jewellers should be worth more than a photograph of a £2 packet of cornflakes being displayed at A4 size in 530 Aldi mini-markets (or maybe not).

Licence and display is a bit vague. Is it Point of Sale, backdrop, Advertising - it all makes a difference to the price and if it's exclusive for two years, even more so. An exclusive worldwide POS could be on the region of £5000 but sales of this type are rarely handled by photographers and more usually marketing agencies.

Licence and display is a bit vague. Is it Point of Sale, backdrop, Advertising - it all makes a difference to the price and if it's exclusive for two years, even more so.

An exclusive worldwide POS could be on the region of £5000 but sales of this type are rarely handled by photographers and more usually marketing agencies.

If you are a member of a stock library, give them a bell and ask what their fees would be for it and go from there

If you are a member of a stock library, give them a bell and ask what their fees would be for it and go from there

[quote]If you are a member of a stock library, give them a bell and ask what their fees would be for it and go from there[/quote] Drop by Alamy's site and use their calculator even... But - as has been said - surprised they're not using an Agency. Unless... ;)

Quote:If you are a member of a stock library, give them a bell and ask what their fees would be for it and go from there


Drop by Alamy's site and use their calculator even...

But - as has been said - surprised they're not using an Agency.

Unless...

Visit [link=http://photographersindex.com/stockprice.htm]here[/link] for a guide to prices.

Visit here for a guide to prices.

Take any stock price calculator with an [b]enormous [/b]pinch of salt. It's not so much a guide as a wish list these days. The prices for stock photography generally have plummeted recently. What would have commanded several hundred pounds now are lucky to scrape through the 3 figure barrier and I'm convinced micro-stock or vanity publishing is largely to blame. As Mike says (with no disrespect to yourself) you do have to ask why they are not using an agency or library. Of course many people/organisations do go direct, I myself have sold many photos that way but the companies involved know I'm a professional photographer so know I'm not going to give my work away but quite often, they hope and non-pro will be flattered and devalue their work. The fact they are using the words 'licence' does suggest the person you are dealing with is looking to pay and understand how it works. As has been said before, to give a guide we do need more info. For example, exclusivity brings with it much higher prices (but also responsibilities on your part (i.e. not sell it elsewhere and not even display it anywhere else). You should be looking at a 4 figure sum (ballpark) but more info required :)

Take any stock price calculator with an enormous pinch of salt. It's not so much a guide as a wish list these days.

The prices for stock photography generally have plummeted recently. What would have commanded several hundred pounds now are lucky to scrape through the 3 figure barrier and I'm convinced micro-stock or vanity publishing is largely to blame.

As Mike says (with no disrespect to yourself) you do have to ask why they are not using an agency or library. Of course many people/organisations do go direct, I myself have sold many photos that way but the companies involved know I'm a professional photographer so know I'm not going to give my work away but quite often, they hope and non-pro will be flattered and devalue their work. The fact they are using the words 'licence' does suggest the person you are dealing with is looking to pay and understand how it works.

As has been said before, to give a guide we do need more info. For example, exclusivity brings with it much higher prices (but also responsibilities on your part (i.e. not sell it elsewhere and not even display it anywhere else). You should be looking at a 4 figure sum (ballpark) but more info required

Thanks guys for all your excellent advice. I have asked for more details from them and am waiting for their answer; I'll let you know once I get a reply, hopefully some time next week. Thanks again - Paul

Thanks guys for all your excellent advice. I have asked for more details from them and am waiting for their answer; I'll let you know once I get a reply, hopefully some time next week.

Thanks again - Paul