Advice for Pricing to Ad Production Agency

[Bob Phipps]

Hi,

I have worked with calendar, and textbook company photo editors for 35 years. This year is the first time to work with an ad agency.

After the photos were submitted, selected by client, price agreed upon, project completed, and ready for client delivery, the ad agency asked to make a CD/DVD of the pictures used for the client. The client wished to used the photo for future publications. The ad agency stated this was their normal procedure. This had not been discussed in own original price negotiations.

How have you dealt with this in your pricing? I was unaware of the ad agencies policy. I do not wish to loose future sales to the agency, but I need to know how to price my photos to deal with the clients future use.

This has been a great experience to see the project from beginning to end, and would like to continue finding other ad agencies for sales expansion. Working with calendar and textbook the sales have always been one time use rights, so you can see how this threw me a curve.

Thanks ahead for any advice you can give me.

Best wishes,
Bob

[BarryS]

Your contract should specify usage rights. If you had a verbal negotiation that didn't include usage rights, that was a mistake, but you should negotiate additional payment if they want unlimited rights. Ad agencies aren't dumb about this, although they may be playing dumb. You need to make it clear that they bought rights for use in the one project and you'd be happy to negotiate additional usage rights. By default, the rights belong to you unless it was work-for-hire.

[Walter Calahan]

It's not what is normal for the ad agency, it is what's normal for you.

You own the copyright. If they haven't paid for this added usage, then more money should be forthcoming.

If not about losing future sales, it is about the photo industry. Every photographer who gives their work away, makes it harder for everyone else to earn a living.

There is a way to approach this in a nice way.

You need to review your contract to make sure they know what they licensed.

It's not about them throwing you a curve. You are not the batter. You are the pitch. You are in the driver's seat 'cause this is your property.

[Henry Ambrose]

What Walter wrote.

Go back and read your contract.
You did specify exactly the use you sold them didn't you?

This is another use and another fee.

They had a hamburger and now they want another. What happens at McDonalds when you want another burger or fries? Do they give it to you or do you pay?

[Ralph Barker]

If you don't already have a copy, you might find "ASMP Professional Business Pratices in Photography" (ASMP) helpful in formulating your additional-usage negotiation strategy.

[Gordon Moat]

Additional usage is a new negotiation, and new usage. My normal business practice is to treat my clients fairly while being fair to myself. Sometimes I run across companies that fish for something extra, which is what this sounds like. No use to get mad about it, but I would not worry about them getting upset about you charging them for the additional value of the images.

Remember that once you give something extra, or cut your fees, you will be expected to work in a similar manner on future projects, and you will never get paid at a greater rate. Photography for advertising is not a commodity; it is a valuable asset that reinforces the product or service of the company putting use to that image.

If I told a plumber, or car mechanic, or a doctor or lawyer: give me a discount, or I will go elsewhere, then what do you think they would tell me? If they say no, they stand to loose my future business, and a source of revenue. Instead, if I ask those same people: could I get a discount, then they might be more open, though likely to make it a point of just this one time. So did it seem more like they were telling you, or asking you?

Just to let you know, there is no standard industry practice amongst ad agencies regarding photographers. The vast majority are wonderful to work with, treat you well, respect what you do, and understand the value of the images. They see photographers as creative partners in projects, and not as providers of a commodity. The request you got might have come from their client, making them obliged to ask, so don't take it personally.

Ciao!

Gordon Moat Photography