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LICENSING YOUR ART TO A SKATEBOARD COMPANY (Or any Company)
Sector 9 Skateboard Designed by Drew Brophy
“Making money is art and working is art and good business is the best art.” Andy Warhol
Licensing your art to a reputable company is a wonderful way to make your art available to the world. What I love about licensing:
- You’ll earn money off of one piece of art over and over again
- You can get your art on quality products without having to produce them yourself (leave the production and sales to the experts)
- It’s one more way to get your art and name out into the world
The difficult thing about licensing is that there is no solid road-map to follow. Sure, there are general rules, but it’s not easy getting the information on it.
Which leads me to this question that I received by e-mail today from a friend named Patrick Parker, who has rapidly become a popular surf artist in Southern California:
“I’m going to sign with a company to use my art on their skateboards but am only working on a royalty basis. What is a common way to go about doing this – percentage, etc.?”
I’ve handled about 200 licensing deals over the past ten years for my husband, Drew Brophy, and a few other artists, and not one of those deals were the same!
There are many different aspects to a license agreement, and I won’t be able to cover all of them here, but I’ll hit on the basic points.
First, I would ask this artist how many designs the company wants to use.
FLAT FEE BASIS:
If it’s not a complete line of skateboards, but only 3 or 4, then I would recommend not doing a royalty deal but rather a fee per design. I’d do this for 2 reasons:
1 – Unless it’s a toy company that’s going to sell 10,000 skateboards, the royalty won’t be worth it because the volume will be low. You’re better off getting paid the full amount up front, and:
2 – The accounting of royalty reports is a pain the butt for your client, and for small deals, it’s a waste of their time.
The flat fee per design can range from $300 to $3,000. What you can charge depends on your reputation, the popularity of your art, and what they are willing to pay. Our typical flat fee for Drew’s designs are $1,500 per design, when providing existing art to a small company that will produce less than 5,000 units. For some of you reading this, $1,500 will sound like not enough. True, I agree! But, Drew likes to work with companies that make products that he likes, and many of them are small and can’t afford much more. Some of you will see $1,500 as being a high number. And maybe for many it is. That’s the interesting thing about this business – the numbers are all over the place and are subject to the perception of the people on both ends.
You have to figure out for yourself what to charge, and eventually you’ll come to a formula that makes sense for you and your clients.
If you are new to licensing and your art isn’t very well known, you might have to charge on the low end to build up your portfolio. But please, don’t do this for long, because then you’ll lower the bar for all artists. Be sure that once you’ve got a few successful deals under your belt, you start inching your prices up to where they should be.
ROYALTY ONLY BASIS: If the company wants to do a complete skateboard line with your designs, then a royalty deal could make sense. Be sure you get an advance of royalty up front.
We rarely go into a deal without a non-refundable advance of royalties paid up front.
A royalty advance is a dollar amount paid to the artist at signing, before creating and/or providing the artwork. This advance is deducted from future royalties that are to be paid to the artist.
WHY GET AN ADVANCE OF ROYALTY? Without an advance of royalty, the client has no incentive to make this work. They may drop it from the line, or they may go out of business, or a new person comes in and changes things, etc. It’s one tool we use to be sure that the client is serious about making it work.
The other reason is that we are not a bank. Meaning, we aren’t able to do the work up front without getting paid anything for 6-18 months.
Your advance is insurance that you’ll be paid something in the event anything goes wrong.
And believe me, things go wrong. Here are a few real “wrong things” that we’ve experienced with licensees over the last decade:
- A 50 year old toy company (one of the largest in the U.S.), went bankrupt one month after we gave them the artwork for a kid’s skateboard line (good thing they paid us $5,000 advance for all the work Drew did)
- A kid’s clothing co. had their Drew Brophy line ready to go, then a new partner came in and nixed it. The line never made it to retail, which means there were no royalties to be paid. (Good thing we were paid $5,000 also.)
- A license plate company owner, after we did a deal for Drew Brophy Plates, shut down his business to join the airforce! (We were only paid $1,200, but it was something.)
- A cell phone screensaver company never sold anything after we provided over 20 images and put hours into the contract, marketing information, etc. (we were paid nothing up front here so we ate this one)
There are so many things that can prevent your line from making it to retail. If it doesn’t make it to retail, there’s no royalties. And that means that you’ll be paid nothing for your efforts unless you’ve recieved an advance up front.
HOW MUCH SHOULD A ROYALTY ADVANCE BE? This depends on so many factors. Sorry, I know that’s frustrating! If you are Disney, you can require anywhere from $50,000 to $200,000 up front. But in the real world, for your average artist, it will have to be more realistic.
There are two ways that we’ll ask for advances, and it depends on the size of the deal, the company, etc.:
- FLAT FEE ADVANCE: We use $5,000 as our benchmark. However, if we are dealing with larger companies for big deals, we’ll go as high as $15,000. (We usually put a cap on the number of images provided for a flat fee, to ensure that the client won’t keep asking for an endless supply of new art season after season. Another insurance policy…..)
- PER DESIGN ADVANCE FEE: We’ve gone this route with a licensee that produces Drew’s beach products, because they use so many designs. They’ve used up to ten designs just for skimboards. Charging per design ensures that Drew isn’t providing a limitless number of designs.
EXCEPTIONS: There are exceptions to everything in licensing. In the case of a t-shirt licensee, Coastal Classics, we provide many new designs each season but don’t charge any advance because our royalty payments from them are high enough to satisfy. We’ve worked with them for four years, and they have a track record that we can count on.
ANOTHER EXCEPTION: Sometimes a company just won’t pay advances. It’s rare for us to move forward with these companies, for the reasons I’ve stated above, but I can name one instance that I made an exception and it’s worked out great. Skin-It.com doesn’t do advances with any of their licensors because they’ve been burned on a few, and we decided to do the deal with them anyway, because they are large enough to where they actually feature Drew’s art on national t.v. commercials. (One of the commercials was running during Christmas.)
(NOTE to the Licensing Experts out there on why I’ve omitted information on a Guarantee: I don’t typically work with guarantees – I prefer advances up front. It’s the business model that’s worked well for us.)
ROYALTY PERCENTAGE: Percentages are all over the board in licensing, too. They are based on the product being produced, the number of items projected to sell, the value of the artwork (popularity), etc.
There are books that you can refer to and find ranges to this. I refer to Licensing Art and Design: A Professional’s Guide to Licensing and Royalty Agreements
For skateboards, you can ask for anywhere from 6% to 10%. If it’s a large company that sells in major retail chains, you’d go with a lower percentage, because your volume will be higher. If it’s a smaller core company that sells in skate shops, you’d go with a higher % because the volume will be lower.
Just to give you an example of how percentages are all over the board: For paper goods like posters or greeting cards, the range can be anywhere from 10% to 18%. For high volume shoe sales or boogie board sales, you would go as low as 3%.
OTHER POINTS TO WORK INTO YOUR CONTRACT OR AGREEMENT:
- State that Artist retains the copyrights to the artwork. (This is a no-brainer, but you’d be surprised at how many great brains don’t get this concept.)
- Contract start and end date. (We typically go for 2 years.) DO NOT allow an automatic renewal. For so many reasons I have to write another post on this topic.
- Samples: Ask for a number of samples (for skateboards, I’d ask for 2 or 3. For less expensive products, we’ll get a dozen or more.)
- Approval: Artist must approve, in writing, the final sample before going to production (this gives you control over your art)
- Signature: Artist’s signature must appear legibly on the product and copyright notice (i.e. (c) Artists Name) must appear legibly on all marketing and advertising materials. This is important for protecting your copyrights.
- Payments: Must be made MONTHLY or QUARTERLY – however you determine with the client.
- Royalty Reports: Must be issued Monthly or Quarterly (see above) regardless of whether there’s been sales or not. Reports must state retailers names and quantity sold per design. (This information will be greatly helpful to you when determining what your best selling images are, as well as which stores are carrying your products.)
I recommend getting more information on licensing agreements as you go along – this barely skims the surface.
Here are some of my related articles on this topic:
- THE MAKING OF A GOOD ART LICENSING AGREEMENT
- WORK SMARTER, NOT HARDER: LICENSING YOUR ART 101
- BRANDING ART – FROM SURFBOARDS TO GREETING CARDS
- THE ART OF THE DEAL MEMO
- OUR BIGGEST MISTAKE EVER – IN THE ART BUSINESS
Here are some great websites to get better educated on this topic:
The Do’s and Don’ts of Art Licensing by Porterfield’s Fine Art
Art Licensing Blog – Artist Tara Reed’s Helpful Information for artists
All Art Licensing – A helpful site by J’Net Smith, an expert on art licensing
My final parting words: Move forward, do your deal, get into licensing. The best way to learn about licensing is to just do the deals without hesitation.
Don’t be afraid of making a mistake, because you will. And that’s okay – you’ll learn from it.
Don’t be afriad of being ripped off: that can happen, and you’ll learn from it.
Good luck on this, and please, anyone, if you have any questions on anything that wasn’t clear in this post, let me know in the comments below!
Maria xxoo
PS: You can find more very helpful tips for art licensing deals in my eBook, co-written with artist Tara Reed, called How to Understand Art Licensing Contracts.
Click the link to find out more about it!
Similar Posts:
- What to Charge for Art Licensing – Royalties Advances and Flat Fees
- Help, a big company wants to license my art. What do I Do?
- Art Licensing 101 Lecture RECAP
Tags: advances, art licensing, licensing for a skateboard, patrick parker, percentages, royalties, skateboard art
Patrick Parker
06. Jan, 2010
Makes complete sense Maria, excellent touching on the main questions I had. I have had one skateboard deal before that was based on a flat fee, but this new one is royalty only. I will use this info to better guide my contract negotiations with the company. Thanks!
Jay Alders
06. Jan, 2010
Great article Maria. I’ve done some nice deals and it’s always nice having you to bounce things off of, whether by phone or thru your cyber-self here.
aileen
07. Jan, 2010
Great information! …Now I just have to get a licensing deal! I am pondering going to NYC for Surtex (textile convention) and the National Stationery Show. I know artists set up booths there. Have you gone? I would probably show my portfolio around. Do you walk various shows, portfolio in hand?
Maria Brophy
07. Jan, 2010
Hey Aileen,
I would recommend walking different licensing shows. There’s a small one here in Anaheim, CA called CHA on Jan. 24th and 25th. I haven’t done this one yet, but we’ll be there for a book signing for Drew at the Walter Foster booth.
I believe CHA has booth space for really cheap compared to Surtex and License. You might want to check it out, since you’re local.
aileen
07. Jan, 2010
Hey Maria,
I’m actually planning on attending the CHA supershow which is the public show before the trade one… I wasn’t sure how to get into the trade show without paying $150! I definitely want to scope out the scene before getting a booth. If I get into the trade show, I’ll definitely stop by Walter Foster. Love those books!
Thx!
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Bob Towner
12. Apr, 2010
Hey Maria, it was a real pleasure meting you and Drew yesterday at Sacred Craft. Also, thanks for the tips on licensing. It sounds like an excellent way to go.
Bob Towner
17. Apr, 2010
Hi Maria, I have a question regarding trade shows. I’ve been very fortunate as an artist in the advertising business. However, my passion is surfing and would like to do work in that area. Would the upcoming Sacred Craft show in October be a good time and place to launch the brand?
Olivier Longuet
25. Jun, 2010
Maria,
Great article again.
thanks
Olivier
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[...] I’ve written about it many times before, like the time an artist called and asked me “A skateboard Co. wants to license my work. What do I [...]
Beverly Hayes
04. Jan, 2011
Hi Maria,
This is extremely helpful and timely. Thanks for being so generous and sharing your knowledge. I appreciate it.
Travis Cohn
12. Jan, 2011
Wow, that was awesome, a great primer. Thank You. I will forward this to my mom, who needs it badly.
Khristian A. Howell
18. Jan, 2011
Really great article! Thank you for your honesty!
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[...] you get an advance of royalties up front, so if the product bombs, you still got paid [...]
bluffy
30. Jan, 2011
great article and information….thank you maria
jeanne @ inspiring ideas
23. Mar, 2011
Thanks for this Maria!! Just listed to you speaking with Tara Reed! Great help call! Appreciate your input. AND, that led me to your site here where I’m finding more great tips!!
Maria Brophy
23. Mar, 2011
Jeanne, thanks so much for commenting on my blog post! I’m glad you were on the line with Tara Reed and myself tonight. Thank you!
lejarie
25. Apr, 2011
Hi,
I just discovered you site. Great information.. one question…could you recommend info on which skateboard companies would be interested in licensing art? are there certain brands I try contacting?
Maria Brophy
25. Apr, 2011
Lejarie, thanks for the comment. I’m glad you found my blog!
To answer your question – Which skateboard companies should you contact?
Research the different companies out there – see which ones are already selling art that your art will fit in with. And then send them to your website or email them samples of the artwork that you would like to license for their use.
Good luck!
lejarie
25. Apr, 2011
Thanks
\((*0*)//
Nadine Ramelb
29. Aug, 2011
I am so interested in getting licensed regarding my art. My work would be great for stationery, fabrics, and clothing lines. Recently, I’ve designed images for cellphone and other electronic accessory, a skull line as well. Please consider me for such possibilities. Thank you, living professionally as an artist for over 25 years on Maui.
Anika
04. Sep, 2011
Thanks for the extremely useful info. I have another question. Are royalties usually calculated on the sale price to the client, or on the profit the manufacturing company is making on each unit? A company is offering me 5% of the profit on each unit, which is turning out to be 1% of the sale price they are getting from the client. This seems really low to me, and i have been reading up on net sales price/gross price etc. and am confused how i see what is fair and negotiate correspondingly. Thanks for your help.
Maria Brophy
05. Sep, 2011
Anika, thanks for your comment and your question. Royalties are figured on the gross sales receipts a co. receives. For example: They are selling dinnerware with your art on it. Royalties are payable at 6% – their total revenues received are $50,000 – you get paid 6% of $50,000.
It’s not a good idea to agree to a % of profits. Ask the company to pay you 5% of the revenues they’ve received. It’s not even worth your time to go into a deal where you’re paid 5% of the profit. I would be wary of that deal.
The word “Net Sales” is typically defined in a contract as “Licensee’s gross sales less only the sum of actual cash discounts, quantity discounts and freight discounts and actual returns for damaged or defective Licensed Articles.”
Net sales is basically gross sales (total revenues received from sales) minus returns and credits for defective items.
I hope that clears it up for you!
Martin V.
27. Oct, 2011
i wonder if they accept paintings as well. i mean i have lot’s of designs I have created on the mac, but i really want to push my twisted fable series. because they do well where I live, but now i want to license them in other facet of business, I’m thinking lunch boxes, puzzles etc..
Maria you’re input wold be most appreciated. I’ve only been doing this for less than a year, but getting an artist agent is tough…
Peggy
20. Nov, 2011
Maria, thank you so much for all the super useful, informative and generous posts about art licensing!!! I got to know art licensing a few months ago and am really interested in trying it out! Thank you again for all the info you shared!!!!!!!
BigToe
23. Jan, 2012
THANKS MARIA!
another great, informative article.
will you represent me at licensing shows????
pleeeeeeeeeeeease?!?!?!
talk soon,
tom
Ceciah
03. May, 2012
Thanks for the Info. Great information. Funny how many sites I’ve visited charge for information. You have a good heart to share all this information. I have a question. When licensing you mentioned that the “Artists retains the copyrights to the artwork”
QUESTION:
1. Do I need to obtain the copyright first before looking to be licensed?
2. What would be the fee for copyrighting.
3. Can I license without any proof of copyrights to my art?…
Hahah sorry, its actually more than one question.
Thanks for your sincere help,
Ceciah
Maria Brophy
09. May, 2012
Ceciah, these are great questions! Answers below:
1 – You do not have to file for copyrights before licensing your art. However, it’s wise to file your copyrights for images that you will be licensing, as you will be protecting not just yourself, but your licensees as well.
2 – Copyrighting is $35 if you do the online filing through http://www.copyright.gov website. You can file a group of images under one filing, as long as they were created in the same year and they were all either published (printed) or all unpublished.
3 – Yes, you can license your art without copyrighting. Licensees (the company that licenses from you) will not ask for proof. But they do ask that you are the legal copyright owner/creator of the work.
I hope this helps! Maria
Adam Farwell
09. May, 2012
Great advice for any royalty project not just skateboards. Ceciah has great questions on copyrighting, I’d love to hear your thoughts!
Maria Brophy
09. May, 2012
Adam, thanks for the comment. I answered Ceciah’s questions – see above. Let me know if you need any other info! Maria
Ceciah
09. May, 2012
Thank you VERY MUCH Maria, your answers were clear and less confusing then other articles I have read. They go around the issue not getting to the point. I appreciate your time and awesome layout of the questions.
Thanks a Bunch. Ceciah
Ceciah
09. May, 2012
Hello Maria,
I just remembered another question that Ive been wanting to ask you. Is it best to find companies on my own to license my art or find an agency that will do the work? Ive had a real bad experience with an agency, for a totally different sort of product which they basically scammed me, but is licensing art with an agency, different from those scam artist who call themselves agencies for product development?
Sincerely,
Ceciah
Maria Brophy
10. May, 2012
It’s best to have an agent, IF that agent is a good one. The trick is finding a good agent that believes in you enough to put in the time. For every good agent out there, there’s a few dozen bad ones….