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PRICING &
NEGOTIATING
!"#$%&'()*+,-./#%
Jess Dudley/Production Director
WONDERFUL MACHINE
▹    Wonderful Machine provides creatives with the most comprehensive source of high
     quality photographers, all over the world.


       ▹    Invitation Only
       ▹    Active/Aggressive Promotion
       ▹    550+ Photographers
       ▹    50 US Cities
       ▹    50 Countries
       ▹    25 Specialties
Pricing and 
   Licensing
                Basic Uses/Terminology
Negotiating
    Gathering Information
                Determining Fees
                Building an Estimate
LICENSING
▹    Licensing fees are determined based on a number of factors including, but not limited
     to:
       ▹    Type of Use
       ▹    Prominence
       ▹    Geography
       ▹    Duration of Use
       ▹    Exclusivity
BASIC USES/TERMINOLOGY
▹         Publicity – Client Submitted
     ▹      Press Release
     ▹      Editorial Request
▹         Collateral – Client Produced
     ▹      Website
     ▹      Brochure, Annual Report
▹         Advertising – Paid Placement
     ▹      Web Banner
     ▹      Print
     ▹      Outdoor
GATHERING INFORMATION
▹    What is the concept?
▹    Do you have a shot list?
▹    Who is the client?
▹    What is the goal of the campaign/project?
▹    What is the intended use (in what ways can I limit the licensing)?
▹    Who else is being asked to submit an estimate? Am I the favored photographer?
▹    Has the agency/client worked with any of the photographers being considered?
▹    Do you have a budget set already?
▹    Have you shot this campaign/project previously?
New Client Info
       Extent of
           Use:                                Prominence:                      Duration:                 Geography:                      Volume:                      Exclusivity:                      Credit:
 Type of
 Use:
Editorial:                               Anticipated Space:              One Time Use?                 Local?                        What is the circulation of   30 days from publication     Adjacent to the photo, or
Type of Publication:                     How many photos do you        Other__________                 Regional?                     the publication?             or 180 days from delivery,   if a cover on the table of
Newspaper                                plan to use, and what sizes?                                  National?                     What is the advertising      whichever is less.
Consumer magazine                        Cover? Inside? What about                                     International?                                                                          contents page, or if a
Trade Magazine                           web use, foreign language use                                                               page rate?
                                                                                                       Foreign Edition Use?                                                                    spread, one large credit.
Book                                     reprint use, subsidiary use,                                                                                             Other__________
                                                                                                       Foreign Language Use?
Other_____________                       syndication use? Do you want
(for Corp. Mag . See Collateral Below)   these included or a la carte?                                 Other__________

Publicity:                               N/A                             One Year?                     Local?                        Number of copies?            Proprietary images are       Credit on all prints and
Type of Use:                                                             Other___________              Regional?                                                  exclusive forever, non-
Media Kits                                                                                                                                                                                     slides.
                                                                                                       National?                                                  proprietary images are
Other_____________
                                                                                                       International?                                             exclusive for one year.
                                                                                                       Other__________
                                                                                                                                                                  Other__________

Advertising:                             Size of Photo(s):               One Year?                     Will the ads appear:          Number of insertions?        Proprietary images are       This is a negotiable point.
What type of media:                      Are there other photos in the   Other___________              Locally?                      Names of publications?       exclusive forever, non-
Newspaper        Magazine                ad or just ours?                                              Regionally?
                                                                                                                                                                                               Be sure to get it when
                                                                                                                                     Number of pieces?            proprietary images are
Point of Purchase Catalog
                                                                                                       Nationally?                                                exclusive for one year.      you make any other
Billboard      Bus Shelter
                                                                                                       Internationally?                                                                        concessions.
Direct Mail     Packaging
Freestanding Insert                                                                                    Other__________
                                                                                                                                                                  Other__________
Other_____________

Collateral:                              Front cover, back cover,        What is the life expectancy   Will the publication be       What is the print run?       Proprietary images are       Once in the back of
What type of publication?                                                                              distributed:
                                         inside, or both?                of this piece? Do you want    Locally?                                                   exclusive forever, non-      publication is customary.
Brochure/ Annual Report                                                                                Regionally?
                                         Will our photos appear with     one time use of photos?                                                                  proprietary images are
Corporate Magazine                                                                                     Nationally?
                                         others?                                                       Internationally?                                           exclusive for one year.
CD-Rom                                                                   Other__________               Are there separate foreign
Other_____________                                                                                     editions?
What is the title of the publication?
                                                                                                       Separate language editions?                                Other__________
                                                                                                       Other____________
Retail:                                  Will ours be the main           N/A                           Will the product be           How many pieces will you     Proprietary images are
What type of use?                                                                                      distributed:                  produce?
                                         photo or a secondary                                                                                                     exclusive forever, non-
T-shirts                                                                                               Locally?
                                         photo?                                                                                                                   proprietary images are
Mugs                                                                                                   Regionally?
                                                                                                                                                                  exclusive for one year.
Posters                                                                                                Nationally?
Calendars                                                                                              Internationally?
Other_____________                                                                                                                                                Other__________
                                                                                                       Other____________

World Wide Web:                          Will the photo(s) appear        One Year?                     Is your audience:             How many hits does your      Proprietary images are       How about a link to your
What type of use?                        on the main page or on                                                                      site get per day or week     exclusive forever, non-      web page?
                                                                         Other___________              Local?                        or month?
Editorial                                subsequent pages?                                             Regional?                                                  proprietary images are
Advertising                                                                                            National?                                                  exclusive for one year.
Other___________                                                                                       International?
                                                                                                                                                                  Other__________
DETERMINING FEES
▹    Pricing Structure: Day, Shot, Project
▹    Consider the value of each image/scenario and the effect of the duration on the value
▹    Review previous comparable estimates
▹    Consult multiple pricing resources: BlinkBid, Corbis, Fotoquote, Etc.




▹    Consider hiring a consultant or rep
BUILDING AN ESTIMATE
▹         Use an estimating worksheet or software like Excel, Quickbooks, BlinkBid
▹         Line item everything
▹         For larger projects, consider including a treatment:
     ▹      Experience and client list
     ▹      Technical and creative approach
     ▹      Swipes including style references
     ▹      Production calendar & schedule
▹         Terms and Conditions
▹         Review with a Consultant, Rep or Friend
NEGOTIATING
▹    Portfolio, Relationship and/or Money.
▹    Don’t give away something for nothing
▹    Does the intended use match the requested use?
▹    Contract solutions
▹    Duration limitations
▹    Licensing segmentation
▹    Production responsibilities
▹    Invoicing
PRODUCTION 
▹    Concept
▹    Pre-Bid (optional)
▹    Client Review and Approval
▹    Estimate, Negotiation, Preliminary Schedule
▹    Approval, PO & Advance
▹    Production: Casting, Scouting, Wardrobe, Props
▹    Talent/Location Approval, Fees & Releases
▹    Shoot!
▹    1st Edit Delivery and Image Selection
▹    Retouching and File Delivery
▹    Invoicing
PRICING &
NEGOTIATING
!"#$%&'()*+,-./#%
Jess Dudley/Production Director

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Pricing and Negotiating for Commercial Photographers

  • 2. WONDERFUL MACHINE ▹  Wonderful Machine provides creatives with the most comprehensive source of high quality photographers, all over the world. ▹  Invitation Only ▹  Active/Aggressive Promotion ▹  550+ Photographers ▹  50 US Cities ▹  50 Countries ▹  25 Specialties
  • 3. Pricing and Licensing Basic Uses/Terminology Negotiating Gathering Information Determining Fees Building an Estimate
  • 4. LICENSING ▹  Licensing fees are determined based on a number of factors including, but not limited to: ▹  Type of Use ▹  Prominence ▹  Geography ▹  Duration of Use ▹  Exclusivity
  • 5. BASIC USES/TERMINOLOGY ▹  Publicity – Client Submitted ▹  Press Release ▹  Editorial Request ▹  Collateral – Client Produced ▹  Website ▹  Brochure, Annual Report ▹  Advertising – Paid Placement ▹  Web Banner ▹  Print ▹  Outdoor
  • 6. GATHERING INFORMATION ▹  What is the concept? ▹  Do you have a shot list? ▹  Who is the client? ▹  What is the goal of the campaign/project? ▹  What is the intended use (in what ways can I limit the licensing)? ▹  Who else is being asked to submit an estimate? Am I the favored photographer? ▹  Has the agency/client worked with any of the photographers being considered? ▹  Do you have a budget set already? ▹  Have you shot this campaign/project previously?
  • 7. New Client Info Extent of Use: Prominence: Duration: Geography: Volume: Exclusivity: Credit: Type of Use: Editorial: Anticipated Space: One Time Use? Local? What is the circulation of 30 days from publication Adjacent to the photo, or Type of Publication: How many photos do you Other__________ Regional? the publication? or 180 days from delivery, if a cover on the table of Newspaper plan to use, and what sizes? National? What is the advertising whichever is less. Consumer magazine Cover? Inside? What about International? contents page, or if a Trade Magazine web use, foreign language use page rate? Foreign Edition Use? spread, one large credit. Book reprint use, subsidiary use, Other__________ Foreign Language Use? Other_____________ syndication use? Do you want (for Corp. Mag . See Collateral Below) these included or a la carte? Other__________ Publicity: N/A One Year? Local? Number of copies? Proprietary images are Credit on all prints and Type of Use: Other___________ Regional? exclusive forever, non- Media Kits slides. National? proprietary images are Other_____________ International? exclusive for one year. Other__________ Other__________ Advertising: Size of Photo(s): One Year? Will the ads appear: Number of insertions? Proprietary images are This is a negotiable point. What type of media: Are there other photos in the Other___________ Locally? Names of publications? exclusive forever, non- Newspaper Magazine ad or just ours? Regionally? Be sure to get it when Number of pieces? proprietary images are Point of Purchase Catalog Nationally? exclusive for one year. you make any other Billboard Bus Shelter Internationally? concessions. Direct Mail Packaging Freestanding Insert Other__________ Other__________ Other_____________ Collateral: Front cover, back cover, What is the life expectancy Will the publication be What is the print run? Proprietary images are Once in the back of What type of publication? distributed: inside, or both? of this piece? Do you want Locally? exclusive forever, non- publication is customary. Brochure/ Annual Report Regionally? Will our photos appear with one time use of photos? proprietary images are Corporate Magazine Nationally? others? Internationally? exclusive for one year. CD-Rom Other__________ Are there separate foreign Other_____________ editions? What is the title of the publication? Separate language editions? Other__________ Other____________ Retail: Will ours be the main N/A Will the product be How many pieces will you Proprietary images are What type of use? distributed: produce? photo or a secondary exclusive forever, non- T-shirts Locally? photo? proprietary images are Mugs Regionally? exclusive for one year. Posters Nationally? Calendars Internationally? Other_____________ Other__________ Other____________ World Wide Web: Will the photo(s) appear One Year? Is your audience: How many hits does your Proprietary images are How about a link to your What type of use? on the main page or on site get per day or week exclusive forever, non- web page? Other___________ Local? or month? Editorial subsequent pages? Regional? proprietary images are Advertising National? exclusive for one year. Other___________ International? Other__________
  • 8. DETERMINING FEES ▹  Pricing Structure: Day, Shot, Project ▹  Consider the value of each image/scenario and the effect of the duration on the value ▹  Review previous comparable estimates ▹  Consult multiple pricing resources: BlinkBid, Corbis, Fotoquote, Etc. ▹  Consider hiring a consultant or rep
  • 9. BUILDING AN ESTIMATE ▹  Use an estimating worksheet or software like Excel, Quickbooks, BlinkBid ▹  Line item everything ▹  For larger projects, consider including a treatment: ▹  Experience and client list ▹  Technical and creative approach ▹  Swipes including style references ▹  Production calendar & schedule ▹  Terms and Conditions ▹  Review with a Consultant, Rep or Friend
  • 10. NEGOTIATING ▹  Portfolio, Relationship and/or Money. ▹  Don’t give away something for nothing ▹  Does the intended use match the requested use? ▹  Contract solutions ▹  Duration limitations ▹  Licensing segmentation ▹  Production responsibilities ▹  Invoicing
  • 11.
  • 12.
  • 13. PRODUCTION ▹  Concept ▹  Pre-Bid (optional) ▹  Client Review and Approval ▹  Estimate, Negotiation, Preliminary Schedule ▹  Approval, PO & Advance ▹  Production: Casting, Scouting, Wardrobe, Props ▹  Talent/Location Approval, Fees & Releases ▹  Shoot! ▹  1st Edit Delivery and Image Selection ▹  Retouching and File Delivery ▹  Invoicing
  • 14.
  • 15.
  • 16.