In light of LOs demise, thought it might be worth looking at some guidelines for new / small sites

They could then say they signed up to the MicrostockGroup Sites Charter

1. Payout all money if business closes.
2. Low payout under $20 initially or follow Fotolia's model (Fotolia allows one to cash out at any stage - they charge you if its under $50 but that is fair enough though)
3. Payout at year end - like Snapvillage
4. A delete all images option
5. IPTC
6. FTP
7. Opt out if there is a subscription model

Any others? Thoughts?

I'm with you on 3 out of 7. Overall, I think that it is more the responsibility of the contributor to make wise choices about which companies to get involved with. LO was a high-risk company for contributors. I don't really see how future microstock start-ups should have to cater to our demands. Obviously providing things that we like (FTP, IPTC, etc.) is a good business move since it will draw in more early adopters. But some of the responsibility falls on us to make decisions about the companies that don't provide everything on your list. And honestly, is there any company out there, big or small, that has ever provided all of these items?

Point by point, my responses are:

1. Not all companies would do this. I think it's up to the individual company. Obviously the ethical thing to do is pay people, but just look at recent business news of company closings in any industry and see how many don't pay out final checks/royalties.
2. Is this necessary? If you want to sign on with an unproven, new, or otherwise risky site, you should assume some of this risk yourself, and not put it all on the company to cater to protecting your payments by allowing them more frequently.
3. Again, assume some risk yourself. If you haven't hit a minimum payout by year-end, maybe that company isn't one you should be working with.
4. How many big sites actually have this?
5. Agreed.
6. Agreed.
7. Agreed.