(Artwork provided by the wonderful, fun and talented Sara Jane Franklin.)
When you need to have your sink unclogged, there’s little difference in price from plumber to plumber. I think that at one time in the past, the wise plumbers got together and said “let’s all charge the same high price so we all get paid well!”
If only artists could do the same, then pricing would be so much easier!
In the art business, while one creative can garner $10,000 for a painting, another can only get $500 for the same size and medium.
Many artists have a hard time financially because they just don’t know what to charge.
Often, artists will turn down a good opportunity because they are paralyzed by the fear of making a mistake and charging too little.
And when it comes to licensing your art, there are many different ways to be compensated.
Licensing Art means – you retain all copyrights © to an image, and license, or “rent”, the art to someone for either a one-time use, such as in a magazine or advertising campaign, or for a longer term use to print on products, such as a t-shirt line or pottery, greeting cards, etc.
(For more on art licensing: sign up for my FREE ten week series called “ART LICENSING MADE EASY” which teaches how to license your art, negotiate contracts and know what to charge $$$. SIGN UP HERE! )
FEAR THE LICENSE DEAL NO MORE – I promise you that once you begin to understand how these things work, you’ll feel more confident with deal-making.
With confidence comes more deals, and no more lost opportunities. So please, read on!
The most common methods of pay for art licensing are:
1 – ROYALTY: This is where the manufacturer pays the artist a royalty percentage of their gross sales.
2 – ROYALTY WITH ADVANCE UP FRONT – Sometimes there will be an advance payable up front, which is later deducted from future royalties.
3 – FLAT FEE – A one-time fee is paid instead of royalties.
Okay, but how much moola do you ask for?! Below are a few guidelines:
ROYALTY PERCENTAGE PAYMENT:
Before we get to the topic of how much to ask for, let’s make sure you understand how royalties work.
Royalty payments are calculated based on the total (gross) revenues generated by the licensee (manufacturer) for your products.
Red Flag Warning: Never agree to get paid your percentage based on the Licensee’s revenues minus their expenses. This is an impossible number to quantify.
ROYALTY RATE EXAMPLE: Let’s say that you have agreed to license your art to Perry Pickle Manufacturing for t-shirts. They plan to sell the t-shirts to a chain of stores called Racey’s. You have agreed to a royalty rate of 6% with a $3,000 Advance up front.
This means that Perry Pickle Mfg is going to pay you 6% of their total gross revenues generated. Since they agreed to pay a $3,000 Advance up front, they paid you the advance at the time that the contract was signed.
In their first quarter, Perry Pickle Mfg received $100,000 in revenues for t-shirt sales of your line to Racey’s.
That means that you would receive a royalty payment of $6,000.00 ($100,000 x 6% = $6,000.00), MINUS the advance of $3,000.00 up front.
The advance is “recoupable against future royalties” so your first royalty payment would be the $6,000 minus the advance amount of $3,000, and you would have been paid $3,000.00.
Okay, now let’s talk about how you arrived at the 6% royalty rate:
ROYALTY RATES DEPEND ON SEVERAL DIFFERENT FACTORS, THE 3 MOST IMPORTANT:
- The TYPE of product being produced
- The QUANTITIES expected to be sold
- The POPULARITY (STRENGTH) of the artist or brand
THE FIRST FACTOR IN DETERMINING ROYALTY RATES is the type of product being produced. The average royalty rate varies from product to product.
For example, the average rate for art lithographs ranges between 5% – 15%, compared to 3 – 6.5% for wristbands. The average royalty rate is a good starting point for determining what the rate should be.
There are a few resources that will help you learn what the average royalty rates are, such as artists groups and reference books.
To find out what others are being paid, connect with artists who are experienced in licensing through online forums and groups such as Linked In. Ask the members what the average royalty rates are, in their experience, for a particular product. These groups can be very helpful.
THE SECOND FACTOR IN DETERMINING ROYALTY RATES is the expected (or projected) sales volume.
The higher the volume, the lower the royalty: If the products will be sold in mass market retailers and in mass quantity, the royalty rate will be less because mass market retailers (like Wal-Mart, Costco) demand better prices, which means tighter profit margins for the manufacturer.
Usually, an artist will earn more money from a lower royalty rate when products are being sold in mass market, than they would with a higher royalty rate for products being sold in small mom and pop shops.
The lower the volume, the higher the royalty: If the products will be sold in specialty stores and in smaller quantities, the royalty rate should be higher.
For example: A t-shirt manufacturer that sells in mass market stores (Wal-Mart, Target, chain stores) might pay 4-6% royalties. A t-shirt manufacturer that sells in smaller channels such as core skateboard shops might pay 6-10% royalties.
If the artist is well known and their art is a proven seller, the royalty rates would be on the high end of the scale. If the artist is unknown and new to licensing, the royalty rate might be on the lower end of the scale.
In some cases, a licensee that works with artists on a regular basis will have a standard royalty to offer to you. At that time, you can decide if you want to accept their offer, or negotiate for more
FLAT FEE PAYMENT: A flat fee is a lump sum that is paid up front at the time the contract is signed. There are no royalties that will be paid later.
Flat fees may be calculated by image (i.e. $500 per image x 10 images = $5,000); or they may be paid in one specified sum (i.e. $2,500 total).
The flat fee method is best when the licensee is either a small company that does low volume, or is a start-up company that does not have a track record of sales.
The disadvantage to a flat fee royalty is that if the product sells above expectations, you may be missing out on sharing a piece of those revenues.
The best way to protect against the possibility of missing out on a piece of a great selling product is to have a short term, such as a one year or eighteen month contract.
With a shorter contract, if sales are very good, the licensee will want to renew, at which time you will be paid again, or you can negotiate for a better deal.
How much of a flat fee should you ask for? Like all deals, the range is wide. I know of some artists who charge as little as $100 per image for a flat fee license. In the greeting card industry, an artist might be paid a flat fee of $275 – $500 for a card design. I’ve had deals in the action sports market where I charged a flat fee of $1,500 per image, with a price break if they license multiple images.
The flat fee amount that you get will depend upon: 1- the strength of your brand, 2 – the competition in the industry and 3- what the licensee is willing to pay.
The most important thing is that you get paid what you feel that your art is worth and that you are happy with the end result.
ADVANCES: An advance is a dollar amount that an artist is paid up front, due at the time of signing the contract. The advance is usually non-refundable, and is deducted from future royalty payments.
What I love about advances is the most obvious: you receive a payment up front.
Often in licensing deals, you won’t see royalties for a year or more because it takes that long to develop a line, sell it and get it shipped to stores. The advance is money NOW, which is when most of us need it.
I use the advance as an insurance policy should something go wrong. It hedges against the possibility that there will never be royalties paid in the future, because if a company is willing to pay an advance, than that means they are committed fully to the product sales. Without commitment, sales often won’t happen. Sometimes the products never make it to the marketplace or are dropped from the line.
And that means No sales which means No royalties.
The main reason we almost always require an Advance for Drew’s work is that it helps me to weed out the serious people from the not-so-serious.
If a company is willing to pay us an advance, I’m more convinced of their commitment to the success of the product sales.
Red Flag Warning: If the deal you are about to enter into is going to require an excessive amount of work on your end, it’s crucial to require an advance or a design fee to cover your time. That way, you don’t have to wait the 12 months or so that it takes for royalties to generate before you get paid.
Since there is no guarantee that a license will generate any royalties at all, an advance is insurance that you’ll be paid something in the event anything goes wrong.
What could go wrong, you ask?! The client is so excited and they plan to put a lot of effort into the line.
One personal example is when we did a deal with one of the largest toy companies in the U.S. They went bankrupt one month after we gave them the artwork for a kid’s skateboard line. Drew had spent weeks working on it. Thank God we were paid a generous advance so that Drew’s time was covered.
Another time we signed on with a kid’s clothing company. They had their Drew Brophy line ready to go, after weeks of work on our end. Then a new partner came in and changed everything. The line never made it to retail and no royalties were generated. We had been paid an advance up front, so we didn’t lose a month’s worth of work for nothing.
The flip side to all of this is that for every deal that isn’t successful, there’s one that is successful. You have to sign on with many companies because some will be duds and some will be good.
Remember, there are no set-in-stone pricing structures for licensing or for art deals. You have to be creative and come up with a deal that works for you and for your client!
Maria
PS: Read “Beware of these Red Flags in Contracts“ for more food for thought.
Would you like your own licensing agreement template that you can use again and again? My new LICENSING AGREEMENT/CONTRACT TEMPLATE PACKAGE is now available. This package makes it easy for you! Complete with a template that you can change as needed, and instructions, this is the perfect short, simple agreement for artists not yet ready to hire an attorney. More details here: Licensing Agreement Contract/Template
368 Responses
I really like your straight-shooter style of writing. Very clear, basic and understandable. Very useful information, yet again. I especially loved using the name Racey’s as an example of a chain of stores (it made me chuckle a little).
Lorenzo, thanks for saying that! The name Racey’s made me chuckle, too, but not as much as Perry Pickle!
Maria
Excellent and straightforward. Thank you. (If only more artists would take the time to read this!)
It’s the number one question I get from artists, and also from potential clients who aren’t familiar with how art licensing deals work. I hope this helps shed some light for others. Thanks, Marie!
Great post Maria! Very clear and useful explanation. Thank you!
Thanks, Sara, and thanks for allowing me to use your AWESOME artwork for my post! I love all your art, it was a hard choice to make!
Terrific info, thanks!
Thanks Maria, good stuff and succinctly stated. Hope you are both well!
I just got approached for what could possibly be my first licensing deal. Your blog post helped clear a lot of things up for me. Now to just to take a deep breath and compose perfect email reply and see where it takes me 🙂 Thanks Maria!
Thank you for this post on various artist pricing scenarios. I appreciate your time and knowledge.
Hello Maria,
Thanks for you valuable information. I have been doing business with a few regional stores, selling them my regional artwork directly. It has gone very well. Today, I was asked if I would be willing to license them to sell puzzles and greeting cards but feel I may miss the opportunity if I am not fairly prompt in my response. Any suggestions that will expedite my getting educated but not cause me to lose the deal? This will not be a high volume deal.
Thanks!
Jim
Hey Jim,
Congrats! This is where many artists miss opportunities because they aren’t able to move to the next step. Here’s what you do: Ask a lot of questions (how many will they produce, where will they sell, how many images do they need etc.) then ask them to send you a Deal Memo with their offer. Make sure you ask for an advance – the amount is determined by the answers to the questions you ask. Go for it! Let me know how it goes! PS: I offer consulting to help put these deals together – visit my consulting page for info.
I am looking to hire an artist to design my ideas and I am really a startup with no current sales. Let’s say I tell her, I want you to draw me a monkey in this size, shape and color for my t-shirts. What would be a fair licensing % for her as this would be my idea and design. I would appreciate your thoughts and responses.
Bluntz, that’s a great question. Often, our licensing clients ask for something specific. Regardless, the artist always retains the copyright, unless you buy the art outright. The royalty % doesn’t change when you direct the artist. It doesn’t usually make a difference in licensing.
In your case, since you know what you want and you have little capital, you may want to find an illustrator that doesn’t necessarily license their art, but rather, will create what you need and sell the art to you outright. In that case, you would pay a flat fee upfront, and then there would be no royalties, as you are now the owner of the art.
Dear Maria, I would like to apologies for not thanking you earlier. I’ve been travelling for work and my inbox was full of junk mail, I just saw your message. Thank you for clarifying the two scenarios.
Hi Maria,
I am hping you can help. I have been approached by a merchandising manager, looking to put one of my designs onto mugs, canvas bags, cards etc for their club. I noramlly just sell my artwork as framed pictures/illustrations for £80. Their question was whether they could just commssion a piece of artwork and then use it on products or if they could license it? If I get the work licensed, who does this for me, is it a lawyer…I am in unknown territory and I said I would get back to the merchandising manager in a few days….Very exciting but out of my comfort zone! Laura.
Great Article Maria…!!!
Keep being so informative about Art.
Hermes H Art. NY.
“The lower the volume, the higher the royalty”, everyone in the art business should be aware of this. I think this is also the best thing to consider in getting unique art designs intended for t-shirt printing.
Maria, a thousand thanks for the great article! I am placing every word to memory. I am trying so hard to get my work into the card busines. Thank you for the information.
Maria, I fortunately stumbled on this wonder website of info….Your ability
to impart information and the manner in which you have chosen to lay it out is so exceptional…If only there were classes that could teach us all to be able to do this for our chosen fields ……
Thank you I have learned so much so fast..
To return to my original quest without chancing to ask you for a point in the right direction seems like complete folly…..So I must …..I am trying to help a very talented and committed youngish artist to find his way out of the backwoods of Northern California. I realize as he does the competition is fierce . I have been planning to suggest that he send some of his art work that he has copy write(?) . To a few publishing houses as his work is very much centered in the contemporary style..skate art.metal bands, but very very talented….he could do other works with ease as I have seen ..but his passion lies there for the most part . I fear that if I fail to help him even in the smallest of ways he will continue to work without ever knowing how truly talented he is and what he can contribute to the future in art and life. If there is any direction that you might be able to point me in or suggest that he should pursue…You would never regret it. If only I had some practical ideas due to knowledge even from any related fields or experience……other then that I have had the opportunity to seen truly great works of art of all kinds and that I can use a computer ens-pa? if not I thank you for what I have just learned. T. Cooley
Terrie, thank you for the comment and the kind words. I’m glad my articles have been helpful to you!
Not every artist longs for a career in art. I have found that the commitment has to be there for an artist to find success.
In other words, you can’t do it for them. As noble a concept as that is… They have to want it bad enough to do it for themselves.
That being said, the artist has to decide which direction they want to go in. There are a thousand ways to find success as an artist, and it’s a personal choice.
Some choose to go the commercial route. Some are opposed to commercializing their art and take the fine art route. And yet others choose to paint for their own pleasure and not make it a career at all.
There is no right or wrong, just the decision the artist makes for themselves.
If you want to help this artist, first help him get clear on what he wants for his future in art. Where does he want his art to be seen? Does he want to earn a living from it, or does he want to do it for his own pleasure as a hobby? Does he envision it making a difference in the world, or just bringing joy to others? Does he want to become well known in the world, or does he want to focus on his local community?
That is the first place to begin – the artist gaining clarity on what he wants. And from there a plan can be made.
I hope this is helpful to you! I wish you the best! 🙂
Maria , Wow that was quick ..The more I look at this site the more I like it.
Thank you for the advice I agree with you entirely. Unlike yourself I do not possess the ability to make my self very clear ….. The artist I was speaking of is aware and wanting some direction. He has tried to get his art work out to the masses and has had small successes but his remote local and limited funding has made it very hard to make that happen. Some people just are not experienced in the marketing end of this business and do not know were to start .There are very few opportunity or places close by to try to get his work seen and there is not a large tourist trade here either.
Do you do private consulting on line ? Or do you know some one that does? not for free of course. if so We would appreciate any contact info Thanks T Cooley
Terrie, thanks for clarification! If the artist you wish to help is living in a place where there is little opportunity, then it is time to leave that area and move to where there is opportunity and more people to buy his art.
Most entrepreneurs have limited funding in the beginning, not just artists. For example, all the immigrants that come to the U.S. with no money at all, and in ten years many have built up a business and end up thriving!
When I quit my job in insurance to work with my husband full-time, there was no salary for me. We had to figure out how I could make more money with his art so that I would get paid. It took time, and a lot of sacrifice, but we did it. And I’m so glad we did.
So, that being said, people have to leave their comfort zone and take risks if they are going to find success in what they want. Not everyone is cut out for risks, and so it’s good to recognize that as well. But for those who can make a big leap, there are rewards for them.
To answer your last question – yes I do consulting by telephone. Please click on my “consulting” page for info on how that works.
Thank you!
I have been contacted by a designer who has shown my paintings to a client who wants a large (34″ x 24″) print of a painting. She talks about a one-time use fee, they do the print, but needs pricing from me. I am new to this and am thrilled with the offer but Is there a scale I can use, i.e., 10″ x 16″ is $50, 18″ x 24″ is $100 and on and on? I initially threw out $300 for this large of a print but she just emailed and said that is above their budget. I am thinking $200 for this size but would like to make an intelligent response. Your article above is great and intend to read the rest of your info but I need to get back to her. Thanksso much for any input….Pat
Dear Pat, congrats on your offer!
First, NEVER NEGOTIATE AGAINST YOURSELF! You gave her a price, and she said she can’t afford it. Do not come back to her with another price. The ball is in her court now – she needs to tell you what her budget is.
But, besides that, normally I would never give our files over to a client to print one image.
We would instead have the print made ourselves, and bump the price up by about double to sell to the client. (For example: If the print cost me $220 to have made, I would sell it for $440). This is one way to price it.
The reason I don’t like giving a digital file over is this: how do you control what the person does with it?
I recommend that you do this: before getting back to her, do some homework. Call around to print shops and get a price for having that size print made.
Then, increase that $ amount so that you are making a profit (double it, or add 80% or whatever feels good to you.)
Then, email the client and tell her what the cost is for you to have it made. Let her know that you don’t hand over your digital files, but you are happy to have it reproduced for her.
And thank her for her business. Hopefully, your price fits within her budget.
Let me know how it goes!!
Thank you so much Maria for your prompt reply and valuable advice. I will indeed do some homework to ascertain cost of getting the prints myself. Let you know how it turns out.
Hope your holidays are merry and bright!
Peace, Pat
Hi Maria, I make collages and was recently approached by a clothing company interested in using my art. They throw parties with “large scale DJs” (their words) and sell mostly t-shirts at shows and online. They want to use 2 or 3 of my images (probably a flat fee) for limited runs of 50 t-shirts each for an upcoming line. Obviously I would like to retain copyrights etc. but I’m pretty new to licensing and really don’t know how much I should be asking per image. They’re not huge but have a pretty decent following on facebook, any advice you have would be appreciated, thanks! -Jesse
Jesse, thanks for the comment and for reading my blog! Typically you would get $600-$1800 for each t-shirt design. (We charge $1,200 per design for existing art and more for new art, and offer a slight discount if they use more than one design.)
If they are using existing art, for a very small company, you could charge anywhere from $600 – $1,200 for the for the rights to use the art for 2-3 years. If you are creating new art for them, I’d ask for anywhere from $900 on up, depending on the amount of work required to create it.
I’ve known some artists who will charge only $500 for tee designs, but they are the artists that are just starting out, or haven’t yet figured out a good price structure, or are struggling terribly (because they don’t charge enough.)
The more designs a company uses, the less I’ll charge per design. For example, if they are using 3 designs at once, I’ll drop the fee per design by $100.
You always retain your copyrights – don’t sign them away. It’s your art to keep. You are only granting rights for them to use it on tee shirts.
Make sure you get paid BEFORE you hand over the files. This is important!
Ask for samples, too. Good luck!
Thanks for your prompt response Maria! I quoted them a price, haven’t heard back yet but I feel more confident about the process now 🙂
Maria, I love this Information. My ? is, If you are working for a known sports Icon to negotiate sports apparel into major chains and they want EXCLUSIVITY, i.e. Sams or Costco and they ask for signings to be included in the contract, what’s the max can I charge for each Design and what time frame should I give them to impress my client. I will also be getting an advancement, does it sound like I’m covering all of options?
Mickey, thanks for the question! There’s a lot more info I need to be able to answer the question. I’m not sure i understand – are you licensing your art to Costco or to the manufacturer that sells at Costco? What do you mean by “signings”? Is this a live event? I could possibly help you in a consulting session – there are too many moving parts to give a good answer in a comment!
Great info, Maria. I hope lots of artists will read it too. Recently, for a European contract for art to be printed on a mass produced product, I was told that they should be expected to pay more to the artist due to the quantity of items the art printed on. So, every deal will vary and it is always a case by case consideration. In this instance *mass produced* was still a high end / gourmet product, and that’s what made the difference.
Also, recently I signed a contract with BP (British Petroleum) for advance payment and royalties. (This news was published in a trade publication along with my name and address, so it is not confidential.)
My royalty payments will be monthly and based on the amount of oil produced by the oil well. My land sits on a large oil pool, so BP is required to pay me for my mineral rights. The well is about a mile away from my property. But my art licensing experience proved useful when dealing with BP, and it was interesting to note that all contracts that include advance payments and royalities are similar across all industries.
Hello Maria,
Thank you for helping artists who are wrestling with questions regarding what kind of fees to charge for their art. I’ve recently had someone contact me, who works for a regional commercial community,.about using my images in a multi-tiered manner. They wish to include the images in a curriculum package for their community outreach program to regional schools, as a means to promote the commercial area. They also want to use my black and white drawings on their website and to make my images available to be able to be downloaded for use as curriculum aids by educators for their classrooms.
They found my work via a self published book which contains the images they seek to use. I am not interested in a ‘Buy Out’ of my work. I wish to retain the rights to all of art, to use at my discretion. I would be willing to grant them a non-exclusive license of my work for their use. However, the challenge is what to charge them for their multiple uses.
My book contains 14 B&W illustrations. A flat fee is probably what they wish from me but given the ongoing use of my work via their website as a downloadable product to be used by educators as classroom curriculum and the long term use of my work by the commercial group for promotional purposes, I am befuddled as to how to determine a fee to quote them.
Being a virgin to this sort of contractual business, the following may be a very dumb question. Are there generic licensing agreements that I can find online to use to complete this agreement?
Any help would be greatly appreciated!
Many thanks!
Reg Miles
Dear Reg,
To answer the question of what to charge, there are many more details I would need to know first, and for something like this, it would take a little research and questioning the company as well. Such as – will they be charging for downloads, or will they be free? How many educators do they work with? How many downloads will be used?
You do not have to sell your art outright – this would be a licensing deal, where you retain all copyrights and simply give them written permission to use your art for short period of time (i.e. 2 years) for a specific use (i.e. educational aid downloads), in exchange for an advance and royalty or a flat fee up front.
For your 2nd question – yes, there are sample “generic” licensing agreements that you can copy and change to meet your needs. You can find them The Graphic Artists’ Guide to Fair and Ethical Pricing. I highly recommend this book, as it is full of info!
If you want help developing a deal for this company, I am available for consulting. Review my consulting page to see how I work, and shoot me an email to set up a time!
Maria,
Thank you for your response, your insight and kind suggestions. I’ve ordered the latest copy of the book that you mentioned.
No, they don’t wish to charge for downloads. They want the images available for free, for educators to use to enhance their curriculum. The number of schools and classrooms in the region are many. Since all 14 of the images will be used, the number of downloads would be determined by the number of students in each classroom. About 25, 000 students and their educators have, thus far, participated in this program. That’s potentially tens of thousands of downloads.
I’ll check out your consulting page.
Maria, I’ve just received a contract agreement and it states, the Licensee agrees to pay Licensor a royalty of 10% of the “Net Sales” ( meaning sales to customers less frieght and credits ) Should I consider this a Red Flag?? If so, what do you suggest I do?? Thanks, Renee’
Hi Maria,
I’m a freelance illustrator. I was contacted last night from someone who is interested in using one of my illustrations for a story that she has written. I’ve heard of art licensing and I was wondering if this would apply to self-publishers/authors who have written a story and would like to use one of my images that is already created.
I have a 11th edition of GAG Pricing & Ethical Guidelines book and it the long and short versions of licensing contracts.
The only details I have so far from the email is that this person is from England, would like to know how much I charge for use of my images. She really likes my Capuchin monkey illustration (http://gigistudio.com/blog/2011/07/14/a-clever-capuchin/), and would like to potentially incorporate one with a story she has written.
I haven’t replied to her email yet, So haven’t asked if she will be selling this story. Or, asked what her budget is. Are there any other questions I need to be asking?
I have a basic Illustration Agreement in place based off of GAG contract. However that’s more for creating new works. I need some tips on what to do if someone would like to use artwork I already created. My main concerns are keeping all by copyright, non-exclusive, not having my work retouched or altered in anyway, be credited, receive free samples, limiting the use of how my images can be used and for how long, and setting appropriate pricing with advance and royalty fees. Also, my work is digital so I definitely will not be sending my original files. I also sell prints of my work on etsy.
At the moment I can’t utilize you consulting services. So any tips you can provide will be greatly appreciated.
Thanks!
Gigi, congrats on your new opportunity! If someone wants to use your art, existing or new, for anything, a Licensing Agreement will lay out the requirements that you want. For example, a good license agreement clearly states that the Artist retains copyright, that the artist gets to approve everything before it goes to market, and what the art will be used for specifically, for how long, and where. You can find a sample agreement in many books, or you can get one that I put together here: http://store.drewbrophy.com/artist-short-licensing-agreement-template-package/
Good luck! 🙂
Thank you Maria! I pulled together a few questions to ask the individual first to gain some details on what she is looking for. If it’s possible can you look over my questions and tell me if I’m on the right track in what I need to be asking.
To license my artwork for story/book:
1. Will this be a self-published book? If so, what is the Publisher/Printer’s name?
2. What is the title of your story?
3. Will this be a book published to sell? If so, how many will be in the first print run (number of books)? What will be the retail price and the wholesale price?
4. What is the geographical location the artwork will be used and sold?
5. How long would you like to license the artwork?
6. Will the artwork be used just for the book? Or, do you require other uses?
7. Do you have a budget?
hey maria,
first of thanks so much to you and drew for all the inspiration and good juju you put out there. i have recently been asked to sell a design to a local obx restaurant for a t-shirt and i had no idea how to go about it. my first step was to google ‘how to price t-shirt design’ and could’t find anything helpful until i came across this blog. i responded to restaurant by asking for 8% of total gross sales of t-shirts with my design and my pay period would be monthly during the ‘tourist’ season and i would only collect once during the offseason considering the obx thrives during the summertime. i know this is small potatoes compared to what you and drew deal with but please tell me if you think this sounds good for my first t-shirt deal.
thanks so much
brad vuyovich
“BroRad”
Brad, in the case of a small co., I would do a flat-fee, payable up front. Don’t bother with royalties with small companies. Royalties only work in your favor if the licensee is selling to chain stores, department stores, etc. (in high volume)
I do in fact have designs that would be great for Tshirts as well as coffee mugs, posters, etc. How do I narrow my search to potentially interested parties. I am interested in Royalties
Look for companies that are producing products and tee shirts that sell to the demographic that would like your art. For example, my husband Drew does surf art, so he works with companies that sells to the surf crowd.
Hey Maria, I’ve been scouring your site over the last couple of days and want to thank you for all the amazing insights into the business side of art. I’m a serial entrepreneur and have recently put down most of my projects to help my fiance build her business (sound familiar?). She’s just hit a point where we’ve had our first major licensing requests come in this week, all at the same time, and I’m playing catchup since my background is mostly in marketing. Hopefully you wouldn’t mind answering a couple of general questions:
– If a basic contract point is omitted (e.g. exclusivity nor non-exclusivity is mentioned anywhere in the contract) who does the favor fall to in a dispute?
– What is your default response to client’s that claim they “just want to keep things simple” by avoiding lengthy contracts (which fuels my first question)?
Again, thanks for all the great information and in advance for any other information you’re willing to share. Looking forward to devouring your templates and packages once the resources free up!
– Rory
Rory, thanks for the comment! To answer your questions –
If the contract omits exclusivity, it would be non-exclusive.
Clients who don’t want to sign anything – they are putting themselves in jeopardy. It’s in their best interest to have a document giving them the rights to use the art. Otherwise, you could later sue and say they didn’t have the rights – or if you died and your family inherited your copyrights, your family could sue.
Hey Maria, your responses to these questions that I would have asked, but already have had answered, thanks to your website, come very quick and that’s invaluable to us artist who have yet to embark on the licensing journey like myself so thanks a million first-off and Congrats on all your success. My ? is can I use the same designs or more specifically same concept of the design but different designs of that concept with two different companies such as a skateboard company and clothing line? Also, who do I contact if I wanted them to see an example of my designs? I’m concerned about wasting my time trying to reach or contact the wrong people. Thank you very much for your time and response.
Sherif, yes, when you license the art, you can use the same designs for multiple companies and products. Just make sure your contract doesn’t prohibit you from doing so. A general rule to follow, though, is to not license the art to companies for the same products, especially competitors. You want to be careful with that.
When contacting a company, ask for either the licensing manager, or the art director or someone in the art dept.
Hey Maria, thanks for the response. I have another question. Whether I get a flat fee for my designs or I get paid paid per design, do I still have a say in how long they use my design or how long I want my design to be used on their product? Also, do I have a say in how its used on their products?If I were to walk into a skateboard shop (there is one at the bottom of my block) and I were to work out a deal where I license them 5 design, is it my job to produce the artwork on the board itself or do I just license them my design that is on paper and they put it on their product (in the case of any company that may want to license my art)? Lastly, Is it best to have my work copyrighted first before I send any digitals or anything to anyone who may want to see something? Sorry for all the questions, but your answers are very helpful. Thanks again.
Sherif, you always have a say in how long anyone uses your design, regardless of how you are paid. You own the art, so it’s your call.
Your 2nd Question: Yes, you have a say in how it’s used on their products, if the contract says you do (and it should).
Licensing is typically when you give the art to a manufacturer in a digital formal, they print it on their products, and then they sell it to the retailer.
Yes, you should copyright your artwork always. But, if you haven’t yet, you can still show it around. But know that a copyright will give you protection in court should someone steal it.
Thank you for this post, Maria! Your blog is a wealth of information and resources for artists + designers!
Hey Maria! First off, thanks for writing the article to begin with. I haven’t had the opportunity to do so yet, but I’m sure it’ll arise. Down the road in some time, whenever a company would like to use me to create work for them that they own the rights on, what should be charged? I’ve always thought it would be a good place to start to put a number like 10x on my hourly. Which would bring larger prices that I’ve read about into perspective; what top corps are paying for work done and want to use them all over the world in many forms. For example the newest BBC logo (the entire logo set) was done for about 80k in a little under a week by a two man team. They billed at roughly 3000(1500 per person) an hour… or at least that’s what I remember reading the one guy said he was charging (found him in a forum somewhere). Or why smaller but talented agencies are getting millions on high production micro-sites. Is it a higher hourly, or are they still somehow getting royalties on site views or usage on logos and such?
Chris, every single deal is like snowflake; they are all different! It depends on the amount of work involved, the size of the company, the scope of the work, the going rate, and what you are willing to take and what they are willing to pay. Sorry I don’t have a better formula for you! With experience, though, you will develop a price sheet that works for you.
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Nowhere can I find how much of my ‘royalties’ should I pay my licensing ‘agent’? Help! ms
Maria, thanks for the question. Typically you will pay an Art Licensing Agent between 25% and 50%. The agents that are representing you at events, shows, and in ads will get 50% typically, to cover their costs. I hope this answers your question!
Hi Maria
Thanks for such a useful article! I stumbled across your site and it has certainly answered a few of my questions. I wondered if I could get your advice? I’ve recently been approached by a manufacturers to have my artwork reproduced onto glasses. What a great email to get! But here’s where it gets complicated: the artwork I created was for personal work, as it’s based on fictitious characters from a film. The manufacturers are keen to use the work, but I’ve already pointed out a license would be needed, and this means approaching the studio in order to be granted one. It’s a long shot, but at least it’s going by the book. The manufacturers have also suggested they would apply for the license on my behalf, along with new artwork that I would create. What are your thoughts on this? I’m quite new to all of this and it would be great to get back to them with an intelligent answer.
Kate, thanks for finding me here, and for your question.
Your art was for “personal work” – does this mean that you signed a legal agreement to transfer your rights to the person who purchased it? If so, then you cannot license it, as you no longer own it.
But, if you did not sign a legal agreement to transfer the rights, then you don’t need anyone’s permission (unless you signed something saying you wouldn’t license….).
I can help you with this, but it will be at least an hour of consulting to work through the details. Check out my consulting page here: https://mariabrophy.com/consulting
Thank you so much for sharing your wealth of royalty information. Quite helpful. I was wondering if you knew the going rate/royalty on copyrighted artwork used by a winery/brewery for their labels. I’ve been approached by several and am puting them off until I figure out how to make money on this.
Kim, thanks for the comment and question. The going rate is whatever you and the client decide. I know, that’s not the answer you were looking for! But, there are some guidelines. First, you need to know how long they will use it, how much work will be involved up front on your end, and other details. You probably should charge just a flat rate, as a wine co. most likely isn’t set up for royalties. Whatever you do, DO NOT let this opportunity pass you by! If you want my help with putting together a proposal, set up a consulting call with me. Check out my Consulting page to get instructions on how. Thanks!
I have been working alone for many years but would like to learn more about licensing agents
Why people still make use of to read news papers when in this technological world
all is available on web?
I have a question. I do t shirts and I use a popular POD service due to my budget. They were contacted by a popular TV show, which in turn contacted me about using one of my t shirt designs as set dressing. They have emailed a release form which basically gives them carte blanche to do what ever they want to do with the design. There is no mention of compensation in the email or on the form. The design is not really related to the theme of the show, but will be worn by one of the characters. Should I sign away any rights to the design or should I ask for compensation? Any insight will be truly appreciated.
G3
Gus, Typically a release form for a tv show will only give them rights to show your art on their show. They also usually don’t pay, unless it’s being used extensively. I recommend you allow them to use it, but make sure that the wording on the form only gives the rights to show it, not to reproduce it or use it commercially.
Hello Maria,
How nice and helpful post!I have a doubt about a licensing agremeent. They wrote to me about paying my royalties in the amount of 10 % of the retail net revenues, and 5% of the wholesale net revenues. I have signed with others brands and they din´t use this “net revenue” term. It is the first time I have heard about it. As I am Spanish it is difficult for me to understand this. I would like to know if this a good legal term for me. Thanks a lot. julia
Julia, often licensing agreements refer to “net revenues” and it’s defined in the contract. Look in the contract to see how “Retail Net Revnues” and “Wholesale Net Revenues” are defined. If there are no definitions, then ask for that to be included so you completely understand what you are agreeing to. As far as having 2 different royalty rates – it’s not uncommon. The royalty rates they are offering you seem reasonable to me.
Maria, lots of thanks for your helpful reply. I am confused yet about understanding it properly. I understood that my royalties are not 10% on the product price on sale, and there are some expenses which will be discount from my royalies. Am I right?They defined both terms. The thing is I want to have the 10% on the price as I have with my other licencee brands. Sorry, difficult for me undertand all these legal terms.
Julia, to answer your 2nd question below: the definition of “Net Sales” or “Net Proceeds” or “Net Revenues” should NEVER include deductions for expenses. It’s okay to include deductions for “returns, damaged goods” etc., but never expenses. If you want me to review the contract and help you with it, please refer to my consulting page and set up a call with me: http://www.MariaBrophy.com/Consulting
Thanks for an excellent article. I have a lot to learn about merchandising & marketing my images. This was very helpful to me.
I have an inquiry by a company that would like to use one of my art images for their Home page on their website. What would you suggest regarding a fee and contract?
Elaine, the price depends on a lot of different factors: the scope of the work involved on your end, how prominent it will be displayed, and what it’s worth to both you and the client. Basically, come up with a dollar amount that will make you both happy. (I’ve seen pricing range from $500 to $10,000 for art for a website page.)
The contract could be a short agreement – make sure it specifies how long they can use it (i.e. 2 years), HOW they can use (i.e. home page of their website, specify site), that you retain the copyrights, and that payment is made up front, at the time you transfer the art.
Thanks so much for your response. It was helpful and gives me a place to start. In addition, another artist suggested to negotiate the sale of prints/cards of the image for sale at point of purchase and for me to receive 100% of sales.
Maria,
First I have to thank you for such a informative post! Also taking your time to answer all the questions in the comments that everyone have! Not that many poster would have the patience to stay around a single post and help others out with detailed responses! Kudos on that!
My wife has recently been asked to draw 10-15 football player caricatures for a TV production company for their TV show. It’s meant to be showed with some post processing (turning the 2D drawing into 3D models and have voice over the characters) with the drawing on their end in one of the segment in that show. It doesn’t sound like it’s a huge production…certainly nothing like American Idol etc. My question is in this case how do I charge for royalties? Since they are not really selling our work but using it in commercial? Charge by % of revenue of the show would be difficult since the drawing only appears in one segment. If we go the flat rate route and give them a 2 year right to use, would that be more sensible? If so how much would you recommend charging for each drawing?
Thanks!
Ken
Dear Ken,
TV and movies work things a little differently with royalties for art. I’m not an expert in that area.
I would suggest either:
1 – Hire someone who would be an expert in that area, working with producers of TV shows or movies (not sure how to find)
or
2 – Work it out yourself. Make sure that if you get royalties, that you get a HUGE advance UP FRONT, so that your time and effort is paid for. Or, you could consider selling it to them outright. This would mean 3x the price if you were keeping the copyrights.
BEFORE giving any prices, Refer to the Artists Guild Guide to Ethical Pricing – there are specific dollar amounts in that book for many different types of illustrations. The book is about $50 and will save you years of undercharging for things! There are sample contracts in the book as well.
And congrats on this great opportunity – enjoy it! 🙂
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Hi Maria, I have someone who has they’re own clothing line for about 1 year now and he wants me to design a logo for a theme he’s having for his brand in November. My question is because its a logo, can I license it and get royalties for it or is it best to just get a flat fee for a logo? And, (considering he is selling in good volume) is it a good idea to ask for a royalty percentage say for example 5-6% just to see how it goes, or is that asking for too much too fast? Thanks for your advice.
Sherif, for logos, since it’s their brand identity, you should give them the rights to it. A company needs to have control over their logo and identity. That’s why many artists charge quite a bit more for logo work – because they are giving the rights to it away. (And can’t earn from it any further.) So, in your case, come up with a one-time fee where they get the rights, and make sure you’re getting paid enough for it to be worth your time.
I realize this is an older post but just came upon it. Maria, I believe that your answer is incomplete and as worded, not correct. It is STANDARD in the design industry to include wording in your contract that maintains ownership of your designs—including logos. That is one of the items in AIGA’s recommendations for contract writing. Now as the industry has become over-saturated with people who are willing to undercharge and compromise their own artwork’s integrity — this industry standard has become somewhat lost. Just because a company needs to use a logo as their brand is not reason to “give them the rights to it.” Just as photographers license their photos for a certain period of time and use, it is standard and reasonable to do the same for companies. Many companies only last 5-10 years, so one common clause is to license the logo to them only for a certain period of time. Another approach is to only license it for use for their company (if their company closes, the logo rights revert back to the designer for future use). And lastly, in specific response to the question posed—what I do is state I maintain ownership for any uses not discussed. If they have a new use, ESPECIALLY merchandise like a t-shirt which they could sell and make money off of, they need to come back to me to work out a new agreement. Beyond protecting your ability to make profit off of your own artwork in the future, this also helps to maintain the integrity of your artwork. If you just let go of all rights — any other designer could take your artwork and manipulate or bastardize it—and that is not in your interest. IF a company wants to purchase the logo rights outright that means they will be charged a quite substantial fee (not the measly $300 you used as an example).
Hi Maria, thanks for the suggestion, but Maria, you say make sure you get paid for my time. I assume you mean the time it took from conception of the idea to its final product. What if it took me just a couple of days and they like it. Would that mean its not worth a high price or do I charge based on the fact that they are using my artwork for their theme’s logo that they now have full rights over? Thanks so much for the advice.
What I mean is, make sure you are getting paid properly. And I say this because I know so many artists who do not charge an appropriate amount for logos. I can’t give you a number, as there are many factors that determine what a logo is worth. Some companies pay $20,000 for a logo. Some artists charge $300. It’s all over the board. My hubby, Drew, charges anywhere from $1,600 – $3,000 depending on the scope of the work. What I meant was that when you determine price, take into account that you cannot earn any more from this art once you transfer the rights.
hi Maria, I was wondering, if I sell a design for a flat fee, can I still license it, retain the rights to it and earn royalties from it, or once its sold, then its sold and do the buyers own the rights to it (i.e the logo) , therefore not earning any extra income because I sold them the design for a flat fee? Thx so much
Hi Maria, I just read the portionthat says no future royalties will be paid for flat fee so scratch that, but i assume that i still get paid an advance regardless of whether its a flat fee or licensing in any event that something goes wrong in the process, correct?
Sherif, if you are charging a flat fee, typically you are paid the entire amount up front, before you transfer the art files.
Also, yes, you can still license the images to other, non-competing companies making different products.
Once your flat-fee deal is up (i.e. in 2 or 3 years) then you can license it to another company for the same products, again.
Regardless of how you are paid (royalties vs. flat fee), you always keep the copyrights and you can continue to license the art.
Just make sure your agreement states that you retain rights to (c) and keep your term of the contract shorter rather then longer.
Hi Maria,
If you create an image for a small town retailer to use for a year. Should you include your name on the logo (art). How do you avoid being copied and reproduced?
Thanks so much.
Paulina
PS. I enjoy your postings very much! Thanks for
Hi Maria, I’m a little unfamiliar with copyrighting, but with my logo design, is it necessary to copyright it before I sell it even though the buyer will keeping all the rights to it, or is it unnecessary to copyright it because the buyer will be keeping all the rights to it? Your a real big help Maria, and this is my first actual gig that can be a good shove forward, so forgive me if I sound redundant, I just want to be as clear as I can with as much as possible so I can be comfortable knowing i didn’t sell myself short (like many artists) by making the best possible decisions…your advice and suggestions are helping me do just that so thank you.
If you are selling them the copyrights to the art, then you don’t have to copyright it.
But, why are you selling them the rights to the art? Why don’t you just license it and then you can license that same image for other uses as well?
When you transfer all the copyrights you cannot use the art for anything else, as it’s no longer yours. In that case, make sure you charge enough to make it worth it.
Are you speaking about why I would sell my rights to my LOGO DESIGN? That’s my main point of interest on whether I sell it to them and its finished, or if I sell them the design, but still retain the rights to use it elsewhere… You had previously mentioned that i SHOULD give them the rights to it because its their identity and that artists charge a bit more for logo design because they can’t earn any extra income from it? Now does that “should” mean I can sell them the logo design BUT STILL KEEP THE RIGHTS TO IT and can earn money from the design by licensing it elsewhere? If that is the case, should the contract state that I still own the rights to the design, allowing me to license the very same design to other companies?
Sherif, sorry, you’re right. I forgot that it was a LOGO design.
That’s the problem with me having 12 conversations going on several different Social Media platforms!
Yes, correct, if it’s a Logo design, the client does need rights to it.
And, in that case, you would not file the copyrights – that would be their responsibility to do so.
Again, sorry for the confusion! 🙂
No problem, thanks for your help.
Hi Maria, if the buyer wanted to also use my logo design as a “garment” or “clothing” design, can i “resell” it to him as a “garment” or “clothing” design (NOT as a logo design–that’s done) either for a flat fee or royalties? (And this, of course, is stated in the contract if that’s the case) correct? Or can he do whatever he wants to do with it so long as he has the rights to it as a logo design?
Sherif, if you are signing all rights over to the client, then it’s theirs to do what they want with it, forever and ever. They don’t have to pay you again, once they have paid for the rights to it.
Hi Maria. When I am finished with my logo design, do I have to send it to the buyer digitally (JPEG etc.) or can I give him the hard copy? (I created the logo on paper not computer.) And if I do have to send it to him digitally, why?
A professional artist will provide their client with the digital file, ready to use, in either a vector or jpg format or both. The idea is to give your client what they need to use the art you have provided.
However, you can give them the hard copy, just make sure that when you give the client a price quote, they know how they are getting it. When they receive the hard copy, that means they have to then get it scanned and cleaned up for use. Which means they will have to have to take an extra step, and maybe even hire a graphic artist, to do it.
When you give a price quote, find out first from the client how they need the file. Some will want it in a vector file, some in a jpg, etc. These are things to discuss with your client early on.
What’s a vector exactly? To be honest with you, I broke cardinal rule #1 and that is to have a briefing, discussion, price quote , etc about the work, but the thing with that is I know the guy who started the clothing line, and was so gung-ho about it that I just started working on it because I had the perfect concept. So like many artists, I may have put myself at a serious disadvantage because now, I have to explain everything to him that should have ALREADY been explained including the hardest part and that’s my price. And I’m just hoping that all this time and work wasn’t wasted. And in any case he has questions about anything, I want to competently explain myself so he knows that im not just arbitrarily coming up with a number. A little background on me… I’ve been working on a sketch for 3 weeks now and have 3 finished colored sketches ready for him to choose from. Considering the time it took me to formulate the concept, draw and fill in the sketches, to buy my supplies, and that its a logo that I’m signing all the rights to, I’m charging $500, but he won’t know that until I meet with him to show him the final product and that’s where I’ll have to explain everything and find out if he’ll say no, or negotiate for a price I don’t deem worthy of my time and effort. I feel like I can go to $400, but any lower and I feel like I’d be selling myself short. A little background on him…He started clothing line a year ago, but is not doing so well because its slow. He loves the design and we both feel it will bring more business to him. He also told me he’s not making much money now because its slow so I have a bit of trouble thinking that maybe $500 may be too much for him, but I feel like that is worth my time/expenses for everything and that I think is fair considering everything I mentioned, but he may not be on that level, so that’s where my explanation comes into play. So all your help and suggestions are seriously appreciated and sorry for the long message I just want to give you a clear idea on where I stand with all of this. Thx a million.
Sherif, all of the details you gave me has no relevance at all to what you charge or how you run your art business.
I say that with love, because I want you to understand how you can, in the future, work as a professional.
You have to determine what services you will provide, and for how much, and then offer this to your clients.
That being said, with this situation going forward – have your meeting, give them your price of $500 and see what happens.
This is going to be a learning process for you.
You will learn what to do and what not to do, in future deals, after this situation.
Also, if you plan to continue to work as an artist doing logos etc., please buy a copy of The Graphic Artists’s Guilde Guide to Ethical Pricing, and, take classes on the basics of photo shop, etc. You need to know minimal graphic design and you absolutely should know what a vector file is.
Hope this helps! 🙂
I have a dilemma. I did a mural for a karate studio at a square foot price. The client didnt know what she wanted and since my kids go there i did the design for free to get my foot i the door and felt i would use it again for other studios who might want aready made design. Now she wants to use it on t shirts to sell and assumed she had the rights in the cost of the mural. I told her i retained the rights and would be willing to liscemse the image. I got the impression that did not sit well. What do ido?
Dear Dave,
The ideal situation would have been for you to have given the owner a price quote in writing, that included a statement that says “Artist retains ownership of copyrights to the art.”
But, now you’ll have to educate after the fact.
Let her know that you own the copyrights to the art. But you are happy to license use of the artwork to her for a fee. Tell her the fee and let her know that once it’s paid, you’ll give her a written document giving her rights to use it for a period of time (2 or 3 years) for tee-shirts.
It’s her choice if she wants to use the art and pay the fee or not.
Her opinion of you charging a fee is irrelevant!
After all, you’re paying for your kids to go there, right? Or is it free?!
As a side note, you could offer to give her the rights to use it for tee-shirts in exchange for 6 months free karate for your kids. That would be a great deal for all of you.
Hi Maria, I spoke with the buyer yesterday, and he said he already has a graphic designer to work on the logo to make sure its proper for a logo and that he was going to completely change one color of a portion of the design.(He asked for a couple of sketches with my own take on color and he would give his feedback on it so we can get to a color he is satisfied with–he chose to change the color of that portion entirely). Does that still make it “my” design or does that not matter because its his logo that wants to look like that? I would just like your take on it. Also, can’t a graphic designer add any color he wants to a design? And if so, can’t I just create the design and just sell them that and let the buyer fill in their own color, or does it depend on our initial discussion on what they want the design to be and how they want it to look like? (He also told me to meet with him in a couple of weeks to get paid so that is very exciting, but I still don’t know if he’ll be willing to pay for my asking price, so we’ll see. Thanks again for ALL of your advice and knowledge.
I’ve been designing and drawing my whole life, I’m almost 53. Mostly for free. I did have a stint, as the Designer for the largest Promotional Toy company in the country and second in North America. It was the best but I got paid crap. They got richer, Not I. I have an opportunity to Design Logos for a Paranormal Investigative company. It could become big. I was thinking about taking a lump sum for about 5 Drawings. Years ago I would take a 40 of Rum for them. lol. I used to be a Sailor. I just don’t want to charge too much or get ripped off, as I often do and did. So, should I take the lump sum? I would just hate to think that I could be the guy who only charged 100 bucks for the logo of the largest Paranormal study group on the planet…..someday, maybe. Thank you.
Hi Maria
Great article thanks!
I had a contact from a choir today asking to use one of my images on their album cover, but the CD is sold commercially, so I think I should make some money from any usage we agree to.
It’s being sold via their website, so not sure what kind of turnover they will make from it, so I think a flat fee upfront would be best, judging from your article.
Very useful as I didn’t have much idea how to go about this, as it doesn’t happen to me often.
Best wishes
Richard Lyall
(Richard Lyall Design; Liverpool, UK)
PERFECT article for my quandaries on upcoming projects! I was so lost, but this really helps. Thanks a bunch
want to learn all about the licensing proceders
Thanks for this post! I just liked your fb page and I look forward to learning more about the art world with a business perspective. I have a lot to learn and this post really helped!
I’ve been approached by a woman who asked for pricing on licensing but it seems to be contingent on a crowd funding campaign at her end, meaning I’d provide an image free until funding goal is reached. I’m an oil painter and she’s a client who has a new book publishing business with 15 authors. She states: “What I am asking for is an image to use for the cover design and the header for the new website. You will receive free online publicity and exposure to your work. When the campaign funds I will pay you the agreed upon price for the rights to use your images. If the painting is sold through the campaign you will be paid for that also. If you feel that this is a good way for free exposure of your work at no cost to you, I would like the rights to use the images that we agree upon until the end of the funding campaign in April.” My questions: Does this sound okay? Also, what should I charge for my image on her book cover & website header as well as tee shirts, book bags, notecards, etc.? I’m at a loss for what to charge. Many thanks, Jeanne
Dear Jeanne, Thanks for reading and for your question.
If you believe in the project this author has, and you want to be a part of it, because you feel passionate about it, then yes it’s worth experimenting to see where it goes.
I wouldn’t ever go into a deal with the intention of getting “free publicity” because there’s no such thing. There is no publicity value in being a part of a crowd funding project, or most projects for that matter. So that shouldn’t be a deciding factor.
If you decide to do it, limit the usage only for the book cover and website banner in the beginning. All the other things are extras, and you should put off discussing those items until later. (Because you may find out, later, that you want more for those extra items).
How much to charge for use of your art on her book: if you have a copy of the Graphic Artists’ Guild guide to Ethical Pricing – there are suggested prices in there for book covers. The price you agree to (for example $1,200) should limit the license to the first print run. After that, you would renew the license for a new fee.
I hope this helps!
Thank you, Maria, for your prompt response. I never lend much credibility toward the concept of “free advertising” either. To me it’s someone’s way of asking for something for nothing. I’m thinking since this is totally new for me, and I’m acquainted with this woman and her website, to pursue it. I will purchase the book you’d mentioned, and hope to receive it very quickly as she wants fund raising to be concluded in April. I suppose I should have a contract of some kind as well and did see some free contracts online but which appeared complicated. I like your idea to limit the use of my artwork initially to the website header & book cover and will limit it through April, reserving another contract for promo items, book cover & purchase of my painting to another contract. I don’t want to lose this opportunity, but I wonder if she’ll be shocked at a price of approx. $1,200. She’s already published a book via this process with Balantine Books and was met with success so is doing another book…don’t know the publisher. Any other info I should know? BTW, I never knew this was so potentially profitable, i.e., $1,200 for use of my work on a book cover…wow. Wonder if she’ll go for it?? Thank you!
P.S. What is the quantity of books in a first run for that price of $1200?
Dear Jeanne,
The $1,200 was an example of what you can charge. Typically pricing depends on many factors; such as, how many books will be in the first run, and other details. I’m not sure what the going rate is for a book cover illustration – but the Graphic Artists Guide to Ethical Pricing should give you a range of high to low, and the number of units that fall under that range.
Thanks again, Maria, I’ve also been researching online in the meantime. Turns out she’s self-publishing so no regular run, etc. Sounds like a small project. I’ve seen pricing $500-$2000 as a mid-range for image use on book cover but that’s w/ regular publisher. Licensing for other materials is something else again. Then she wants to buy my painting for the highest contributor during her fund raising efforts to offset publishing expenses. So not very straight forward…. Tks for your valuable input. ;o)
Just a post script from last year…. That woman had me jumping through hoops doing a painting for her book cover for FREE, promising free advertising, said my shade of blue for hyacinths wasn’t lavender enough for her, wanted free copyrights to my painting, etc. Crazy! Bottom line I blocked her emails and have for over a year been periodically checking for her so called book and never saw anything. If ever I encounter that kind of thing again I now know to just say, “NO!” Thanks again for your sage advice!
hello Maria, you have a great informative post, which allready helped me to see some basics!
I was contacted by an online art gallery, which likes to licence a specific artwork from my own gallery. The other gallery is selling giclee prints, framed art, and stretched canvas, primarily through flash sale partners online…
I am new to licensing and would like to know, how high an “advance” should be in this case, and what royalty percentage ?
Thank you, Marie !
Hi Maria, I just wanted to update you – after some negotiating I finally closed the deal and my art image will be used on a website. I approached the process as two businesses working in partnership to benefit each other. I successfully used gettyimages.com to get an idea of how to value my art image. I stayed firm on my fee, but in exchange for a few things the client wanted I negotiated to have an art reception every year of the contract, where both parties invite our patrons, thus benefit from each other. I will have my art exhibited and for sale at the place of business, which gets a lot of traffic from ideal patrons. I will also get samples of their product for my use so that I can be familiar with their product. I included that I was to have recognition on their website with a link to my website. I was pleased with the final deal and so was the other party. I’m excited to see the finished website and appreciate all your help!
hello again,
is there a site for all restricted images ?
if I PAINT a protected building, celebrity or other item, will I get in trouble licensing my art, or is it my freedom to paint everything ? (1st Amendment)
Hi Peter – legally, you cannot commercially sell art that you copy from someone else. And you cannot license art that infringes on someone else’s copyrights or trademarks. Just as someone else cannot copy and sell the art you create and own.
Hi Maria,
If you create an image for a small town retailer to use for a year. Should you include your name on the logo (art). Even in you copyright it. Thanks so much.
Paulina
Dear Paulina,
Yes, if you want your art to be remembered, if you want to be known for what you do, and if your work is in your own style, yes, your name should always be on it. I wrote a blog post a few days ago on this topic – read it here: https://mariabrophy.com/business-of-art/want-successful-artist-sign-name.html
Fine Art America recently offers the ability to License. Could you give me some wisdom or advice whether or not I should participate? This is all brand new to me. Marketing myself and licensing. Thank you.
Cynthia, What is Fine Art America? Do you mean the website where they print and sell your art prints? If so, then yes, try it out and see how it goes. There is no long-term commitment there, they pay you when something sells. You can cancel anytime. It would be worth trying it out.
Yes, they are a website that sells prints and the artist can sell the original as well. Thank you for responding to me so quickly!
I have another question. Fine Art America offers Royalty Free and Rights Managed. These are their terms:
Sell royalty-free and/or rights-managed licenses.
Set your prices as high or as low as you want to set them. The prices that you set are exactly how much you’ll earn – yes, really!
Control which images you want to sell… which sizes you want to offer… and which licenses you want to sell.
Change your sizes, prizes, and license types at any time.
Add, edit, and delete your images at any time.
Create your own custom licenses. If you don’t like the terms of our pre-configured licenses, you can create your own custom licenses using your own terms and language – yes, really!
Sell your images on other licensing sites. We don’t require any exclusivity, at all.
Give it a try! If you’ve hesitated to try image licensing in the past due to low commissions and long-term commitments, here’s your chance to test the waters while remaining in full control.
Which one do you recommend I go with?
Great article! Just got approached for the first time by a small clothing company that wants to print a few of my designs on their apparel. They asked me what I charged. I used your article along with a few others as a guide and explained I charged an advance of $200 plus royalties of 6% of products sold. (They mostly sell tshirts.) Also told them that I would want to retain ownership of the designs. They said that the royalties fee were to high and that they would need to have ownership of the design.
Where should I go from here should I try to meet them halfway somehow or just say no thank you?
Thanks!
Dear Gio, thanks for the comment and question.
The answer to your question depends on what your long-term strategy is for your art business.
Do you plan to create a name and brand with your art? If so, then you should think twice before selling all rights to your artwork, as you lose control over it and where it goes when you do that.
However, if your business model is to sell your art outright, then it’s okay. Just make sure you are paid properly. Typically, an illustrator is paid 3 – 4 times as much when the art ownership is transferred to the client.
If you need help with this, please consider setting up a consulting call with me and I can help you. See my consulting page for details on how I work https://www.mariabrophy.com/consulting
I would like to start selling my art work in digital format . This not for commercial use but for individual who would like to print it out on canvas or paper. How do I license it so that the buyer only use it for himself or as a gift, and doesn’t share it or print it and resell it?
“I think that at one time in the past, the wise plumbers got together and said “let’s all charge the same high price so we all get paid well!”
You’re right, they did. But you’re forgetting that they also went to the government and asked them for protection so that if anyone else wanted to charge less it would be a criminal offense. Gov’t was all too happy to help them for some kickbacks.
I Maria,I am a contemporary artist & would like to license my paintings to hotels & office buildings,what are the first steps that I should take before starting? Thank you so much
Anahid M.
very informative.
thanks
I am inspired by this great advises now I know how will I charge on my next project.
Hey Maria — I’m so glad I found your blog, it’s exactly what I need — however, I’m on the opposite side of it, I’m the “business owner”!
I’m starting a biz (have very little funds, am totally bootstrapping this) and my products will all be created by other artists. They will all be clearly credited, their bios will be on my site, I’ll link back to their sites and stores — point being, I am enthusiastically crediting them for their talent and art and expertise.
I want to create a fair contract system for them, where they get royalties for every sale. However, I’m just starting out and as I said, have *very* little funds to get this biz going. How do I know the best way to compensate them? A small flat fee + royalties + “temporary” rights to their art? A larger fee with no royalties and I get full rights to the art?
BTW, the auidience is a relatively small niche, and I don’t expect to have a huge volume of sales, especially for the first while.
I REALLY appreciate any thoughts you have — my whole goal here is to partner with artists, compensate them fairly, while bootstrapping my way to a solid biz. THANK YOU!
Jenn, thanks for the question.
It’s in an artists’ best interest to keep their copyrights and not sell them outright.
In your case, you would want to set up a license agreement for a time period (2 or 3 years, and it can be renewed when it’s up, if both parties want to).
Royalties don’t make sense with a small company that plans to have little volume.
It’s not worth the artists’ time and effort for a tiny company to sell only small volume and then pay royalties – because then the artists are getting little tiny $20 checks every quarter. It’s not worth their time (or yours!).
I recommend to artists doing deals with start-ups / small companies to get a flat fee up front for a license term of 2 or 3 years.
But, with you as the business owner, I have to ask why you will bother with this business if you know already that your sales will be minimal. Setting up a website, dealing with multiple artists, having products made and then inventory management, etc. requires so much money and time. To make something like that successful, you have to have a lot of marketing / advertising money to invest. It sounds like you don’t have the funds to put into it.
You might want to re-think this endeavor until you can get start up money for advertising, marketing, SEO, etc.
That’s the only way it has chance of being successful.
That’s my 2 cents for what it’s worth!
Hi Maria- you are so helpful! I have a few questions. I just got asked by a up and coming equine apparel company to design jewelry for their upcoming spring line (which potentially could be more seasons). I spoke with the owner of the company and he mentioned with another designer, they did a royalty on the FOB price, and that he would rather do a flat fee for designs this time around. His reasoning was that 1) the royalty payments was a pain to track 2) the previous designer has designs in multiple collections versus me just having my items starting in one collection and it will just be easier if it was a flat fee. I’m sure he is doing this from just a business standpoint as well, but I want to make sure whichever I choose is best for both parties. Thoughts?
I am a photographer who has been asked by a painter to make a painting based on one of my photos. Typically I would charge a $100 flat fee (not an advance) plus 5% of gross sales of commercial products using the derived work. In this case, this painter wants to produce a book of his paintings including one based on my photo. If he had to pay all his sources 5% of the sales of the book, he would make no money. Is there a common way to approach a license where the source material is used in a compilation?
Dear Chris, this is a great question. The only way the artist could produce this book with any chance of recouping his expenses and maybe even making money from it is to not pay anyone royalties.
If he has a number of photographers that contributed to the book, he is going to have to ask them to grant a license with no fee.
My husband’s art is printed in about two dozen hard-back books, and not one of the authors paid him rights (there’s just not enough money in it, and each book had a number of artists contributions). He did it for free. In return, his name was printed in the book, and sometimes the author will send him one or two copies of it.
I recommend allowing the artist to use your image for a flat fee and forget about asking for royalties for a book (but charge royalties for other merchandise). Put a limit on how many copies, and make sure it’s non-transferable.
I hope this helps!
Hi Maria – I was recently approached by a Fine Art Consulting Firm that outfits 4 and 5 star hotels around the world with art they print on their own presses. The prints are giclées for the guest rooms which they print and frame themselves, but they propose to give only $5 per print to me as the artist.
I have no experience with even single-use licensing (which is what this would be, for a specific amount of prints), but this seems very low to me. I asked how many prints would be made in total and the size of the prints (as obviously that would alter the total I am paid) but they didn’t have that information… actually, as I was writing that I just got an email from the rep saying there are only 45 rooms and the print size is approx 30″ x 35″ — and since it’s so few rooms she’s going to see if she can negotiate a higher rate…
I’m looking online to find what would be a typical rate for a project like this, but mostly am finding licensing for products, royalties, etc. I came across your wonderful article and thought you might have some insight – however general – on the topic…
mahalo!
Donia
ethyrical artist
Hi Donia, thanks for the comment, glad you found my blog!
When it comes to selling art for corporate collections, such as hotels and hospitals, etc., there is an entirely different way of pricing.
Typically, artists who sell to art consultants print their own, as it’s hard to know exactly how many prints the consultant is really going to do.
And, when selling to an Art Consultant, you would charge them 50% of the price they are selling to their client. For example, when you sell giclees that you print you could roughly say the price to art consultants comes to 50%. Its not always exact. Some are paid as a commission while others are paid for the project and therefore don’t really take a commission.
Art consultants that do their own printing tend to offer very little per print.
But, that’s not to say that you can’t set your own price, and if she wants your art, she will take it.
A general guideline for standard sizes in the corporate market. If you print it yourself, is about $400 for each 36″x24″ – they can then charge their client $800 plus the cost of framing.
If they are doing the printing, then you could charge $100/per image, and require a minimum of 50 pieces (for a total of $5,000).
Or, work it out some other way. But yes, $5 per print is WAY too little!
There is a fabulous book written on this topic, by a woman who specializes in selling art to art consultants – in it is pricing, etc. Check it out here: http://bit.ly/OP40Cl
Or, set up a consult with me and I’ll help you work it out!
Thanks, Maria
Hi Maria. Do you have any suggestions on how to royalty license an image that will be used as a basis for another work of art? For example, a painter (who appears to be handsomely paid for his work) wants to use a photograph of mine as the basis for a painting that he has either been commissioned to paint or will sell in his gallery. What approach (or % royalty) would you recommend in this case?
Thank you for your help, and for an exceptionally useful article.
Dear Daniel, thanks for the question!
I haven’t priced something like this out before, so I’m not sure what the going rate is. But, what I have found in this biz is that there is no “one-size-fits-all” rate anyway, and we have to just make it up as we go!
So, for this situation, I would offer the artist rights to use your photograph for a one-time fee, for a limited time period (say 3 years). How much should that one-time fee be? Pick a number – $300, $500, $800, $1,500. Really, the amount should be what feels good to you and what the client will agree to.
There is no guarantee that the art or reproductions will sell or that it will do well. You just can’t know. I wouldn’t assume that the artist is going to make a killing off of it!
However, if at the end of the 3 year term, the art is selling extremely well and they want to renew their agreement with you, then you could work up a flat fee up front plus a royalty arrangement (8%-10% on each sale).
Maria, thank you so much for the thorough response. Very helpful. In this case, the artist that contacted us was commissioned for one large-scale piece. After some discussion, it was clear he was poking around for something for free. So, in the particular case that motivated my question, it did not work out. However, the thought process and possible framework you suggest will prove useful — for me and for others, I’m sure.
Thanks for this post Maria.
I am a freelance photographer in the UK. I have bee approached by an agency that produces posters for larger distributors such as B&Q etc. to use some of my travel images. They have suggested the flat fee system for 3 year exclusive usage. They are being very careful about stating a fee and are leaving it to me to suggest a figure, but I have absolutely no idea where to start. I’d really welcome any suggestions,
Thanks,
Dan.
Daniel, thanks for the question. I would come up with a one-time fee that takes into consideration that the images will be printed and sold in quantity. The fee should be something that you feel good about and that they will agree to.
I would limit the “exclusive” part of the agreement to posters and prints only.
And make sure the contract allows you to buy the posters/prints at the lowest possible distributors price, so you can sell on your website and at your shows, etc. if you wish.
If you want me to help you with this, please go to my Consulting Page and set up a time for a call. Thanks!
Thanks Maria, you flagged up a couple of issues that I hadn’t considered. Presumably I could request that a photo credit is printed on the prints, even if it’s just in small type at the bottom?
How much should I charge for a concept that I have patented? Just an idea of an amount. The concept is a new and improved system for taxi drivers to use.
Hi Maria,
I am creating a promotional campaign for a model agency to announce their launch. Within this poster-size foldable book, there will be a removable poster with an illustration I am also creating from scratch. Everything from concept to completion of this project is mine. I have been an illustrator for year but have only recently landed some larger projects. I am also building up my art direction portfolio so this seemed like a good opportunity to show both my AD & illustration skills. However, this is a last minute project for a colleagues’ company so I know we have skipped some important steps as far as a agreements go. However, nothing has been given over or taken to the printers yet so I hope I can still find some room to negotiate. I just have zero idea what to charge for this type of work. It is art direction, graphic design, layout, sourcing and illustration rolled into one. The min. run is a 1000 copies with the newsprint printers I have found, which will cost around $550/750 (b&w/color). As far as I know, this will be a one time distribution. However, that is something to specify as well. I normally charge $45/hr. for my design/illustration services & they have offered $500 flat fee. This project will take me at least 20 hrs. I know this is much too low but I as I said I don’t know what to ask for in this specific case. And as for any reprinting/distribution of either the entire book or just the illustration, what would you recommend? They won’t be selling this, so I don’t know if royalties apply. However, it is meant to bring in business and this is a whole other industry I’m not quite informed enough. I hope you can help me answer some of these questions. Thank you!
Dear Caitlyn, Thanks for the question. First, never start work on a project without first properly quoting out a price for it, in writing, and then getting a 50% deposit up front.
This project requires a lot of work and would be properly priced starting at $2,500 and goes up from there, depending on the entire scope of work. (Often, we outsource the graphic portion of projects like this, and it costs us about $600 to have a graphic artist do such a project, for the graphic part only).
For this one, I’d say work it out with the client; give them a price that you feel is fair to you. Let me know how it goes.
I suggest you buy a copy of the book Graphic Artists Guild Guide to Ethical Pricing. It will help you with future deals.
I hope this was somewhat helpful!
Thank you Maria! I will definitely take all your advice going forward.
I am making a copywrite agreement with an artist. The project will be to heat transfer to a “T’ and leggings. Maybe the print shoppe will put one
on ‘T’ or three diagonal and one on thigh? The shoppe is photography and scanning the image to their grid. I will purchase the two clothing items and making them cotton of ‘Fruit of Loom’ . I am searching for leggings. I am making licensing agreement with the artist and signature on art. I wish to pay the 6% you mention on the heat transfer itself which is already expensive. I want the clothes to be saleable at a special price. (2.50 + 4.00 + 6.00 + 6.00 + 6% + 20% = wholesale) aprox 23.75$. I don’t know if its possible, yet.
I want to add a Jersey ‘Flyaway’ maybe if I can make an ‘ensemble’.
Presently I want the two-piece. only.
I have your questions and answers and I think that to start the expenses are enormous. We have to buy leggings retail and market the ‘sets’.
Does this beginning sound good business practices?
Regards.
Bobby Hyde
Hi Maria,
Thanks for your informative and easy to follow article. I was approached by a retailer about designing her company logo.
In this case, since it will be a specific design for her company, does it make sense to retain a copyright for the design?
Dear Maria,
Thank you for this article and I am glad I found your blog. I have been getting licensing requests recently and am a bit overwhelmed. Have being doing some research. I have been contacted for licensing an image of my artwork for an oracle deck card.
The publishing house wants to license one of my artwork images for a non-exclusive upfront one time payment. Do any of you have experience with this kind of licensing? This is a first for me. How much would you charge for something like this as this is a one time upfront payment for licensing one image ?
This is their offer – ‘If you’d like to be involved, it would be a matter of simply licensing your image/s on a non-exclusive basis, other than for another oracle and/or tarot card set. Apart from this, you would be free to use your image/s for any purpose you like and further license them to anyone you like, but not license the same image/s for another oracle and/or tarot card set. You would be paid an upfront, once-off payment for the licence to the works. If you are interested we can send you a Pdf of the licencing agreement for details.’
How much do I charge for something like this?
Thank you.
Hello Maria, thank you so much for this article! I’ve been a freelance Graphic Designer for a few years and have generally worked out my pricing kinks with that, but I’m new to illustration and have a question. I posted a piece I did on Instagram and got an offer to buy not only a print but also the rights to the image. The buyer is a small mom & pop shop in the city who is planning on using it for their gift cards and their website; no advertising as far as I know. I’m so stuck on what to charge for the rights, since the piece was something I had already created for myself, just for fun! It’s about 8″x8″ watercolor, somewhat complex. I was thinking of starting with simple, internal usage rights somewhere around $500, and going up to a full buyout of $1,500, does that seem fair? I’m so unsure!
I did not sell my painting to them but they will use my oil painting of their business on items. I will be getting 10 percent of t shirts , post cards, etc.
They asked how long I would get this. They would like a time year cap? What should I tell them? 5 years? It’s a small business, not a Walmart.
Montana,
Most license terms are 2 or 3 years long. Once the time period (term) is up, the company can no longer sell products with your art unless you renew the contract. The term is up to what you and the client determines is best.
Is there a time limit on royalty? I’m getting 10 percent on all items made but they want a time limit. In years I suppose?
Dear MF, as I mentioned in my comment to you earlier, your typical license agreement will have a term, or time period. Once that term is up, the license ends. Royalties end and the right to use your art on their products ends as well. So, the term of the of the license agreement is whatever you and your client agree on. Why don’t you just offer them a three year agreement, and after 3 years, if you both are happy with the sales of the products, you can renew it at that time?
How do you know that the client is no longer using your image to reprint the item after the term is up? The client may have purchased a large inventory of the item and it may be lingering in the store for longer than the time of contract.
Paulina, thanks for asking this question “How do you know that the client is no longer using your image to reprint the item after the term is up? The client may have purchased a large inventory of the item and it may be lingering in the store for longer than the time of contract.”
In art licensing, your client is the manufacturer, not the retailer. The manufacturer has to stop making and selling your products when the agreement expires. However, whatever is already sold to stores and is in stores irrelevant – the buyers from the stores are not your client, they are your client’s client. Hope I explained that well enough. Let me know.
Quick question: I have a painting from 1985 of an Arial photo of my grandparents farm that hung in their farm house. It was left to me after they past away. Some family members would like prints of it. I contacted the company that made it. They don’t do paintings anymore, buts till do areal photography.(they still have the original photo.) I asked about licence 2 or three copys, there are local professionals that can make some nice prints. I want it done professinally. How much do you think a licence of this nature will cost. This is for personal use only.
Hi Donald – this is tough one to answer, because it’s not for commercial use and no monies will be made off of it. So the answer is, the best fee is whatever is agreed upon between you and the owner of the image. Sorry, I know that’s a frustrating answer! But, why don’t you do this – come up with a dollar amount that you feel good about, and offer it to them. See what they say. Maybe offer $100 – and if they say yes, it’s a win-win all around!
I would like to start a business in US to print canvas with famous paints like Leonardo D Vinci, Donattelo, Rembrant, etc.
Is there any fee or royalty thatI have to pay for each reproduction to somebody? Who will be the collector? Where do I have to subscribe my sales and demonstrate the quantity of reproductions sold.
Is there any way to learn more about this?
Thank you very much
Rafael, it’s possible that some of those artworks you mentioned are in the public domain, and if so, you can reproduce without owning royalties to anyone. Do your research and find out. Google each one to find out.
About forty years ago, a friend was showing in a sidewalk art fair in Santa Cruz, CA. He asked me to come by to help pass the time. When I arrived he pointed to a departing guy and said he had come by twice and was going after his wife. He wanted to ask $200 for that painting but was afraid and would have taken $100. He asked me what I thought. I told him to ask for $800. I liked that painting and would like to have it today. Anyway the guy came back with his wife and when he heard $800, he wrote the check and left with the painting. End of story, except my friend bought dinner that night.
Great story, Joe. Love it!
Yes, money is relative.
I sold a painting for $28,000 and was feeling a little guilty because it felt like so much. (Not that I got all of it.)
Anyway, I found out the client bought another painting the same day for $600,000.
That put things in perspective for me.
Hi Maria,
There are a few of my works that I would like to present to start a T-Shirt line.
Could you tell how do I go about getting these art works into the hands of those that do this sort of thing? and or to see if there is interest?
Thank you!
Hi Barbara! You’ll have to research the best t-shirt manufacturers and present to them your line. Go into stores that your work would fit best with, look at the tees being sold, find out who makes them, then set up a time to present the art. I wish you the best!
Hi I was contacted to have a landscape photo of mine used for about 500 greeting cards.
Would this be a flat fee situation? I’m thinking charging 250? And should I write a contract? I’m not sure what a contract might look like for this situation. Thank you for any advice you might be able to give!
Hi Maria, I work for an artist, and a restaurant recently approached us wanting to put his image on the menu, coasters and table tents. Where do I go to find out what to charge for a licensing fee?
Thank you!
Best, Dani
Hi Maria, thank you for your article. I would like to ask your advice. I’ve received a request regarding my old drawings. They want to license my art in their pitch materials to show investors how they’d like the film to look, as well as in the crowdfunding company.
As far as I understand they don’t want to pay, but should I charge them? Isn’t it weird that some would use others’ art just for free for their own purposes?
Thank you in advance!
Hi mates, nice post and pleasant arguments commented
here, I am really enjoying by these.
Hi Maria,
My partner has been approached by a well known chefs company to sell complete copyrights to paintings he does to go on their crockery and ceramics for 2017. We have never done anything like this before and have no idea how much to sell the paintings for! Also although we are selling total copyright should this be for a set timescale? The company is currently selling platters plates ect with another artists work which started last year and as the product has sold so well they are running it for a second year and are now looking for a new artist for 2017. If complete rights are going to be given is it also best to ask for an advance upfront of painting any artwork?
Hi Sarah – if you are selling copyrights, then you are giving them ownership of the art, forever.
If you want to place a time limit on the usage, then you would license the art rather than sell it. And in that case, you can either charge a flat fee, or royalties. If you think it will sell in high volume, then royalties will benefit you the most, as you’ll make more in the long run. If you want help with this in greater detail, check out my “work with me” page and set up a consulting call. I could help you put together an offer that would be fair to both the artist and the company.
Hi Maria
Thank you so much for this invaluable information. I am an Artist and I have just been approached by a company to purchase some of my images for their website. I am completely new to this and needed this sound advice. I am thinking the flat fee is the best option for this occasion. How do I go about requesting the website reference me as the Artist?
Natalie, let them know that you require that your name, or signature (or whatever you want it to be) is clearly legible on their website, and be clear about how you want it to read, i.e. “Artwork by Natalie Parker” or “Artwork (c) Natalie Parker”, etc.
Hello. I designed a logo for a business containing an original piece of art that I own. I will retain the rights to the artwork. My plan is to license the artwork contained in the logo for just 3 yrs, at which time I would renegotiate with the owner. The artwork will not be transferrable to anyone else. I would also like to state the circumstances wherein the restaurant owner has the right to use the artwork…only in combination with the logo type, on business cards, stationary, menus, website, Facebook page. I am actually the designer of the printed material. The subject of tee shirts has come up for the staff, and recently to sell to the public, as well as other items, which may not contain the name of the restaurant-and those I would actually like to sell at the restaurant and offer the owner a fee with each sale. What do you think is the best approach? So far he has agreed to the licencing for 3 years at a time.
Hi Maria,
I’m curious to know how royalty enforcement is handled. I have read a few articles and through a handful of contract and none of which mention enforcement.
Specifically, how can a person find out how many units were sold… It seems the licensee could make up any number… I.e. They say they have sold 50 units but in reality they sell 2000.
Scott, excellent question! And I have a great answer: A good licensing agreement will include a statement that allows the Licensor (artist/you) to audit the Licensees books at any given time, with notice. A Licensor can send in an Auditor to do this for them.
A great licensing agreement will also include language that states that if the audit reveals that the Licensee was underpaid by 5% or more, the expense of the Audit is payable by the Licensee.
Hello – Great article and advice! Regarding your reply above, would the audit also apply for international deals (such as a US artist licensing to a German company)? Would a lawyer in that country need to do the audit? Seems like that could get pricey
Thank you!
Thank you very much for all your great advice will now make license Decisions
Great article! Thank you so much!
Offered a flat fee short term to client they thought it was fair but are unsure how many they will sell so they wanted to know a per piece price to use the image, any thoughts on this
Thanks, helpful article make me happy to read this. I am photographer and well selling royalty stock to get extra coin. I love my work and happy with that.
Thanks Maria. Great article. It was the first I stumbled upon when Googling “licensing art and design.”
I’m just now looking into licensing some design work simply to augment my freelance income and as a baby step into retirement income. Ironically the designs I’m initially thinking of are a few that I created for my own custom surfboards. I intend to contact the substrate manufacturer my shaper uses, as they appear to have a small stable of artists. Imagine my surprise when I clicked on Drew’s link! Terrific work. 🙂
I’m an illustrator who is re-branding a large business. They are asking for a non- competition agreement that will prevent me from working for similar businesses for two years. Is this a good idea for me? How do I decide on a compensation amount?
Rikki,
I would not agree to anything that would prevent me from working for 2 years, not unless they are paying you enough to take 2 years off.
Have a conversation with them and find out what their true concern is. Are they worried you will create similar branding for a competitor? If that’s their concern, then the agreement would state that you cannot create similar branding for a competitor.
A non-compete is typically used for highly paid employees that have insider info in an industry. It protects the company if the employee decides to quit and go work for the competition.
Rarely is a non-compete signed by a freelancer. This is because it’s meant for employees or highly paid advisers.
Discuss it with your contact at the company and let them know that agreeing to not provide your services for 2 years would kill your income earning ability. And that goes against your business model! 🙂
Ask them their true concern, and address that concern as best you can.
Good luck!
So interesting and very well written for all audience!
Hi, I draw as a hobby and have been contacted by a huge craft company to supply them with drawings for an upcoming adult colouring book. They are proposing a 2 year license and have asked me to name a price per drawing, I have absolutely no idea what to ask for and no friends in the industry that I can ask………. Help !!!!
Hi Maria! Your blog is super informative and interesting!! Thank you for sharing. However, I have an issue that I didn’t see addressed anywhere else in this thread… I’m a painter who makes my living by selling my original work only. Surprisingly, it’s worked out great for me thus far, despite being a simple “formula.” But I was just contacted by an art consultant for a luxury hotel. My interest was piqued, so I’m considering. They asked for a quote for 4 originals and limited copy rights for producing prints for 170+ rooms. My work sells for $1500-$10k per painting. It seems to me, the most appropriate way to “bid” this would be to ask for a flat licencing fee for the print rights? Though I have no idea what to charge. A percentage of an original? Any input?
Hi Daniel,
Congrats on this great new opportunity! There are definitely different guidelines for dealing with hospitality art print sales.
It’s best to handle all printing on your end, so that you can control quality and quantity. However, some designers insist on printing it themselves. I recommend you buy Liron Sisson’s book “How to get your Art into Corporate Collections” where she shares how all this works: http://bit.ly/OP40Cl – it is very helpful to get insider info and as far as I know, hers is the best resource out there on this topic.
Selling art to consultants for hospitality industry is different from licensing. The % are much higher. Instead of 10% for paper prints (in normal licensing) you can charge up to 50%.
If you do the printing yourself (which is recommended) then your profit is much higher.
Hope this helps!
Thanks soooo much for your feedback, Maria! I got my proposal squared away, and we’ll see what happens… Regardless, this is a valuable learning experience.
I am in a similar situation now. I think I’ll ask 50% of the artists price times the number of prints they’ll make as Maria suggested. Is that what you did? Did that work out? Would love to hear how it went if you have a chance.
Hi Maria,
I have sort of a loaded question I hope you can help me with: A design company has created an image for the cover art of one of their house books which is being sold world wide. The cover image is very similar to an image I created for a series prior to them publishing the book. My lawyer would like to know what to ask for in compensation if we were to go forward with a copyright lawsuit. I told him that the artist, who is most likely received a flat rate or royalties for this high-end book but that I have no way of knowing what sort of deal the artist would have received as a basis for what I should request. This is a large fashion design house that created the coffee table book with an artist who is represented by the image agency that produced the book.
Do you have any ideas of what the artist might have received as payment for this project and/or what I might think of suggesting as compensation for the use of my work –both for the past year and any future sales? Thank you!
Do you have any advice about usage of one image in a book? Also, the piece that is featured is my work, but the photo was taken by someone other than myself. Should there be a usage fee for book print? Should the artist receive the fee or the photographer (if no agreement had been decided beforehand?)?
The answer depends on who owns the copyrights to the photo. Is the photo a creative photo that includes the artwork? If so, then the artist and photographer share in the royalties.
If the photo is just of the artwork, then most likely you should get the royalties. (If you hired a photographer to “scan” it for you).
The price to charge depends on how often the photo is used, if it is a full page or partial, and is it an inside cover or page?
Each is priced differently. The Graphic Artist’s Guild guidebook of ethical pricing covers the pricing for these things. I recommend every artist have a copy of that book.
Maria, thanks for such a speedy and helpful reply. I’ve really enjoyed coming across your blog with my question and have been directing my pals to check it out because we are so used to selling ourselves short and your tips are so helpful and encouraging to deal with our everyday issues. I will definitely check out the guidebook!
It turns out that the image will be used on the cover of the book and 1/4 page inside – million copies, worldwide use, all languages etc. I wouldn’t have asked the right questions had I not found you! Looking forward to your newsletters.
clicked on:
LICENSING AGREEMENT/CONTRACT TEMPLATE PACKAGE
and got an error code. Really? After all the trust you built in the article. Big disappointment and loss of trust. I gave you my name an email address and regret it. I’ll unsubcsribe asap.
Hi Adrienne,
Thank you so much for bringing this broken link to my attention. I just fixed it.
And I’m sorry that the broken link caused you such distress! And yes, I understand if you unsubscribe, as I occasionally make mistakes and wouldn’t want to cause you harm again. I wish you the best!
That’s a bit harsh, Adrienne. Mistakes occur and technology fails us sometimes. Alerting the author of a broken link is the kind thing to do, but losing trust, being so disappointed and having regrets about subscribing seems like an over-reaction, IMHO.
Hi Maria. I’ve read many articles regarding rhis topic and by far yours is the clearest and most helpful. Hope you can help me on this. I’ve just been contacted by a company who wants an exclusive licensing agreement for a certain quantity of my drawings as a package deal. They intend to 3d copy them and sell on mass market under their buisiness concept idea. Since this is new to me, I am totally lost on what royalty rate is fair for 3d printing based on my art or what to compare it to and for how long my contract should be. They suggested 5 years. Any input from your great expertise would bring light to me and I would truly be grateful.
It can be so difficult finding a reputable Internet Marketing
freelancer at the moment, just going to do it ourselves I
think
Posted this on Twitter, very useful!
Hello! I have been asked to allow a financial consulting company to use a couple of my painting images on their website. I imagine for a while. I have no idea what to charge them. Can you help me? 🙂
Hello Maria – A company wants to use one of my images in their logo. The small original collage painting is still available for sale at £95 GBP. I have no idea what to quote them for this logo use or how to handle it. Do I sell them the original and ask for an amount on top? Do I sell them a digital hi res copy and keep the original? If so – how much to charge? (Im not a designer so they would need to find their own graphic designer) Its a picture of a Greek fishing boat and they are starting a Greek Seafood company…Thanks So Much for any help you can give me.?
Hello Maria,
I am an artist with a new, successful hand-painted wallpaper business. I have one very unique design that a very high end boutique clothing atelier approached me about liscening for some clothing pieces. I am doing the sample work, and then moving forward, their fabric peeps will do the work. What is an appropriate percentage? They have started the conversation with 3% going down to 1% for higher volume. I’ve not done this relationship before, but I have been a successful commercial artist for many many years and my first thought is this is way too low. What do you think? Thank you!
Hi SL – 3% is the absolute low end for high volume sales. 5% is closer to the norm. I would ask for an $$$ advance payable up front – if they are not willing to come up on % and pay an advance, there is no incentive for you to do it. Not unless it’s a charity….
Hi Maria ,
if a singer / well known singer in the middle east want to make a commercial on TV for a telephone company , what sort of fees should be asking for ? should we ask for advance up front then monthly payment for the duration of the forecasting of the commercial ??
Emmanuel, there are standards for licensing music for commercials. The artist should keep rights and ownership to their music and license it to the telephone company. Licensing fees for music for these types of deals typically start at $15,000 (a one-time fee payable to the artist) and often are much more – and that is for a limited use of the music, usually limited to a number of months or number of times the commercial airs.
Hi Maria,
This is such a great article! Thank you! I have read a number of resources on this topic and only now do I fully understand it!
Of course I have a question that is a different scenarios. I have a client that wants me to make them an original commissioned art piece then, they want to make print reproscitions to give to their customers (they lease office space and would give a framed reproduction as a welcome gift.) So they won’t profit off of it, but they will be reproducing my image. Should I charge something for that? A minimal flat fee, maybe?, with an agreement they don’t sell the reproductions for profit without a new agreement? I’d love your thoughts on this! I don’t want to overcharge, but I also want them to respect that they are always buying the license from me and that I own the copyright.
Hi Beth, thanks!
The way I would handle any client with a commissioned art piece – I would sell them the original painting and then have it professionally shot and then offer to sell them prints of it. Handle all of the printing yourself.
You don’t want to hand over your high res images or allow your clients to make prints of it, for many reasons:
1 – You will be able to control the quality of the prints (important for any fine artist to do)
2 – You will be able to earn more off the sale – when you have the prints made, you will then bump up the price and earn more per piece
3 – You will be able to sign each print, which should be important to your client. It’s more valuable with the artist signature (and even if you don’t sign the front, you can sign the back).
4 – You own the copyrights, so you can make many prints as needed and sell them elsewhere, off your website, etc.
So, moving forward with this client and any other client that requests a commissioned painting and prints:
Tell them that yes, you offer art prints of your work. Give them a price per print, and size options, and let them know that you will have the prints made and delivered. Tell them you’ll be happy to sign the prints for them.
They can order one at a time, as needed, or a bunch at once for a discount (get a discount from your printer for a high volume order, and pass some of that onto the client).
Hope this helps!
This is soooooo extremely helpful! Thank you so much!!
I’m working for a well known cancer charity producing artwork. They want 3 paintings and they want to make 100 copies of each painting. I really don’t know what to charge here. They are willing to pay for the licensing, but because it’s a charity, I was thinking of a flat fee for this. They will be paying me for each original painting. Any help/advice really really appreciated. This is my first project of this sort.
Hi Lesley,
One way to do it: Handle the printing of it yourself and charge a per-piece fee. (This gives you control over what happens with your art files.)
Charge them a fee for creating the original artwork, which will cover their cost of the originals (whatever your fees are, you could offer a 25% discount, which can be considered your “donation”).
Then charge them per poster – and handle the printing of the posters yourself, as that way you are able to control the quality and you will have the scans in your possession.
Make sure your fees include the cost to have the paintings scanned professionally (this can add up – we pay $100 per piece to get our large paintings scanned).
Source the cost of printing, and then add to the cost to ensure that covers all of your expenses are covered plus you earn a profit.
I can’t give you specific numbers here, without knowing who the charity is, what your work sells for, and other details that are considered when coming up with a price.
Hope this helps!
Very informative article! I have a new client that wants me to create cover art for his ‘inspirational self help journal’ book and layout all 90 pages. It’s in the beginning stages but he’s going through a publisher, and it will be sold for about $10 per book. Unsure of how many copies will be printed in the first run, but I’m not sure how to price my work. Should I do a flat fee, or a percentage per book sold? Should I do a flat fee for the page layout and percentage on just the cover art? If so, what’s a reasonable percentage price? Help please, any information would be Awesome!! 🙂
Hi Nicole,
I just hired someone to do something very similar for me. I’m paying him $1,000; $500 up front and $500 when it’s finished. Typically, this type of work is a flat fee project, not a royalty %.
Hope this helps, let me know!
Thank you so much! Very helpful!!!
Hi Maria, I wrote and published a fiction work based on a modern African Country covering economics, contemporary politics, and espionage as well as a coup d’etat which a group representing a European country want to turn into an animation film. I would like to charge them a licensing fee for a given period for them using the story and characters in my book as well as a % of gross income from the animation itself. Is this structure possible? Secondly the book is 380 pages long. I self published it and it is on sale on Amazon I have no idea what to charge them. I have created a cartoon series based on the book already which is currently running in a national newspaper in Africa although I have not started selling it commercially as we are still creating the comics. I have no idea what to charge for the licensing fee for the animation. The animation will probably be distributed world wide both in English and French. How do I charge them? I know this is not the typical scenario that you deal with but I need help on how to price. I have no idea how much money they could make from the animation. I need a quick feedback as I am meeting with them in a few days PLEASE HELP!
HI Emeka,
Congratulations on this project! Sounds amazing.
When it comes to animation and films, you really need to hire an attorney who specializes in that industry. The fees, royalties and contracts are very different from regular licensing. Also be VERY CAREFUL to NEVER sign one of these agreements without the help of an attorney. It is the trickiest industry ever – they put language into their contracts which ensure you are never paid, if you aren’t careful. Be careful!
Excellent article! I’ve been searching high and low for assistance on coming up with a value for my paintings if selling the digital rights. My situation is a bit different than what you describe here, although what you describe here may also occur for me so thanks for that part.
I have never been in this position before but a business that is owned by a pretty famous billionaire who owns a pretty famous company among many companies is interested in purchasing the digital rights to a handful of my paintings. They want to use my images for wall coverings in 6 of their entertainment businesses in the Midwest and East Coast. They are talking, so far, about enlarging them and using them for murals and for elevator doors. My images link directly to the name of their business. How on earth can I come up with a value when, in this case, there are no royalties because there are no product sales. If they like how these are accepted by the public there may yet be merchandise using the same images. So how does one come up with a value????
Kenneth,
I wouldn’t sell them the digital rights. Then you lose rights to your art. Instead, sell them a limited license to use the art for the specific project at hand.
Pricing for these types of projects is different then regular licensing – typically you would charge approximately 40% of the retail value of the art pieces.
If you want specific help from me, please set up a consultation – go to my “work” page and follow the instructions.
Or, if you want a cheaper solution, click the link on the the right hand side of my page that leads to the ebook “getting your art into corporate collections” – which will give you details on how that type of business works.
Thank you Maria. I’ll check out your consultation link.
Hi Maria,
I have a licensing opportunity coming my way and I would apppreciate some help with how to price it.
A TV production company want to use some of my paintings in their set design for the house of one their leading characters. It is an Irish/Canadian production, so I assume it will be aired in Canada as well as Ireland. They will be filming for 3 to 4 weeks.
The paintings would sell for about $3000 each. Is there an industry standard for this type of arrangement? Or what would you suggest would be be a fair price to ask for?
thanks!
Hi Padraig, typically for a TV show, you would
“rent” your art for the set. The industry standard varies depending on location (city/state/country), but in general, you could follow one standard, which is to charge a rental fee of 10% of the retail value of the artwork (in this case $300 per painting), and for each additional week charge 5% of the retail value ($150 per painting).
However, if they are renting less than 20 pieces, I would come up with a minimum fee. For example, if they are only renting 5 paintings for 4 weeks, maybe offer a one time fee of between $3,000 – $4,000 plus transport and insurance (they should make sure the art is insured).
This is just one of many ways you can do it. Play around with the math and see what feels right to you!
Sorry, correction to my typo:
10% would be $300 per painting! ($3,000 x 10% = $300).
Sorry about that, corrected my comment to reflect the correct math, now carry on! 🙂
Hi Maria,
A local tourist spot (privately owned island with a castle on it) wishes to commission me to do a painting of their facility ( Arial view shot from above highlighting the entire island and buildings). I foolishly low-balled it at $2,400 when they pressed for a ballpark figure as compared to another painting I had hanging in a shop. It should have been at least twice that….. But, that being said, they also want to discuss fee for making prints. Would you do a percentage / royalty fee or lump sum for reproduction rights and how much roughly would you advise? The canvas would be 36 x 48 – and they have resources / international investors of this island and now two more.
Regards,
Garrett McCarthy
Hi Garrett,
Congrats on this opportunity! It sounds great. You could come up with one of two options for them for art prints:
1 – You do all the printing and sell to them at fair market value. If the prints will be retailed in their gift store, sell to them at wholesale pricing plus shipping. If the prints are being installed in rooms in the castle, sell to them for the price you would sell to an art consultant, which typically would be about 60% of the retail price. For a 36″x48″ retail pricing would range from $900 – $1,500 depending on how it’s printed (paper vs. canvas, etc.). Plus shipping.
2 – you could license the image to them and charge per piece. The price depends on how many they plan to print.
Also, before you paint anything, make sure you get a written permission from the photographer that you can paint his photo. This is important so that you don’t get sued later.
And, lastly, it’s not too late to raise your price. Let your client know that while your existing paintings are priced at $2,400 at that size, a commissioned painting is more work and complex, and your price for that would be $3,500. (as an example).
Hope this helps!
Hi Maria,
Your article was extremely helpful and one of the most informative ones I’ve read! I too have a question on how much to charge. Years ago I was commissioned to create a design that would be printed on shirts and sold online. It was a small company at the time but regardless, I definitely made the mistake of undercharging.
Recently, the same company reached out and wants me to do another design and I’d like to be smarter about pricing this time around. I’d like to charge a royalty with an advance upfront but I’m unsure how much to charge as the initial flat fee? Is it considered unprofessional to ask how much product they are selling in order to determine a royalty percentage? They are still selling my previous t-shirt design online and now apparently in small shops. Is it possible to tie the old and new designs into one contract so that they can only use them both for a year? Can I ask to start receiving royalties for the old design too or has that shipped sailed?
Any advice would be sincerely appreciated. Thank you!
Andrea,
Great questions! It is professional to always ask what they are planning to print the art on, how many units they intend to sell and what the wholesale and retail prices will be.
If they plan on only printing and selling 200 units of a product that retails for less than $100, for example, then there is little room for royalties in there and I would charge a flat fee for a short period of time for specific usage on a specific product.
However, if they plan on selling 200,000 units of the product, then there is great earning potential with royalties, and I would ask for an advance and a royalty.
To answer your last question – can you tie in the previous design with the new one in an agreement – it depends on what your original agreement was. There are so many what if’s that I can’t give you an answer without more details, sorry!
If you want to set up a quickie consulting call with me (go to my “work” page on this site) we could come up with a specific plan as to what you should charge.
🙂
Hi Maria!
Just had a quick question on what type of license I should give my client. I am a freelance graphic designer and was asked to create a Wedding Welcome Packet for a local photographer. Now that my Job is done I am sending her an invoice along with some sort of agreement electronically for both of us to sign. Since I am not printing for her (she was very untimely and at this point just doing an agreement instead of a general contract), I am charging her one full payment upon release of my designs. I would like to implement in the agreement that she can use for her business (market and advertise wither social media or locally), however i would like to as well use it to advertise my business also. what if she allowed me to use her photos to create her welcome packets, how will that dictate the agreement?
Btw i bookmarked and saved your blog as this was very helpful to read.
Thank You again for your time!
Hi Yare,
Thanks for the question. I think what you are asking is, how does it change your deal with your client if you get her permission to use the graphic design work in your portfolio? Is that right?
If so, what I would do is include in the agreement the statement “Artist retains rights to display Artwork in portfolio (digital, online or print) and case studies.”
This should be in all your agreements so that you are free to show the work you did, to other clients. This shouldn’t change your pricing at all whatsoever.
Hope this helps!
Thank you so much for your speedy response! I just sent my client the agreement letter and I believe I said I as well can use the work for my business for promotional use to build my business, would that be the same as what you mentioned? I also did say if for any reason if either party would like to use the work in another way that either party would have to give/get permission to do so before using. Is that good enough for me to say?
Again Thank you SOOO much, you have no idea how this has helped me.
Hi Maria,
Glad to come across your website, it is very informative.
I wondered please if could you tell me if I should license a painting to be used on an event poster.
I am uncertain at the moment if they have a budget for this and if they are willing to pay.
I know just having my work featured will give me great exposure, I certainly intend to ask for my name to be credited on the poster next to my image, but also wonder if I should put to them some kind of limited license just for that particular use and charge them.
Thanks in advance. Sue
Hi Sue, so sorry I took this long to respond to this question.
My answer to this is:
If the event is a profit venture (i.e. concert, trade show, festival, etc.) – then there is a budget for artwork and I would charge a fair market value fee to use the art. I would charge less for existing art and of course much more to create something custom. The amount to charge depends on how large the event is (their budget will be larger or small according to the size) and if they plan to use the art just for posters or if they plan to use it for products as well. Pricing for existing art can range from a one time fee of $500 (for small venues) to $1,200 to even $6,000 for very large trade shows. If they are selling large quantities of products with the art, I would add a royalty as well.
For custom illustrations, of course the price would be more and would depend on how much work is involved.
If the event is a charity event, or an event that is not for profit, sometimes I’ll allow use of an existing piece of art at no charge, and require that the artist’s name is clearly shown on the poster and that we get something in exchange at no charge (such as a booth at the event, or mention in their newsletter with a link to our website, etc.)
Hope this helps!
Hi Maria,
Your website and advice is such a godsend to artists! Like everyone else here I too have a question. I’m in the talks with an international company to license my artwork for an embroidery kit. We’ve been negotiating back and forth and but I’m still feeling uncertain about whether it’s a deal to move forward with. They are only wanting to offer royalties in the US at 7% against a $100 up front fee. They haven’t given any indication of the number of potential sales or past US sales. I feel like I don’t have all of the info to make an informed decision on whether it’s a good deal or if I’m overthinking the whole process. Any advice would be so helpful!
Hi Stephanie, thanks for the question!
It’s hard for some companies to estimate what sales will be. A 7% royalty is good. A $100 advance is low, but could be acceptable, depending on the other details. How many images are they requesting? Do they want an exclusive or is it non exclusive? Will they send you samples so you can view the quality? Where do they sell – in what stores? These are questions to ask. Then make a decision. Don’t be so afraid to move ahead if there is little risk to you. Little risk would be: a non-exclusive, you are providing existing work and it’s a short term. Hope this helps!
Hi Maria,
A company is contacting me to produce my graduation project(product designer) which is a lamp in different varieties(standing, hanging and table lamp). My design is a prize winner and was greatly appreciated by the public during the graduation exhibition. The company is new in the market but the CEO is a very successful business man and has a lot of experience in this area.
I really have a problem choosing between a limited-time license with fixed payment and royalty. I have no clue how much should the fixed be or the royalty. It’s a high end product with honest materials such as copper and silver, but they will produce it in China in aluminum instead of copper and silver. Again, very confusing for a first timer. Can you please suggest a number or percentage?
THANK YOU!
Hi Zainab, Since the company is new in this market, most likely the sales will be slow to start. I would offer a 2 year term with a flat fee up front. The flat fee depends on so many factors – read this post for guidance on that. If it’s just one lamp design, I would charge between $2,500 – $5,000 up front for the first 2 years. At the end of 2 years, if they are selling well, then you can renew with a royalty if you think the sales will be strong. Hope this helps!
Thank you Maria, this is very helpfull! It’s actually one design concept but it’s a serie of 5 lamps of different sizes. So you think I should charge for the -one-concept or the five variation?
Zainab, the answer depends on what their projections are, where they are selling it, how many they plan to make in their first run, etc. If you want to go over the details with me on this, I can help you figure it out during a consultation. There’s a lot to dig into for me to give you exact numbers through a comment on a blog post. To set up a consultation, please go to my “Work with me” page for instructions. Thanks!
I was wondering how you suggest approaching an apparel company to try to strike up a license deal? Thanks in advance!
Hi Maria,
Great article as well as advice from previous questions.
I am a letterpress printer and want to work with a artist who I know, but not close friends with, who does amazing lettering work.
I’m trying to come up with beneficial option since we are both artists and want long term relationship.
What would you structure – their lettering but printed and distributed to my retailers by me. So I would absorb the expense of supplies, time printing, and selling.
Flat fee seems fair, but could be costly up front for a complete greeting card line. Royalty seems fair as well on my gross sales paid on a quarterly basis, but I want to make sure I profit as well as makes it worth their while designing.
Any insight would be greatly appreciated!
Hi Maria!
Thank you for a great amt of info. I have a question or two. I created a pattern and a company started using it wothout my permission. They wrapped their company vehicles in my pattern as well as used it inside shapes that they print on decals and shirts. I plan on comfronting them politely offering that they pay a advance and i license it to them for a yr with royalties however i feel like if they already stole it how am i to really know if they will pay me the correct royalty without falsifying documents. Im a little lost of what i should ask for in royalties and advance and at the same time Id rather them seize the usuage of my drsign since they stole it.
Michelle, I’m sorry this happened. It’s a bummer – I have to deal with this often, too.
You need to immediately send a cease & desist letter to them, with the option to license.
Don’t confront politely, do it powerfully and professionally. Do it with first sending a C&D letter by certified mail, then follow up with a call and offer to work it out. It’s then their choice to either stop all sales and be possibly sued, or to work with you.
If you want help with this step by step, set up a consulting session with me and I’ll guide you through it. I have a sample letter you can use as well. Go to my “work” page on this site and set up a one hour consult and then email me at consulting@ mariabrophy . com
Hi, I just read your blog and it was really helpful. I’ve been contacted by a big hotel in Vegas and they want to reproduce my work in all of their 1200 rooms. They are asking me for a royalty fees. I’m already selling my own prints and have a huge success but i have no clue on how much I should charge. I normally sell my signed and numbered prints who are 3x smaller in size and 6x smaller in edition size for around 400$/600$.
But now I really don’t know how much I could charge.They gonna print the image. Is there an average percentage that artist normally use? Any help would be much appreciated.
Hi Theo congrats on the opportunity! Yes, there are standards for this type of deal – and pricing depends on who is doing the printing and on what material and how many of each, etc. On average you would charge about 30-40% of the retail price if they do the printing (and the client then bumps up their price on the hotel to the retail price). Be sure to have a written agreement in place as to how many prints they are producing and make sure you get a % up front. Sign up for a “work with me” session if you want more assistance, thanks!
Hi Maria, thank you sooo much for your response. It helps me a lot. For sure I will sign for a work with me session. Best regards, Theo
This is the most helpful site. Maria, I don’t know if you know how much your willingness to answer all of these questions, and the input of all of the others, is appreciated. I am an artist who is learning all of the business ins and outs now that my artwork is selling, so I just want to say thank you!!!!
Thanks Kim, it feels good to be appreciated! I’m glad you found me. 🙂
Hi Maria, Your blog has been helpful and insightful. I’m currently drawing up 3 proposals for selling T-shirts and Posters, to present to a prestigious German automotive company which I will be taking in person this spring. As a Graphic Designer/Illustrator, I’ve been struggling as to what to ask for in terms for the design(s), a one off payment, plus a percentage/royalties. Also how long is it typical to ask for a contract in such negotiations . This is new for me and it will be my first time in negotiating a contract, and of course the royalties approach may not be a course taken, as I am also proposing to a) work abroad for them b) stay in US and telework for them c) sell my work and get a percentage d) work in the US and be officially sanctioned by them. I hope I am not asking too much, I’ve already approached SCORE Small Business counsellors, and this has helped, but would like to go back and tailor each approach and know where I stand when I visit the company. Regards, Richard.
HI Richard,
Congrats on your new opportunity. It sounds like there are a lot of moving parts to this deal.
Royalties are paid when a company is selling in high volume through retail stores. Will they be selling to retailers? If not, then a one-time flat fee per design is the way to quote it.
Quote out each item separately, because one or all may or may not happen. These complicated deals tend to change a lot as time goes on.
Make sure that in your deal they have to purchase your plane tickets and pay for all travel. Most large companies have healthy travel budgets and it will be no big deal for them to do that.
When should you draw up a contract? As soon as you come to an agreement on everything.
If you want help with this, I recommend setting up a consulting call with me. I can help, and most likely, can help you get more money as this type of deal is my specialty!
Hi Maria,
Thanks for this article. Your site is very helpful and informative and I’m glad I ran across it. My situation is slightly different from the scenarios that have been presented here so far. I was just approached by someone who has asked to purchase files of my work (3-4 pieces) to print on a large scale on a certain type of surface with a printer that they have already worked with. It is for private use in their home. I normally have my paintings reproduced myself and sell prints on paper or canvas, signed and numbered. I would consider working directly with their printer, as I don’t want to give them my files for a one time use. I am unsure how to charge for this, obviously I would prefer to have them printed myself (where I would normally triple the cost of printing), but I have shown my work in their business, so I guess we have somewhat of a relationship. So my question is: how do I charge for one time private use of my images?
Hi Micah, great question! As a fine artist, who signs and numbers prints, it is your duty (to yourself and your other collectors) to maintain your process, quality control and pricing. Tell your client that your business model is to do all the printing yourself, which allows control over quality, and enables you to sign and keep track of the numbers (which is really a legal obligation you have to your buyers). Tell them you are happy to sell the prints in the sizes they want, but, you will be in charge of the printing. And of course, the prices are the prices. If you want to be generous because they’ve bought a lot of art from you in the past, then offer a 10% or 20% collector discount off the prices. DO NOT allow other people to change the way you run your business. I agree that you should never send your high res images to anyone, not unless they are a licensee or a business partner. (A customer asking to do their own printing is like walking into Nordstom and asking for the pattern to your favorite suit, so you can hire someone to make it cheaper then they do!) Instead, print it yourself. Offering a discount is a nice thing to do and it should make them happy. If you explain your business model to them, they are sure to respect it. I hope this helps!
Hi Maria! Your site is incredibly helpful, thank you for providing this resource. Do you know what general prices are for selling surface patterns? I am proposing an illustrated pattern for a client of mine that would hopefully be used on handbags and apparel. I’ve worked with them before on a T-shirt design with a royalty payment structure, but they are slow to pay and not very good at keeping their books. They are also a very small company without a lot of sales volume. If I work with them again, I’d rather just have them buy the art outright. What would be a good price to quote for designing & painting a repeatable pattern? $500? $750? Thanks for any insight!!
Great resource…thank you. I’ve produced a 90 minute documentary film that was shown at a small film festival. Now a large film production company has reached out requesting a licensing arrangement to use a very small portion of my film in their documentary. Their documentary is being produced for a large well know distribution company. Any ideas on royalty/licensing approaches.
Hey Maria,
Truly an enlightening article. I was commissioned to do a beer label for a small but successful brewery. They are growing fast, and intend on having this beer distributed up and down the west coast, and expanding further in the years to come. I have no idea what a reasonable deal would be, but feel like a royalty percentage is the most fair. Any input would be much appreciated!
Hi Maria,
This is a super interesting article, thank you for sharing your expertise. Wondering if you could advise me, a company has approached me to ask if they could licence one of my designs for inclusion in a their subscription boxes. I have no idea what to charge! Their boxes cost circa $70 but contain a number of objects so I don’t no precisely how much my design will be ‘retailed’ at. Any advise gratefully received.
Hi Jane, there are so many variables to this that I can’t give you an answer based off of the info you shared.
Re-read my article and follow the pricing strategy. If you want individual help with this, please go to my “work with me” page and set up a “buy me lunch” session or a 20 minute session – we can figure out the right pricing with either session.
I’ll be doing high quality hard enamel lapel pins. I will do most designs myself but want to purchase a few pre-existing designs from artists with a similar style to me. I’m happy to do royalty up front but it’s hard to know how much, since inventory of any particular design is unpredictable (will I sell 50 of these in a year or 500 in a quarter, right?) These artists sell a lot of merch themselves and I doubt would be interested in flat fee because they could market it themselves. Id rather elevate both of us by using my pin brand than compete. Is royalty the most reasonable way to pay for something like this? Also if pins have about a 40% profit margin and sold in quantities less than 1k per design, whats a fair royalty range? (Both questions are short of negotiating with each artist individually, obviously.)
I might take a round of consultation if my kickstarter does well. Thanks in advance.
Hi Ash, thanks for the question. A royalty arrangement will benefit you, but not the artist. Since you’re a start-up, most likely the artist will not get paid enough, not unless you end up selling hundreds of thousands of units. However, if you do get artists to agree to a royalty (rather then payment up front), an 8% or 10% royalty is fair, based on the info you shared.
Hi Maria, I am a professional nature photographer in B.C. Canada. A well known fiction writer has contacted me and asked how much I want for an exclusive use of an image of mine for the cover of his novel. He wants an exclusive for a fiction novel. Since the only experience I have is selling prints I am unsure what to charge. I should mention that the image will be sketched by an artist. Any input is much appreciated.
David
Hi David, thanks for the question. With regards to the price, there are standards for licensing fees for mass marketed book covers and I’m not sure what that is off the top of my head without doing some research. But, I can say this, make sure your exclusive is for the image only, not your entire portfolio.
Hi Maria. This article was so informative! I am trying to help my daughter with her first Children’s Book Illustration project (though she has done other paid work for spot illustrations). The contract is offering a 5% of net receipts for sales of the book and an advance of $750 to illustrate “32 pages of original illustrations + cover/back cover.” The royalty seems about right (though not really sure) but that advance seems extremely inadequate! We are researching this heavily, trying to figure out how to price an advance. Any suggestions are would be greatly appreciated. Thanks in Advance! Trina
Hi Maria
my daughter is nearly 18 and has recently been asked to provide some grafic artwork for a record label in US. she was paid $50 but originally asked for £50. They used the ex use of they made an error and would she except $50 … after exchange rates she ended up with £38 . now her work is beautiful and we have it copyrighted. there has been no instruction or contract made or royalties discussed.
this company Deception records have asked for a second peice which has been provided with watermark. but this time she has been told they are setting up a package and they are prepared to pay 30 to 40 dollars per album cover which is less then the 50 pound my daughter had asked for.
I’m worried she will go ahead but also this needs to be done proffesionally .
what steps do we need to do to protect her work and not be subject to being used ??
lindsay
Hi Lindsay,
You are a great mom to help your daughter like this. Now use this as a teachable experience for your daughter to learn how to set her boundaries and be firm on her price. Since they are a US company, she should make it easier and give them USD prices. She should respond back to them with this statement: “My price is $65 USD (approx. £50). Payment can be made via XXXX, and once I receive payment in full, I will send you the files. Thank you for the opportunity.”
Tell her NOT to send the files until payment is received IN FULL. This way, if they “accidentally” under-pay her, she can respond back that the files will be sent when they send the remaining $ amount due.
Tell her that’s it’s not only okay to demand what you want, it’s expected and respected.
For a company to pay $65 it’s nothing – seriously, it’s such a small amount of money it’s astounding they would even argue about it.
Tell your daughter to work on getting stronger when dealing with clients. It is a practice, and with each deal she will become more and more confident.
Let me know what happens!
Thank you Maria
should my daughter ask for a contract and royalties? I will post you their response it may help .
Regards
lindsay
Hi Lindsay,
No royalties, just the payment in full is what your daughter should require before sending them any art. Let me know how it goes!
Hello Maria, I am so glad I stumbled on your website. I had been contemplating licensing my artwork for some time. It is a bit scary for me and I really don’t know how to get started. Reading your suggestions have sparked a new light and I feel ready to pursue this avenue to generate an income. I am a decorative artist specializing in Murals and Faux finishes as well as fine art. If this is a way to get my artwork past the canvas and into a larger customer base then I am looking forward to getting started. Thank you for providing such excellent information.
Hi Maria!
I have a question for you:
I have been approached by a company that wants to use one of my paintings to decorate a hotel. They won’t be selling the prints, but hang one in each room.
They ask if I’m willing to license my work. How do I determine the price? There won’t be any royalties… so it would be a flat fee. I just don’t know how much to ask for it 🙁
Many thanks!
Hi Sam, congrats on getting that deal. So, that type of deal is a little different – you should offer to do the printing yourself and charge them wholesale prices. If they want to do the printing themselves, the price would be 30-40% of your retail price. So, I would do this: Ask how many they need, in what size, and on what substrate (paper, canvas, metal, etc.). Then come up with the retail price of that item, and offer it for 30% -40% off, if they are printing. If you are printing, give them a wholesale price.
Hi Maria!
Thank you so much for your reply!
Well, turns out I got it all wrong! The company wants to blow up my works to use as wall covering! They will use it for about 50 rooms in the hotel.
The company specializes in textiles and wall coverings.
They are offering a 7% royalty fee.
From my understanding, I would get 7% off of what they charge the hotel developer or architect for the total cost of covering walls in 50 rooms.
So I guess, I got my answer 🙂
Thanks anyway for taking the time to reply! Much appreciated! 🙂
Hi Maria! We’re in a similar situation.. we have a hotel that is commissioning NEW artwork AND purchasing prints for all of their rooms. Not sure how to charge them… for the price of commission, direct cost of canvas, plus 20% royalty for canvases? It doesn’t seem to make sense to charge them full design for custom work and full wholesale for prints, but feel like we should make something from the reproductions….
Thank you!
Nellie
Hello Maria,
Question, after the first royalty payment is deducted from the advance; will future royalties continue to get deducted?
Hi Maria, So happy to have found you. I am a fairly new artist and find all of the business/legal/marketing side of being an artist a total creativity kill, lol! It seriously makes my head hurt. Last week I reached out to the owner of a small local clothing/homegoods boutique about carrying prints of two of my original pen & ink drawings. She responded asking if I would consider licensing the images of my originals to be printed on shirts (she will handle the printing/purchasing of shirts). Which promptly sent me into a tail spin. I have never sold prints of my work much less licensed my work! I came across your book “Art Money Success” on Amazon and immediately placed my order. So much great information and a HUGE thank you for writing it! I have decided the best option for me is to be paid a fee/% per item. However I have no idea what that fee/% should be. I have asked for input from a large online calligraphy group I belong to, but have had no input as to the amount. The small amount of info I find through google is from a minimum of 5 years ago. The shop owner has offered a set fee per shirt which is equal to 8.6% of retail and still leaves the shop owner in the range of 150% profit per shirt after cost of shirt, printing and licensing fee. The shop owner did say she thinks the shirts will do well, so my prediction is maybe 100-150 shirts. Like I said, it’s a small shop. I want to be fair, but I also have a tendency to “give” my work away. Your input is much appreciated and much needed! TYIA
I’m new to this as well but everything I’ve been reading is 2% to 10% of gross sales of your artwork. If the shop owner is willing to give you 8.6% of retail price (thats gross sales and a good deal) that would leave 91.4% of the retail price for the shop owner. I’m not sure where you get the 150% of profit, there is no such thing in this scenario. Profit can only be over 100% if an item GAINS value somehow. 8.6% is a good deal for a new artist. Get some sales and some experience under your belt. And keep reading!
Hi Maria, I am approached by school board member. They want an image to print 60 copies to give board members and past members. I am not sure how to do that. there will be no sales. but i need to offer liscensing fee in flat rate to them
They will take care of printing. I hope i get a reply in a day. they need artwork image in 3 weeks. that is too soon.
Hi Maria. This is such a useful article, thanks so much! 🙂 I am a street artist and create work that is about shared experiences and often connected to the local community. An agency want to use images of my work to produce postcards and two billboards that provoke conversation around public art in connection with a huge housing development here in London. I will also be running a workshop with residents. I have no idea where to start with pricing the licensing for this as there is no direct income being generated by the company.
Do you have any tips on how I can calculate the licensing fees?
This is amazing! Keep up the good work! It is so informative and useful! Thank you!!!
Hello,
First thank you for all these useful information. Much needed!
A company approached me to create a design for a product once, we agreed on payment and the company did the agreement contract.
When it comes to collaboration like that is that on the hand of the designer to send an agreement or on the hand of the requester to do so?
I’m used to do quote and contract between I and clients for graphic design but when it comes to this kind of art collaboration, I’m not sure who does what.
Hi Maria,
This question is about poster design royalties. I don’t do many design projects besides the few poster commissions each year by the same group of companies/organizations so I’m not very well versed in the ways of collecting royalties. One small business with which I’ve done projects in the last few years had asked again for me to create a poster for their annual charity fundraising event, which I did, and was paid for. Now they’ve emailed saying that they are arranging a sponsorship opportunity with a big company and the company will be printing their own banner but would like to use my poster in the design, and that they need me to write a letter granting permission for its use.
In this case, since the poster is being used as notification about a fundraiser and not for example, being printed on T-shirts to gain a profit, would I still ask for any type of fee or grant permission and simply ask for attribution to remain visible? Thank you!
Hello Maria,
Great article, I wondered if you could give me some advice on this, I regularly make illustration commissions for clients, the artwork is for usually for one time use at an event.
The artwork is custom made for the client, it’s usually about their business, so we don’t resell or use the image again with different customers.
I have a client who wants to use the design we made them for other marketing things, which is great, (she doesn’t know what for yet or for how long) but I’m reluctant to hand over the art files without some kind of licence or terms of use.
They’ve already paid for the artwork and used it at their event but they’ve asked me to send the original artwork files so they can use it in marketing materials in the future. We’ve done this before and the work has been edited and changed without permission.
I don’t know much about licences, it’s tricky when the artwork has already been paid for by the client, we want them to use it again, but want some control on how it’s used, and do we charge more or just agree some terms of use?
We’d love to offer some kind of licence to our customers so they can choose to use the illustration again in the future after they’ve used it for their event.
Thanks so much 🙂
Thanks God I found your article,reading it I know I wasn’t doing it wrong… I am currently working for a moderate successful clothing line, I get 10%,of every shirt sold — prices range from $29.99 to $ 50. I get paid every two weeks from what is sold in those previous weeks.
Hi Maria,
your article was very helpful, thank you! I was wondering if you can advise me on this: I am an artists and I have been approached by a graphic designer who wants to use my work for her invitations and prints. How much royalty should I charge her?
Hi Maria:
An international firm put my painting as a soft copy on a greeting card sent to all her clients over the world. They wrote my name on it . How much should I ask for?
Waiting for your advise, thank you.
Jaida zakaria
Hi Maria, my art is being considered for part of a set design in a major motion picture set to release in Oct ’18. The first movie in the series grossed $150m and this would be the sequel. Right now the production company is asking to usey art for part of the set. This work is typically reserved for subscribers as a free download. Should this type of agreement be negotiated by an attorney?
Jeanette, what did they offer to pay you for use of your work?
I’m in the same situation, but for a tv show that wants prints- they’re asking for my prices and I’m unsure what to tell them. Should I charge them full price or 30-40%?
Hey! So I’ve read though lots of comments trying to find a similar situation to my own. I am a portrait photographer and a few years ago I would trade use of photos with prop vendors (for their websites, etsy, Facebook etc, always with watermark on image) for the props. I just stumbled upon my images (watermark edited out) being used to promote those props on a top backdrop/prop company. I don’t believe the original prop maker I worked with has anything to do with it, more likely the company is Purchasing from a wholesaler that is using stolen images and ripping off the prop design. Why do I do? Are they responsible for the images they use on their website, even if those images were provided from another company they buy from?
Hi Meri! I am not a copyright lawyer – but the company that uses your images is absolutely responsible for adhering to copyright law on every image they use. It doesn’t matter where they get it from or who edited out the watermark. The end user is always responsible for copyright infringement.
Now, if they pay you for the images and feel like the company who provided the images is at fault, it is up to THEM to go after that company….
But yeah, when you do a website, you are responsible for everything you put on there. Not knowing is not an excuse! Good luck to you!
Hi Maria,
I am so happy I found you! This issue comes up repeatedly for me.
A famous person used one of my photos as the basis to paint a painting, then sold it in a gallery for $20K.
We had a brief conversation maybe 6 months ago about licensing before the show was about to open (but after the painting was made) and never came to any conclusion.
Can I still send an invoice for licensing even though the painting has been sold? What is standard in the trade? Based on your article, I am guessing 10% is entirely reasonable for this one-off image.
Hi Tanya,
I think asking for 10% is reasonable. Next time, come to an agreement BEFORE the painting is done! That way there are no surprises. I wish you the best.
Hi, I just joined your email list the other day. I have a question about licensing my art. I’m interested in offering some of my original images as downloadable art print files like many do on Etsy but for personal use only; however, I’m toying with the idea of licensing some of my images for commercial use to individual (entrepreneurs) who want to create t-shirts, notebooks, etc. Is this an idea worth pursuing and how do I go about charging. I want to offer a non-exclusive license for a specified time limit. I thinking out loud right now! Lol
Hi Maria,
this is great info. It was recommended that I contact a furniture store that sells decor including photography prints from local artists. They are very large stores and have a large website. 14 stores in two states. I thought it was an intriguing idea until after a lot of work to find out what they pay, and learned they only pay 3% and you have to give them endless reproduction rights as long as this program is in effect. I found this to be offensive to the profession. I don’t have info on how much or which types of prints they sell, but it would have to be alot to generate an acceptable income. I have contemplated contacting them to see if that is negotiable, but don’t hold much hope for that. Any thoughts on negotiation points (if it matters to them).
Hi Maria,
I’m approaching from the opposite side of the equation that your normal clients are on. I want to license designs from artists to sell on my ecommerce stores.
I’m curious how do I provide these artists with proof of sales so they know they are not getting cheated out of their royalties? I obviously do not want to give them access to my store backend, and an excel export of sales can be easily faked. Any advice would be greatly appreciated!
As an artist I really appreciate that you are asking for this information. I’ve often wondered the same thing & don’t want to offend the person I’m working with to check on this. I guess there’s a certain amount of trust between parties.
Hello, I hope you can help me. My 14 yr old daughter has been asked to design by hand graphics for selling t-shirts. The lady has provided her details of what she wants and my daughter has completed one design. Before going further we dont know how much to price the design. Also, who would have copywright authority? The lady because its her idea or my daughter becauae its her design?
Hi
I am a artist that signed a contract with a fine art publisher I have sent 18 scans of my paintings at my cost, not a word from the publisher in the past year and no respone to my emails.
Yet my art is all over the internet, is there a artist group that collects royalties on behalf of the artist.
Gerard
Hi Gerard, not sure where you live, but in California we have the “California Lawyers for the Arts” that can help artists with legal issues, but you need to be a member. Maybe your state has something similar. Hopefully Maria can advise you, but it likely depends on what your agreement states. Good luck!
Hi Maria,
Thank you for providing all this information, especially for newbies like me trying to get into the graphic design market. I have a little question (maybe a dumb one I apologize if so)
When designing for somebody else, for example you working on a design for a customer who owns a business and wants to use your designs. I red about stablishing the royalty fees but…my question is, how can you track how many items this person is selling with your designs? like, by just asking and he saying numbers…doesnt seem so trustable because the business could easily lie to me in order to hide some numbers from me.
Or i just have to trust this person’s word?
Thanks!
Hello!
A composer who publish her own music wants to use my drawing to print it on the front of her song and on its webpage. She is willing to pay a fee. I am professional painter but I don’t have experiences in this kind of collaboration. I would be grateful on your advice.
Hello Maria. Thanks for helping with this issue, we as artists all have to deal with pricing and have little to conpare it to. I get asked for permission to use my work for hotel outfitting and the offer is $3-5 each for 1 to 800 rooms. They only offer flat fee and they handle the printing. Is this a standard rate? I want to work with them but not if they’re raking in the dough and I’m being handed one bagel. Any thoughts in this are appreciated. Thank you.
Dear BP – $3-$5 doesn’t sound right to me.
Typically, even if they are doing the printing, you would charge about 40% of the retail price of the print. For example, if the prints would retail for $80 each – then you would charge them $32 per print, even if they do the printing. If you do the printing, you would charge about $40 per print (wholesale pricing).
My advice above is based on a deal with an art agent or consultant or interior designer.
However, if it’s a licensing deal with a manufacturer, then you would work out a different deal – often 10%-15% of the sale price of the item. But licensing deals tend to be for sales in retail stores, not usage in a hotel.
Hi Maria
Do you know the going rate that a licensing agent charges nowadays to her artists?
Hi Maryjane,
An art licensing agent typically gets between 30-50% of the revenues. This is assuming, of course, that the agent is actively seeking deals and representing the artist at trade shows or by other means.
Hi Maria, thank you for sharing your knowledge. What do you think about certain websites that post a disclaimer that anything uploaded to their site will be used in the future and that by posting one is giving them certain rights to art that is posted?
Hi Maria, Just wondering if you can answer a question about licensing. Ive just received a licensing agreement from a major homewares manufacturer to use my images on their products. They supply high end department stores.
After reading though the agreement, they have offered me 5% of the production cost.
Not as your article says 3-8 % of sales, or wholesale cost.
Is there an industry standard ? is it up to me to negotiate something better for myself ?
many thanks
Sarah
Hi Sarah,
Great question! The 5% should be paid off of their total revenues, not the production cost. There is a huge difference there.
Hi Maria! A national retailer is interested in using my photography to sell as prints in their stores. The deal is through a production company, so I would just be licensing my image and not having to actually produce the product. They’re offering 5% of the net sales. Is this a fair deal? I’m new to the licensing game and just trying to figure it all out 🙂 Would SO appreciate any insight or tips you may have for this type of business deal!!
Hi Bethany,
5% is standard these days for products sold in Mass Market (not for small channels, such as boutiques – for those, you should get more).
Make sure that their contract states that the 5% is off of Net Sales, which is total revenues minus refunds and discounts, etc.
Congrats on your new deal!
PS: Don’t give an Exclusive without $$$ upfront or ability to terminate if there are no sales
PPS: Set up a consulting session with me if you need me to guide you through this!
You are AMAZING!! Thank you so much for your insight – I just wanted to make sure it was a “typical” and fair deal. I’ll definitely set up a consultation setting if I have more questions! Thank you again Maria!!
Hi Maria! I am so happy I found you here. I had a start-up company approach me to illustrate a few designs for them which as per now will be only used to print on T-shirts and they want the full ownership/ rights on those artworks and in the future will also be using it to print on other stationary and home decor products. This will be a one time fee and I really don’t know how much to charge them . It would be really helpful if you could guide me and share any tips on this as I am just starting out .
Hi Maria, I am so glad I come across this article! I’ve been approached by a small local coffeeshop to use my art to be printed on their merchandise (ie. mugs). Should charge for higher royalty (6-10%)? Or would a flat rate fee be more applicable? Thank you much!
Hi Andika,
Thanks for the comment and the question! My answer to your question: For a small coffee shop (not a Starbucks, but a local shop with only one or two locations) the volume will most likely be small, so I would absolutely go with a one-time flat fee for a period of 2 or 3 years. How much $ is up to you – of course, it has to make sense to the client financially. $250-$500 is a good starting point, if they are using existing art. This is assuming they won’t be producing more than 500 mugs. If they are commissioning new art for it, then charge your normal commission fee and add a license fee to that. Hope this helps – let me know how it goes!
Wow that is soo helpful. Thank you very much! I will move forward with your recommendation and let you know how it goes. Have a great weekend! 🙏🏼😊
I signed a licensing contract with a company for 2 years. After a few small paycheck every 3 months I realized the were not giving me the agreed 10% price. They gave me .10% of the wholesale price. That left me with about 5-10 cents per print job of wall art. They sold my work wholesale to another company they represent and then they sold it at a retail price. I have terminated the contract but they are still selling my work through their other company. I won’t trust these large print on demand companies ever again. There is no guarantee that you won’t be taken for a ride down the wrong path unless you can afford a rusting lawyer to investigate you contract and companies you do business with. I had someone steal one of my images and massed produced it for their business. I charged them $1000- for the use and the sold 50,000- in t-shirts with my art on it. It all is about the matter of TRUST!
Hi Maria,
Maybe you can answer my question. If one is getting a % on design sales, how do know exactly how much they sold? In other words, could they be selling 100 and paying you for 50? Is this just trust?
Hi Maria
Thank you for your valuable information. I hope you can assist me with my query.
I have been approached by linen and bedding company who sell direct under their brand as well as supplying to several other well known retailers. They have asked me to create an exclusive painting and to provide them with the graphics to produce a line of quilts, cushions etc. How should I proceed with licensing v’s flate fee AND, does the original painting remain as my copyright and am I able to sell it. (as the company only want images)
Thank you
Jenny
Hi Jenny! To answer your questions: I would offer a deal where there is an up front fee plus royalties. Yes, keep all copyrights and keep the original painting/artwork – all you need to provide is licensing rights and the digital high res image. Make sure you also charge a fee to have the artwork properly scanned, esp if you have to hire a photographer to do it.
I had a question for you and wanted if you had any good advice for me.
I am doing a piece for a company and they are reserving the right to have no prints sold by myself, of their commission piece. In this scenario, do you know the ballpark percentage the price would rise?
Hey Josh, this is a great question! If you are giving up rights to make prints (or anything else) with the art, then typically you would charge 3 times or 4 times the price. This helps you make up for losing future potential earnings from the work. Hope this helps!
Hi there! I can’t tell you how happy I am to have found your website (and I just bought your book!) I am just learning about licensing for my husband’s artwork — his work has won awards and literally made millions for clothing companies (one illustration from 25 years ago is still the first design you see on Liquid Blue’s home page), and sadly he came out of RISD knowing nothing about his rights as an artist.
I have a question that I hope you can answer. My husband did illustrations for a company that went out of business over 20 years ago (freelance, but later on staff – so I know that makes a difference). Years after they closed, the owner gave him his artwork back. Does he have rights to that artwork now that he has it in hand?
Hi Kristen, with regards to your husband’s art that was created for a company who went out of business: If he signed his rights away to the company in a Work for Hire agreement or any agreement where he transferred all rights, OR he created the art as an employee, then they keep all rights. BUT, if he never signed rights over to them in a written agreement and he was an outside contractor/freelancer, then he owns all the art and can do anything he wants with it. If they own the art, then I recommend he contact the former CEO/President/Owner and see if they will sign the rights back over to him. Seek legal assistance to help with this process. I wish you the best!
Your book is arriving next week – I can’t wait to read it. Here’s a straight up question on numbers as I iron out my first licensing deal. This is for a boutique fashion company in NYC that is popular with hip hop artists. I’m creating a painting specifically for these guys to use (but I’ll be keeping the copyright – so a one year license is in the works). The painting is extremely time intensive (will take about 6 weeks).
They sell their items for 50 & 75 wholesale to luxury stores and then 130 & 250 retail on their website. The run is very small. They will only make 100 – 500 pieces in all (a combination of both items).
What percentage can I reasonably ask for here? My work has won design awards and has been printed before, and (as I said) it’s also a time-intensive piece. I was thinking 15% and requiring a minimum of 200 pieces and then 12% if they make 4-500 pieces.
Do you charge a different percentage for wholesale and retail, if they are selling it themselves online? I actually really want to do this job, so I don’t want to scare them off, but I also need to be compensated. I hope you can help.
Werner,
Thanks for the comment/question. I think your request for 15% for such a small run is reasonable. If they sell out and you are paid 15% it’s still a small amount of money for 6 weeks of work – but – it sounds important to you, and if so then do it. They should accept your offer – it’s very reasonable for the amount of work you are putting into it. Keep me posted on how it goes!
Hello , a hotel in nyc wants to replicate a neon sign of my past business in New York to hang in there lobby , what would be a reasonable flat fee to ask . Thanks
Hi John – typically for hotels and hospitals, you would charge about 40% of the retail price for artwork. Is it safe to assume that you don’t sell prints of your sign? If that’s the case, then a one-time license fee of anywhere from $2,500 to $30,000 would do (and even more, if the image is iconic). The range is huge, but that’s because the details of the company, the usage, the value that you provide, etc. all comes into play.
What about working with art consultant agencies, where they’re doing all the printing and dealing with the hotels? An agency is offering me $50 per print, with 20 prints. She doesn’t mention size, but she previously contacted me (I think for the same job) and offered $250 for one large print.
Another company I’ve worked with let me set the prices per square inch. Furthermore, for this inquiry she’s talking about printing on clear acrylic and/or laser cut-outs for dimension.
I can’t find any pricing info for this realm online, so any advice would be greatly appreciated!
Hello Maria, I have been approached by an agency to do a series of illustrations for a well-known brand. They will be used on their packaging.
I have been asked to be mindful of costing my artwork based on unlimited time – no expiration in rights and unlimited multimedia usage. Also to be mindful if there would a cost difference in using the illustrations in only one country or using them globally. Do you have any suggestions on what to add to my costs to cover these usage rights? I appreciate your time, and how you are very helpful to other artists. Thanks
Hey Anne,
Thanks for the question. The answer depends on many different factors: how big is the company, how many units will they sell, how many different products will use your art on the packaging? Why would they need a never-ending license? These are great questions to find out the answer to. For most BIG brands, packaging deals can pay very well, sometimes in the six figures! But it really comes down to the details. If you want specific help with this, I would need more info and we should set up a consulting session. Go to my page to follow instructions on how to set up: https://www.mariabrophy.com/work
Hi Maria
Love your site! I licensed 30 designs to a home decor company for 2 years at a flat fee. They have produced fabric, bedding and furniture with my designs. I’m wondering a) what normally happens after the 2 year period is up? b) if the company wants to continue to sell their products with my designs on it after 2 year period would I charge the same $ amount as original deal to extend the contract 2 more years ? c) what is the typical time you allow a company to “sell off stock” with your art after the 2 year contract is up before you charge them again. Sadly this information was not spelled out in the original contract with them so I’m now trying to play catch up with them. Thanks for any help you can offer!
Hi Katja,
To answer your Q’s: After the term of the license is over, there is typically a “SELL OFF” period specified in the contract. Most contacts give 30-90 days for the manufacturer to sell off PREVIOUSLY produced products. They have to continue to make royalty payments after the contact terminates. They cannot continue to sell after the SELL OFF period, but if they do, they owe you royalties (or you can sue for more, damages, etc. if you want).
If you decide to extend the contact, or renew it, now is the time to ask for either a higher % or an advance and a %. You can re-negotiate the new terms, which usually works in your favor.
Hope this helps!
p.s. to my last comment. I just looked again and I actually did put a a clause in the contract saying after end of contract term, they have 6 months to continue to sell off the product in their inventory. They are now way over the 6 months. So would I calculate a retroactive monthly fee to charge them at this point? thanks again. Katja
Hey there! So I’m definitely getting your book! This one article has been extremely helpful!!! So I’m an watercolor artist and I have many people coming to be for different projects and ideas for me. I have a local women’s group that is creating a cookbook and they want my art of the front throughout the book and on the back. I have a price for the actual artwork but am not sure how i should do royalties. They are planning on using my artwork for kitchen towels, plates, bags, shirts, etc. It is a smaller mom and pop kind of deal but wasn’t sure what would be the best pricing for royalties. Any suggestions???
hello,
i’m sooo glad i found this blog post. it helped tremendously in understanding the concept! thank you so much and i subscribed to everything you have in your website, hehe <3 .. i'm so glad i found you through pinterest!
i have a question though, and i'm so glad to see that you still reply to comments on this blogpost!
if i was approached by a coffee shop (small company) and they want to use my watercolor art/design for their paper coffee cups, which means a flat fee, do you think its better to sell them the right of the art for their cups? or license them to use it for their cups for a certain amount of time (a year or two for example)?
and what price do you think is a good price for each options?
thank you <3
Thanks for the question! I think it’s best to sell limited rights for a short period of time (2-3 years) – keep your copyrights and ownership of the art. Since they are a small coffee shop I would charge a one-time fee for the limited license. When the license expires, you could offer a renewal for another fee. Good luck!
Hi Maria,
What an amazing resource your site is – thank you! My question concerns how much to charge when your design is used without your authorisation. I’ve been working with a manufacturer for 15 years producing my work onto ceramics & recently saw my design on TV in a different colour & on a different shaped plate. My factory had produced for the BBC without my permission 🙁 . I’ve tried to resolve things directly but they’ve ignored me!
I’ve found it’s going to be extremely expensive to set up with a new factory so I feel I do need to seek some damages to reflect the upset & cost to my business.
How would I work out what fee to charge in that circumstance?
Hi Maria,
Your article is very much fact based and very trustworthy. I’m offered for my artwork by local government for the followings.
1) to purchase the artwork
2) to reuse the artwork for website, flyer, poster for the art show organized by the government
I must determine how much I should charge for the #2. I think the only way to calculate it out is to multiply the price of the artwork, but I don’t know how many times are proper. I’d appreciate your idea on this.
FYI, the retail price of the artwork is $15,000.
Hello Maria, Thank you for writing this interesting article.
My question below is in regards to having art printed on t-shirts, mugs, etc.
As a creator of art, do I charge clients for a ‘Royalty License’ (based on the price of the image they want), or do they get the license for free seeing that they will be paying me royalties based on the total revenues generated by the manufacturer (client)?
All in all, should any of my images or licenses on my website that I would like to gain royalties from, have my own prices on them or should they be without prices?
Thank you
Hello, en etsy seller wants to buy rights (flat fee) for my illustrations to sell them as tattoes. She has 13 500 followers on instagram and 55 000 sold items on etsy. How much do you think I should ask?
Great article! I was curious if there was any advice after signing. What should an artist expect to see on a royalty statement? What should be included as transparency. Is this negotiated in the contract as well?
Kim, great question! The contract should require HOW the royalty reports are presented. For example, in my license agreements, it states that royalty reports must list the retailer names and break it down by each item SKU sold. This is good to know because you want to know WHERE your products are being sold and you want to know which images of yours are the top sellers.
Thanks for sharing this info, your post has been super helpful!
A client provided a sketch and I created artwork based on that sketch (not just a trace of the sketch) to go on a hoodie. There was no contract/agreement prior to beginning the work. Celebrities/influencers wore the hoodie and the hoodie sales were going well. Moreover, some online stores have copied the design and the client’s attorney sent cease and desist letters to infringers. The client has filed a trademark application for the artwork. A few weeks later the client sent me a work-for-hire agreement filled with many of your red flags (exclusive, worldwide, transfer of rights). Are we co-owners? In this case, can I offer the client a license/royalty agreement?
Hi Maria,
Thank you for all the great info here! Can you suggest what should be charged for the use of artwork that has already been created for use in a calendar? New pieces are needed as well. Should it be a percentage of the price for new pieces? The calendar would only be reproduced in one country and it is for a large company that has a plant identification App. Many thanks,
Karen
I am looking to offer an visual portrait artist a license for use as an art cover on a single music release. I will be offering $100.00 non returnable down (the artist keeps it) plus a 6% 360 royalty on any related sale to that song. Also the right to use the art to promote the sale without royalty of either the song or any related merchandise in order to sell the song/and or promote the artist. The artist will have the right to continue to independently sell the print of the same artwork and may also include the words “as seen on… the music single). The artist may not sell the art or print use of the art to another competitor in the music industry but is free to do so outside of so long as the brand name of our artist is not identified with it. – That is the start anyways. What do you think?
I bought the book Currently I am in the business writing phase. And looking forward to reading more of the book.
Hi there! I was wondering if you could help me with a couple questions?
I’ve been approached to do some artwork for a series of journals. This is a small, new startup, and I’ve never done anything but sell the odd print before.
I’ve been told that for doing book covers, it’s typical to do flat fees. I’m not opposed to a flat fee, but I’m confused as to why a journal is considered different from any other given product with art on it that’d usually get royalties (like a mug or tshirt). I’m having a hard time finding info on that specifically. Could you explain the rationale?
Also, as best as I can gather, this person seems to be working off the idea that I would charge them the same fee I would charge for commissioning a drawing to be sold as a one-off picture or print to someone, but then they’d be able to reproduce it on an unspecified number of journals to be sold indefinitely. This doesn’t make sense to me – from what I can gather, even a flat fee would usually have a limit with how many can be produced, or a time limit, or some such thing. They say this is “industry standard” for book covers and illustrations (which I question because I know they’re new to the industry themselves, and because that just seems like a really raw deal to me). What do you think about that? And if more limited terms are the norm, are these then re-negotiated or renewed after the term has finished (including a given number of items having been produced)?
I’m so confused with this, given that their info seems to be rather different from what I’ve found, and also due to all the variables at play.
Thank you!
This is literally the same situation I am in and they are insisting that it’s common to just sell a piece of art work at a flat rate (which isn’t high) and for them to go on and make several copies on a product they are going to sell. They dismissed royalties like it was taboo and no artist does this according to their reasearch
Question: I have been approached by a charity, they would like to do a licensing agreement for them to use my artwork on a t-shirt. Do you ask for royalties, if it’s a charity?
Hey Ashley,
Great question! The answer depends on their projected volume. I would get an advance of royalties up front – and – if you know the volume will be very high, then also get a % of royalties.
Hi Maria,
Thank you for the helpful article. I have been asked to submit a digital file of a work of art that I have already completed to a very large chain of boutique hotels; they want to make a print of my painting and place it in the model room of one of their new properties, and if it receives a good reception, they would make 160 more for each of the rooms in the hotel. I have worked with them before, but have only done original paintings for them, and I am having trouble finding much online to know how to approach this. My work is starting to garner attention, but I am still establishing myself as an artist. I would really like this job. Any advice will help, and thank you so much.
I appreciate this comment and question. I, too, am seeking information on advice for a very similar circumstance. The company has chosen my work to go in each hotel room (210) are seeking a digital file for their framer to print. I have the option of printing myself. What is the recommended licensing fee for use in a hotel, for example?
Thank you in advance for your for your advice.
-Jennifer
Hello Maria – Occasionally I have read your articles about licensing (former illustrator here) but have been painting and teaching most recently.
I was approached by a well known art installation company (Indiewalls) who are interested in printing some of my work for some office in my area – they did not provide much detail so I need to ask more questions of them before deciding to enter into an agreement and what to charge for the licensing. They want to print 1x (?) of one or more of my work, but it is not clear if this is a temporary or permanent display.
Any advise for this type of arrangement would be greatly appreciated!
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