How do you feel about mixing art and money?. Artist Survey Responses Business skills are...

How do you feelabout mixing

art and money?

Artist Survey Responses

• Business skills are counter-intuitive for artists

• Directly selling your art erodes humility, goodness, or purity

• Artists are not passionate or motivated by business

• Artists are intimidated by business

Artist Survey Responses

• Artists have prejudice toward “business” people.

• Business has nothing to do with art• Business takes time away from creating• Talent, not business skills, will lead to

success• Fear of expensive scams targeted at

artists

Business and ArtBeing good in business is the

most fascinating kind of art.

During the hippie era people put down the idea of business—they’d say,

‘Money is bad,’ and ‘Working is bad,’ but making money is

art and working is art and good business is the best art.

– Andy Warhol (1975)

Wage and Employment Data (May 2010)Occupation Employment Hourly Mean Annual Mean

Actors 54,740 $28.44 N/A

Art Directors 29,700 $45.24 $94,100

Artists and Related Workers 7,560 $29.69 $61,760

Choreographers 12,390 $20.25 $42,110

Craft Artists 4,790 $15.39 $32,010

Dancers 11,200 $16.55 N/A

Designers, All Other 8,560 $24.25 $50,440

Editors 99,160 $28.53 $59,340

Entertainers and Performers, Sports and Related Workers 23,510 $18.60 N/A

Film and Video Editors 19,930 $29.75 $61,890

Fine Artists, Including Painters, Sculptors, and Illustrators 10,320 $25.52 $53,080

Graphic Designers 192,240 $23.14 $48,140

Multi-Media Artists and Animators 26,560 $30.50 $63,440

Music Directors and Composers 20,640 $25.36 $52,750

Musicians and Singers 43,350 $30.22 N/A

Photographers 54,550 $17.30 $35,980

Producers and Directors 83,520 $42.60 $88,610

Set and Exhibit Designers 8,120 $24.81 $51,600

Writers and Authors 40,980 $31.71 $65,960

Total 751,820 Ec. Power: $43,164,993,480

Wage and Employment Data, Georgia (May 2010)Occupation Employment Hourly Mean Annual Mean

Actors 260 $22.26 N/A

Art Directors 480 $40.64 $84,540

Artists and Related Workers 7,560 $38.38 $79,830

Choreographers N/A N/A N/A

Craft Artists 110 $15.55 $32,340

Dancers 70 N/A N/A

Designers, All Other 140 $27.34 $56.860

Editors 1,020 $26.87 $55,900

Entertainers and Performers, Sports and Related Workers N/A $19.75 N/A

Film and Video Editors 320 $24.76 $51.500

Fine Artists, Including Painters, Sculptors, and Illustrators 210 $14.30 $29,740

Graphic Designers 3,660 $25.21 $52,430

Multi-Media Artists and Animators 580 $26.22 $54,530

Music Directors and Composers 200 $22.27 $46,310

Musicians and Singers 490 $33.83 N/A

Photographers 1,250 $13.49 $28,050

Producers and Directors 1,490 $38.09 $79,230

Set and Exhibit Designers N/A $20.15 $41,920

Writers and Authors 610 $29.89 $62,160

Total 18,450 Ec. Power: $13,936,023,000

More information from BLS

• Occupational Employment Statistics:– http://www.bls.gov/oes/ – Latest OES News Release ->– Occupational Employment and Wages, May

2010 ->– Table 1

Drill Down for More Info!

• http://www.bls.gov/oes/ – > OES Tables– > List of Occupations in Alphabetical Order

FA Survey: Artist IncomesRespondent Annual Income Distribution

0%2%4%6%8%

10%12%14%16%

Source: Fractured Atlas – Arts Career Development Survey

FA Survey: Artist Incomes

0 5 10 15 20 25 30 35 40

No portion

Less then 10%

10% - 20%

20%-50%

50%-75%

75%-100%

% of Income Generated from Art

Source: Fractured Atlas – Arts Career Development Survey

Fair ValuationOne common mistake for

emerging artists with a good creative offering in a arts hungry market is to under price. A low

price is rationalized as necessary to enter the

field.

– Caroll Michelscareer coach,

artist-advocate

Talent in the (new) service economy: creative class occupations?Posted by daviding on May 9, 2008 under services  

How do you demonstrate value?How visual artists demonstrate value• Join recognized artist organizations – get listed on their rosters• Have a dealer or gallery publish a catalogue at least 12 pages long• Get listed in exhibit catalogues and bulletins from:

– Museums– Art associations– Corporate art exhibits– Juried shows– Non-juried shows– Local, regional and statewide shows

• Get your work reviewed• Any physical proof that you are an artist from neutral 3rd parties• Document every significant piece of art (Who, What, Where, etc.)• Track sales

How do other disciplines demonstrate value?

How do you demonstrate value?

Pricing Visual Art• Pricing is an art, not a science• Price competitively – benchmark competitors

– Based on art quality– Based on the production costs and efforts– Based on the position in the hierarchy of fame, fortune, and

accomplishment– Make sure you are displayed with artists in your price range

• Don’t price so low you are not taken seriously• Don’t price so high you are not taken seriously• Consult with gallerists, art appraisers, collectors, etc.• Be consistent – create a steady appreciation• Find multiple justifications for the price and be confident

Pricing Visual Art – More!• Start on the low end• Sell originals for more than reproductions• Larger works sell for more than smaller works• More expensive materials (bronze, precious

gems) command higher prices• The faster you work and the more prolific you

are, the lower your prices• If you can’t produce enough work to keep up

with the demand, then raise your prices• Don’t lower prices – offer discounts• List your prices as retail prices

Your Pricing Formula

Hourly WageX

Number of Hours+

Cost of Materials----------------------------

Price

How do other disciplines price their offerings?

How do you price yours?

Market Psychology

Why do we negotiate?

Creating Interdependence

• Integrating your interests• Remain autonomous, but become reliant

on and responsible to one another• Cooperate + Compete = Co-opetition

– Work together where neither party has competitive advantage

– Can share common costs

Reasons to Negotiate

• Anytime you cannot achieve your objectives without the cooperation of others you are negotiating

• Negotiation is an interpersonal decision making process necessary when we cannot achieve our objectives single-handedly

• Effective negotiation is not just about money. It is about relationships and trust.

First Task: Create Value

• Keep multiple issues in the conversation• Talk in terms of packages• Make bi-lateral concessions• Make multiple offers of equal value – truth serum• Throw in things you don’t care about• Ask diagnostic questions• Capitalize on differences by structuring

contingent agreements

= Issues on the Table

Create Value

1

3

45

21

2

3

4

58

7

6

9

10

Creating Value

Second Task: Divide Value

• All negotiations divide value if an agreement was reached

Create Value

1

3

4

5

2 1

2

3

45

8

7

6

9

10

Dividing Value

The Challengethroughout both tasks

Building Trust

Negotiation Sandtraps

• Leaving money on the table• Settling for too little by making too large

concessions• Walking away from the table• Settling for terms that are worse than the

alternative• Trying to negotiate when it is not beneficial

to do so

Avoid the Sandtraps

Negotiate only when both parties believe they benefit more by negotiating than by

not negotiating.

Why people are ineffective negotiatiors

• Faulty Feedback• Satisficing• Self-reinforcing incompetence• Hubris• Fear of change

Negotiation Myths

• Negotiations are fixed-sum deals• Negotiators need to be hard or soft• Good negotiators are born• Experience is a great teacher• Good negotiators take risks• Good negotiators rely on intuition

Recognize the types of issues

• Trade-off issues: Recognize and trade• Zero-sum issues: Recognize and

compromise• Compatible issues: Recognize and fully

benefit

Win-Win Deal

• Trades that create value, not compromise• Not an even split• Not based on good future relationship• Optimizes value• Both make concessions• All parties think they made a good deal• All creative opportunities are exploited• No resources were left on the table

BATNA

Best Alternative To a Negotiated Agreement

What you get if youdon’t negotiate

BATNA

• The BATNA of the other party tells you how high or low they’re willing to go.

• Know what you can offer that will be accepted.• Anchor the conversation near the BATNA, so

they will be happy to at least reach an agreement that is better than their resistance point as determined by their BATNA.

• Understanding your BATNA allows you to feel either sufficiently confident or cautious.

More BATNA Stuff

• If you have a good BATNA you can feel confident about pushing for a good deal.

• If you know that your BATNA is not good you can be careful to make appropriate (not premature) concessions to insure reaching a better then BATNA agreement.

• The more dependent you are the less you have an advantage.

Resistance Point

The minimum terms you would accept, given your BATNA. You

cannot go beyond this point.

Important: Try to estimate the other party’s resistance point.

This is also known as the walk away position.

Bargaining Zone

The overlap that exists between your resistance point

and the other party’s resistance point.

Aspiration Point

The absolute best case scenario for you, even if it’s

unrealistic.

Target Point

The best result you can hope to achieve.

Use the other party’s value system when trying to figure

out their target point.

Putting it all together in one AMAZING Illustration

Negotiator #2’sBATNA

& Resistance Point

Negotiator #1’s BATNA

& Resistance Point The Bargaining Zone

Negotiator #1’s

Target Point

Negotiator #2’s

Target Point

Negotiator #1’s Aspiration Point

Negotiator #2s Aspiration Point

Overlapping Bargaining Zone=

Positive Bargaining Zone