On one of the major photo forums there is a discussion about pricing usage. I shared the idea of basing one’s usage license fee on the media buy involved in the project. As is to be expected, there are some objections to this. I can understand some of the points but, overall, I still think this is a the best solution (so far) to the immense problem of pricing usage; most specifically, pricing usage in a manner that is fair for photographers AND clients. Why do I care about being fair to clients? Because if we can find a way to come together on these issues, everyone will benefit.
So, I thought I’d share one of my posts on the topic here…
Here is why I advocate the “media buy” system:
1. It is quantifiable–based on math which the bean counters and suits can understand and respect;
2. It makes a photographer look like a businessperson who understands value and is attempting to find an equitable solution to the seeming randomness of usage pricing (that is, when one photographer says “that usage will be $1000” and another says “$10000”);
3. It is better than guessing, which is what most photographers do;
4. Even if you don’t get the actual numbers from a client, you can figure it out yourself with some degree of accuracy as most every media out has its rates listed online in some form or another. So, if a client says “we’re doing some billboards, probably less than 20 in the metro area, and full-page print ads every Sunday for the next 6 months and maybe some other collateral stuff” you can get numbers that will be at least close to what is really being spent and thus have a better understanding of the actual value of your images to that client;
5. Using this system will, for the majority of photographers, result in significantly higher rates;
6. Because it’s based on math, you can break down the cost per set of eyeballs (yes, this is a bit hypothetical, but so is all media impact) which shows the bean counters how little it is actually costing them;
7. It gives the suits the ammo they need to sell your estimate to their clients;
8. It gives a photographer greater ammo in the case of infringement–if your usage number is directly correlated to media, then your lawyer can more successfully argue the value of your images and win you more money in an infringement case.
Is it a perfect system? Of course not–there is no perfect system. However, it is an equitable and more clearly definable one. It is a system, whereas now what we mostly have is voodoo and guessing.