Last week Veer announced its plan to launch a subscription service. Though we expected the response to be positive, we offered contributors the opportunity to opt-out of the program if they so desired. The response from contributors has been loud and clear. Clearly, we missed the mark.
We've asked for your feedback and have been listening carefully for the last few days as we went back to the drawing board to revise our royalty model. Two key issues were raised by contributors:
1. Basic plan royalty per download range of $0.10 to $3.00 is generally good but a minimum of $0.25 per download is preferred.
2. Extended license plan royalty per download of $0.13 to $3.75 is far below expectations; there are other subscription sites averaging $28.00 per extended license download. This was a show stopper for many contributors.
So here's what we're going to do.
First, we are raising the rates of our Basic subscription to have a minimum royalty of $0.25 per download. Not only that, but we're also raising the maximum royalty from $3.00 to $4.95. The range is now $0.25 to $4.95 per download, per image-buying customers.
Second, we are changing the subscription extended license plan. Instead of a daily download model for subscription extended licenses, Veer will enable subscription customers to easily purchase extended licenses on a per-image basis, as we do now on Veer.com. If a customer purchases an unlimited reproduction license for your subscription image, you will earn $35.00 for the extended license, in addition to your subscription royalty per download of between $0.25 and $4.95.
A look at typical scenarios -- if the average subscription customer downloads nine images per day and the general range of downloads is between five to fifteen downloads per day, then here's how much a Veer contributor will earn with the revised subscription royalty model:
Customer downloads 15 images per day = $0.33 royalty per downloaded image
Customer downloads 9 images per day = $0.55 royalty per downloaded image
Customer downloads 5 images per day = $0.99 royalty per downloaded image
And if a customer adds an unlimited reproduction license to your image, you'll get an extra $35.00 per image on top of the subscription royalty.
See the updated rate card
for all the details. We'll be sending an update email as well today.
We believe these new subscription royalties are competitive and will be an attractive new revenue stream for participating subscription contributors.
For anyone that communicated a subscription opt-out message to Veer and would now like to opt-in, simply send a message to firstname.lastname@example.org
with the subject "Opt In" and we'll make sure your images are included in the subscription site. You'll have until October 21st to let us know, but the sooner the better.
Note, if we decide to offer a daily download subscription extended license in the future (with much better rates), then you will have the opportunity to opt-out of that as well.
Veer puts a high value on open communication and collaboration. Once again, we really appreciate your honest feedback and we've taken it to heart. This has been a learning experience for us. We're inspired by the engagement of our contributors and we hope you continue this engagement by joining us on the launch of Veer subscriptions.