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Author Topic: The future is in the little guys- Not the big 4  (Read 14801 times)

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« on: May 24, 2012, 23:17 »
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I have been vocal about supporting people/sites who are trying to make a difference and I'm OK with the idea that they might not pan out. I watch my data and I know my numbers and I have concluded that the future of microstock is not in a few big guys but rather in a bunch of little guys each doing a different niche and doing it really well. I see the big guys slowly losing market share to maybe 30 or more "little" guys who sell just a few types of images, have great collections for that type of image and pay very good royalties.

Think about it... it's self fulfilling. Contributors who fit the niche will sell well on that site and therefore upload more to that site. If they don't sell well they will stop uploading and find a different site where they do sell well. Royalties are higher so contributors make more even while selling less.

Buyers will be happier because they know when they go to the niche site they are more likely to find what they are looking for with less inappropriate images clogging up the search.
Buyers don't care about huge selections or massive libraries... they want to be able to find what they are looking for and will figure out which sites have the best selection of what they are looking to buy. A buyer who is looking for travel photos couldn't care less if the site also carries a fantastic selection of vector animals and vice versa.

I realize I'm about to take a beating here... and this is an unpopular position but this is what my data is showing. Perhaps its different for illustration but two of my best selling (highest earners) sites are niche sites that don't even come close to cracking the top 10 on the list on the right. You can say what you want but these sites are not dying. They are selling a lot of images in their particular niche and from what I can see they are growing.

We need more of these sites not less- and we need to support them by at least giving them a try.
Yuri has just started a niche site and I bet he does well with it.

I think this is to some degree what Helix7 was trying to say last week when he wrote his "Call to Arms"

I am not naive enough to think that I don't need the big guys- I do and they do bring in the $. But they are changing and I can't say I exactly trust them. I would rather deal with smaller companies with great contributor support, decent sales and good royalties. Every new site that comes in and fulfills those criteria makes the big guys less important and helps to reduce the leverage they have over the contributors

This is why I will support and continue to support
GLStock Images
Irockstock
Feature Pics
Cutcaster
ToonVectors
Stockfresh
Clipartof
and yes even this new guy
CreativeWarehouse
« Last Edit: May 24, 2012, 23:33 by chromaco »


traveler1116

« Reply #1 on: May 24, 2012, 23:21 »
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What "niche" is Cutcaster filling?  Stockfresh?  And CreativeWarehouse?

« Reply #2 on: May 24, 2012, 23:24 »
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Well.. you're right about a few of these sites not finding their niche yet. I think that will come as some contributors find success and some don't. The ones that do will stay and the ones that don't will leave. I think the niches will develop on their own if the sites are given the chance.

From what I can tell this is exactly what CreativeWarehouse is trying to do.

I don't see this happening overnight but I think it is the future for most of these sites.
« Last Edit: May 24, 2012, 23:29 by chromaco »

« Reply #3 on: May 24, 2012, 23:26 »
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I think there is also a place for a general picture library with no serious gaps, and it doesn't have to be one of the big sites.

I am on 3 of those sites and I have had good months on 2 of them, but also plenty of months with little to no sales. Maybe they aren't my niche.

I do think that it would make sense for buyers that only wanted something that a decent supplier had it would make sense to go there instead of somewhere like IS with high prices and low returns for the artist and probably impersonal service.

« Reply #4 on: May 25, 2012, 00:17 »
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I don't see a problem with your idea in the abstract - it's similar to how things were before the micros,  with agencies specializing in agriculture or Alaska or ...

What I don't see is any correspondence between any of the agencies you listed and the idea. As far as I can tell from reports here, none of these agencies is delivering much to anyone. The only one I contribute to is StockFresh (which has delivered a grand total of $23.50 in royalties in nearly a year) so perhaps that's not the one for me.

I did try Photocase, but couldn't get anything accepted, so let that one go. I have a small number of images on Pixmac, but it's not selling. I can't find CreativeWarehouse via Google - is that something new and private?

I'm willing (within limits) to try new agencies that seem to have some chance of working, but having been part of Gimmestock, Albumo, and ScanStock, I don't see quite the rosy picture you do with smaller general-purpose agencies. Perhaps the niche places you see are largely vectors (or something other than photos)?

So, if there is something in the future that's specializing in a niche I can fill (and will have my work, unlike Photocase), I'm all ears. But I don't see anything like that yet.

« Reply #5 on: May 25, 2012, 00:23 »
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I watch my data and I know my numbers and I have concluded that the future of microstock is not in a few big guys but rather in a bunch of little guys each doing a different niche and doing it really well.

I tend to agree to a certain extent. I think there is an inherent flaw in larger sites' long term sustainability. How do you keep vast amounts of contributors happy and prosperous? I'm not sure you can. That and illustration seems to be an afterthought at some of these larger agencies (even though it sells well). It all definitely makes me think that smaller agencies will be the future (maybe even the present).

« Reply #6 on: May 25, 2012, 00:32 »
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@Jsnover   Actually I would be OK with things the way they are currently (I wasn't around 3 years ago so I don't have those glory days memories). I just don't think things are likely to stay the same and I'm not convinced that 24-36 months from now the big 4 will be all that good to the contributors. I hear what you are saying- "I've been burned by more than a few of these starter sites and right now I'm not seeing much from most of the others."

This is my response- Change is going to happen no matter what. You might as well try to affect it for the better. Something is going to come in that does work, likely quite a few somethings. If you don't give them a chance to succeed you are allowing change to go the wrong way.

It is so easy to focus on right now and forget about next year or the year after. I say just because it isn't reaping a reward right now doesn't mean it might not in the future.

Giving new ideas a chance is how we can make a difference. I agree most will fail, but some won't. That is where a positive change comes from.

Edit: I realize that the current situation is not "there" yet and that is where a lot of skepticism is coming from. The industry is constantly evolving and it is my opinion that this is one way we as contributors can make microstock better for ourselves in the long term.
« Last Edit: May 25, 2012, 00:48 by chromaco »

Lagereek

« Reply #7 on: May 25, 2012, 01:03 »
+1
SS and IS,  right now the entire micro world is revolving around these two, for better or worse and really, its been like this for a couple of years now, in fact all the time. The others, even the good ones are just "extra" cash.
If these two were the only two sites in the world, buyers would have no option but to go there and by the look of things, revenues, etc, it seems that in spite of 100 sites, 80% of buyers, still go to SS or IS. So? your point of support?  really is based on building them up, isnt it?  bit late in the day, I would say. Many of these lesser sites could have done a lot more for themselves then what they have done, but oh! no, they were after a quick and easy ride with plenty of cash.

In fact, I would state the opposite to your proposal, if we only had the big 4, lots of non-worthy contributors would not clogg up agencies, it would be "cleaner" all over the place and a by far healthier climate in the stock-world.
Agencies come and go, the spring up like mushrooms, some even want us to give them free shots?  I mean what is this or rather, its turned into a bad joke. Make no mistake, all these hole-in-the-wall outfits are just hurting the market.

In the old film days we had plenty of agencies but still, it was all about three, really, the rest were just surplus stuff. It was a hell of a lot healthier, believe me.

Photography, computer works, uploading, this and that, is extremely time consuming, time is money and there is no time to, help building-up sites, support, yes, but not maintenance in order to grow. The carrott in the other end is too small and to the point of vanishing.
« Last Edit: May 25, 2012, 01:40 by Lagereek »

« Reply #8 on: May 25, 2012, 01:54 »
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PhotoCase looks like a decent niche site.  I haven't had many microstock images accepted there.  Keep meaning to try some different stuff but it's hard to turn off the standard stock brain.  MostPhotos is another niche site, because they don't do reviews.  They don't sell a lot but I still like them because they aren't a "me too" site.  Most of the others aren't what I would call a niche site.  The definition of niche I would use is "a distinct segment of a market."  Most of the smaller sites are seeking the same buyers as the bigger sites, they aren't distinctive enough.

FeaturePics have proven that a site can be around for years without selling at a high volume.  Since I started in late 2006, people have been saying here that there will only be a few sites soon.  That hasn't happened, so there is a chance for niche sites but I think they need to offer buyers something different.  It must be a PITA for buyers to sign up to lots of different sites.  I would really like to see the smaller sites have a universal payment system.  One registration allowing buyers to purchase images from lots of different sites.  We could all start our own niche sites then.

« Reply #9 on: May 25, 2012, 02:34 »
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I don't see how the "pile 'em high, sell 'em cheap" strategy can possibly mesh with a niche marketing concept. A niche agency would require not only the best possible quality - and that means production quality as well as image quality - it also requires exclusive content.

So you would need to spend heavily to create your very best images for this niche micro - stuff to compete with the BBC's Science Picture Library, perhaps - and then place it exclusively with wooyaymicro.com to get 50c per sale, when you could have sent it to SPL and got $50 per sale.
 
And lots of other top-quality producers have to make the same decision, otherwise wooyay won't become known as the place to go for that niche.

Not only is it not going to happen, it shouldn't happen and we shouldn't want it to happen because we ought to leave seriously good niche stuff for the trads, where LCV shots have a chance of bringing in a decent return.

I've shot scores of wildflowers recently and the only possible hope of making any money out of them is if a magazine, book or postcard publisher wants a collection of images of the wildflowers of Crete, with scientific names, all shot in the same style. There's no point in my letting them grab those of the micros so they're going to Alamy and I'll keep my fingers crossed that maybe oneday somebody will want them and I'll get a decent payout. If there was a niche micro for the island of Crete it would guarantee that such work was a complete waste of time for everyone, including those supplying similar material to it and the host website itself, because of low demand.

wut

« Reply #10 on: May 25, 2012, 02:35 »
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It makes no sense whatsoever to do so as a photographer. No small agency covers any specific niches and contrary to what you stated, no small agency pays good royalties. Not a single one! (name one to prove me wrong, but don't state bs %, since 50% of next to nothing is still nothing). I'm all against them, they're just leading the race to the bottom and are a  lot of hassle to deal with, when there's something wrong or you just want to close your account (Zoonar, DP etc)

ETA: not only they don't pay good royalties, they also don't sell sheat. Like ppl are always telling you. I mean if diamonds, even BDs, make 20-50$/year on those sites, that's just utterly pathetic (when they should at least get a payout every month and even that is nothing on top of high 4 or even 5 figures they're getting of the big 4 monthly). I wouldn't bother for these pennies and my earnings are pathetic compared to theirs. So of course we're gonna tear you a new one, what did you expect for talking rubbish ;)
« Last Edit: May 25, 2012, 02:48 by wut »

« Reply #11 on: May 25, 2012, 03:09 »
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I would really like to see the smaller sites have a universal payment system.  One registration allowing buyers to purchase images from lots of different sites.  We could all start our own niche sites then.

My first thought was "what a good idea!" My second thought was "Hang on, we would have to pay a fee for that". My third thought was: "But wouldn't that be an open door for the credit card crooks?"

And I've just had a fourth thought: how would a site know how many credits were still left, it would have to route back through a sort of paypal portal.

PS: For anyone who doesn't understand, I am not being negative, I'm playing devil's advocate. If the objections can be overcome and it could be made a reaility I could well be interested in this.
« Last Edit: May 25, 2012, 03:16 by BaldricksTrousers »

Lagereek

« Reply #12 on: May 25, 2012, 03:28 »
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I would really like to see the smaller sites have a universal payment system.  One registration allowing buyers to purchase images from lots of different sites.  We could all start our own niche sites then.

My first thought was "what a good idea!" My second thought was "Hang on, we would have to pay a fee for that". My third thought was: "But wouldn't that be an open door for the credit card crooks?"

And I've just had a fourth thought: how would a site know how many credits were still left, it would have to route back through a sort of paypal portal.

PS: For anyone who doesn't understand, I am not being negative, I'm playing devil's advocate. If the objections can be overcome and it could be made a reaility I could well be interested in this.

5th thought :)  we still need buyers! and 80% tend to stick to the usual ones, the same old story.

« Reply #13 on: May 25, 2012, 04:10 »
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I would really like to see the smaller sites have a universal payment system.  One registration allowing buyers to purchase images from lots of different sites.  We could all start our own niche sites then.

My first thought was "what a good idea!" My second thought was "Hang on, we would have to pay a fee for that". My third thought was: "But wouldn't that be an open door for the credit card crooks?"

And I've just had a fourth thought: how would a site know how many credits were still left, it would have to route back through a sort of paypal portal.

PS: For anyone who doesn't understand, I am not being negative, I'm playing devil's advocate. If the objections can be overcome and it could be made a reaility I could well be interested in this.

5th thought :)  we still need buyers! and 80% tend to stick to the usual ones, the same old story.

6th to 10th thoughts ... by the time we all set up our websites, all linked though a payment agent we will have more or less recreated a microstock site, but one where we would determine the number of credits per sale, which might not be a bad thing, though how would the marketing be handled, would each site look after itself with no redirection or would looking at an image on one part of it lead to "similars you might be interested in" being generated from thoughout the web? What about people having really cr@ppy pictures on their sites? Would that drive buyers away if there was cross-linkage? Without cross-linkage would this be any better than just setting up your own site with a paypal link?

« Reply #14 on: May 25, 2012, 04:13 »
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11th thought: This could be a really good way for someone to cream off commissions from a pile of artists and collect a mountain of interest on unused credits, without all the hassle of maintaining a library and after five years they could probably sell the credit portal to Getty Images for $100m. (12th thought, what a pity I'm useless at programming).

« Reply #15 on: May 25, 2012, 04:15 »
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I put my images on many small sites, as long they have an easy upload process. Even a $10 more per month is welcome if it just takes a minute to get.

I really can't understand why there are new sites popping up that doesn't have an easy upload process. Do they really think bigger contributors will upload their stuff to a site with no track record but still have a upload process that is a pain in the *ss.
« Last Edit: May 25, 2012, 04:21 by Perry »

« Reply #16 on: May 25, 2012, 04:35 »
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11th thought: This could be a really good way for someone to cream off commissions from a pile of artists and collect a mountain of interest on unused credits, without all the hassle of maintaining a library and after five years they could probably sell the credit portal to Getty Images for $100m. (12th thought, what a pity I'm useless at programming).
It might be more interesting if contributors and buyers owned a majority share in the credit portal.  If it was possible to get buyers interested in buying direct from contributors, it should save us all a lot of money.

« Reply #17 on: May 25, 2012, 09:31 »
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LOL. I think this thread just turned into a greatest hits of my arguments on MSG. I'm not going down that road again. Once was enough. I'm sitting this one out.  ;D

Lagereek

« Reply #18 on: May 25, 2012, 09:48 »
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LOL. I think this thread just turned into a greatest hits of my arguments on MSG. I'm not going down that road again. Once was enough. I'm sitting this one out.  ;D

Yeah Im taking a rain-check on this one, waste of time really. Any of us joining up in any venture should have been done years ago, today the train has gone and the platform is empty.

traveler1116

« Reply #19 on: May 25, 2012, 10:00 »
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I'll just add that if you are shooting "niche" subjects the only site that rewards you for that would be IS with the Vetta and Agency collections otherwise it's best to be on the macros (which you would be through the mirroring of images on Getty).  I don't see much incentive to sell a high production cost or low selling (but niche) image on a site like the small ones mentioned above, the return just wouldn't be worth it.  Even with the E+ collection I can get $30 dollars for a regular sale, I don't see that kind of return being possible even on a high volume site like SS.  In fact when I was nonexclusive I didn't bother putting most of those types of images onto the micro sites and instead put them on Alamy but now the returns are high enough on IS that it is worth it.

velocicarpo

« Reply #20 on: May 25, 2012, 10:39 »
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I was thinking already the same. Although many of the Companies you listed are hardly "niche" players I think you are right. We will see further diversification of our income and I think it is good news.

« Reply #21 on: May 25, 2012, 10:57 »
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Lagergeek, what I'm suggesting is already happening and you yourself in a small way are helping it along.

Let me explain- One could argue that the most successful contributors have a strong understanding of their particular target market. This is at least part of the reason they are so successful. I know you do... its obvious by your posts. Likewise, so do Cthoman, Yuri, and SJLocke. Each of you have significant portfolios and each one of you has chosen a different approach as to which sites you choose to market your images for you.

You seem to prefer the big 4 and the Macros- Of course you do... a large portfolio takes a long time to upload and why would you waste your time with uploading on every site that comes along- it makes no sense for you.

Yuri seems to have determined that he is better off moving his stuff (at least new stuff) to his own site exclusively.
SJLocke- prefers Istock exclusivity
And Cthoman has chosen an entirely different path by focusing on revenue per download.

4 extremely successful portfolios with 4 different approaches. I bet all 4 of you are exactly right in your decisions.

This is my point- Buyers who are looking for your niche-style-feel (call it what you want) will over time learn where they can buy those images and will shop there. You will bring success in that criteria to your chosen vendors and bring in buyers. If those buyers like your style but you don't have that particular subject they will buy from a different contributor with a similar "feeling portfolio". That contributor will also see success at that site and continue to upload thereby reenforcing the cycle. Someone looking for your industrial photos is likely to be an entirely different type of customer than someone looking to purchase one of Cory's cartoon characters. Cory's upload priority list for agencies is likely to be entirely different than yours, or Yuri's or Sean Locke's. Therefore, Cory is having a similar effect on an entirely different set of agencies with an entirely different set of buyers. The sites are evolving based on contributor success or failure and the effects of this will become more and more pronounced as we go along.

I am not suggesting that the contributor or even the agency is able to or even capable of determining the "Niches". I am simply saying that the "Niches" are being created organically already. I think it is in the best interest of most contributors to at least test the new sites and give them a chance. Especially if that contributor hasn't completely determined the best approach for his/her individual portfolio.

Of course all of this would be sped along if agencies would just start trying to adjust the "best match", delete non selling images, or mess with the pricing. Oh wait... isn't that what they are doing already?

@ Velocicarpo - I know that my list isn't really of "Niche" companies. However, they probably will be in the future or they will not make it. GL is starting to go in that direction with their GL Galleries and I would bet that the other guys are also paying attention and making adjustments to promote those types of images which ARE selling for them.

Ed

« Reply #22 on: May 25, 2012, 11:07 »
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Some of us have tried this and got burned. I was an image reviewer at a site that went under (I can't even remember the name of the site) years ago.  Some of us supported Lucky Oliver.  I got burned at US Photo Stock.

Good luck chasing dragons and windmills...one day you may slay one.

traveler1116

« Reply #23 on: May 25, 2012, 11:07 »
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Those sites can only evolve into niche sites if contributors exclusively put their images on those sites.  If the same images can be found at found GL and SS what's so niche about that?   How many people are going to selectively upload content to different small sites without a much greater expectation on return.  I don't think you'll find many people (anyone) here that only uploads their images of Europe to Fotolia while not uploading it to SS even though Fotolia has the "niche" of the European market.
« Last Edit: May 25, 2012, 11:09 by traveler1116 »

ShadySue

  • There is a crack in everything
« Reply #24 on: May 25, 2012, 11:12 »
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I've shot scores of wildflowers recently and the only possible hope of making any money out of them is if a magazine, book or postcard publisher wants a collection of images of the wildflowers of Crete, with scientific names, all shot in the same style. There's no point in my letting them grab those of the micros so they're going to Alamy and I'll keep my fingers crossed that maybe oneday somebody will want them and I'll get a decent payout. If there was a niche micro for the island of Crete it would guarantee that such work was a complete waste of time for everyone, including those supplying similar material to it and the host website itself, because of low demand.
Actually a niche macro for the island of Crete or flora of the mediterranean would be the second-best options for these images.
The best option would be to identify suitable magazines and contact them directly with a words-and-images package.
Serious wildlife/nature buyers don't deal with the micros or even the generalist macros like Alamy and Getty because so many shooting there just don't know what they're doing, shoot them wrongly, identify them wrongly and they don't want to wade through a lot of stuff to get what they want.


 

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