A decent proposal

[j-wilson]

I was recently contacted by a company that wants to use an older (2002) picture they found on my flickr site for a new exhibit at the San Jose zoo. The photo link is attached below. They've already confirmed to put a credit line on the photo and said they had a small budget but would be willing to negotiate a fee for the use of the photo.

I plan to ask the following:

1. How it will be displayed - print or digital, maximum size, how many copies will be displayed.

2. How long it will be dislplayed.

3. If they plan to alter the photo once they have licensed it.

Are there any other standard questions you guys would ask before proceeding that I haven't considered?

Also, as an amateur, I have no idea what kind of fee to propose for the use of the photo. I've looked up the company and it appears to be a very small, 2 person operation. I don't know what people normally budget for photos for these types of exhibits.

Any information/opinions would be greatly appreciated.

Thanks!

http://www.flickr.com/photos/jaredwilson/1894347112/

[sfaust]

1. How it will be displayed - print or digital, maximum size, how many copies will be displayed.

2. How long it will be dislplayed.

3. If they plan to alter the photo once they have licensed it.

Are there any other standard questions you guys would ask before proceeding that I haven't considered?

Also, as an amateur, I have no idea what kind of fee to propose for the use of the photo. I've looked up the company and it appears to be a very small, 2 person operation. I don't know what people normally budget for photos for these types of exhibits.

Any information/opinions would be greatly appreciated.

Thanks!

http://www.flickr.com/photos/jaredwilson/1894347112/

1&2 are the right questions to ask since they are the main factors in pricing. 3 isn't all that important, as long as usage is taken car of. I'm sure there will be some modifications done to it (cropping, color, effects, etc, all fairly standard), but you don't really price on how they modify it just in what manner its used.

I would also address copyright to make sure its stated how it will be handled (yours, theirs, joint, etc). Usage (where, term, media, etc) should also be spelled out plainly so there is no confusion on what is being granted. Model releases if required (haven't seen the image yet), should be addressed as to who is responsible for them. Liability should be covered as well, i.e., you want to be insulated so you won't be responsible because 'the client' used the image in a way that caused a third party filed a lawsuit.

Pricing is wide open. I would suggest you consult the specific usage fees from places like rights managed stock image houses, estimating software like fotoquote, etc, to get a basis. I could tell you what Fotoquote suggests, but don't really know the full extent of how the images will be used.

Then there is the client value factor and uniqueness of the image. If you have a one of kind image that the clients just has to have, you'll get a nice fee. If you have a more generic image such as a travel landscape, which you can find similar gorgeous images
for say $30, you position is weakened. And if the clients budget is $50 and they can't exceed that, that trumps everything else. I would come up with your own bottom line price based on a healthy profit margin, and also research an industry price (use Getty, Fotoquote, etc..). Start negotiations at the industry price, and go from there. But never exceed your bottom end. Consider it cast is stone.

[vadim_c]

I would come up with your own bottom line price based on a healthy profit margin, and also research an industry price (use Getty, Fotoquote, etc..).
Profit margin is a difference between expenses and income. It does not apply here.

[j-wilson]

SFAUST and Vadim_C

Thank you for the information and links. Much appreciated.

[sfaust]

Profit margin is a difference between expenses and income. It does not apply here.

How does it not apply here? Every business has overhead and expenses which need to be accounted for, including selling stock images. Look at the expense he has already incurred with the time taken to deal with the customer, time spent researching appropriate fees, and so on. If you didn't include that, a .10 cent sale would appear to be a .10 profit, when in reality the $65 worth of his time would make it a $64.90 loss.

Yes, it certainly applies here if one want so to actually make a profit, in contrast to a perceived profit.