Budgets

Q:

Thanks for your Monday 1/22/24 Low-Budget Job Checklist, helping me figure out what low-budget jobs may be worth taking. One area you didn’t cover is stock photography. Stock is always cheaper, but since it could lead to other financial gains like celebrity portraits for licensing on Getty or August, isn’t that a good idea?

A:

Stock photography is a perfect example of a lower-budget creative investment leading to larger payouts! Let’s expand my Lower-Budget Job Checklist – WHAT ARE SOME OTHER TYPES OF LOW-BUDGET SCENARIOS YOU DO TO BRING IN CASH DOWN THE LINE?

Clients usually cannot provide specific prices or amounts you need to present a range of options for them to advise bringing you up or down.

Overage fees for changes/additions are our responsibility to request financial coverage that is not already included in our approved budget.

Dealing with financials before agreeing to or starting the changed work is one of the many “unsaid” standard business practices covered by the photographer/director/producer.

I’m in a situation where we’re working with a client who constantly asks for changes. At the same time, they never mention the budget or how much the changes will cost. It’s always up to us to ask, inform them, explain the implications, and then get permission. It feels awkward, but it’s something we’re expected to do right away. Don’t make the changes and then ask—that’s riskier. Ask immediately because they want the changes to happen quickly. Make sure to cover yourself, even adding a bit of padding to account for potential changes. If this is a client who constantly makes changes, try to set yourself up to protect yourself.

Q:

Do you have to turn jobs away because of low budgets, or do you make it work? If you photographers are in a slow period, does that make you more open to taking on these jobs?

A:

I do have to turn jobs away regularly because of low budgets. 

My checklist to consider these lower-budget projects:

1. Can this lead to future larger-paying jobs with this client or others?
2. Is this a paid test that will benefit my photographer’s portfolio?
3. Will the usage rights be controlled to match the budget?
4. Would this be a regularly reoccurring client where fees add up as a regular gig?
5. Does adding the client name to your client list help?
6. Is there any chance of the low budget restricting the job quality, and if so, this is a definite NO WAY. 

Q:

I want a rep to help me get larger brand clients. I’m working with good mid-level clients, but I’m at the cusp and ready to see which larger clients I can work with. What steps should I take to find the right rep to help me take my career to the next level?

A:

Reps can open doors that may be tougher for a photographer to do themselves. The key is to find an agent who will see your talent as a potential income stream for both of you. Who are the reps who work with clients you can be working with? Do you match their branded style and fit within their roster? Do you have anyone in common who can recommend you to the rep? Have a short list, focus and engage, introduce yourself, and communicate on all platforms to see who is interested in your work.

You’ve been told the potential client’s budget, and you’d like to meet it but don’t want to be held to that amount in the future – use the words “Discounted Rate” as the best excuse not to guarantee that same rate next time. Even better, put a discounted percentage subtracted under your actual total to show the deal they are getting.

“Discounted rate” is a term used to protect oneself from future pricing when bidding for a job that has a lower budget than what it should actually cost. By taking off a certain amount from the total bid, one can still get the job, have the desired images for their portfolio, and protect themselves from future pricing demands. This approach is useful when the client is desirable and the type of images is beneficial for the portfolio. This way, the bidder is protected from being trapped into meeting the same requirements in the future. It is also possible to avoid listing out prices and just providing the total amount to be charged for the job.

Retouching rates leave ambiguity when it’s based on per image, so one way to protect your time spent is to make it a day rate. As you track your time, the client can be aware of the image(s) progression and even try to speed it along, helping them achieve more out of that 10-hour day they are paying.

When pricing retouching fees, it is important to be careful as clients and photographers may have different interpretations of what is being done, what is being supplied, and how many revisions are allowed. Feedback can become intense if not priced accordingly. One way to handle this is to charge a day rate for one 10-hour day, based on time instead of production level or the number of images. This makes it more about the retoucher’s time rather than the amount of images being worked on.

Cover yourself by getting a 50% Advance Invoice BEFORE the job begins. You have more power in the game with clients on your side to get you paid and not delay the photoshoot vs. trying to convince them to hurry up after the job begins.

It is important to get an advance on your invoices. It is recommended that 50% of the job awarded should be invoiced in advance, and this should be included in the estimate and terms before the start of the shoot. If the request for advance payment is made after the shoot has begun, the client may have more flexibility and less urgency to make it happen. Pushing for an advance invoice before the shoot begins shows a level of professionalism and sets clear expectations with the client. Clients are more likely to respond positively to a clear and organized approach, and this can help build trust and credibility in the business relationship. Overall, advance invoices are an essential tool in the photography industry, and their importance should not be overlooked.

Rate sheets, rate cards, and day rates do not have to be the same across the board. Rates are based on more than your time, amount of images, and usage terms. Your unique creative experience and the client’s budget affect your fees, making ‘one single rate’ for every project an incorrect business model system.

Day rates in the photography industry are not fixed and can fluctuate depending on various factors such as the artist’s level of experience, usage, and the client’s budget. Negotiation skills and a sales mindset are crucial in determining the day rate for a particular job. The assumption that day rates remain the same once a certain level of success is achieved is incorrect. There can be a range of prices to consider, and it is not necessary to stick to one specific price.

Bidding with larger clients usually means dealing with cost consultants asking us to reduce their selected costs. The better we prepare with strategic category padding, the more we can keep in our budget and respond with reasoning explanations of why costs need to stay the same. 

When bidding for a job with larger clients, it is common for clients to hire cost consultants to review and fine-tune the bid. The cost consultants’ job is to reduce prices, so it is expected that some areas will be padded. This can include crew size, producer time, equipment rental, and even meals. To prepare for cost consultants, it is recommended to pad some areas knowing they will be reduced. For example, inflating prices a little bit or bringing up prep days with the expectation of being asked to reduce them. It is important to adjust for cost consultants on the client side to secure the job.