how about we find out what the deal is first?

I am all for your suggestion, but unfortunately I don't think that it will work.

Having everyone opt out of subscriptions was already tried at StockXpert.  It was initially (sort of) organized by logos (aka Yuri Arcurs)(see thread here: http://www.microstockgroup.com/index.php/topic,3278.0.html), the most successful (to date) microstocker out there, but he shortly thereafter opted back into subscriptions without telling anyone.

I was hoping that some sort of push would be made to create an organization (union, association, alliance, etc) that would help to protect and fight for the submitter, but this hasn't happened yet, and I doubt that it can.

The reason I don't believe it will happen is because of the very nature of the business.  Most current submitters were initially hobbyists.  They were trying to break into the business or they heard that they could make money from their images and decided to give microstock a chance.  Well, for every submitter that is now established in the business, there are 10 or 100 more that are still out there that don't know about microstock.

The only ones who care about royalties going down are those that are currently making royalties.  Newbies that just break into the business and make their first sale are elated, even if it is only for a few cents.

It would also require a majority of the uber-portfolios to join in, which I don't see happening, especially since some of them think it is the best thing since sliced bread.

So, even if a good percentage of the "seasoned" microstockers were to band together, you would still have thousands of newbies waiting in the wings to take our place.

So, unfortunately, we are at the beck and call of the agencies.

I agree  with Leaf first we should find out how it works

Let me see if I understand.

Is there a minimum payout?
Yes. We'll guarantee the same minimum payout as we do today on the Pay-as-you-go side. So right now, the lowest priced (non-sale) credit is 96�. You receive 20 to 40% of that. Clear canisters will receive a minimum 19� and Diamonds will receive a minimum 38�. And yes, this means that sometimes iStock will be paying out more than we take in per credit.

The minimum above is for credit packages.  Does it mean we will also receive in subs at least 19c for a XS, 57c for a S, and so on?  Just like credits?

What's the maximum payout available?
Contributors stand to make more per file than they've ever made before from iStock. Here are two examples of what a non-exclusive can make off subscriptions:
- If a subscriber with a daily credit limit of 480 uses only 10 credits that day, all on one of your files, you'd earn 480 � 20% � $130*. That means a payout of about $26 for your single file.
- If a subscriber with a daily credit limit of 30 uses only 10 credits that day, including 5 credits on your image, you'd earn (30/2) � 20% � $10*. A payout of about $1.

I haven't read the many replies, but this math is obviously wrong.  The right is:
(your credits / total used credits ) x your commission x daily credit value
(10/10) x 20% x $130 = $26
(5/10) x 20% x $10 = $1

Now, in the first example, if the buyer uses only one credit in my photos and he uses his 480 daily credits:
(1/480) x 20% x $130 = $0.054 -> I still get 19c?
If he uses 5 credits in 5 XS images or in one M image
(5/480) x 20% x $130 = $0.27 -> do I get 27c or 5 x 19c?

Regards,
Adelaide

In your examples: the first one you get 19c because you are guaranteed the minimum, the second one you get .27. Both of your examples assume full use of daily credits, which is highly unlikely. The likely commissions are much more, but iStock has guaranteed a minimum so that no matter what you'll be earning the same as before (that is what is revolutionary).

So I would get 19c for the M-size download? 

Intentionally I picked the unlikely scenario, but even if you pick the other one ($10 for 30 credits per day, which is not so unlikely), you get:
(1/30) x 20% x $10 = $0.067 -> I get 19c
but if he uses 5 credits in 5 XS images or in one M image
(5/30) x 20% x $10 = $0.33 -> I get only 33c?

If so, I don't like it.

Regards,
Adelaide

I am VERY curious about the subscriptions at IS. Overall I don't like subscriptions but maybe IS can pull it off so it's decent for contributors.

One think that I like is that sales will raise for sure and even the subscription sales will count toward the canisters.

ohh, another revolution!

Quote from: madelaide on April 04, 2008, 19:54

Intentionally I picked the unlikely scenario, but even if you pick the other one ($10 for 30 credits per day, which is not so unlikely), you get:
(1/30) x 20% x $10 = $0.067 -> I get 19c
but if he uses 5 credits in 5 XS images or in one M image
(5/30) x 20% x $10 = $0.33 -> I get only 33c?

Again, you're assuming full use of their subscription, which is very unrealistic, and you're forgetting your minimums per credit. You're also working with assumed numbers, which appear to be a little low($0.33).

I'm using their numbers (which, indeed, they say are not definitive).  However, this second scenario - 30 credits a day - is not so unrealistic.  That's just 6 M-sized images or 3 L-sized ones.

Regards,
Adelaide

Yingyang, kkthompson has already indicated/confirmed that credits will be priced at less than 38c.

Where?

Update:
Here is what kkthompson said: "Yes. We'll guarantee the same minimum payout as we do today on the Pay-as-you-go side. So right now, the lowest priced (non-sale) credit is 96�. You receive 20 to 40% of that. Clear canisters will receive a minimum 19� and Diamonds will receive a minimum 38�. And yes, this means that sometimes iStock will be paying out more than we take in per credit...."


Very interesting. SS must be making a much larger profit than I realized if iStock is willing to price below 38c, and I suspect they would have to have some actual hard data on usage rates.

never mind. (I really wish we could delete our posts, at least for a short period of time after they are posted)

Quote from: hatman12 on April 05, 2008, 19:03

Yes, yingyang, and this is why I've expressed concern that buying subs will be so ridiculously attractive that all the old 26c credit payments will evaporate and be replaced by 19c payments.

Forgive me,but what 26c credit payments are we talking about here?

I believe that refers to the 20% royalty on a credit that has been bought at full price ($1.30).