Contributors to 500px Marketplace are finally learning what Visual China Group (VCG) has planned for them. VCG has just sent them a message outlining some “major enhancements” that are coming. “
“These changes will help
maximize your potential earnings by positioning your content at the
right price and with the
right distribution. Starting July 1st, 2018, we’re offering our community an
exclusive opportunity to work with our newest global distribution partner, Getty Images,” the message says. (emphasis mine)
Marketplace contributors need to think carefully about what the “right price” means to VCG and Getty. Last December we did a story entitled “
Why Creators Are Dissatisfied With Getty” that showed that one-third of the sales were for gross license fees below $5.00, 55% below $10.00 and 73% below $20.00. These were gross fees. If photographers receive a 50% royalty then they will get one-half of these numbers.
While Getty promises that your royalty rate will “remain unchanged,” Getty has a history of lowering royalty rates once they have contributors locked into exclusive agreements. The majority of their contributors are getting 20% of less.
I recently had communications with another photographer who has been contributing to Getty for many years and has a large collection with them. In 2017 the photographer received royalties of less than $1.00 for 41% of sales. Another 38% of sales generated royalties between $1.01 and $5.00 and the royalties for 88% of total sales were less than $10.00 each.
Marketplace was originally sold to contributors as a way to get “Premium” prices for their work, not as a way to “undercut Microstock pricing.”
Getty does occasionally distribute to some premium customers and can sometimes get higher prices. In the case of this photographer royalty of over $100 were paid on less than 2/10ths of 1% (0.17%) of the sales.
Most contributors to the 500px Marketplace were opposed to Microstock and allowed 500px to represent their images because they promised higher prices. Before signing any exclusive deals, contributors should think long and hard about what they are agreeing to, and not be misled by the Getty Images name. If you really want to earn revenue from your images it may be time to submit them somewhere else.
Also see these stories:
VCG acquires 500px 2/26/18
http://www.selling-stock.com/Article/vcg-acquires-500px
Marketplace agreements will be terminated 3/30/18
http://www.selling-stock.com/Article/500px-marketplace-in-transition