Usage

Q:

You mentioned the idea of a “Penalty Fee,” and I’ve never priced this before. I price usage fees, so how does that change for a penalty fee when a client has used my images without paying for them?

A:

Fees in our industry are in constant flux, and there is no one standard across the board. I get creative, and as I am not sure this is the same standard for other reps, a “Penalty Fee” has worked well for me. Clients don’t want to use our images illegally; I find they are unaware of this and want to fix the problem. I price this as a one-charge double rate of the original fee. 

As times change, we have to accept how our clients will need our still images for all sorts of motion. We must now be aware to add “still photography only” to our licensing terms. Using still images for motion is a large option that should be paid for instead of granted unknowingly.

USAGE RENEWAL prices based on duration options are not split perfectly into divided values. 

Two reasons:

1. We prefer the client to choose the more expensive, longer-term option.

2. Images may be more powerful, holding higher value when seen for a shorter time.

I deal with a lot of client requests regarding usage licensing rights, and they often want to know the price difference between various durations. It’s important to understand that the cost for different durations isn’t simply a matter of dividing a longer period by the number of shorter periods within it. For example, the cost for one month isn’t just one-twelfth of the cost for a year.

The impact of using an image for a shorter period, such as one month, can sometimes be greater, so we need to raise the value for shorter periods of time. It doesn’t work to just evenly divide the cost over time, and clients might not realize this. They might expect the price for a shorter duration to fit into the longer duration’s price equally divided, but that’s not the case. It’s important to know this and price your services fairly.

Q:

What does “re-use” mean?

A:

Re-use is when an image is purchased to be used beyond its original licensing agreement. For any new, not yet agreed upon licensing in the original bid contract, the client must pay an additional fee to use the image. Of course, there is so much more info about this as clients often aren’t keeping track of what usage rights they have or for how long. We have to keep an eye on this, which is not an easy situation.

Q:

Will booking a job where the images are to be used commercially prevent me from selling them in the future as prints?

A:

You set the terms in your estimate to allow exclusive usage for them or not. If they want to purchase the images exclusively then they will have to pay for that. Just be clear with them and spell it all out and get their signature on your estimate.

Q:

Do reps take a cut of usage fees? If so, is there a standard amount?

A:

Yes, traditional reps are paid a commission of all fees based on your time and image value. Our commission (normally 25% or 30%) is for all photography fees, including usage, prep, travel, day rates, creative fees, shot fees, and sometimes post-work.

Q:

A local city magazine used images from another client’s project without permission and even made one image on their cover. The client alerted me and apologized profusely. They know third-party rights are not in their contract. What’s the best way to have an after-the-fact payment conversation? And should I ask the magazine or my client?

A:

My way of handling any unpaid usage or third-party sale without our approval is to have a conversation informing them that this will need to be paid for immediately. Usually, clients are afraid of prosecution and will eagerly respond to settle this immediately. I will discuss the fair price and often set an additional “penalty” fee for using images without licensing rights. Both clients are involved in sharing high-resolution images without your permission.

USAGE TERMS values fluctuate depending on how long an image will hold its value. When a product or look is not changing over time, the term “unlimited duration” should be priced higher, knowing it has longer usability.

In the world of image licensing, the usage terms and values are not always consistent across the board. For instance, the term “unlimited duration” may hold different values for different clients, depending on the rate of change in their products over time. For example, if a company is advertising cars that change every couple of years, the value of an unlimited duration license is not as high as it would be for a client whose product is relatively stable. Therefore, it is important to structure pricing based on the client’s needs and intended use of the licensed image. The value of the license needs to measure up to the client’s requirements.

Q:

I photographed musicians now asking for permission to use the images without credit in perpetuity on their social media when the job I was paid for was for “promotional material.” I expected the images to be used across socials when they’re playing shows, etc., but I’m now feeling spooked by their large usage request. Do you think they’re just covering themselves by asking for general social media usage?

A:

WARNING TO ALL PHOTOGRAPHERS

When setting your licensing usage rights terms, DO NOT leave anything open to interpretation. Spell out all usage terms by saying too much vs. too little. Never rely on clients to understand your assumptions. IMMEDIATELY see the AMA USAGE GLOSSARY and stick to it! Do not risk losing your fair income and lower usage pricing for all photographers

https://artistmanagementassociation.org/usage-glossary

Additional usage pricing options are the one client request which gives us more flexibility than the other bid costs since they do not add to the bid total. My approach is to come in higher on these since it won’t make or break a bidding situation, allowing the wiggle room to be lowered after we get the job.

Discussing the benefits of pricing oneself for additional options for usage when negotiating a photography job. By having control over additional usage terms, a photographer can negotiate for more options and flexibility in their fee. This allows for more negotiation and freedom, as photographers are not held to a strict usage amount in their fee. Furthermore, additional usage terms are optional and can be used as a bargaining tool to ask for more money or benefits. This approach can provide more financial security and opportunities for photographers in their industry.