I was going through some files earlier today when I ran across a post from APAnet that I had printed out. I rarely print posts out, so I decided to take a look at it as I must have had some reason for saving this post in tangible form. It was by Tim Olive and dated to early 2004, and it contains some great information about pricing and media buys and negotiating. It’s worth reading again, so here is the link to it on APAnet.
Mr. Olive refers to an earlier post by Jeff Sedlik, but unfortunately does not provide a link to it and it was not of the same thread (I searched). However, I did find this earlier post on a related topic by Mr. Sedlik and think it also is worth a look.
So, the next time someone tells you that pricing your usage licenses using a system related to the media buy or budget is an “antiquated idea that dates back to the pre-usage days” you can say, with confidence, “Bull.” In fact, it is a logical and helpful way to increase your license prices while clarifying their legitimacy to your clients, thus bringing in more money per project and improving your bottom line.
Hi Leslie,
Thanks for bringing up this important topic on pricing. Understanding the logic behind fee structure is SO important, and it’s one we rarely even hear mentioned. A related topic is usage fees, and how extended use (invoiced with the original job) and subsequent re-use fees (the ad has already run) are different, and why. More important than the fees themselves, is the logic behind them. Once you understand that, so will your clients as you explain it to them.
Keep up the good work.
Tim Olive
APA
Tim:
Thanks for contributing to this blog, and, of course, for all the great work you’ve done for photographers everywhere.
I just realized I didn’t originally link to your site in my post, which I should have. I’ve changed that now. Bad me!
-Leslie
Good stuff on a tough subject and it’s not getting easier. Tim – thanks for sharing, I’m acutely aware of the time and effort it takes to gain enough savvy to negotiate effectively with buyers.
Oddly enough stock agencies may become our allies on this. One doesn’t have to be too aware of the internal struggles of Corbis and others to understand that it’s tough for even the powerful to turn a worthy profit in our business. There is ceaseless downward pressure on prices, but there is a line to be drawn that only those with the power to negotiate can make stick.