Chapter COPY Flashcards

1
Q

For pricing purposes, what are the two main sources of photography income for the independent photographer working for publication?

A

Assignment photography and stock photography

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2
Q

What is assignment photography?

A

New photography commissioned and paid for by a client. The photographer is selling their ability to create a photograph, as well as granting the client the rights to reproduce the photo for a very specific usage and time period.

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3
Q

What is stock photography?

A

Stock photography is licensing the rights to use an already existing photograph.

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4
Q

What is a copyright

A

A copyright is the legal right of the owner of intellectual property. It is the exclusive legal right to reproduce, sell, or distribute the matter of form of something or to authorize someone else to do so.

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5
Q

How do you make the copyright symbol?

A

On a PC, Ctrl+Alt+C or ALT+0169

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6
Q

What is Overhead?

A

Overhead is the costs you have to account for (even if you never take any photographs) like the cost of photographic equipment, studio rental, insurance, salaries, profit, etc.)

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7
Q

What are value factors?

A

Value factors are components affecting your creative fee that include the market where the photos will appear, usage rights or how the client intends to use the images, and various photographic elements like special skill or creativity, special risks or hazards, and so on.

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8
Q

What is the creative fee?

A

It is the basic fee that must be charged. For any assignment, it can be formulated as : annual overhead total divided by the number of assignment days you expect in a year, multiplied by the number of days in the assignment you are pricing, and added to the expenses associated with various usage or value factors.

Creative Fee = Annual Overhead / Annual Photography Days x Assignment Days + Value Factors

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9
Q

What are noncreative fees?

A

These are charges for your time working on an assignment that are not generally thought to be creative acts of photography. These fees can include travel time, casting, postponement, cancellation, pre and postproduction, reshoot fees, weather delays.

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10
Q

What are expenses?

A

These are the costs you incur doing an assignment. Such costs are directly related to the assignment and are billed to the client. Assignment expenses do not include any of your overhead, because those costs are already incorporated into your creative fee. Some expense categories include casting, crew, digital lab or digital tech for processing images, insurance, location, messengers/shipping, props, rentals, sets, studio, talent, transportation (local), travel, and wardrobe. Reimbursable expenses are generally those items that are disposable or consumable, as opposed to items that are not consumed, like cameras, lighting equipment, and so on.

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11
Q

What are miscellaneous charges?

A

Assignment prices may include a number of other miscellaneous charges. Expense markups are small percentages added to the amount you have spent on expenses. Adding this charge will compensate you for the client’s use of your money until you are paid.

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12
Q

What are reuse fees?

A

Reuse fees are compensation for a client’s later, additional use of your assignment photographs. This is a fee that is seldom charged along with your assignment invoicing.

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13
Q

How do you calculate daily overhead?

A

Divide your annual overhead total by the number of days the business is open per year.

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14
Q

What are the goal and measure of a successful negotiation?

A

Clarity, a fair price, and a return client. The ideal is that both you and your client are happy with the outcome of the negotiation.

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15
Q

What are the 6 steps in a negotiation, in order?

A

Establishing rapport, Gathering Information, Educating the Client, Quoting the Price, Closing the Deal, Following Up

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16
Q

What is the Establishing Rapport step?

A

1 Create a friendly climate for doing business. Open or respond in a pleasant manner. Express interest in the project. Set the tones as professional and cordial.

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17
Q

What is the Gathering Information step?

A

2 It is critical to get enough information before beginning a pricing discussion. Find out the usage, for what purpose, where, how big, for how long, how many times and so on.

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18
Q

What is the Educating the client step?

A

3 This may be necessary when you suspect that the buyer is new to the field. Before quoting a price, make sure that the client is aware of industry standards. In a concise, polite way, set out the factors that affect a stock price or assignment fee.

19
Q

What is the Quoting the Price step?

A

4 Do not talk money until you have all the info available about usage and production requirements. Do not be rushed! Assignment estimates can be complicated. You need time to give a responsible quote! Try to find out the client’s budget first. Know your bottom line, the figure below which it’s not worth making a deal.

20
Q

What is the Closing the Deal step?

A

When you have agreed upon a fee, expenses, and a production budget, make sure everything you have negotiated is clearly understood. Request a purchase order. Confirm in writing, by fax if necessary, by sending your own estimate form and a memo confirming your understanding of all the details of an assignment.

21
Q

What is the Following Up step?

A

Checking in with clients, particularly after you’ve turned in an assignment, is a useful way to let them know that you value the relationship and are serious about your work. You can request tear sheets (or high-res, print-quality pdfs), ask about the success of the project, learn how others in the corporation viewed the work, and find out about future plans.

22
Q

What does CODB stand for?

A

Cost of doing business

23
Q

Where does the money go? $1,000

A

$350 “take home pay” (about 35 %)

“650 CODB”

24
Q

Example fees and expenses

A

Creative Fee/ Licensing Fee … Scouting or Pre-production, crew(assistants, stylists, digi tech, producers, other crew) catering craft services; parking / travel costs ; studio /location rentals; permits ; insurance; expendables; post production; retouching; equipment rental

25
Q

What are the three business types/legal structures?

A

Sole Proprietorship, LLC or Single Member LLC (Limited Liability Company), and S-Corp

26
Q

What is a sole proprietorship?

A
  • Taxes are part of your own tax returns. “Pass Through” or Schedule C)”
  • File taxes through your SSN or Employee Identification Number (EIN)
  • You and your business are legally entwined.
27
Q

What is an LLC or Single Member LLC?

A

LLC stands for Limited Liability Company.

  • Similar to sole proprietorship, but more legal separation between business and photographer.
  • Uses state issued EIN rather than SSN.
  • “Pass Through” taxes filed via Schedule C.
28
Q

What is an S-Corp?

A
  • You are an employee of your own company.
  • Pay yourself through payroll at regular intervals
  • Issue a W-2 to yourself
29
Q

What are some important elements of a business insurance package?

A

Business Property Insurance (broadly) covers equipment if damaged or stolen

General Liability - covers if you hurt someone or damage property while on the job (certificate of insurance required by many clients).

Professional liability - (Errors & Omissions) Covers you from a lawsuit in the event you and the client disagree on whether the assignment was completed as expected or if the assignment could not be completed.

Electronic Data Loss - covers loss of data, i.e. images

30
Q

You are starting a photography business. You need to..

A
  • Have a business plan!
  • Establish your Articles of Incorporation / registering your business name.
  • Apply for any necessary business licenses (City, county, and state level)
  • Open a business bank account in business name.
  • Have Startup Capital (Money to begin the business)
  • Learn accounting software or hire a bookkeeper/accountant.
  • Find an accountant before you need one.
  • Think about or start retirement/savings accounts.
31
Q

What are some examples of different genres?

A
  • Event/PR (media, general communications, social media, news, pleas for $$)
  • Portrait/headshots (company websites, media, advertisements, news releases)
  • Reportage/photojournalism (media, NG0s, public policy organizations )
  • Architecture/interiors (Real estate ads, media, furniture ads, home builders, etc.)
  • Lifestyle - (people at work and play, looking natural) (Media, advertising, social media)
  • Food (ads social media, menus, media articles, packaging)
  • Sports/fitness (news, media, ads, social media)
  • Product (packaging, advertising, catalog)
  • Industrial/agricultural (annual report, media, ads)
  • Automobile/transportation (ads, websites, catalogs)
  • Fashion (magazine, catalog, ads, etc.)
  • Travel (media, ads)
32
Q

Other insurance that may be required?

A

Workers comp, health care, long term disability

33
Q

What are Taxes Schedule C?

A
  • Taxes based on the Profit and Loss (P&L) Statement of your business.
  • What you’ve charged for shoots, minus expenses (crew, marketing, equipment, etc.) equals your income.
  • Also may be responsible for any or all of the following:
  • Sales tax
  • Self employment tax
  • Personal property tax (Montgomery Ct, MD, Alex, VA, etc.)
  • Other local state and Federal taxes

You will receive 1099s from clients you do more than $600 of work for in a calendar year.

Must provide 1099s to crew who do more than $600 of work for you

34
Q

Copyright - When does it start?
How do we license?
How to fully enforce?
Exceptions?

A

When we create an image we immediately own the copyright.

We license the images to the client, giving them permission to use them in a specific way, usually for a period of time, a specific purpose, context and geographical area.

To fully enforce copyright, images need to be registered with the United States Copyright Office, generally within 3 months of creation ( or before infringement occurs).

The exceptions are if we are employed (not hired) by the client, sign a work made for hire agreement (sometimes hidden in a contract) or transfer the copyright after the image is made.

35
Q

Factors when pricing an assignment?

A
  • Licensing/usage
    Creative Fee
  • what the market will bear
  • cost of doing business (CODB)
  • Time - how long it takes to do the job
  • Creativity - are you being hired for your abilities to create something interesting and new?
  • Difficulty : is the assignment technically difficult? Can other photogs do it?
  • Experience - can provide the ability to overcome unexpected obstacles
  • Expenses - Your crew, location, travel, talent, permits , etc.
36
Q

“CODB”

A

Cost of doing business - the annual total of your business expenses, divided by 12, is what your business must bring in each month to be sustainable.

computer equipment/office supplies, cameras/equipment, internet/software, office/studio rent, mobile phone, website, professional fees, taxes, accounting/bookkeeping svcs, insurance, transportation, savings/retirement, etc.

37
Q

Two main strategies for showing your usage fees:

A

Combine it into your licensing fee to present as one large number. - easier for less experienced clients to understand. If you extend licensing period, easy to make this a percentage of total fee. By combining creative fee and licensing fee, this number is larger.

Separating them - easier to negotiate changes if client changes mind about some aspect of the license. Licensing fee is altered, but creative fee remains untouched. Changes won’t make underlying fees seem arbitrary to client.

38
Q

Branding yourself

A
  • Your website and email
    yourname. com versus fancyname.com

be aware of similarly named websites or domain names (.com vs. net vs. photography)

email is still the main means of communication in commercial photography

email should be ___ @ yourwebsite.com

Brief, relevant signature line

39
Q

Examples of usage

A

Collateral - company websites, brochures, sales magazines, etc.

Publicity: online, news or magazine articles

Editorial: Magazines, newspapers, online news and publications

Advertising: Online, magazine, “out of home” billboards, transit ads, etc.

Packaging: external illustration of product contents. (Cereal, a toy, etc.)

Point of sale or display: make up counters, posters in stores, etc.

Anywhere you can possibly place a photo

40
Q

What are the parts of a license?

A
  • Media Use
  • Term
  • Scope
  • Number of Images
  • Exclusivity
41
Q

What to tell someone who wants a day rate?

A

“That’s not the way I work because I price by the job, and quoting a rate is impossible without knowing all of the factors of a job.”

42
Q

What is the name of the device for casting shadows or silhouettes to produce patterned illumination?

A

Cucoloris .. or “cookie.”

43
Q

What is a cucoloris?

A

It is the name of the device or casting shadows or silhouettes to produce patterned illumination.

44
Q

What is a purchase order?

A

It spells out what services clients are purchasing from you. It has their own number attached to it. Ask them if they need a po before you send the invoice.