I can't really address the initial complaint about using photos w/o permission. Not sure how I would handle the situation except to say that I now display pictures on the web using a "Flash" program so pictures cannot be copied.
In terms of giving pictures away and others trying to make money - well this is essentially the same as any other market in any other industry where there are relatively low barriers to entry and technology that evolves constantly.
If someone wants to give pictures away than what can you do except to differentiate yourself in some way (service, quality, whatever). You can't expect to have a nice picture and then have someone say "Hey I would like to buy that - take my money" (although I guess that happens occasionally)
You have to sell it, sell yourself, demonstrate why they should pay for yours and not take the freebie. Adina pointed out that she makes a point to get out there and get in front of the customers - helping to create and expand her market.
There is an element of sales in this that you cannot forget and must work at constantly. Would you buy something when you could get it for free? No, but probably the end product isn't exactly the same, but what is the difference b/n the two? That is what you have to sieze upon. If in the end there is a real or percieved difference then you will have a sale and if you live up to your word and are dedicated to the business/art/quality you will have repeat customers.



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