Licensing fee - photo on Christmas Ornament

Photog4Christ

I was just asked the other day by a local business what my fee would be to allow the use of an image on a Christmas ornament. I told them I would have to get back to them on that. They just want a general idea, they don't even know which one of my images they want right now.

I asked about the run and they said 250 ornaments. The ornaments would only be sold in town. Any ideas?

Thank you
Neal

Sam

Hi Neal,

My thoughts on this would be to ask them what is the targeted retail price for these ornaments. That will give you some idea from a practical standpoint how much they can factor into the cost. Ask what their budget is, or if they have one. would they be interested in more that one image?

Since this is a local business and seems pretty low scale I think you want to be careful to not quote too high.

You can also limit the license not to exceed 250 or 300 ornaments.

Talk to them like one business person helping another business get where they want to go. You are the photographic problem solver. Don't come across like a used car salesman trying to get the last penny out of every deal.

Sam

Photog4Christ

Thank you Sam.

Your points are good negotiation starters

Since this is a local business (the same bookstore that is displaying my prints), I do want to work with them and get a fair agreement for the both of us.

chrisjohnson

If it sells it may well sell for years. I would go for a percentage of the retail price - 5% sounds reasonable to me but then I never did this before. Maybe they even accept 10-20%.

Make sure you have some kind of dated exclusive license together with them which "registers" the concept. 99% of christmas ornaments are made in Taiwan/China where copyright is a vague concept. In the unlikely event your ornament takes off globally you will both appreciate a legal leg to stand on.

I would NOT worry about restricting sales. It is in both your interests to sell to anyone who will buy. Hopefully you sell a lot more than the first run.

Photog4Christ

Christopher:

I do not know where the ornaments will be manufactured, and I don't have any control if someone in Taiwan or China rips it off, but I don't think they'll be a global sensation.

I will ask some more questions in order to get a better idea how they will be doing the ornaments before I give them a price.

Thank you,
Neal

Photog4Christ

I spoke to the owner of the store yesterday.

He is only going to charge about $10 per ornament.

The ornaments will only be sold in his store and on his web site.

The name of the town will be imprinted on the ornaments.

He only wants to use one of my images, but hasn't decided which one yet.

I'm thinking just telling him $250 ($1/per ornament). Any thoughts on that?

Thank you in advance

Sam

Neal,

I would have flat out asked him what his budget is for images. If he dosen't have a budget, ask him waht he thinks would be fair.

From your posts this is local business you are starting to build a relationship with. Typically with small businesses budgets are legitimately limited, they are very price sensitive. Again be more than a guy selling one image for the max $$. Be his go to guy for all things photographic.

If he can't articulate any kind of a dollar figure then go ahead and quote him $250.00. You will know then what number is in his head.

Sam

Photog4Christ

I'll be meeting with him tomorrow and I'll see if I can narrow things down with him. This is the owner of the bookstore I told you about.

Again be more than a guy selling one image for the max $$.

I'm not looking to get rich off of this, but of course I do want to be compensated fairly. I think the $250 ($1 per ornament) is fair. If I treat him fairly, then he'll want to continue to work with me on future projects (I'm agreeing with your "go to guy for photography" comment).

Photog4Christ

He really didn't have an answer regarding budget. I asked him if he had a number in mind and he said that he didn't because he's never really done this before. I told him I was thinking $250 or $1 for each ornament and he said that didn't sound bad but he wants to discuss it with his business partner.

Sam

Photog4Christ wrote: »

He really didn't have an answer regarding budget. I asked him if he had a number in mind and he said that he didn't because he's never really done this before. I told him I was thinking $250 or $1 for each ornament and he said that didn't sound bad but he wants to discuss it with his business partner.

To me it sounds like your on the right approach. Good luck.

Sam

BradfordBenn

I agree with all of the thoughts mentioned here. The thing I would suggest is that you stick with the $1 an ornament but a $250 minimum, so that if he manufacturers and sells more, you make more as well.