PRICING & NEGOTIATING

Craig Oppenheimer / Producer

Wonderful*MachineWonderful*Machinefor Commercial Photographers

WONDERFUL MACHINE ▹  Wonderful Machine provides creatives with the most comprehensive source of high

quality photographers, all over the world.

▹  Invitation Only ▹  600+ Photographers

▹  50 US Cities, 50 Countries

▹  25 Specialties ▹  Aggressive Promotion ▹  Emailers, Print Mailers

▹  Portfolio Events, Industry Ads

▹  Consulting Services

Copyright

Licensing

Basic Uses/Terminology

Gathering Information

Determining Fees

Building an Estimate

Pricing and Negotiating

COPYRIGHT ▹  “The exclusive legal right to reproduce, publish, sell, or distribute the

matter and form of something (as a literary, musical, or artistic work)”1 ▹  An image is copyrighted as soon as it is affixed to a media ▹  You license the use of your images to others ▹  Fees are determined by the value your images bring to a client

▹  Registration ▹  Transfer of copyright ▹  Work made for hire agreements

1”copyright” Merriam-Webster.com. 2012. http://www.merriam-webster.com (16 March 2012)

LICENSING ▹  Licensing fees are determined based on a number of factors including,

but not limited to: ▹  Type of Use ▹  Prominence ▹  Geography ▹  Duration ▹  Exclusivity

BASIC CATEGORIES OF USE ▹  Publicity – Client Submitted (Press Release, Editorial Request)

▹  Collateral – Client Produced (Website, Brochure, Annual Report) ▹  Advertising – Paid Placement (Print Ad, Web Banner, Billboard)

▹  Avoid the terms “buyout” or “unlimited” or “digital”

GATHERING INFORMATION ▹  What is the concept?

▹  Do you have a shot list? ▹  Who is the client?

▹  What is the goal of the campaign/project? ▹  What is the intended use (in what ways can I limit the licensing)?

▹  Who else is being asked to submit an estimate? Am I the favored photographer?

▹  Has the agency/client worked with any of the photographers being considered? ▹  Have you shot this campaign/project previously?

▹  Do you have a budget?

EditorialType of Publications: Newspaper, Consumer

Magazine, Trade Magazine, Book, Other (for Corp. Mag, See Collateral)

PublicityTypes of use: Media Kits, Other

AdvertisingWhat type of media? Newspaper, Magazine, Point of Purchase, Catalog, Billboard, Bus Shelter, Direct Mail,

Packaging, Freestanding Insert, Other

prominence

Anticipated SpaceHow many photos do you plan to use, and

what sizes? Cover? Inside? What about web use, foreign language use, syndication use? Do you want these included or a la carte?

N/ASize of Photo(s):

Are there other photos in the ad or just ours?

duration One Time Use? Other? One Year? Other? One Year? Other?

geographyLocal? Regional? National?

International? Foreign Edition Use? Foreign Language Use? Other?

Local? Regional? National? International? Other?

Local? Regional? National? International? Other?

volume What is the circulation of the publication? What is the advertising page rate?

Number of copies?Number of insertions? Names of publications?

Number of pieces?

exclusivity 30 days from publication or 180 days from delivery, whichever is less. Other.

Proprietary images are exclusive forever, non-proprietary images are exclusive

for one year. Other.

Proprietary images are exclusive forever, non-proprietary images are exclusive

for one year. Other.

creditAdjacent to the photo, or if a cover on the table of contents page, or if a spread, one

large credit.Credit on all prints and slides.

This is a negotiable point. Be sure to get it when you make any other concessions.

PublicityTypes of use: Media Kits, Other

CollateralType of publication: Brochure, Annual Report,

Corporate Magazine, CD-Rom, Other. What is the title of the publication?

AdvertisingTypes of media: Newspaper, Magazine, Point of

Purchase, Catalog, Billboard, Bus Shelter, Direct Mail, Packaging, Freestanding Insert, Other

prominence N/AFront cover, back cover, inside, or both?

Will our photos appear with others? Size of Photo(s):

Are there other photos in the ad or just ours?

duration One Year? Other?What is the life expectancy of this piece?

Do you want one time use of photos? Other?

One Year? Other?

geography Local? Regional? National? International? Other?

Will the publication be distributed:Locally? Regionally? Nationally?

Internationally? Are there separate foreign editions? Separate language editions?

Other?

Local? Regional? National? International? Other?

volume Number of copies? What is the print run?Number of insertions? Names of publications?

Number of pieces?

exclusivityProprietary images are exclusive forever,

non-proprietary images are exclusive for one year. Other.

Proprietary images are exclusive forever, non-proprietary images are exclusive

for one year. Other.

Proprietary images are exclusive forever, non-proprietary images are exclusive

for one year. Other.

credit Credit on all prints and slides.Once in the back of the

publication is customary. This is a negotiable point. Be sure to get it

when you make any other concessions.

EditorialType of Publications: Newspaper, Consumer

Magazine, Trade Magazine, Book, Other (for Corp. Mag, See Collateral)

PublicityTypes of use: Media Kits, Other

AdvertisingWhat type of media? Newspaper, Magazine, Point of Purchase, Catalog, Billboard, Bus Shelter, Direct Mail,

Packaging, Freestanding Insert, Other

prominence

Anticipated SpaceHow many photos do you plan to use, and

what sizes? Cover? Inside? What about web use, foreign language use, syndication use? Do you want these included or a la carte?

N/ASize of Photo(s):

Are there other photos in the ad or just ours?

duration One Time Use? Other? One Year? Other? One Year? Other?

geographyLocal? Regional? National?

International? Foreign Edition Use? Foreign Language Use? Other?

Local? Regional? National? International? Other?

Local? Regional? National? International? Other?

volume What is the circulation of the publication? What is the advertising page rate?

Number of copies?Number of insertions? Names of publications?

Number of pieces?

exclusivity 30 days from publication or 180 days from delivery, whichever is less. Other.

Proprietary images are exclusive forever, non-proprietary images are exclusive

for one year. Other.

Proprietary images are exclusive forever, non-proprietary images are exclusive

for one year. Other.

creditAdjacent to the photo, or if a cover on the table of contents page, or if a spread, one

large credit.Credit on all prints and slides.

This is a negotiable point. Be sure to get it when you make any other concessions.

EditorialType of publication: Newspaper, Consumer

Magazine, Trade Magazine, Book, Other (for Corp. Mag, See Collateral)

RetailTypes of use: T-shits, Mugs, Posters, Calendars, Other

World Wide WebTypes of use: Editorial, Advertising, Other

prominence

Anticipated Space:How many photos do you plan to use, and

what sizes? Cover? Inside? What about web use, foreign language use, syndication use? Do you want these included or a la carte?

Will ours be the main photo, or a secondary photo?

Will the photo(s) appear on the main page or on subsequent pages?

duration One Time Use? Other? N/A One Year? Other?

geographyLocal? Regional? National?

International? Foreign Edition Use? Foreign Language Use? Other?

Will the product be distributed: Locally? Regionally? Nationally?

Internationally? Other?

Is your audience: Local? Regional?

National? International?

volume What is the circulation of the publication? What is the advertising page rate?

How many pieces will you produce? How many hit does you site get

per day of week or month?

exclusivity 30 days from publication or 180 days from delivery, whichever is less. Other.

Proprietary images are exclusive forever, non-proprietary images are exclusive

for one year. Other.

Proprietary images are exclusive forever, non-proprietary images are exclusive

for one year. Other.

creditAdjacent to the photo, or if a cover

on the table of contents page, or if a spread, one large credit.

N/A How about a link to your web page?

Photographs have no���inherent value.

DETERMINING FEES ▹  Pricing Structure:

▹  Day: Day rate plus licensing for set number of images

Day rate including licensing

▹  Shot: Day rate plus licensing per image

Price by image

▹  Project: Time including licensing in one line ▹  Flexibility and negotiating leverage

DETERMINING FEES ▹  Time vs. Licensing

▹  For larger uses, licensing may outweigh or include shoot fee

▹  Consider the value of each image/scenario

▹  Consider the effect of the duration on the value

▹  Review comparable estimates and consider hiring a consultant, rep

▹  Pricing resources: BlinkBid, Corbis, Fotoquote, Etc.

BLINKBID

FOTOQUOTE

GETTY & CORBIS

BUILDING AN ESTIMATE ▹  Use an estimating worksheet or software like Excel, QuickBooks, BlinkBid

▹  Line item everything ▹  For larger projects, consider including a treatment:

▹  Experience and client list ▹  Technical and creative approach

▹  Sample images including style references

▹  Production calendar and schedule ▹  Terms and Conditions

▹  Review with a consultant, rep or friend

NEGOTIATING ▹  Portfolio, relationship and/or money ▹  Don’t give away something for nothing ▹  Does the intended use match the requested use? ▹  Contract solutions ▹  Duration limitations ▹  Licensing segmentation ▹  Production responsibilities ▹  Invoicing (flat rate = no receipts)

PRODUCTION ▹  Concept ▹  Pre-Bid (optional) ▹  Client Review and Approval ▹  Creative Brief and Creative Call ▹  Estimate, Negotiation, Preliminary Schedule ▹  Approval, PO & Advance ▹  Production: Casting, Scouting, Wardrobe, Props ▹  Talent/Location Approval, Fees & Releases ▹  Shoot! ▹  1st Edit Delivery and Image Selection ▹  Retouching and File Delivery ▹  Invoicing

PRICING & NEGOTIATING

Craig Oppenheimer / Producer

Wonderful*MachineWonderful*Machinefor Commercial Photographers