Pricing File for Ad Campaign

[AllenAyres]

I have been contacted by an ad agency based in Canada to use one of my images for a Pharmaceutical Company's ad campaign for 2010-2011. I haven't sold an image like this before and wanted to check here before giving them a price quote.

Here's the particulars:

It is for our Client, XYZ Pharmaceuticals and they like the image as part of a campaign for healthy living and what life is all about. Your wedding picture would be the the campaigns “hero” image.
Client: XYZ Pharmaceuticals
Brand: Heart Med (Cholesterol/etc)
Industry: Pharmaceutical – Medical Industry only
Usage: Print (unlimited), CI (Sales Rep/Physician electronic detailing), on-line/web
Timing A: 1 year (January 1st 2010 – December 31st 2010)
Timing B: 2 year (January 1st 2010 – December 31st 2011)
Territory: National (Canada only)

I believe copyright is different between here (Texas) and Canada and asked them to send over a standard contract to look over. They're asking for a usage quote by tomorrow.

Is there a 'standard' expected fee or is this very individual? It sounds like they plan to use the image pretty extensively.

[CaptainTom]

quote them one price for a one year usage rights as they indicate and then quote them another price for the two year rights ( generally a bit cheaper than double the first year).

i.e. $2000 one yr.
$3500 two yr.

[AllenAyres]

Thank you Tom for your input.

Is that pricing considered reasonable? I have no idea what is typically expected and don't want to go way over (and miss the sale) or way under (and leave a lot on the table).

[CaptainTom]

Try this site.

Stock Photo Price Calculator

[AllenAyres]

Muchas gracias - definitely a good starting point :)

[S-Man]

Sweet Allen! Good on ya'! Hope it works out in your favor.
Maybe we can see the image after it's settled?

[AllenAyres]

Thanks Sam :)

Someone that has done similar work suggested a (much) higher fee, reasoning that it's not a stock image, the ad campaign can likely run into the millions, a couple other reasons, etc. etc. Tom's initial suggestion seemed quite a bit too low according to him. :)

Once it's done, I'll post the image - the web-sized version is actually already posted on my blog, that's how they found it.

[kayumangi]

Nice one Allen. Like sam said hopefully it works in your favor.

[park]

I would consider a consultation with Jim Pickerell if I were you. He literally wrote the book on stock photo pricing. This could be a sizable amount of money as I'm sure you have already figured out.

JimPickerell.com

PS. No personal connection here. Just used to buy his books every year they were issued.

[AllenAyres]

Thank you :)

I sent over a quote last night, keeping my fingers crossed

[AllenAyres]

Email from the agency this morning - they said the quote was in-line with the others and I should know something by mid-January. The quote was a multiple of the initial suggestion, btw, so it pays to research your answer before submitting :)

Thank you everyone for your input.

[S-Man]

Nice!

[CaptainTom]

Good luck and here's hoping they like your image so much they'll use it for many years $$$$ to come.

[ShaneKislack]

Your price was extremely low IMHO. For example, per photo quote, your estimate above is equal to a years usage for magazine advertising only...or a little less for a years worth of billboard ads. Now factor in newspaper ads, packaging, web, bus wraps, bus stops, POP, etc...each one commands about $2000 per year. Now they may not use all of these, but you are giving them the right to by licensing unlimited usage for the year.

I also went to gettyimages.com and searched a wedding picture and entered the usage you explained. For one year, they charge $19,555. You can try this too. Just go to gettyimages.com, find a similar picture and enter the parameters.

Now here's the tricky part. Wedding images aren't that rare and disregarding any significant events happening in the picture, are pretty much the same (sorry). AND if the client is scouring individuals websites for stock, it probably means they are looking to purchase from someone that isn't in the business of selling stock...thereby getting it cheaper. Given that, I doubt they would have given you $20,000 but you MAY HAVE been able to get more. And I also doubt the low estimate is in line with all of the other offers...or maybe at the bottom of the line.

[AllenAyres]

Thank you Shane, I consulted with someone who has a similar opinion - my quote wasn't too far off what you've found and the agency seemed ok with it