Pricing
Commercial Photography Pricing Guide And Definitions
Mike Boatman, Photographer
A commercial assignment advertising photography studio
Author Mike Boatman 2021
The purpose of this guide is to define the different types of photographs and the expectation and purpose of each type. They range from the most expensive with highest expectations, down to lower expectations and less expense.
Pricing commercial photography is complicated. There are several moving parts to be considered. For example, what is the purpose of the photograph or the job that the photograph needs to do? What is the geographic distribution footprint, aka: the effective sales radius?
This guide is intended as a framework to help the buyer accurately assess the type of photographs they need.
Typically, commercial photography is evaluated on two aspects: creative fee and usage fee. Sometimes these are itemized separately and other times they are lumped together into a single fee known as the assignment fee. Depending on the job the photograph must do, these two fees are not equally weighted. It is quite possible to have a relatively low creative fee with an international distribution or an extremely high creative fee with a local distribution (or effective sales radius). Therefore, each assignment needs to be evaluated uniquely, even though there are common elements in each type of photograph.
Typically, advertising is for single-user use. What this means is when Nike buys an image for advertising, they don’t want Reebok using the image. Usage is restricted to Nike. Third-party usage is forbidden. A third-party would be an independent entity using the imagery for its own purposes.
To clarify, when Nike places an advertisement in a traditional magazine, it is not third-party distribution. This is ad placement. The entity running the ad for Nike does not claim usage rights for their own independent usage.
Types of Photography:
| Branding photograph | A branding photograph establishes the visual expectations for an entire product line or business model. The branding photograph is the visual equivalent of a mission statement. |
High degree of creativity, extreme attention to detail. Large distribution and display. |
| Packaging photograph | Illustrates what’s in the package and competes visually with other packages for buyers’ attention. | Distribution can vary from international to local. High degree of creativity due to directly competing for buyers’ attention, many times in a side-by-side comparison. |
| Advertisement ad photograph | Extremely high degree of creativity. Also, must support brand imaging. Draw attention, convey a message, and create a desire for the viewing audience to learn more. | The degree of distribution can vary from international to local depending on the effective selling radius. Should be noted all websites have an international reach which may or may not be equal to their selling radius. |
| Web Banner Photograph | Similar to a branding photograph it establishes the brand imaging and expectations for the viewer. | All websites are international in distribution. But the effective selling radius can vary from international to local. |
| Web advertising | The same as placing a traditional ad in print medium, web advertising is simply placing the ad on the Internet. | Web advertising can be targeted by specific demographics therefore making it more effective as a sales tool and more valuable. |
| Social media advertising | Can sometimes be similar to press release or general public information. Utilizes similar philosophies as word-of-mouth. | Typically, with social media advertising you have third-party distribution which grossly increases the value of the imagery. |
| Catalog Photograph for print | Typically, is more documentary in nature. | The goal of the catalog photograph is to show the product clearly and distinctly so buyer can see all features. |
| Web Catalog Photograph | Very similar to a for print catalog image, the format space allows for numerous additional pictures to further clarify the features and functionality of the product. | Where these photographs are typically more documentary in nature, they still require a high degree of technical excellence and creativity to demonstrate visually the products functionality. |
The factors that go into pricing are:
• What degree of creativity is needed?
• What level of usage rights (make copies, distribution, and display) need to be granted to meet the client’s goals.
The photographer is the author of the image and sole owner of all copyrights at the moment of creation. Commercial Photographers use copyrights to govern usage fees in order to monetize their photography in an equitable manner for their clients.
Copyright law, relevant to photography, is the absolute ownership and control of four actions:
• copy
• make derivatives
• distribute
• display
Collectively and/or independently, these four actions represent usage rights which determine the usage fee.
It is the fairest way to charge advertisers, both large and small, for the actual usage that they are utilizing. For example, Nike running a full-page ad in numerous publications for athletes coupled with web banners featuring and showing off their new products along with an entire social media campaign would expect to pay more for an image that is expected to accomplish all of the above than a local retail shop selling sportswear that wishes to run a regional or local ad for a weekend sales promotion.
When you look at these two extremes it’s easy to see the difference in usage for the four controlled actions under copyrights.
The issue comes when the local sales retailer wants a buyout of all rights to run his sales promotion. In essence they’re asking for the same level of distribution usage rights as Nike in the above example.
The flip side of the issue is when a regional or large corporation indicates that they are only looking for a local promotional image for a weekend sale, and then they turn it into a national campaign.
The solution is recognizing that your photographer is a strategic partner looking to create the best possible image to accomplish your goals at the most reasonable price for the usage needed.
Stock Photography
Stock photography is not assignment photography. The stock image is an image that’s already been produced and is essentially sitting in inventory.
Typically, the creative fee has already been paid by the original commissioning client. Therefore, stock photography relies heavily on usage fee for its pricing structure.
Just because stock image is already been created doesn’t lessen the value associated with usage fees. Nor does the possibility of a lesser usage rights granted for the original client impact the stock usage price for greater usage rights.
All of my national and international clients are managed by my sales rep Frank Moe. For any questions regarding pricing don’t hesitate to contact me.