How to Develop a Fee Structure

[PhoebeG]

I'm submitting my portfolio to a company (another cold call) who pays based on usage rights - primarily a one time usage for a period of one year, on a non-exclusive basis.

Sounds OK to me, but as part of the submission package, they want to know my "basic fee structure". I've never sold any of my work this way, so I don't have any idea of what a basic fee structure would be.

They use the images in non-profit, direct mail fund raising materials - greeting cards, book marks, etc.

Any thougths on what to use, or where to find a "basic fee structure"?

Thanks,

Phil G.

[drg]

Phil,

Check out the Photographer's Market 2010 for the basic information and for universal Guidlines about what sells for what and licensing/usage structures.

http://www.amazon.com/Photographers-...9374959&sr=8-1

The link is for Amazon. You may get a better price else where or you can just go to your favorite local book store and see if they have a copy. Most larger libraries (public or university) will have at least last years version.

After that if you have any more questions let us know!

[PhoebeG]

Thanks. I tried that and the info wasn't all that useful. Very basic. I'm thinking of approaching it generically, with info I got from some Stock Photography sites. Here's what I have so far:

"My licensing fee structure for printed materials is based on actual usage including duration, image size, and press run."

That seems to capture how usage fees are established without giving any prices.

Thoughts??

Phil

[drg]

Thanks. I tried that and the info wasn't all that useful. Very basic. I'm thinking of approaching it generically, with info I got from some Stock Photography sites. Here's what I have so far:

"My licensing fee structure for printed materials is based on actual usage including duration, image size, and press run."

That seems to capture how usage fees are established without giving any prices.

Thoughts??

Phil

Your fee structure is what you charge, at a minimum, for the types of work you perform. It may include a basic day rate, a copy charge, a release fee, first run fee (or one time use fee), a syndication by date fee, etc. It's a type of price list.

Pricing is needed to do business and create a contract. Or "Offer, Acceptance/agreement, and consideration". The last part is the best, that's the money!

The Photographer's Market gives a lot of specific examples of what various places pay for or are looking for at various rates. Look at a published Pricing Guide for Photographers including this other 'Bible' of the industry:
http://www.amazon.com/Pricing-Photog...ref=pd_sim_b_4

Another Amazon link.

Be very, very, very, careful of Stock Photography Sites. Your best interests are not their concern and their pricing is meant to make them money, not you the photographer. A few rare exceptions if the photographer sells lots of imagery, but I'd recommend an industry type guide to set the basics.

Remember, you can always negotiate a different price, even lower, but don't let a 'non or not for profit' designation fool you. A lot of them spend a bunch of money on publicity and advertising.

[PhoebeG]

This second book on pricing looks like what I need. It has been ordered.

Thanks,

Phil