TABLE of CONTENTS 4
Introduction
6
6 Tips to Help You Profit From Magazine Assignments
8
Fees and Expenses
10
Frequently Asked Questions
11
Conclusion
11
Additional Resources from Wonderful Machine
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| PRICING YOUR WORK: magazine photography
3
Part one
Introduction A Note from PhotoShelter Estimating fees and negotiating prices with clients can be complicated. Many factors go into closing a deal, and it often starts with being able to ask the right questions and get a clear understanding of the client’s needs and expectations. Each scenario is different and there is no single formula you can apply in every case with every client. Because estimating fees is not always straightforward, we were determined to tackle the topic head on. So we reached out to Bill Cramer, the founder and CEO of Wonderful Machine, which is a curated directory of photographers, serving primarily commercial and editorial clients worldwide. Bill and his team at Wonderful Machine are experts in helping photographers market their work, reach more clients, and improve their bottom line. Bill is also an accomplished portrait photographer for editorial and commercial clients. In addition, his well-researched team regularly coaches photographers on how to assess the scope of a project and determine what to charge from a stock photo to a full-blown ad campaign. With his expertise in mind, we’ve asked Bill to put together a series of guides on “Pricing Your Work” relevant to multiple specialities. The first one he’s tackling? Magazine photography.
Introduction by Bill Cramer Welcome to the first in a series of guides about how photographers charge for their work. In it, my team and I at Wonderful Machine will do our best to explain what's customary for different types of clients and assignments, what factors influence value, and what pitfalls to watch out for. We'll plan to tackle editorial, commercial and retail assignments. Here, we're going to talk first about how to charge for magazine assignments. You might be wondering why photographers have different rates for different types of assignments. The reason is rooted in copyright law. In the United States and in many parts of the world, when a photographer creates a picture, s/he owns the reproduction rights | PRICING YOUR WORK: magazine photography
to that image. A client can only legally use that image with written permission from the photographer. That simple fact allows photographers to negotiate fees based on how the photographs are being used (hence the value the photograph is bringing to the client) rather than simply on the time it takes to make it.
Types of Magazines Magazines come in several different types: consumer magazines, trade magazines, association magazines and corporate magazines: are aimed at the general public and have wide readerships— sometimes in the millions. They can cover broad topics like Time does or they can cover a niche topic, like Cooking Light. Consumer magazines
by their nature address niche topics and tend to be aimed at people with very specific occupations (or trades), like American Banker or Bakery Magazine. Even though those audiences can be small (sometimes only in the tens of thousands), the ad space tends to be valuable because of the targeted (and often wealthy) audiences that they reach.
Trade magazines
Association magazines like Diabetes Forecast or The Penn Stater can have big audiences and often make money, but they also serve a public relations role for their organization.
Many major brands (like Jeep, BJ's and American Airlines) publish magazines (aimed at customers) as part of their marketing efforts. Some sell advertising, but the emphasis is generally not on creating a profitable magazine but rather promoting a brand.
Corporate magazines
Editorial vs. Magazine Photography It's important to understand the difference between editorial photography and magazine photography. The terms are often used interchangeably, but they're not the same. Magazine 4
Part one
simply refers to the format. Editorial means that the photographs reflect the point of view of the individual photographer as opposed to a corporate or advertising point of view. Some magazines are editorial in nature and others are more promotional. Also, editorial clients include newspapers and books as well as magazines. Editorial assignments tend to be moderately priced compared to commercial assignments for a number of reasons. First, the photos aren't being used to directly sell a product the way they are in advertising photography. Second, unlike most commercial assignments, editorial projects normally get a photo credit that can sometimes be valuable publicity for the photographer, generating interest from other clients. Third, those assignments often offer a greater degree of creative freedom and less bureaucracy than many commercial assignments do. Lastly, while advertising assignments are few and far between for most photographers, magazines tend to use a high volume of photography and they often develop regular relationships with contributors, where steady work can help make up for the more modest fees. Of course, these explanations don't justify low rates, they just explain them. It's up to every photographer to negotiate their own best deal.
Pricing (and some trendy magazines like Interview) can often get photographers to work for free or for very cheap just for the experience or for the opportunity to build a portfolio and make connections or for access to subjects. Tier 1: Local Magazines
Tier 2: Regional and National Magazines
$1,000 per page plus expenses.
that pay $500 to $750 per day or $500 to
Tier 3: Major Publications like National Geographic, can have six-figure budgets for extensive feature shoots, and celebrity magazines can have production budgets that easily get into five figures.
who are celebrities in their own right, like Annie Leibovitz or Steven Meisel, can sometimes command seven-figure annual contracts with big magazine publishers. Tier 4: High Profile Photographers
photo credit: Jonathan Gayman
Since the vast majority of shoots are in tier 2 (regional and national magazines), that's what we'll concentrate on here.
| PRICING YOUR WORK: magazine photography
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Part two
6 Tips to Help You Profit From Magazine Assignments Understanding the ins and outs of the business will determine whether you can make magazine assignments a profitable part of your business. Here are a few tips: When you get a call from a magazine about a potential assignment, you have to be prepared to respond appropriately. You'll normally hear from the art director (at a smaller magazine) or a photo editor (at a larger magazine). They will often be working on a fairly tight deadline, so you'll need to be pretty decisive. They'll briefly describe the project and they'll want to know whether you're interested and available. If the answer is yes to both, you'll need to know more details. Be prepared when a client calls.
Ask questions. When you speak to a potential client on the phone, you won't want to jump into a conversation about money right off the bat. Listen carefully as they describe the project, and be prepared to ask as many questions as necessary in order to visualize what you have to do to execute the job and to work up a quote. If you're an established photographer and you get the feeling that it might be a low-budget job, you won't want to spend a lot of time talking creative before finding out what their budget is. But otherwise, we suggest asking all the other questions first. As a matter of style, it's important to show that you're interested in doing the assignment. Asking the right questions will demonstrate your enthusiasm for the project, and it will also give the client the confidence that you know what you're doing. You'll need to understand the assignment from a creative standpoint, from a production standpoint and from a licensing standpoint. Some questions you'll need to ask the client, others you'll just need to ask yourself. Understand the client’s creative needs and expectations. What's the subject of the assignment? What's the story about? What genre of photography are they looking for: portraiture, fashion, still life, architecture, reportage, travel? Do they have a draft you
| PRICING YOUR WORK: magazine photography
can read? (The text can often inspire picture ideas, but if you do get a copy of the story, do not show it to the subject.) Are there pictures in your portfolio or on the web that are similar to what they're looking for? What do they envision for the shoot? Sometimes a photo editor is going to have a specific concept or style in mind that they'll want you to adapt to. Other times, they're going to want you to come up with the concept and do it in your own style. It's important to have a clear understanding of their expectations and what's appropriate for that publication. Before you have a conversation about money, you need a clear concept of what work actually has to happen (and by whom) to get the job done. Some shoots will just require your camera, your subject and your imagination. Others will involve assistants, lighting equipment, sets, stylists, props, wardrobe, locations and more. You will have to learn what level of production is appropriate for different types of assignments. If it's a small photo in a small magazine, you might have to beg, borrow and steal to make the picture the way you want to. If it's a feature or cover for a big magazine, they'll probably have the budget to pay for all that stuff. Think about the final picture in your head and work backwards, listing all of the things you'll need to get there. Understand the client’s production needs and expectations.
For example, if you're shooting a magazine cover and your subject is a woman, you will almost always have professional hair and make-up. If it's a man, you'll usually just bring your own powder and bib and make him up yourself. For many shoots, the stylist can make a huge difference—perhaps none more so than food stylists. If you're shooting models in the dessert, will you need a mobile home to do hair, make-up and wardrobe in? If it's just you and your assistant, you'll probably get your meals on the fly, but if your shoot involves cast, crew and clients, you'll need to arrange for catering. Are you going to pay for the location 6
Part two or can the magazine offer them a credit in lieu of a fee? When you have a lot of production elements to arrange, who's going to handle it? In many cases, the photo editor will act as producer. But if you're doing it yourself or your assistant, studio manager or a professional producer is doing it, you'll want to make sure you get compensated not only for those outof-pocket costs but for organizing those production elements too. Generally, at the very least, they'll want to publish them in the print version of the magazine. And these days, most magazines will want to use the pictures on their website and in the tablet version of their publication. But there may be other things they want as well. Do they want to be able to reuse the pictures in future editions of their magazine? How about foreign edition use? Promotional use? Article reprint use? Other third-party use? Some photographers will naively give away these additional rights without knowing that they're often worth more than the original shoot. For example, when a magazine licenses an article reprint, that constitutes commercial rather than editorial use, and it can be worth a lot. Then there's the issue of "space." A cover picture is worth more than an inside picture. Several large pictures inside the magazine are worth more than one small picture. If it's your first magazine assignment and you're just happy to be published, or if you make a ton of money on ad shoots and just shoot editorial for fun, it might not be an important consideration for you. But if you want magazine photography to be a significant part of your business (and if you care about how your actions impact other photographers), you'll make yourself aware of all these factors and you'll negotiate to get full value for your efforts. Know how the client wants to license your photos.
Read the contract first; don’t agree to anything over the phone. Now that you've got your head around the project itself, it's time to talk money. Most magazines will have a budget in mind and a standard contract that they'll want you to sign. We recommend that you never, ever agree to anything over the phone with anyone you haven't worked with before. It's too easy for you or your client to forget the details of a phone conversation. Instead, tell them that you'll take a look at their contract and you'll get right back to them. Some magazine contracts ask for the world, and they expect to get it. Some ask for the world and expect photographers to cross stuff out. Others just offer reasonable terms to begin with. It's your job to make sure that the fee they're offering is commensurate with the time, energy, talent and licensing you're providing. Your negotiating leverage is a function of how much they want you to shoot the job, how much you need the work, and your willingness to walk away from a bad deal. Most magazines have a fixed budget and they're willing to negotiate usage. Other magazines won't want you to modify their contract, but they're willing to bend on the fee. For some magazines, it's just take-it-or-leave-it.
| PRICING YOUR WORK: magazine photography
photo credit: Jim Jordan
photo credit: Steve Boyle
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Part three
Fees and Expenses Photographers traditionally structure their invoices in terms of a creative fee plus production expenses. The fee portion covers your talent, time, energy and the license for the client to reproduce your photographs. The expense portion covers the cost of additional personnel, materials, equipment and facilities that are sometimes required to execute a shoot. Sometimes a photographer may choose to provide some of those expense items in-house, like when a photographer owns her own studio, has staff assistants or does her own retouching. Regardless, they are all billable items separate from the fee. And whether you're actually breaking them out separately on the invoice or not, in order to run a profitable business, it's important to understand where the money is coming from and where it's going. There are three basic types of magazine contracts: Day rate vs. space. This
structure is the most win-win for photographer and client. It scales the fee up and down depending on the time required to shoot the assignment and the space the photos end up occupying in the magazine. The fact is that art directors rarely know how big each story or picture will be until they actually send it off to the presses. Between the time an assignment is made and when the magazine gets put together, changing events will affect the relative value of different stories. And when pictures or articles are unexpectedly good or bad, their prominence in the magazine will grow or shrink. By paying photographers a minimum guarantee for their time, plus a predetermined bonus for extra pages (plus expenses), this contract allows photographers and clients to negotiate just once, then proceed with subsequent assignments with minimal negotiations. For most magazines, $500 per day vs. $500 per page plus expenses is reasonable for first editorial print use and concurrent web use. So if they end up using one 1/2-page picture (or no picture at all), the fee is $500. If they use one
| PRICING YOUR WORK: magazine photography
full-page picture, the fee is still $500. If they use two full-page pictures, the fee would be $1,000 instead of $500. A guideline we use to normally price cover space is $1,000 to $2,000, and the price of smaller pictures is often prorated: »» up to 1/4-page: $200 »» up to 1/2-page: $300 »» up to 3/4-page: $400 »» up to full-page: $500 »» up to full-cover: $1,500 Flat fee plus expenses. Some clients want the convenience of paying the same rate regardless of how many pictures they use or how big. That will make sense for the photographer if the fees are high enough or if the fees are moderate and the photographer is shooting regularly for the magazine. Sometimes they'll win, sometimes they'll lose, but in many cases, magazines offer a rate that's reasonable for one 1/2-page picture, but not bigger. So this creates an awkward situation where the more productive the photographer is, the less they get paid per picture. This is not a recipe for a long-term relationship. Flat fee all-inclusive. Other clients offer a flat rate including expenses. That can work fine when the expenses and the usage are very predictable and when the fee is generous enough. But photographers can be easily seduced by offers that seem great at first, but then when they actually back out all of the expenses, reality sinks in. It's important even in these cases to work up an estimate in the usual way to see what your fee really comes out to.
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Part three
In addition to the fee and the licensing, there are a few other details you'll want your contract to address:
Terms and Conditions.
»» Payment Schedule (normally 30–45 days from invoice) »» Advance (Get expenses up front if they're going to be more than $1,000.) »» Copyright (Usage rights are effective upon payment in full—that way if they neglect to pay you, you can sue them for copyright infringement.)
It's also good to have a list of potential expenses handy so when you're putting together an estimate, you don't forget anything. Here are the most common magazine shoot expenses (commercial rates are often higher):
Expenses.
»» Assistant ($200–$400/day) »» Digital Tech (about $500/day plus workstation as necessary) »» Digital Fee (about $300 for a web gallery)
»» Cancellation (If they arbitrarily cancel the shoot within 24 hours, they have to pay a cancellation fee at least to cover all the sub-contractors you booked.)
»» File Prep Fee ($25–$50 for a reproduction file with basic touch-up)
»» Client Representation (If they're not going to attend the shoot to approve the shots, they have to agree to accept your interpretation of the assignment.)
»» Producer or Photographer Production Days ($500–$750/day)
»» Retouching ($150–$250/hour)
»» Exclusivity/Embargo (After some reasonable amount of time—about 30 days— you can license the pictures to other clients.)
»» Hair/Make-Up Stylist ($600–$900/day)
»» Indemnification (You agree to pay for each other's attorney fees if one of you causes the other to get sued as a result of the other's negligence.)
»» Wardrobe
»» Credit (The magazine will provide a credit line with your name near your photograph.) »» Tear Sheets (The magazine will send you a physical copy of the magazine or email you a PDF of the layout.) »» Turnaround Time (You will charge a rush fee for file preps delivered inside of 48 hours.)
»» Wardrobe Stylist ($600–$900/day) »» Prop Stylist ($600–$900/day) »» Props »» Backgrounds »» Food Stylist ($900–$1,200/day) »» Food (to photograph) »» Equipment Rental »» Studio Rental ($500–$1,500/day) »» Location Scout ($700–$800/day) »» Location Fee »» Models, Casting »» Certificate of Insurance, Permits »» Meals, Catering »» Mileage, Parking, Tolls »» Vehicle Rental »» Hotels, Airfare, Cabs, Tips
| PRICING YOUR WORK: magazine photography
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Part Four
Frequently Asked Questions Can you charge a mark-up on your expenses? Usually not. Back in the days of shooting film, some clients would expect to pay the actual cost of film and processing. Not only was that impractical because of the difficulty of keeping track of the exact cost of clip tests, pushes, pulls and rushes, but it was reasonable to bundle in the cost of other expendables like gels, filters, tape and even film tests and waste. But these days, most expenses are pretty cut-and-dry, and it's hard to justify a mark-up. There are two things to consider though: the value of fronting a lot of expenses and the time it takes to negotiate and schedule all those production elements. To compensate for that, it's reasonable to get paid an advance for expenses when they go beyond $1,000 and to charge a production fee (in addition to your creative fee) when you spend more than a couple of hours on logistics. Can you charge a client a rental fee for equipment that you own? Yes. Some people naively believe that it's unethical to charge clients a rental fee for equipment that you own. That's silly. If you're providing something of value to your client, it's logical that you would charge for it. Photographic equipment is expensive to purchase, insure and maintain. The creative fee is simply compensation for your time and expertise. It does not cover anything but the most basic equipment, if that. Is it reasonable for a magazine to insist on obtaining original receipts? No. The IRS requires that you keep your original receipts. Your client only needs originals if they are reimbursing you separately for your expenses and only issuing a 1099 to you for your creative fee (which we have never seen). Do I have a responsibility to other photographers to price my photography appropriately? Yes. Very few photographers have long careers in magazine photography. Most are either passing through on their way to an advertising career or they're on their way out of business. That can make it tempting for photographers to just get whatever they can without any sense of how it affects other photographers. But there are a | PRICING YOUR WORK: magazine photography
decent number of photographers who make their primary income from magazine assignments. We believe you owe it to them and to future photographers to understand what's appropriate and to make a reasonable effort to get fair terms and compensation from magazine clients. What's an advertorial? Some publishers give advertisers additional pages in their magazine as a bonus when they're buying a lot of ad space.The magazine's editorial staff and photographers create content specifically for those advertisers. It's labeled as advertising, but it's produced as though it were editorial. It's generally worth two to four times as much as regular editorial. Should I always charge for rush service and cancellation fees? No. We suggest putting those terms in your contract so you can charge for them when you feel it's appropriate. Many photographers normally turn around file prep orders in one day without any additional charges. If a client asks for a rush once in a blue moon, we wouldn’t recommend charging them for it because that’s part of building a relationship with them. If a client is frequently asking for rush, it’s OK to charge for it. You can always charge clients a cancellation fee for the cost of sub-contractors if they cancel within 24 hours because you don't want a flaky client to jeopardize your relationships with your assistants and stylists. It's also reasonable to get compensated for the time you put in to preparing for an assignment that subsequently gets cancelled. And there are times when you have turned down other work to hold a date. The important thing is to be reasonable with your clients because there will be times when the shoe is on the other foot.
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Part Five
Conclusion Of course, all of these numbers have to be taken with a grain of salt. We're not trying to tell you what to charge; we're simply sharing our own experiences. Every photographer, client and assignment are unique and must be evaluated individually. Production costs will be more expensive (and plentiful) in places like New York and Los Angeles, and they'll be less expensive (and less plentiful) in places like Little Rock and Knoxville. Some clients will tell you that you're the only photographer to ever <fill in reasonable request here>. Some photographers will tell you that they never work for less than <fill in ridiculously high rate here>. The important thing is to simply be willing to unapologetically educate yourself about the business as well as the creative side of the industry. Learn from your experiences and share real business information with other photographers because it's in all of our best interests. In the end, it's up to you to negotiate your best deal. Please feel free to contact any of us at Wonderful Machine to hear more. Bill speaks regularly around the U.S. for ASMP's Real World Pricing & Negotiating Seminar. To find out when he's coming to your town, click here.
Examples of Magazine Contracts Pricing & Negotiating: Day Rate vs. Space
blog.wonderfulmachine.com/2010/05/day-rate-vs-space-explained/ Pricing & Negotiating: Flat Rate Magazine Contract
blog.wonderfulmachine.com/2011/09/pricing-negotiating-flat-rate-magazine-contracts/ Pricing & Negotiating: Fast Company Contract
blog.wonderfulmachine.com/2011/04/pricing-and-negotiating-%E2%80%93-fastcompany-contract/ Pricing & Negotiating: Here Media Contract
blog.wonderfulmachine.com/2010/02/here-medias-contract-dissected/ Pricing & Negotiating: The American Lawyer
blog.wonderfulmachine.com/2012/10/pricing-negotiating-the-american-lawyer/ Pricing & Negotiating: Custom Publication
blog.wonderfulmachine.com/2012/02/pricing-negotiating-custom-publications/ Pricing & Negotiating: AARP.org Contract
blog.wonderfulmachine.com/2011/12/pricing-negotiating-aarp-org-contract/ Pricing & Negotiating: Magazine Article Reprints
blog.wonderfulmachine.com/2011/08/pricing-negotiating-magazine-article-reprints/
| PRICING YOUR WORK: magazine photography
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About Bill Cramer and Wonderful Machine Bill Cramer is founder and CEO of Wonderful Machine, a curated directory of high-quality photographers, serving commercial and editorial clients worldwide. He is also a photographer in his own right, specializing in environmental portraiture for a wide range of corporate, editorial and advertising clients including Forbes, BBDO, Comcast and Accenture. Graduating from Penn State in 1985, Bill began his career as a photojournalist, stringing for the Associated Press and The New York Times. He assisted many prominent photographers, including a year with fashion photographer Steven Meisel. Over time, his interests grew to include portraiture, where he now concentrates his efforts. He has received a number of industry awards and has been included in Communication Arts Photography Annual three times. In 2007, seeing an opportunity to build a better mousetrap, Bill created Wonderful Machine as a "source book on steroids." In addition to providing creatives with an eclectic selection of photographers from around the world, Wonderful Machine aggressively promotes those photographers using email campaigns, print mailers, web ads, social media, publicity, phone calls and portfolio events. Wonderful Machine also offers member and non-member photographers a host of consulting services including help with estimates, production, web design, photo editing and more. Their staff members frequently participate in industry events and contribute a popular monthly column on pricing and negotiating to aphotoeditor.com. Wonderful Machine currently works with more than 600 photographers in 50 countries around the world.
Website:
billcramer.com wonderfulmachine.com
| PRICING YOUR WORK: magazine photography
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