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Author Topic: iStock changing royalty structure  (Read 228267 times)

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w7lwi

  • Those that don't stand up to evil enable evil.
« Reply #150 on: September 07, 2010, 20:41 »
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Anyone notice the usual iStock apologist's have been conspicuously absent from this discussion?


« Reply #151 on: September 07, 2010, 20:41 »
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@adijr - the lowest commission for exclusives stays at 25%

Thanks alot for the answer! are you guessing this from what you've read, or did you see this somewhere specific? I'd like to give it a read and re-consider this whole exclusivity thing.

Thanks again!

Well, there is not commissions below 25% on the list so it's pretty safe to say that the lowest commision for exclusives is 25% ;)

SNP

  • Canadian Photographer
« Reply #152 on: September 07, 2010, 20:45 »
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why should they comment? they're being verbally abused ad nauseum. this program is a smart business move for Getty and for iStock. it hits contributors who aren't as productive harder than more productive contributors. the simplest solution is to produce more quality work. the idea is to increase the volume of buying and I'll take that any day over 5% here and there, which I lose and gain daily in exchange rate fluctuations anyways.

this definitely screws non-exclusives, and to those of you I have great respect for, it's a raw deal. but if I remove the emotion, you have not taken the risk exclusives have taken. I think assuming iStock is nose-diving is far from accurate. they will continue to lead and jumping ship just makes it better for those of us who don't.

« Reply #153 on: September 07, 2010, 20:48 »
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they will probably resume the old royalties or offer some improvement from this announcement, and people will be happy.
« Last Edit: September 07, 2010, 20:53 by madelaide »

« Reply #154 on: September 07, 2010, 21:03 »
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Anyone notice the usual iStock apologist's have been conspicuously absent from this discussion?
Looks like you managed to rouse one from the depths.

« Reply #155 on: September 07, 2010, 21:07 »
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they will probably resume the old royalties or offer some improvement from this announcement, and people will be happy.
History repeats itself...

« Reply #156 on: September 07, 2010, 21:11 »
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It's more likely that the usual cheerleaders aren't talking because they are not being sparred from the pay cut either. It's hard to cheer for a lower percentage.

This will screw anybody who doesn't earn 1 million 400 thousand credits a year. At the current rate that is equivalent to 93,333 XL images. I don't know that even the top Diamond contributors sell that much in a year.

I never did like making the payment complicated like this. It's to easy for mistakes to be made and contributors have no way to know if they are actually getting paid what they are owed or not.

« Reply #157 on: September 07, 2010, 21:36 »
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I have read the announcement several times.  I'm shocked.

Is this a joke?   

« Reply #158 on: September 07, 2010, 21:44 »
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Posted this over there, thought I would share here as well:

So as to the 1.4 million credits, look at it from a money perspective. Lets say the average credit is between $0.75 and $1.50, this should be fairly reasonable and very generous if iStock was offering large corporations that low of a credit price compared to their standard prices.

If you aren't making iStock between $750,000 and $2,100,000 dollars per year, they aren't going to give you more than 40% ( $300K and $840K). How many exclusive contributors do you think are actually pulling in that kind of cash? How many non-exclusives?

If you want to make it back up to the 40% royalty level at 150,000 credits, you have to bring in between $112,500 and $225,000 of which you would get between $45K and $90K. How many contributors do you think can actually match that?



The average price per credit for my sales this year is $1.28 With that number, I would have to bring in $191,584.58 to meet 40% which would net me $76,663.83. If I was two or three credits shy, and only brought in $191,580 , I would only get $67,054.60 at 35%. That is an extra $9,609.23 in iStock's pocket if I miss the target by a few credits (assuming I manage to match the sales again the following year).

To even get to 35% for next year (where I am currently), I will have had to bring in $51,200 by the end of this year, of which I would get to keep $17,920

SNP

  • Canadian Photographer
« Reply #159 on: September 07, 2010, 21:47 »
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reading the announcement, doing the math....and then reading through the monster thread, the only thing I know for sure is that only a few people in there actually understand the announcement. same goes in here, the basic math skills of microstock contributors in general are sorely lacking...
« Last Edit: September 07, 2010, 21:48 by hawk_eye »

« Reply #160 on: September 07, 2010, 21:53 »
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reading the announcement, doing the math....and then reading through the monster thread, the only thing I know for sure is that only a few people in there actually understand the announcement. same goes in here, the basic math skills of microstock contributors in general are sorely lacking...

So you are somehow reading this differently than virtually everyone else? Care to enlighten us all?

SNP

  • Canadian Photographer
« Reply #161 on: September 07, 2010, 21:55 »
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no, I don't. though again, I do feel for non-exclusives, they are bearing the brunt of this and the past three or four major upheavals.

PaulieWalnuts

  • On the Wrong Side of the Business
« Reply #162 on: September 07, 2010, 22:02 »
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no, I don't. though again, I do feel for non-exclusives, they are bearing the brunt of this and the past three or four major upheavals.

Uhh, I'm pretty sure everyone is affected by this. I'm exlusive and was supposed to go from 30% commission to 35% by the end of the year. That is no longer happening.

Maybe you can use some of your superior math skills and explain to all of us who are lacking math skills the calculations of my situation.

« Reply #163 on: September 07, 2010, 22:17 »
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So I was expecting to make it to diamond and 40% by the end of the year or early next year.  Now I will only receive 30% under this new plan.  That is a difference of 10 percentage points, but in terms of real money, 30 is 75% of 40.  So I will be making 25% less than I was expecting to make next year, and 14.3% less than I am actually making this year.

« Reply #164 on: September 07, 2010, 22:20 »
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Non-exclusives will definitely be hurt by this. But with a 1-5% drop on just one their selling avenues. Middle of the road exclusives though seem to be hurt the most. Many are saying they'll be dropping 5%. Thankfully mine is staying the same, but that 1.4million mark seems next to impossible.
On the other hand, I as well think we will hear a second announcement later this week with a compromise of some kind. Probably a lowering of the targets for next year or some kind of 1-year royalty lock-in rate.

« Reply #165 on: September 07, 2010, 22:33 »
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A lot has been said about the top exclusives not being able to make the cut to get the highest royalty rate and maybe they'll drop their crowns.

But I wonder, do they really get the same deal everybody else gets?  I wouldn't be surprised if the biggest players with the most profitable portfolios don't negotiate secret sweetheart deals so that IS can continue to lock up their portfolios.

donding

  • Think before you speak
« Reply #166 on: September 07, 2010, 22:35 »
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They will come in and butter it up and then everyone will be relieved and happy, The point is they are STILL giving us a PAY CUT. This sounds so much like Fotolia....remember them? Everyone was going to pull their ports or stop uploading. The question is how many actual did it?? Don't make idol threats....those have been made over and over at other sites as well as iStock, but it always turns out the same and they know it. Everything dies down and everyone forgets about it until it happens again and again and then the threats start again but how many actually do what they say they are going to do?

lisafx

« Reply #167 on: September 07, 2010, 22:36 »
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But I wonder, do they really get the same deal everybody else gets?  I wouldn't be surprised if the biggest players with the most profitable portfolios don't negotiate secret sweetheart deals so that IS can continue to lock up their portfolios.

Sean has said repeatedly that he doesn't have a sweetheart deal.  If he doesn't, nobody is likely to.   And I believe him.  

I am constantly hearing rumours about sweetheart deals from this site or that one.  Never seen any evidence.  Maybe those with inside info can let me know how to get something like that going....?  ;)

« Reply #168 on: September 07, 2010, 22:38 »
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Non-exclusives will definitely be hurt by this. But with a 1-5% drop on just one their selling avenues. Middle of the road exclusives though seem to be hurt the most. Many are saying they'll be dropping 5%. Thankfully mine is staying the same, but that 1.4million mark seems next to impossible.
On the other hand, I as well think we will hear a second announcement later this week with a compromise of some kind. Probably a lowering of the targets for next year or some kind of 1-year royalty lock-in rate.

Just to clarify a simple math principle, when  you go from 20% to 15 % you do not lose 5% you lose 25%. That is one quarter not one twentieth.

« Reply #169 on: September 07, 2010, 22:39 »
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So I was expecting to make it to diamond and 40% by the end of the year or early next year.  Now I will only receive 30% under this new plan.  That is a difference of 10 percentage points, but in terms of real money, 30 is 75% of 40.  So I will be making 25% less than I was expecting to make next year, and 14.3% less than I am actually making this year.

I am in this same boat.  really excited to be so close to that diamond level and now what's the point?  this sucks.. big time.  

I've not contributed in this forum or been here since I created an account months ago. but after today's announcment I decided I needed to get myself out and see what's going on in the rest of the microstock world.  yea, I started at iStock in 2004 and have too much going on to work with multiple sites and istock always treated me well so I stayed there all "fat and happy" - until the last year with the price increases, the big canister level shift scare (then the 'grandfather' in to compromise for us loyals) and now this BS.   Yep, I was an istock cheerleader, but now I will most likely be an independent come January when this takes effect.  I really don't see them backing off of this.  I have seen the writing on the wall, so to speak, and it's getting clearer and clearer.

so... what is there a thread around here that can give advice on becoming independent?  :)

KB

« Reply #170 on: September 07, 2010, 22:40 »
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Non-exclusives will definitely be hurt by this. But with a 1-5% drop on just one their selling avenues.
This sounds less harsh than it really is. For non-exclusives, they will be seeing as much as a 20% (oops! 25%) drop in commissions.  

I recently (sadly) became an iStock photo exclusive, but I can now look forward to seeing a 16% cut in my commissions in 2011.  >:(
« Last Edit: September 07, 2010, 22:43 by KB »

KB

« Reply #171 on: September 07, 2010, 22:42 »
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Non-exclusives will definitely be hurt by this. But with a 1-5% drop on just one their selling avenues. Middle of the road exclusives though seem to be hurt the most. Many are saying they'll be dropping 5%. Thankfully mine is staying the same, but that 1.4million mark seems next to impossible.
On the other hand, I as well think we will hear a second announcement later this week with a compromise of some kind. Probably a lowering of the targets for next year or some kind of 1-year royalty lock-in rate.

Just to clarify a simple math principle, when  you go from 20% to 15 % you do not lose 5% you lose 25%. That is one quarter not one twentieth.
Ha! I didn't think I was one of the math challenged. Next time, I'm going to have to use my calculator.  ;D

« Reply #172 on: September 07, 2010, 22:53 »
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Everyone was going to pull their ports or stop uploading. The question is how many actual did it??

I did, I dropped FT long before I went back exclusive with iStock.

« Reply #173 on: September 07, 2010, 22:56 »
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Everyone was going to pull their ports or stop uploading. The question is how many actual did it??

I did, I dropped FT long before I went back exclusive with iStock.

As did I.

RacePhoto

« Reply #174 on: September 07, 2010, 23:00 »
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Non-exclusives will definitely be hurt by this. But with a 1-5% drop on just one their selling avenues. Middle of the road exclusives though seem to be hurt the most. Many are saying they'll be dropping 5%. Thankfully mine is staying the same, but that 1.4million mark seems next to impossible.
On the other hand, I as well think we will hear a second announcement later this week with a compromise of some kind. Probably a lowering of the targets for next year or some kind of 1-year royalty lock-in rate.

Just to clarify a simple math principle, when  you go from 20% to 15 % you do not lose 5% you lose 25%. That is one quarter not one twentieth.

Yes you lose a flat 5% but you also lose 25% of the commission. Thanks for making it more confusing for the math challenged.

This is like people with BME and averaging DPI when some images never get a download and never will, like they have some factor in the actual sales. If those dogs never existed, the DPI would go up or is it RPI, or some other fictional nonsense number. All that counts is bottom line and dollars, not statistics. Want a much better DPI, RPI or whatever, just delete 100 duplicates or similars that will never sell. Wow, that's impressive.

Anyway... I read the whole thing and saw the Premium collection, which is actually attractive, possibly? I'm not an exclusive so I don't know who's getting a worse deal. The whole new improved program that they claim will be an improvement, is terribly confusing and convoluted. I'm too small for it to make much difference, but bigger contributors and people who depend on this income, aren't going to be pleased waiting a year to see if it's really the same, better or worse. A year?  >:(

Donding: "Everyone was going to pull their ports or stop uploading. The question is how many actual did it??"
I did, but I also dropped Dreamstime, Panther, Featurepics and 123RF for their own failures to meet my expectations.

Still very happy with SS and IS. I have also said for years now, if SS offered me something to be an exclusive, I would do it.  :)

I may print and read the changes again, but in the end, trying to understand what they are claiming and what's real, won't change it, so I'll just ride the wave and see where I end in 2012 with IS.

Most of all, this is going to be fun to watch!
« Last Edit: September 07, 2010, 23:17 by RacePhoto »


 

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