1) The type of products sold determines the industry standard percentage for this product line. The art license is usually a license range of 3 to 10%. Brand and character licenses can go up to 15%. It may take some time before you see a big financial return. You have to make a LOT of different contracts in order to be able to earn a decent salary by only licensing art. For this reason, many artists have many different sources of income at the same time. You can`t sell the copyright because it`s tied to you as a person, the creator. You can sell licenses that match the models you described. But even if you sell, say, a painting to someone forever, you still own the rights to use the image for example (although it may depend on your contracts…). Often, with licensing agreements, you won`t see royalties for a year or more because it takes so long to develop a line, sell it, and deliver it to stores.
The advance is money NOW, and that`s when most of us need it. How much should you charge in a flat rate? As with all offers, the range is wide. I know artists who license as little as $100 per image for a fixed amount. In the greeting card industry, an artist can get a flat fee of $275 to $500 for a card design. I`ve had offers in the action sports market where I`ve charged a flat fee of $1,500 per image, with a price reduction if they allow multiple images. Licensees who frequently offer licensors to licensors (landowners/artists) usually have their own contracts that licensors are expected to sign. A manufacturer who is new to licensing or who rarely offers licensing agreements often asks the licensor to provide their own contract. Knowledge of the terms of license agreements is crucial here, even before hiring a lawyer. Therefore, every artist is advised to have a contract before it is needed. Hire an intellectual property (IP) lawyer who is familiar with art licenses to create a generic license agreement that can be customized for each licensee. Also hire an intellectual property attorney to review the agreements (and the terms of the license agreement) before accepting the contracts offered by licensees, especially if the agreement involves a large amount of art and/or multiple references. You`ll find that there`s a lot of discussion about contracts in license statements – it`s very important that you understand how they work and what they mean for your business and your art when you get into art licensing.
To learn more, read the eBook How to Understand Art License Agreements. 2. Geography: As might be expected, this determines the physical area in which a customer is allowed to use your product. Geographic reach is usually global (although I`ve seen “in the whole universe”), but in some situations, a narrower scope makes sense. This condition of licence is crucial. First, take a close look at your own existing art archives. Brainstorming with: Do I see 10 products with this single image, or am I going to the limit, I can only think of two? Successful license collections are created by many products that support the use of your images. Here are some examples of the products I`ve created through my EttaVee brand through art licenses. Keep in mind that there are no price structures set in stone for licenses or art contracts.
You need to be creative and find an offer that works for you and your customer! “Graphic Artist`s Guide Handbook of Pricing and Ethical Guidelines” (published September 29, 2010 – cost $26.39) This publication can be read or purchased at select public libraries. It includes prices for many types of art and illustrations and includes royalties for “some” art licensing industries. Words can`t describe how excited I am to talk about the world of art licensing! It`s something that artists around the world ask me every day. I started licensing my artwork on products in 2016 and have learned a lot in recent years. I hope that by sharing my background and knowledge, I can give clarity, knowledge and confidence to other artists so that they too can enter the world of art licensing, increase their brands and earn passive income (OH YESSS)! A fixed license fee (usually called a fixed fee) gives the artist all the benefits of a license agreement, but instead of receiving royalties, the artist receives a one-time upfront fee, which can range from $500 to $2,000 per SKU. A lump sum license is usually offered by a licensee who doesn`t want to worry about tracking the sale of licensed artwork on products, or who doesn`t have an established accounting system in place to manage royalties. The disadvantages of this type of payment are that the artist can lose income if the product is popular and has multiple prints. The advantage is that the advance payment is rather made over a period of several years or not at all if the product is not manufactured or is not sold. Some licensors recommend entering into this type of agreement if the licensee does not have a significant customer base or if the subject of art is a fad and retailers may not order and re-order enough products. Note: When you hear the term “fixed costs” in the licensing industry, don`t confuse it with the term “fixed costs” used by some illustrators and artists. In this case, the fixed fee means the sale of all rights to their work, including copyright.
In art licenses, a flat fee means a one-time payment in a license agreement. Can I take an existing piece and bring supporting drawings, illustrations or works that develop in a collection? I call her the “Ball Queen and her court.” The “queen” is the illustration or design of the star, and the “courtyard” are the elements that support the collection. An example of this concept: in a collection of winter holiday art licenses, a snowman can be the “king of the ball” and the supporting “court” is his friends: the cardinal, the snowflake, the pines and the snow maiden. They all help tell a visual story that is spread across product lines. Art licenses allow you to showcase your work on the world stage. This increases awareness of your art and brand! Art licenses generate passive income! Depending on how your contract is made, you can earn royalties on a licensed artwork for years or even decades! Taking a “package” is often confused with selling, but this is not the case. From my point of view, the flat-rate license is like a hybrid car – it has some similarities with selling art and some things with the license. The contract is like a license agreement (products on which the art continues, period of use, you retain the copyright), but instead of a percentage of license, you both accept a fixed fee.
The main difference between this and selling your art is that you still retain the rights to use the art in other areas, you have simply accepted a sum of money that you earn in advance. I call these questions “The Five Questions,” and everyone I talk to about licensing says, “As a licensor, you need to get the answers to these five questions from the licensee before you can even consider signing a license agreement: “Fixed fees – Sometimes companies prefer to pay the artist a fixed fee for the use of their works. This is a one-time payment at the signing of the contract, which the licensee authorizes. The good thing about a lump sum is that you get the payment immediately. The downside is that even if the product succeeds and sells well, you won`t get any additional payment/royalties for the current contract. Below are comments on some of the terms of the license agreement in a contract. Also read “The Legality of Licensing” by Lawyer Joshua Kaufman for information and definitions of terms. Note: This article was written in 2004 and the amounts shown for royalties, etc. are no longer correct. “The Licensing Letter Royalty Trends Report” (2010 Edition – Cost $319.00) This is a comprehensive royalty report for the entire licensing industry, including art licenses. Note: I didn`t buy this report, so I don`t know how much information it contains about the art licensing industry.
Receiving royalties is usually the payment choice for most licensors, as most revenue can be generated with this type of payment method. .