MicrostockGroup
Agency Based Discussion => 123RF => Topic started by: eggshell on May 31, 2011, 03:41
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Last week I had a nice 200MB tiff sale - 300 credits from which I got 34.4$ . That's roughly 11.5% .I contacted support but still have no answer from them . Could someone shed some light on 123rf's royalty structure ?
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8.Contributor's Payment
1. 123RFŪ pays its Contributors based on the total license sales of downloaded images that belong to Contributors and on the total nett revenue in a particular month (50%).
I don't know about any exceptions.
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I know about the 50% . It's the difference between 50 and 11.5 that got me thinking if I was missing something .
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maybe not all credits are equally priced? they may be selling very discounted credit packs
or maybe not all earnings from .tiff are considered net revenue?
not that I know or I like it, just guessing
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I read in this forum that they make special deals with some clients but if we assume I get 50% from that sale then we're talking about a 75-80% discount - a bit too much IMHO .
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Hi All,
I shall explain pricing.
The scenario :
Our cheapest package = $15 for 15 credits.
Price per credit = $1 / credit
50% share to you = $0.50 / credit
If customer purchases an S size image from you, you'll get $0.50. Clear?
If the customer purchases an XXL image from you (5 credits), you'll get 5 x $0.50 = $2.50 for that image downloaded.
Of course, we have discounts, loyal customers, customer who want a big discount as they've been with us for a very long time, so we then discount them for bulk purchases. Nevertheless, we will go through the same calculations and contributors will get 50% of the effective credit price.
So where does the $0.20/credit come from? These credits come from our PROMOTIONAL ACTIVITIES such as the case of giving away CREDITS to prospective clients whom we think require a bit of a test drive on the 123RF system before they make their first purchase. A demo if you like, we give these out at our discretion. The client DID NOT PAY for these credits, it's given to them courtesy of 123RF.com.
Therefore, seeing as 123RF is giving away these credits, it comes out from our Advertising and Promotions Budget and there is a cost attached to it - 20 cents per credit given away. I do hope you'll see this a bonus from your business partner 123RF as the prospective client did not pay for them in the first place.
As I have maintained many times before, 123RF Limited is running a business, we are not here to give away to charity nor as some have eloquently put it - "screw" our contributors.
Thank you for maintaining your objectivity on this matter. If there are any questions, you can always email us : [email protected]
P/S - Forums were closed because we decided to shift to Facebook. They have excellent searchable threads there.
Alex
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From this thread, ( I thought it a pretty reasonable deal because if customer went to the 3rd party with the image we just get a single sale. Contributor gets 13.3%, 123rf gets 11.7%)
http://www.microstockgroup.com/123royaltyfree-com/123rf-image-enlargement-services-your-earnings/ (http://www.microstockgroup.com/123royaltyfree-com/123rf-image-enlargement-services-your-earnings/)
Hi Everyone,
Great news! We've introduced another value added service to our clients - 123RF Image Enlargement Service. And you can now see this as being available on the website if you look at your file sizes, we now have the following:
Size Credits Your share
S 1 50%
M 2 50%
L 3 50%
XL 4 50%
XXL 5 50%
100 MB TIFF 150 20 credits
200 MB TIFF 300 40 credits
300 MB TIFF 450 60 credits
We are employing an external party to provide this service to our clients. We are using your 5 credit version of the image to enlarge it to 100, 200, 300 MB TIFFs with some minor touch up, removal of noise, etc. Don't worry about your original images, we do make sure that we keep everything cataloged and our external service provider will not distribute this version without first consulting 123RF.
The good news is, you're now getting approximately 13.3% of the FULL VALUE (not 50% as in the case of the S-XXL size images) of the credits for each image enlarged, while we share the remaining amount with the image enlargement service provider.
We hope that this will prove to be a good and profitable business model for you and our clients as it will increase the earning capacity for everyone. We will promote this service to all our clients and soon you should see some heavy hitting sales coming your way!
Thank you very much.
Alex.
for 123RF.com
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Thanks Phil , I must've missed this one . So a third party is enlarging an image that I created and gets 75% every time ??? this tiff is downloaded and I get 13.3% ? It's a good idea but the royalty model is seriously flawed . I mean where do we apply for this enlargement job ? :-[
Yes ,13.3% is better than zero but that same logic is sending the industry into a dead end .
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Thanks Phil , I must've missed this one . So a third party is enlarging an image that I created and gets 75% every time ??? this tiff is downloaded and I get 13.3% ? It's a good idea but the royalty model is seriously flawed . I mean where do we apply for this enlargement job ? :-[
Yes ,13.3% is better than zero but that same logic is sending the industry into a dead end .
They are basically getting paid to clean up your image, and make a huge TIFF of your smaller image usable. So are you really providing anything beyond the original image that you would have gotten paid far less then $34 for. Something to think about.
In my mind, its kind like a lumberjack who sold his log to a furniture maker for a $100, demanding more money after he found out the log was turned into a chair and sold for $1000.
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^Are you saying that by upsizing and saving the file as a tiff they created art from a log?
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"In my mind, its kind like a lumberjack who sold his log to a furniture maker for a $100, demanding more money after he found out the log was turned into a chair and sold for $1000."
That's a ridiculous analogy .
To say more the image was a 3d render , already retouched and as clean and big as it gets .
"...providing anything beyond the original image ..." . :o
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"In my mind, its kind like a lumberjack who sold his log to a furniture maker for a $100, demanding more money after he found out the log was turned into a chair and sold for $1000."
That's a ridiculous analogy .
To say more the image was a 3d render , already retouched and as clean and big as it gets .
"...providing anything beyond the original image ..." . :o
For a vector I would totally agree the analogy is bogus...but for a photo that needed any serious touch up to look good at larger sizes, you are talking about paying for the time to make it salable at those sizes. That is a value added service that 123 has a right to be compensated for. And are you really losing anything? Without this service you would have gotten the standard 50% of the 5 credit maximum, instead you are getting more, without the buyer having any more rights to do something with the image than the standard license.
Now when the time comes that you pull out the $45k Hasselblad and deliver a much larger image, then you are the one adding the value, and should get credit for it.
I really have never personally understood the whole TIFF offering thing anyway, especially if it wasn't produced from the original RAW file. A JPG to TIFF conversion to me is like garbage in garbage out, and upsizing it only makes it worse. I wouldn't buy one, I would contact the artist directly and see if I could get one for a reasonable price from the RAW file.
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The good news is, you're now getting approximately 13.3% of the FULL VALUE (not 50% as in the case of the S-XXL size images) of the credits for each image enlarged, while we share the remaining amount with the image enlargement service provider.
This explains why a 100MB TIFF worth 150 credits earned me US$11.12.
Well, with two sales this month, this particular one really stands out. :D
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The good news is, you're now getting approximately 13.3% of the FULL VALUE (not 50% as in the case of the S-XXL size images) of the credits for each image enlarged, while we share the remaining amount with the image enlargement service provider.
How could this be good news? That we're getting 13,3%?!? And what does he mean of FULL VALUE, we get 50% of full value with regular credit sales :s . OK at least they're honest about them keeping over 43%. Well I doubt they are honest, since there's no logic in paying them over 43% if they're paying us just 13% and we really did all the work (got the models, ton of equipment, releases signed, payed the models and assistants, post processed and uploaded images). No they can't be paying them 3x more for just a few touches in PS, that would be really demotivational for all of their contributors. And it shows they're even more greedy than IS.
I mean who's falling for this, there can't be so many dumb * ppl in this world.
Is there a way to opt out? I just got a 100 MB TIFF DL and got pathetic 17.2$, way less then I get on other sites. I think we should all opt out and give them the time to think about it. I mean you can't play the good guy giving it's contributors 50% and then in case of ELs keep 73,4% for yourself
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And if they do get to split the remaining 86,4% the owner of 123RF gets a side deal, at least of the money transferred back to another company he owns or just got a nice gift or two from the TIFF company like an elite summer resort or a nice yacht full of high priced hookers ;)
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And there's one more thing I can't understand; small steps in pricing when it comes to file sizes. It's always just a single credit step for a larger size, the largest size costs only 5 credits. It's absurd, since it costs 25 on IS, 10 on FT and DT. I don't know about the rest since I don't sell there because ppl are reporting pathetic earnings (SS excluded of course, subs are equally priced).
C'mon up the prices for larger sizes, at least make it 1,3,5,7,10. You demand at least 6 mpix files (totally stupid since most ppl buy S and M anyway and you're missing on millions of files that had to be downsized because of noise etc) and yet you don't reward contributors that are using pro (high mpix) cameras. It's totally contradictory.
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I really donīt mind about discount if they keep on increasing my earnings month after month.. they are going over FT, IS, DT.. if they will continue like this they will be my 3rd agency.. they certainly have buyers so I have big hope on them, keep up the good work..
I am having close to 100 sales there per month
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I really donīt mind about discount if they keep on increasing my earnings month after month.. they are going over FT, IS, DT.. if they will continue like this they will be my 3rd agency.. they certainly have buyers so I have big hope on them, keep up the good work..
I am having close to 100 sales there per month
They do not matter you discounts? You will have to work more to win the same...