Agency Based Discussion > Ingimage
Ingimage - Accepting New Contributors / A Few Changes
dirkr:
--- Quote from: Henry_Ing on February 24, 2015, 10:24 ---Hi Semmick and dirkr,
The honest answer is that the royalty % is calculated on what allows us to grow our business and support our team.
We have a traditional sales team & customer service led approach which has high running costs. Each of our subscribers has a personal account manager that they can call & and who will give them updates throughout the course of their subscription. I am aware this sounds old-fashioned, but there is a niche for this - with many customers choosing us specifically because they enjoy the experience of working with a smaller company.
Our subscription pricing reflects the more niche product & smaller collection size.
There are higher subscription royalty rates elsewhere, however, on a big subscription-based site each image is competing against another 20M - 50M, on Ingimage the choice is smaller - as a result each contributor ultimately receives a much greater share of our revenue.
Thanks,
Henry
--- End quote ---
Simple answer: Raise your prices (significantly) and that should allow you to raise the royalties then.
Your argue you have higher costs because you provide better service to customers. Than they should pay for that.
With the current setup I don't want you to grow your business.
If your argument is, because of your smaller collection size we should expect more downloads (less competition) and thus accept lower royalties, then I do have a proposal for you (to back up that promise):
A guaranteed commission amount per file and month. Every file I upload I get x.xx $ per month. It's your job to make that up with sales. Interested? Just tell me what x.xx is, and I tell you if I'm interested...
Henry_Ing:
Hi dirkr,
I'm afraid we don't offer commission on a per-upload basis, but thanks for your comments.
To give you a sense of the royalties you might expect - our recent contributor feedback has been that their earnings are similar to Middle Tier sites here.
Henry
Semmick Photo:
Do you require exclusivity? Do you sell RF? Do you sell editorial?
Henry_Ing:
Hi Semmick,
- We do not require exclusivity
- We do sell RF
- We do not currently sell editorial
Henry
Jo Ann Snover:
I downloaded your terms document to take a look - I don't feel "premium" whatever that is, but was curious.
You apparently pay 20% of subscription revenues and if I understand the calculation in the document, the payout is based on the number of actual downloads. So if a buyer of a monthly subscription, which costs $199 and for which the buyer gets up to 1,000 images (250/week) downloads only 750 images, the revenue to the agency is 26.5 cents a download and the contributor gets 5.3 cents for each of their sales?
If the buyer only downloaded 500 images, the revenue to the agency is 39.8 cents a download and the contributor gets 7.9 cents?
I hope I have something wrong because those numbers are insane. Even the terrible agency payments are 25 cents a download for subscriptions, and there's no way your volume could match the big dog in the subscription business, so you're not going to make it up on volume...
Modified to note this term which seems like an uncomfortably long image lock (3 years from the date the image is included in "a Product" - whatever that means):
"Regardless of Termination of this Agreement, COMPANY will be entitled to continue to license any Image if it is featured in a Product, with the exception of the COMPANY website, for a period of three years from the date of first inclusion in its Product "
This type of lock would be a major problem for many, especially if they have no control over which images get treated this way.
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