An initial fee may be payable on the outset of the License being issued. This will generally be the cost of creating the artwork (see Extended Use Exclusive License).
An estimated price will be quoted on receipt of Brief and confirmed once Emma Airnes (the Creative) agrees usage. Consultation will be necessary, as fees are based on the way in which an artwork is being used and the commercial nature of the project.
It will also be dependent on whether Emma Airnes (the Creative) has created an exclusive artwork ahead of the licensing. If this is the case the Initial Fee will cover time spent/resources etc for the creative process. This means Emma Airnes will recoup her basic costs in terms of time/skills/materials spent.
License costs are on a sliding scale depending upon the variables outlined previously.
If a publisher, commercial enterprise or manufacturer wishes to commission artwork for use across a pre-scoped product range (e.g. Greeting Cards, Stationery, Books, Merchandise, or point of sale items), a Royalties model may be the preferred License payment type (payment per unit sold).
Depending on the scoped factors, Royalties range from between 3% to 30% depending on the market and type of products the image is being licensed for.
Example of possible Royalties scenario for Greetings Cards (UK)
- Licensing Fee + Royalty – similar to above, but also with a royalty payment on each card sold. Artists would generally receive £100+ licensing fee plus 3% of trade price of each card sold.
- Advance Royalty Deal – the artist is paid a goodwill advance on royalties. In the case of a range, the artist would receive a goodwill advance of say £500-£1,000 and 5% additional royalty payment once the threshold is reached.
The ability to provide Reporting/Sales report and a monthly Royalty statement would be required before a Royalties arrangement would be entered into.