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Author Topic: Is there a way of sharing income with Partners?  (Read 751 times)

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« on: March 04, 2020, 14:57 »
0
Hi, me and a friend are going to start submitting images and footage. Rather than using 2 different accounts, we decided to use a single account for both of our work. This way we believe easier to achieve Shutterstock 500$-3000$ etc limits and we hope to get better with the algorithms since we will be uploading more constantly.
We are not sure, but i think we are not going to share income %50-%50. We rather share it %80 %20 based on ownership.
So my question is, is there an automated way of sharing income from microstock agencies. I heard that you can do that using the Black Box. But since Paypal has stopped activities in Turkey, Black Box won't let me in.
Do you guys know any solution?
If not, we are going to calculate earnings every month or so.


Noedelhap

  • www.colincramm.com

« Reply #1 on: March 05, 2020, 09:27 »
+3
I'm not sure if SS allows dual ownership. agencies are able to upload images from multiple contributors but the account is under one name.

I strongly recommend against sharing your account with your friend. What is going to happen to the account if you and your friend each go their own way? What if you get into a fight or some legal issue happens between you. One of you could be shut out from using the account and lose access to his share of the portfolio.

« Reply #2 on: March 05, 2020, 13:34 »
0
I know nothing on stock but i know this for sure. Do your work alone.

If you have to work with a partner have a good accountant
and a good lawyer overview and define the partnership.

Talking $3K profit estimation, you might need to consider
a business plan, taxes, gear, damages and legal documentation.

Am I over reacting you might think? Perhaps.
But for sure i wish you fun and best of luck :)

« Reply #3 on: March 05, 2020, 16:37 »
0
What happens one day if you and your friend no longer like each other? It is fairly common for people who go into business together to eventually fight over money. What happens if one day one of you feel like the other is no longer putting in their fair share of work? What happens if almost all the photos that sell are only from one partner, will the other partner still take a cut. What happens one day if one partner no longer wants to contribute anymore but the other one does? Lot of pitfall to sharing an account with a friend. It has real ability to hurt your friendship down the line.

Having said that. You can 'probably' share ownership of an account by setting a limited liability company. Both of you assign copyright to the company. The company will own the copyrights and the company will have the account on whatever stock site. The earnings will go into the bank account of the company, and the company will distribute the earnings to each one of you based upon percentage of ownership. I've never tried doing this with stock, but this is in theory how you could do it.

Alternatively, one of you assigns all copyright to the other people, that one person is the account holder on stock agencies. Through out the year the non-copyright owning friend will issue invoices to the other for their share of revenue, and this is how they will get paid, meanwhile, the copyright owning friend will write off the invoice in their tax return, because they didn't get to keep that portion of the money.

« Reply #4 on: March 05, 2020, 16:43 »
+4
This is a terrible idea, for reasons mentioned.  One day, you will not want to partner with this person, and then what?

« Reply #5 on: March 06, 2020, 02:39 »
+4
As others have mentioned: horrible idea for so many reasons

- if one person's images sell more than the others (and they will) that one person will feel like they should be earning more
- you aren't going to always want to do this together, then what?

If you really, really, really want to work together, start a company.  The company will get 100% of the stock earnings and the two of you can be paid wages from the company.  If one of you wants out, they'll need to be bought out from the company.

Uncle Pete

  • Great Place by a Great Lake - My Home Port
« Reply #6 on: March 06, 2020, 10:50 »
+1
This is a terrible idea, for reasons mentioned.  One day, you will not want to partner with this person, and then what?

So true, and having been in many musical groups, where they said "we can share the cost of the PA and speakers." Or I owned the Mics and they wanted to pay me the used value, not what I paid in the first place. These deals are always a loss and source for bad will. Then the band breaks up and a big fight over who gets what and what's the value. Don't do it if you want to stay friends.


If not, we are going to calculate earnings every month or so.

Assuming you ignore all of us and form your partnership. Get everything in writing, signed and witnesses. Who gets what share, what happens if you divide the business. Get It In Writing!

Do not do a friends handshake deal of any sort.

Instead you should have a written contract agreement that if one quits, the other is responsible for editing and removing all the others images, for example. Or if one quits, the income for their share continues for two years and then everything belongs to the one who is still working.

Write a contract, make it clear...  Get It In Writing! 


« Reply #7 on: March 07, 2020, 23:50 »
0
Thanks for all the advices. Seems like i should consider many more things, and don't know what to do now. I thought that it would be a good idea of partnering with someone so we could manage more photoshoots. But i should reconsider.
I'm also wondering about something that how African studio or such photo factories manage to go on that?
« Last Edit: March 08, 2020, 00:08 by canberksezer »

« Reply #8 on: March 09, 2020, 10:17 »
0
Thanks for all the advices. Seems like i should consider many more things, and don't know what to do now. I thought that it would be a good idea of partnering with someone so we could manage more photoshoots. But i should reconsider.
I'm also wondering about something that how African studio or such photo factories manage to go on that?

Either African studio is owned by one person, which means there is no problem with ownership, or African studio is owned by more than one person, and they may have the same issues everyone here pointed out when the multiple partners disagree. Partners disagreeing isn't limited to stock photos, partners disagree in all industries and MANY friendship dissolve when they disagree over money. 

« Reply #9 on: March 09, 2020, 11:25 »
+1
Isn't answer as simple as "they hire people"?
 ::)

« Reply #10 on: March 10, 2020, 23:39 »
0
Not really a good idea, unless you have one person assign all copyright/ownership of photos/images/etc to you, and you pay them a royalty - based on an agreement in writing. If it's not in writing:

- Friendships break up (sad but true), in which case your friend might retailiate (i.e., contact all the agencies telling them you are selling his/her 'stolen' content, etc without a written agreement).
- Almost always a disagreement about how much work/compensation someone should be getting
- Interests change. Maybe your friend will get married/have kids/travel/get a job/etc. Or maybe you will.

Not really a good idea - unless you take the proper steps (i.e., outlining EVERYTHING in writing) - so BOTH of you have a CRYSTAL clear understanding of the expectations of each person. Then - if anything DID happen - and it had to go to court/etc - you have a clear document which makes it easy to decide who gets what. But it probably wouldn't - because you could just show your friend that document - and both of you would save a lot of time, stress, etc because it was clear, and you could part ways on amicable terms.

Uncle Pete

  • Great Place by a Great Lake - My Home Port
« Reply #11 on: March 11, 2020, 16:37 »
0
Thanks for all the advices. Seems like i should consider many more things, and don't know what to do now. I thought that it would be a good idea of partnering with someone so we could manage more photoshoots. But i should reconsider.
I'm also wondering about something that how African studio or such photo factories manage to go on that?

Either African studio is owned by one person, which means there is no problem with ownership, or African studio is owned by more than one person, and they may have the same issues everyone here pointed out when the multiple partners disagree. Partners disagreeing isn't limited to stock photos, partners disagree in all industries and MANY friendship dissolve when they disagree over money.

Just for accuracy, I believe you are talking about Africa Studio? https://www.shutterstock.com/g/belchonock




« Last Edit: March 26, 2020, 10:59 by Uncle Pete »


 

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