How to Keep Licensing Organized
So we're gonna talk with licensing about organization of those files, organization of the whole spreadsheet keeping track of all these things that you have to remember when you're licensing an image, which gets highly complicated, where to license your images, where you might wanna upload your pictures to and have somebody sell them for you, or that you might want to sell yourself, and then how do we price licensed images? And I'm excited to talk again about pricing, because it is something that people really struggle with, that I have often struggled with, and I wanna try to just break down what it means to price a licensed image, as much as we can. And I'm gonna tell you right up front, it's a lot more complicated than pricing a print for a gallery. So just prepare yourself mentally right now. Okay. Organization. When we're talking about organization for licensed images, I don't necessarily mean where you keep them in folders on your desktop or anything like that, or how to back them...
up. What I mean is how do you keep track of which images have gone where and for how long and for what projects and things like that? So the title of the project is good to have, as well as the title of the image that you're licensing. Who is licensing it specifically? And I mention that because there are a lot of publishing companies, for example, that work with other publishing companies and they might, you know, totally innocently, give that image to this other publishing company that they work with for this other thing that they wanna do and it's not really meant to go to that person. So who exactly is the licensee? What region are you licensing within? When I say region, I mean what country? What part of the world? For example, this book is in a language that I don't know but it's in another language. Can anybody read that? No? That's okay. It's in a language that I don't understand because I have a lived a sheltered life and I don't know languages. But this was, let's just say, it looks like maybe the Netherlands or something like that. Netherlands! It is. Okay. So this was from the Netherlands and this image was licensed for this book cover so when I created this contract, one thing that I might have said was, "do you want this image to be sold anywhere else? Are you okay with that?" The price will change based on their answer. So they might have said, "please don't sell this image to anyone else in the Netherlands." Okay? So that would be restriction by region by saying, well, I don't mind if you sell this picture to somebody else other places in the world, but not in the Netherlands because that's where we're based, that's where this book will be distributed and that's what's most important to them. Alright, so aside from region, duration. How long is the license going to last? Will this be a worldwide exclusive forever license? Or are you going to limit the duration of the license? So you might, I might tell these people in the Netherlands you can have this picture for three years with exclusivity in the Netherlands but after three years is up, I can still sell that picture to anybody else that I want in the Netherlands. Just an example of how you would use duration to limit or expand your license. And then the medium. So maybe... I'm just gonna keep holding this book instead of putting it down. Maybe if this person came to me and they said, "I want to license this image, it's for this book, I need exclusivity in the Netherlands, but also on all book covers worldwide," then that would be exclusivity by medium and that's something that we have to think about. They might say you can still make prints of it, you can still, you know, sell to bands for album art, you can do movie posters, but just not books because they want the rights to the books. Something to think about. And then price is what you'll also organize into your spreadsheet. How much did you sell for? What are the terms and conditions? And I've already showed this to you a little bit and I just wanted to run through this one more time because I think it's very important that we're really clear about organization here with licensed images. This can be an extremely difficult thing to untangle if you haven't kept track of who you're selling your images to. So I've got here the title of the image, the licensee, the amount that I sold it for, if it's exclusive or not, what the terms are, terms and conditions, how they paid, what format it's in, digital versus print, the print run of it. So if they did sell it, how many copies are out there? Things that you might want to know. I tried to make these spreadsheets with every piece of information I can think of, even if I can't even see how it's relevant right now. If I just think one day down the road I'd really like to know how many copies of this book are out there, I'm just gonna ask right up front and figure out what their print run is. The other really good thing about doing that, about asking about their print run size, is that you know then, and let's say they can't afford a really expensive license, then you might say, "you know what, if your first print run is 5000 copies, then I'll sell it to you for this print run. But if you do another print run, you'll owe me 300 more dollars," let's just say. So it's good to know the print run. Invoice, medium, what is it on? So is it a book or is it a CD or is it a movie poster? The working title, and any notes. And so we've already gone over this so I'm gonna skip right past it, but just really emphasizing how important each of these categories are.
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