Recently on Linkedin Jacintha van Beveren observed that “The old photography business model is gone,” observed and asked if the road to survival and future success is through “creativity and flexibility or stubborn protection.” Neither.
| Photographers who want to try to earn a living in the photo business must accept that the business has changed dramatically and forever. |
Creativity or stubborn protection will not work. For the most part, customers do not pay more for stock images because they are more creative. Customers who buy stock do so because it fulfills a need at a price they can afford. Yes, there are exceptions—some pay more for exclusivity or what they judge to be higher quality—but these buyers are so few in number that a business strategy of catering primarily to this customer segment is unlikely to generate enough revenue to sustain a business.
Stubborn protection will not work either. Photographers may refuse to license rights to images until customers agree to pay what photographers feel images are worth, but all that will do is slowly limit the number of sales photographers will be able to make as more and more customers discover other—much less expensive and perfectly satisfactory—options. By operating in this manner, the photographer may retain his “self respect”, but he is unlikely to remain in business for long because after all what we are talking about is business.
Photographers who want to try to earn a living in the photo business must accept that the business has changed dramatically and forever. They need to develop a whole new operating strategy, including:
- Recognize that major publishers are no longer a major portion of the market. The combined total of spending by small businesses and individuals with very limited and focused needs amounts to more money than rights-managed image purchases. (See “Stock Photo Business Size: 2010.”)
- Accept that professional photographers and traditional stock agencies no longer control the market. Professional photographers are no longer the sole suppliers of images. A larger portion of all images licensed is produced by people not interested in making photography a primary career. This imagery will satisfy the needs of nearly all potential customers.
- Accept that stock photography is about multiple sales of a given image at prices that are usually below what it cost to produce. Many good—or satisfactory—images are available for sale from individuals who are unconcerned about earning enough to cover production costs. Listen to Tom Grill, one of the world’s most successful stock photographers, when he says that 50 x $200 = 200 x $50 and recognize that the same is true for 20 x $200 = 1,000 x $4 which is about the current ratio of rights-managed to microstock sales.
- Recognize that microstock is the only part of the stock photo business where prices are increasing. In the last four years, the average microstock licensing fee has grown by an estimated 500% to 800%—and still going up. While these fees are lower than previously established image pricing, it is impossible to convince microstock contributors to set their prices at a level traditional photographers think is fair.
- Restructure your business to focus on assignment work, which ensures image producers are paid when they deliver the finished product. Look at stock photography as a sideline, supplemental income to be considered when there is nothing more productive to do to grow one’s assignment business. Other potential areas to consider include fine art, where producers should also forget about selling work to advertising agencies or graphic design firms and instead focus on marketing to corporate art reps who buy prints for display in corporate facilities.