A reader sent me the following email:
I don’t mean to sound critical of your efforts to inform young photographers of proper business practices by publishing estimates like this one: http://aphotoeditor.com/2015/04/22/pricing-negotiating-studio-portraits-for-a-pharmaceutical-manufacturer/. It’s an important and useful service but, for the sake of myself and my fellow photographers who have to fight the tendency of clients to want more and more rights for less and less money, I have to point out that the licensing of these images in perpetuity without additional fees is a huge mistake and a terrible precedent to set. I have photographed numerous jobs very similar to the one you describe below. My terms, which I have negotiated without the benefit of a rep usually include significant fees to for re-use after one or two years. I am often able to double my fees this way and have not received resistance to that from pharma agencies despite the supposedly humble nature of a very profitable area of business.
This estimate, which gives a lot of rights away for nothing, may well make your photographers popular. Unfortunately, they will probably never own a home, send their kids to college, have decent medical care, or be able to ever retire – some pretty basic expectations, I think. Most responsible reps would agree that one has to make an concerted effort not to give away too much too easily, even in this ultra competitive environment. We have no union to protect us, just common business sense. Giving rights in perpetuity away for free is sort of like “feeding the animals” – they come to expect it.
Here’s an estimate from a similar type of shoot that was three day video and still shoot with a pre-light day.My producer and I planned the shoot out very carefully, provided the client with a lot of great still and video images, and we all worked our asses off for four long days. Most importantly you will also see that I made an additional $14,600 two years after that shoot. That was for another two years of usage and I am eligible to be paid again at the end of those two years. I think that the Wonderful Machine estimate is doing a real disservice to photographers by suggesting that it is fair and necessary to give such broad usage rights away for so little.
I hope this is helpful to you and our fellow photographers. I don’t consider myself a tough negotiator but I estimated this without the benefit of a rep. Any rep will tell you that a certain amount of intelligently applied resistance to client’s pricing pressure is the only way to stay in business. I realize that the photographer described by Wonderful Machine is “up and coming” but that degree of lowballing is terribly shortsighted and even desperate feeling. His fees are way too low when you consider the amount of time and talent required, the associated expenses and responsibilities, and the amount of usage by the pharma industry.