Exclusive Rights, What Dose That Mean and How Do I Price It?

pasjrwoctx/ February 28, 2017/ Interesting Reading/ 0 comments

Exclusive Rights, What Dose That Mean and How Do I Price It?

At the start of your photography business venture, you probably never thought of contracts, release forms and the most lucrative aspect to all art, Exclusive Rights.

As we will cover the bases in this series over the next few weeks. Today we are dealing with Exclusive Rights.

Recently I saw a post on facebook asking for contract info. I responded with a link to my contract to use as an example. As a result I was then asked about Exclusive Rights,

“Just curious, how would you price “exclusive” rights to an image? (I have my own photography release). The question of exclusive rights come up every now and then.”

This was my answer,
“that is up to you. In reality your offering a License to use with out restriction. Just as actors, or music artist sing a LIC deal with the record companies. You get paid for the original shoot + prints butt Exclusive Rights is something that allows the end user to benefit from them. Do you want to sell those rights out right? As in $10k per photo or maybe you want a royalty, for every dollar the client makes with that photo you want 5% or every time they use it you would want 1.5% Also often if you sell exclusive rights, the client expects that you will no longer use the photo yourself. Unless you have reserved that in the contract. If I took a photo of a Stud Horse in the Hunter Jumping world. and the client wanted exclusive rights. I would sell it as a royalty at 15% of every dollar they made by using it. Now here is the hard part, how do you know? So often just selling it as exclusive rights is easier. In that case for the same Stud I would most likely do a 3 time multiple of the total package for one shot exclusive. If the client wants 10, you have to do the math to make it profitable but not a ripoff. at 10 exclusive rights I would do the 3x per photo and dived it by total cost. Just a place to start.”

Lets do some basic math, I bill my services out at $250 an hour. Lets say todays session is 5 hours. So $250.00 x 5hrs = $1250.00, from that session I shot 20 photos. 15 of which is what the client chose to have me finish out for them. Out of 15 they chose 5 photos that they wanted Exclusive rights to. I elected to do the easy sell instead of royalty. So I take $1250 x 3 = $3750 per photo for exclusive rights, but they want 5, so now $3750 x 5 = $18750 but we now dived that by our total session cost. So $18750 / $1250 = $15 here is where things are creative. No your not selling exclusive rights to a photo for $15.00 You need to add a couple of zeros to that. $15,000.00

So per photo exclusive rights cost, $3750.00
A set of 5 photos with exclusive rights cost, $18750.00
But even though your client may not blink at that cost.
We don’t want to take advantage. Most people love to feel
like they got a deal or discount. So we did the whole divided
by our session cost. Which again is 18750 / 1250 = 15, we make it.
$15,000.00 which is a savings to your client of $3750 and in the long run
will bring you more work from that client, providing everything went well the
first time.

If you find this confusing, just ask. I will be happy to do my best to help.

If you enjoy our work, we would love for you to support our continuing efforts.

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