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Author Topic: Unsustainable!  (Read 48349 times)

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Uncle Pete

« on: April 10, 2014, 11:54 »
+4
As people watch and the Microstock market changes, I think this relates, but not enough to be On Topic.

Dollar Stores:

My main concern surrounding the dollar store sector is overexpansion. It feels like there is a Starbucks everywhere you look, yet it had only 6,866 stores at the end of its fiscal year. I estimate that if some of the projections become reality, the major chains will operate as many as 40,000 dollar stores across the United States. It is a number that may not be sustainable and will result in a battle of survival of the fittest.

Forbes - http://www.forbes.com/sites/walterloeb/2013/06/10/dg-drtr-fdo-do-we-really-need-40000-dollar-stores/

What I think we need to be watching for, besides the over inflated competition, price cutting, and a Microstock agency over abundance. Is when we see, "# Quarter profits are less than expected" and under-preforming reports from the majors. This will signal and thinning of the herd, larger than what we see with the slow in and out presently.

Last year Dollar stores were talking of expansion, adding many more stores. Now they are closing and cutting:

http://www.forbes.com/sites/maggiemcgrath/2014/04/10/family-dollar-closing-370-stores-and-lowering-prices-after-revenue-falls-6/

Our second quarter results did not meet our expectations,  Howard Levine, Family Dollar chairman and CEO, said in a statement Thursday morning. The 2013 holiday season was challenged by a more promotional competitive environment and a more financially constrained consumer. In addition, like many retailers, our second quarter results were significantly impacted by severe winter weather, which resulted in numerous store closings, disrupted merchandise deliveries and higher than expected utility and store maintenance expenses.



Survival games are coming. I don't know how soon, but for myself. Less agencies and less price cutting, is a good thing.

There is no market I know of, where MORE competition raises values and income for producers and suppliers, or the distribution outlets. Over supply and too much competition, only drives values and prices down. Less agencies would be good for our returns as producers of digital goods.
« Last Edit: April 10, 2014, 11:57 by Uncle Pete »


EmberMike

« Reply #1 on: April 10, 2014, 15:05 »
+17
...Over supply and too much competition, only drives values and prices down. Less agencies would be good for our returns as producers of digital goods.

I agree. And I think some responsibility rests with us to me more cautious about who we do business with these days. I have a new personal rule of "50% or don't bother". Meaning going forward, any new company that wants my images, they need to offer 50% royalties or don't even bother contacting me. I don't even care what the pricing looks like yet, to even start the conversation it's 50% or don't bother.

There are enough agencies out there already. Like you said, too many. Some new players want in, the cost of entry has gone up.

« Reply #2 on: April 10, 2014, 16:48 »
+3
I agree with Embermike's comments. In my case when 123rf dropped me to a lower ranking I stopped uploading after seeing sub sales were earning $0.25
when that same image was earning $0.30 and more with other agencies. There's
a standard I set: Nothing less than $0.30 a sale otherwise I'm walking.

I also think when an agency accepts my image they're telling me: "We think we
can sell your image".....123rf seems to put the onus on the contributor: "You're
not selling as well as you used to so we're going to punish you further."

shudderstok

« Reply #3 on: April 10, 2014, 19:08 »
-5
it's simple from my point of view and also argumentative from other points of view...
don't submit to sites that pay you $0.38 as the top amount in a royalty. and if you do, then don't wine about sustainability as you are supporting the very thing you moan about. just sayin. you can draw your own conclusions.

Uncle Pete

« Reply #4 on: April 10, 2014, 20:58 »
+1
I think you missed the whole point while you were trying to slam SS as usual.

It's not about a site, it's about the entire market. IS is just fine in my opinion, they promote and market and present a professional site. There have been some misguided diversions.

SS is up front about everything they do. Yes I agree, if someone doesn't think Subs are their thing, that's fine, but you can't be serious mentioning "$0.38 as the top amount in a royalty" unless you live in a bubble or have ignore the facts and the truth.

SS has ELs, On Demand, Single sales and other options. IS has TS giving us 28 cents vs 38 cents (wow, how did you miss that?) But  also has standard licenses, ELs and other ways for a buyer to obtain a license.

Now please observe, some other 1000 other sites that offer very little except "Me Too" for their own pockets.

My post is about the marketplace, not Agency A vs Agency B or C or D or E. It's about thinning of the herd and how some people who think the answer is, sell everything, everywhere for chump change is making a profit.

Now shudderstok, face the marketplace issues and stop being defensive about one place and attacking anything you can about another. Broad Microstock market.


"$0.38 as the top amount in a royalty"
??? Do you expect one person to read this and not be laughing at how absurd you make yourself look?

Poor pathetic me, I only get 33c a download:




it's simple from my point of view and also argumentative from other points of view...
don't submit to sites that pay you $0.38 as the top amount in a royalty. and if you do, then don't wine about sustainability as you are supporting the very thing you moan about. just sayin. you can draw your own conclusions.
« Last Edit: April 10, 2014, 21:08 by Uncle Pete »

shudderstok

« Reply #5 on: April 10, 2014, 21:35 »
-9
i did not slam any site in particular, you drew your own conclusions.

but yes now that you do mention SS, if you support selling your work at such a pittance then there is no point in moaning that it is not sustainable cause it's not from a contributors point of view.

it's really that simple.


farbled

« Reply #6 on: April 10, 2014, 21:38 »
+7
i did not slam any site in particular, you drew your own conclusions.

but yes now that you do mention SS, if you support selling your work at such a pittance then there is no point in moaning that it is not sustainable cause it's not from a contributors point of view.

it's really that simple.
You could say the same about any agency that pays you less than 38 cents for any sale.

Uncle Pete

« Reply #7 on: April 10, 2014, 22:33 »
+2
Yes, funny how that particular number came up and I erroneously came to that obvious conclusion. Especially from someone who names themselves as a takeoff on a site name. And then tries to deny their whole propose and intention?

Legally a, DUCK Thread.

I see that someone doesn't understand logic:

If it looks like a duck, quacks like a duck and walks like a duck, it's a duck

i did not slam any site in particular, you drew your own conclusions.

but yes now that you do mention SS, if you support selling your work at such a pittance then there is no point in moaning that it is not sustainable cause it's not from a contributors point of view.

it's really that simple.
You could say the same about any agency that pays you less than 38 cents for any sale.
« Last Edit: April 11, 2014, 07:12 by Uncle Pete »

mlwinphoto

« Reply #8 on: April 11, 2014, 09:31 »
+5
Kinda sad reading this thread.  Seems as though our standards and expectations have dropped so low that getting 33 cents, or 38 cents, or 50% of $10 is (somewhat) acceptable. 

Don't get me wrong, I'm with SS and was with iStock so I'm participating in this devaluation of our work.  Wish it hadn't come to this. 

It will take a monumental effort on the part of photographers to turn this around to the point where we are getting an acceptable return on our time and investment.  Personally, I'm looking for a way out of this ( by self marketing, RM, being more agency selective, etc.) but am not having a lot of success doing so.   Will photogs as a group ever ban together and say 'no' to low royalties and prices?.....doubt it.

Is it too late? 

(Time to add a little something extra to my morning coffee). 

farbled

« Reply #9 on: April 11, 2014, 09:57 »
+2
Kinda sad reading this thread.  Seems as though our standards and expectations have dropped so low that getting 33 cents, or 38 cents, or 50% of $10 is (somewhat) acceptable. 

Don't get me wrong, I'm with SS and was with iStock so I'm participating in this devaluation of our work.  Wish it hadn't come to this. 

It will take a monumental effort on the part of photographers to turn this around to the point where we are getting an acceptable return on our time and investment.  Personally, I'm looking for a way out of this ( by self marketing, RM, being more agency selective, etc.) but am not having a lot of success doing so.   Will photogs as a group ever ban together and say 'no' to low royalties and prices?.....doubt it.

Is it too late? 

(Time to add a little something extra to my morning coffee).

I guess it depends really. MS for me has always been a place where I can sell stuff that takes me little time or effort to produce, or photos that have been paid for in other ways that I can now sell again. So I'm not losing on any investment dollars. So what is a good price for a photo that otherwise would sit on my hard drive and do nothing? I'm not being intentionally argumentative, but I firmly believe that MS should be where the effort going in is less than the result. If it isn't, well, I think people are doing it wrong. If it costs you money to produce, then the return must justify it. Sell it where you can get that return.

shudderstok

« Reply #10 on: April 11, 2014, 21:31 »
+3
Kinda sad reading this thread.  Seems as though our standards and expectations have dropped so low that getting 33 cents, or 38 cents, or 50% of $10 is (somewhat) acceptable. 

Don't get me wrong, I'm with SS and was with iStock so I'm participating in this devaluation of our work.  Wish it hadn't come to this. 

It will take a monumental effort on the part of photographers to turn this around to the point where we are getting an acceptable return on our time and investment.  Personally, I'm looking for a way out of this ( by self marketing, RM, being more agency selective, etc.) but am not having a lot of success doing so.   Will photogs as a group ever ban together and say 'no' to low royalties and prices?.....doubt it.

Is it too late? 

(Time to add a little something extra to my morning coffee).

glad to see at least one person who understood what i was aiming at.

as a group it will never be resolved as there are too many people that are happy with selling images for pennies on the dollar.

at the current direction it is going it is not sustainable.

trust me when i say this, ten years ago i would have never in my wildest dreams been thinking i'd be exclusive on any site selling images for a pittance and a fraction of what i was accustomed too. nor did i ever think the industry would devalue images by so much.





 


Uncle Pete

« Reply #11 on: April 11, 2014, 22:38 »
+2
You mean 28 cents or 25 cents?  :)



Yes I can agree that the cost of production should be less, if the return is less. Unfortunately people keep raising the standards of quality to where a P&S might have made it, but a full frame DSLR is becoming the base equipment now.

Kinda sad reading this thread.  Seems as though our standards and expectations have dropped so low that getting 33 cents, or 38 cents, or 50% of $10 is (somewhat) acceptable. 

Don't get me wrong, I'm with SS and was with iStock so I'm participating in this devaluation of our work.  Wish it hadn't come to this. 

It will take a monumental effort on the part of photographers to turn this around to the point where we are getting an acceptable return on our time and investment.  Personally, I'm looking for a way out of this ( by self marketing, RM, being more agency selective, etc.) but am not having a lot of success doing so.   Will photogs as a group ever ban together and say 'no' to low royalties and prices?.....doubt it.

Is it too late? 

(Time to add a little something extra to my morning coffee).



Yes, I always felt that people were willing to work for too little and then say the answer was more agencies to make more money. It's counter productive.

glad to see at least one person who understood what i was aiming at.

as a group it will never be resolved as there are too many people that are happy with selling images for pennies on the dollar.

at the current direction it is going it is not sustainable.



That part I can agree with. But the finger pointing at one site, over and over, when another actually pays even less, does nothing to help the situation, or give even the slightest appearance of unity.

« Reply #12 on: April 11, 2014, 22:41 »
-2

at the current direction it is going it is not sustainable.


From a first world perspective I think you are right...from a developing world perspective the future holds some hope.

The original post was about a store expansion in the US... but we can think a lot about how the world economy is changing and how, instead of just competing with the photographer down the street or across town, you are competing with a person with a camera and a computer in all the developing nations of the world.

mlwinphoto

« Reply #13 on: April 11, 2014, 23:00 »
-1
For the person who gave me a negative for my post, I could care less.  Glad you're happy making 33 cents per download.....

shudderstok

« Reply #14 on: April 11, 2014, 23:25 »
+3
whether i point one site out or ten sites it matters not. the point being is that if you contribute images to a site like SS then you have no right to complain about how unsustainable microstock is. sure, you can take the approach of "i sell thousands of images a day to make $250" or "if it's not online and on my hard drive it's making nothing" etc. you can justify however you want that is your right. but i am very clear that i would never support a site like this. now unfortunately IS has gone this way to ensure the race to the bottom continues, so reluctantly i am forced into a strangle hold. IS is the original site that created this race to the bottom, and coming from a professional background of shooting stock for many many years, i was forced to sign up to IS because they were starting to cannibalize the RF stock industry buy cutting the average web usage over at GI from $75  to now selling the same usage for $1 or $2 and allowing everyone with a digital camera to join regardless of quality. all the likes of SS are doing is exactly the same thing IS did, undercut and work on volume.

the only winners at this game are the owners or major shareholders of each and every agency not the contributor. they have us all by the nuts, and they know it. it just depends to which level you will support them, and i draw the line where i do.

the writing on has been on the wall for years.

shudderstok

« Reply #15 on: April 11, 2014, 23:31 »
+1
For the person who gave me a negative for my post, I could care less.  Glad you're happy making 33 cents per download.....

how many times do they keep having to tell you that it's not only 33 cents??? hard to believe they are so uppity on a few cents here or there. shall we all agree it is less than 50 cents???

BTW, your work is nice, and worth way more than what you get for it.

mlwinphoto

« Reply #16 on: April 11, 2014, 23:37 »
+7
whether i point one site out or ten sites it matters not. the point being is that if you contribute images to a site like SS then you have no right to complain about how unsustainable microstock is. sure, you can take the approach of "i sell thousands of images a day to make $250" or "if it's not online and on my hard drive it's making nothing" etc. you can justify however you want that is your right. but i am very clear that i would never support a site like this. now unfortunately IS has gone this way to ensure the race to the bottom continues, so reluctantly i am forced into a strangle hold. IS is the original site that created this race to the bottom, and coming from a professional background of shooting stock for many many years, i was forced to sign up to IS because they were starting to cannibalize the RF stock industry buy cutting the average web usage over at GI from $75  to now selling the same usage for $1 or $2 and allowing everyone with a digital camera to join regardless of quality. all the likes of SS are doing is exactly the same thing IS did, undercut and work on volume.

the only winners at this game are the owners or major shareholders of each and every agency not the contributor. they have us all by the nuts, and they know it. it just depends to which level you will support them, and i draw the line where i do.

the writing on has been on the wall for years.

Well, you've helped to convince me of something I've been considering for the past several months.  Dropping iStock felt really good, now it's time to drop SS as well.  No more micros (subs) for me.

Practice what you preach, so they say.
« Last Edit: April 11, 2014, 23:43 by mlwinphoto »

shudderstok

« Reply #17 on: April 12, 2014, 01:37 »
+1
whether i point one site out or ten sites it matters not. the point being is that if you contribute images to a site like SS then you have no right to complain about how unsustainable microstock is. sure, you can take the approach of "i sell thousands of images a day to make $250" or "if it's not online and on my hard drive it's making nothing" etc. you can justify however you want that is your right. but i am very clear that i would never support a site like this. now unfortunately IS has gone this way to ensure the race to the bottom continues, so reluctantly i am forced into a strangle hold. IS is the original site that created this race to the bottom, and coming from a professional background of shooting stock for many many years, i was forced to sign up to IS because they were starting to cannibalize the RF stock industry buy cutting the average web usage over at GI from $75  to now selling the same usage for $1 or $2 and allowing everyone with a digital camera to join regardless of quality. all the likes of SS are doing is exactly the same thing IS did, undercut and work on volume.

the only winners at this game are the owners or major shareholders of each and every agency not the contributor. they have us all by the nuts, and they know it. it just depends to which level you will support them, and i draw the line where i do.

the writing on has been on the wall for years.

Well, you've helped to convince me of something I've been considering for the past several months.  Dropping iStock felt really good, now it's time to drop SS as well.  No more micros (subs) for me.

Practice what you preach, so they say.

not sure i helped convince you of dropping IS. i simply chose to remain exclusive as all i saw was a bunch of emotional impulsive dropping of exclusivity mainly by the "followers" of the "legend" who did not drop it by choice. not suggesting that was your motivator, but it was fuel for the longest time. there was a lot of emotion going on for a while. but that said, if it felt good for you then you made the right choice, the same for SS if you choose to drop it. your work is far too good for the abuse of pennies. it's interesting to note as well, by staying exclusive and weathering the storm, my sales are pretty much back to where they were and my income is about the same.

i have always said since microstock came along that stock photographers became more like day traders on the stock market, trading stock without really knowing what they are doing, albeit some did. instant this instant that. how quick can you make a quick buck on a flip? like stock trading, i know of very few people who made real lasting money on the stock day trade thing, but boring investors like me who just keep it in the dividend funds for years and years are doing more than okay.

i now find myself of being in a position of being a hypocrite in one sense - IS has now forced upon me to be involved in subscription sales. on that my only choice is to quit if i stick to my guns, but that would cost me more than a full time income, and simply put, i can't do that. again, i did not join IS as a supporter of subs, this has been forced upon me, i always opted out of subs and partner programs when i could.

subs are here to stay, that is a fact.
 

farbled

« Reply #18 on: April 12, 2014, 10:35 »
+4
I don't get it. I never will. All photos are not equal and they never have been. Trad stock was about scarcity of product. Now anyone with a decent camera can produce a reasonably saleable picture in minutes and sell it basically to the world. How much should that be worth? The only niche these days is imagination and sometimes rarity of subjects.

My pictures are worth the 38 cents or whatever because I spent the appropriate amount of time/effort to justify that sale. If you truly think your photos are worth more, there are appropriate places to sell them for more.

Using words like "forced to" or "reluctantly" just make it possible for you to do what everyone else is doing yet still hold your high ground about how this is terrible and you told us so, etc, etc. Don't like it? Find a new job and stop your crying about it. Or better yet, innovate and do something others haven't done yet. This industry is dying for something new to come along.

« Reply #19 on: April 12, 2014, 11:39 »
+3
I don't get it. I never will. All photos are not equal and they never have been. Trad stock was about scarcity of product. Now anyone with a decent camera can produce a reasonably saleable picture in minutes and sell it basically to the world. How much should that be worth? The only niche these days is imagination and sometimes rarity of subjects.

My pictures are worth the 38 cents or whatever because I spent the appropriate amount of time/effort to justify that sale. If you truly think your photos are worth more, there are appropriate places to sell them for more.

Using words like "forced to" or "reluctantly" just make it possible for you to do what everyone else is doing yet still hold your high ground about how this is terrible and you told us so, etc, etc. Don't like it? Find a new job and stop your crying about it. Or better yet, innovate and do something others haven't done yet. This industry is dying for something new to come along.

You can do all that, but the competition won't go away. There will still be a mob of people and sites out there undercutting you. You can't really fix that.

farbled

« Reply #20 on: April 12, 2014, 13:15 »
0
Yup, and that demonstrates what the actual value of an image is, doesn't it? It's only worth what people will pay for it. Someone will always price lower, and that will work for some sites for a while yet I think. I will sell where I choose as long as its lucrative for me. When it isn't, I won't. Simple.

« Reply #21 on: April 12, 2014, 13:33 »
0
Higher commission rates are worthless to me if there are no sales.

« Reply #22 on: April 12, 2014, 13:39 »
+2
Yup, and that demonstrates what the actual value of an image is, doesn't it?

Actually, I'd say it is the exact opposite. The values images are sold for at most agencies are fairly arbitrary. The real value is much different, but it is much easier to put a inexpensive one price fits all styles price on things. Once you put that out there though, it's pretty hard to take it back and assign a real value to somebody's work.

farbled

« Reply #23 on: April 12, 2014, 13:50 »
+2
Yup, and that demonstrates what the actual value of an image is, doesn't it?

Actually, I'd say it is the exact opposite. The values images are sold for at most agencies are fairly arbitrary. The real value is much different, but it is much easier to put a inexpensive one price fits all styles price on things. Once you put that out there though, it's pretty hard to take it back and assign a real value to somebody's work.

Fair point, I see how that could be. In any event, the real issue is the prices are arbitrary for the whole range of images, best to worst. MS should've and could've been where photographers started, and worked their way up improving quality (and getting higher commissions) tier by tier.

The agencies could've done it in the beginning, have price points based on quality/scarcity/etc. And photographers could've done a better job by keeping their "high value" work out of MS. The fault is a blend in my opinion and now it simply is what it is.

We can bash all we want here (not directed at your comment, but the discussions in general) but at the end of the day, unless someone innovates something that skews it more towards the shooter, we have to adapt or quit. I hoped (and still hope) that various  Symbiostock-based networks will someday turn into coop-style marketplaces, but only time will tell.

shudderstok

« Reply #24 on: April 12, 2014, 14:06 »
+3
Yup, and that demonstrates what the actual value of an image is, doesn't it?

Actually, I'd say it is the exact opposite. The values images are sold for at most agencies are fairly arbitrary. The real value is much different, but it is much easier to put a inexpensive one price fits all styles price on things. Once you put that out there though, it's pretty hard to take it back and assign a real value to somebody's work.

Fair point, I see how that could be. In any event, the real issue is the prices are arbitrary for the whole range of images, best to worst. MS should've and could've been where photographers started, and worked their way up improving quality (and getting higher commissions) tier by tier.

The agencies could've done it in the beginning, have price points based on quality/scarcity/etc. And photographers could've done a better job by keeping their "high value" work out of MS. The fault is a blend in my opinion and now it simply is what it is.

We can bash all we want here (not directed at your comment, but the discussions in general) but at the end of the day, unless someone innovates something that skews it more towards the shooter, we have to adapt or quit. I hoped (and still hope) that various  Symbiostock-based networks will someday turn into coop-style marketplaces, but only time will tell.

it was skewed towards the shooter until microstock came along and devalued the work. believe it or not it's the market sources that devalued the work not the buyers, herein lies the problem, the agencies should have kept pricing up for the benefit of the artists and themselves. the problem now is that certain agencies are keeping prices insanely low for their own benefit and the shareholders of course, while other agencies are dropping theirs or what you would suggest as "adapting" by bringing in subs, none of this is for the benefit of the photographers. we are simply pawns in the corporate game. 


 

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