A couple of weeks ago I was part of a major ad campaign licensing negotiation of my photography. I want to give you some of the background for the low photo licensing rate my agent and I received. Then discuss why I turned down the money. We will keep names and specific details out of this article. The bottom line is that photographers need to take a stand on low photo licensing rates, now, more than ever.

Low Photo Licensing Rate – Opening

I received a phone call from my agent. A high-profile ad agency called her and said that they wanted to use my work for an upcoming ad campaign. A group of people from the agency were coming to Jackson, WY. They wanted to meet with me. We set up a happy hour meeting at one of the restaurants in town. Beer is always a great catalyst for new work! The meeting with the ad partners went really well. I had a good idea of what types of photographs they were going to need. The plan was to touch base in a couple of weeks to begin working on the ad campaign together.

The Phone Call

Like discussed during our happy hour meeting, a senior art director from the agency called me about a week later. We talked about what they needed for the upcoming ad placement. The campaign needed a photo for a two-page ad in Outside Magazine. If you read my post about the social media advertising racket, you already know Outside Magazine charges $200,000 for a two-page spread for one month! Note that this price has nothing to do with my low photo licensing rate. It does give the photographer an idea to what type of budget the ad campaign has though.

After my phone call I put together an edit of photos for the ad agency to take a look at. My agent became the point person to discussing pricing if the agency came back with any requests. I also looked at the pricing models that the stock agency who represents close to 2000 photos of mine has in place. This gave us a realistic dollar amount to begin negotiations.

Two Weeks Later

Two weeks later the lead art director for the campaign contacted my agent for pricing. The ad agency expanded the usage they needed for the photo. They wanted to know how much it was going to cost for unrestricted rights for the next two years! This meant that they wanted to use my photo anywhere they deemed fit for the next two years. We would find my photo online, on billboards, in magazines, pretty much any where you can dream up.

Based on this new information, I went back to my stock agency’s pricing model. Unrestricted rights for a period of two years, commanded a opening price of $20,000. Also realize that I would have potentially seen 50% of this $20K sale. Alex (agent) and I gave the ad agency an opening price of $10,000. We also added a clause in there to allow them to license additional photos for a very reasonable $250 per photo after the initial buy-in.

We added this clause because we wanted my photography to be the major showcase for the ad campaign. The more photos that were licensed, the cheaper the per photo pricing became. The more tear sheets I would then have for my portfolio.

Low Photo Licensing Rate – 24 Hours Later

24 hours later Alex and I were hit with not just a low photo licensing rate, but potentially the lowest rate of my career for this type of usage. $300. Yep. $300 for unlimited, unrestricted usage for a two-year period. Remember earlier in this article? They could use my photo ANYWHERE they deemed fit for $300. #WTF

After I got through swearing like a sailor and preparing a covert death op for this company, I threw a Hail Mary pass out there. I decided to agree to the low photo licensing rate if they used only my photos for the entire campaign. While I was still recovering from feeling completely screwed over, my thought process was simple. If the entire campaign consisted of my photography, I had ownership. Even at a ridiculously low rate, I would still make money if you added up all of the photos they potentially needed. I would also have the entire campaign as a marketing piece for my business. My agent would also have the same opportunity.

The ad agency declined. We were pretty sure they would because they have the pick of thousands of potential photos of the Jackson area. That’s why it was a Hail Mary.

I then formally declined their low photo licensing rate. While I originally wanted to blow the bridge up between myself and this ad agency, I mellowed a bit. After I drank a shit-ton of bourbon of course.

Low Photo Licensing Rate Learning Experience

Every day that I sit at my desk and go to work with someone else I grow. I only grow if I am open to growth though. While a $300 licensing rate is pretty much bullshit for this type of usage, I learned a valuable lesson on negotiation tactics and working with my agent. We came together, worked on ideas, theories, how to make this deal happen.

I also learned that sometimes small money really won’t solve anything so there is no reason to accept it. The bottom line is that if I accepted the terms of their usage I would not only be devaluing the photos I have struggled so hard to get, I would be devaluing my industry. This is EXTREMELY important to understand for EVERY photographer.

There are two stances in play here.

There is the photographer who needs every dime that comes his way. I am part of this scenario. Photography has been the only means of income that I have generated for the last decade. I don’t have another high-paying job we don’t talk about. There is no trust fund for me to dip into. I learned early that I needed to work hard. While many will say $300 is $300 of positive income. I believe short changing a decade of hard work is a huge mistake.

Then there is the photographer who doesn’t need the money. They have a full-time job or are retired. These photographers want the publication as part of their bragging rights. They also feel that they don’t deserve a large fee because of their low experience. This train of thought puts the economy of photography in decline too.

My hope is that this rate is not an upcoming sign of the times. I have already seen a major decline in photo adventure participation. I don’t want to see photography become some sort of hobby lifestyle. I don’t think it will if the professionals stand together. Once voice does have power.

Low Photo Licensing Rate – Stand Against

If you are a photographer and you sell the photography you create do not settle. While there isn’t any licensing to become a professional photographer think about the word professional. Once you hang that sign outside of your door perspectives need to change. You need to know what the photography marketplace can withstand. Other professionals like attorneys, doctors, and architects, don’t typically give their services away. Yes, it is ok to take on charity cases and work for less when it comes to non-profits. This story has nothing to do with either of those scenarios though. If a huge ad campaign can afford a $200,000 ad buy in massively circulated magazine, they should budget realistic fees for the work they want to use. When the ads run I will not only know which photographers settled, those photographers who agreed on $300 will know that I did not.

You may think of me as a martyr in this instance, but think about how much money the average professional makes in a single year. Most professionals bill out well into the hundreds per hour. If my product (photo) is helping to sell someone else’s business for 2 years is $10,000 really that much? Probably not. Even if they were only running one ad in Outside Magazine, $10K isn’t even 10% of that cost. In addition, there is no way the ad campaign is going to run for one month and be done. That instantly puts their budget in the millions, while the individual photographer makes $300. My hope is that I at some point I get the chance to work with this ad agency, but if their budgets don’t increase, I will stand firm again.

Sometimes it’s not about the money. Sometimes it is though.