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Messages - Jo Ann Snover
2826
« on: February 26, 2015, 21:02 »
I think all the EPUK concerns seem relevant and a total overreach by Alamy.
I think that once an image is removed from an agency, they should never be able to issue new licenses to prior licensors of that image. I talked with iStock/Getty about this when they paid me some money for "off web site" licenses - initially without telling me anything about what licenses or which images.
It turned out that two of the three images had been removed by me (I have only a tiny portion of my portfolio there any more). They said it was OK because it was just adding on to licenses that had been previously granted while the images were active. I told them they had no right to make any licenses of those images to anyone after I deactivated them and I wanted their acknowledgement that they would not do this again (I wasn't going to make a legal stink over two licenses and $60). That they should get Getty's lawyers to look at this if necessary.
After months they acknowledged that it had been a mistake. They are supposed to check that an image is still active before issuing such licenses but they messed up in this case.
So Alamy is saying they can do this and it's no problem. What if a photographer wanted to make some sort of exclusive deal over an image after it had been removed? Taking away the photographer's ability to control who can license their work seems pretty fundamental and very wrong.
2827
« on: February 26, 2015, 17:38 »
... AFAIK there's no counter of the sales for the individual images.
Not on the site; that's where excel's COUNTIF() function helped me in seeing how many images had sold in what quantities, but I used data from my sales pages If reviewers are unable to see if an image is sold, I think the point made above that this will greatly inconvenience designers when they can't use their design elements again because Canva removed an image they used should prompt Canva to review this deletion policy. Lee?
2828
« on: February 26, 2015, 16:37 »
I have an image that sold on YOUR SITE 78 times that someone decided to just delete. In fact, in just one month it sold 34 times on your site. Are you going to really tell me your customers think that file is not quality and they dont want it? ...
If 78 sales or fewer were the retention criteria, they'd delete all 240 of my images there! And I've checked a couple of times today to see if anything's been deleted, but so far not. I cut & paste the sales pages into an excel spreadsheet, sorted them in order of download totals and about half have been downloaded, not one of them sold 78 times. I understand the idea that sales at other agencies aren't something Canva wants to consider, but I'm truly puzzled as to why an image with demonstrable sales on Canva would be removed - unless there were model release, property release or other IP issues (like it's of a cruise ship, or has a visible logo or something that would only fly as editorial).
2829
« on: February 26, 2015, 14:50 »
...IMHO, they need stability and build up good-will. If they continue to act recklessly, a strong brand cannot save its demise. I don't wish to see this, because it's not in my interest.
I wouldn't have left exclusivity but for the start of the cascade of bad things brought about by Hellman & Friedman turning the screws on Getty who in turn started down the long road that's led them to here. My best guess as to what they will end up doing is the various pieces of the company will be split up and sold for whatever they can get. Sadly, I think the part of the Getty business that's been hurt the worst by all of this is iStock, and I can't imagine who'd want to buy it given its damaged state. Site performance generally stinks, the CV is a boat anchor around the collection's neck, the collection has been polluted by masses of dreck at high prices, many long time buyers are P.O.'d at the recent (Sept '14) changes. I can't imagine the software running the site is much of an asset (given how things regularly break every time a change is introduced). The site's name is worth something, and if a reputable outfit purchased it, dumped the Getty hand-me-downs, fixed up the site and came up with sane pricing and decent royalties for independents, I think they could turn things around. I'd contribute again as long as Getty had nothing whatever to do with the management of the site and it wasn't a private equity firm that bought it. The buyer would have to really want to make a go of the project long term - it wouldn't be a quick fixer upper and another sale.
2831
« on: February 26, 2015, 12:39 »
"...For just one day you can purchase a full year ingimage subscription for only $199, instead of the standard price of $999. The only difference is you're limited to 50 downloads each month instead of the usual weekly limit...."
$199 / 600 downloads = 33 cents each x 20% = 6 cents for the contributor with their current payout. The more we hear, the less interesting this agency becomes
2832
« on: February 26, 2015, 12:33 »
There is a fundamental difference between subscriptions to software or services - things that you cannot easily switch because of workflows, tools, plugins, addons, etc. - and stock image subscriptions which you can switch any time because the images are fundamentally the same across the board.
Investors like the notion of revenues that are consistent over time and locking in customers to that company's product - that's why Wall St. has been happy with Adobe's CC changes. Getty/iStock subscriptions can be dumped any time the current term runs out with no costs of switching or any hassle to the customer.
Without some success story Getty can spin - and I don't see anything anywhere in their latest financials that looks even vaguely like success - all they have is assets (mostly in archive content they either own or have exclusive rights to for a while). I can't see any hope of an IPO.
2833
« on: February 25, 2015, 15:19 »
Getty has done as much or more damage to the stock industry as any of the other candidates for bringing about ruinous conditions for contributors.
Ask any of the people who contributed to the many agencies they acquired - photos and music - whose royalty rates they cut and whose terms they made less favorable for anyone but Getty.
In addition, subscriptions were around long before Shutterstock started - they were on CDs and DVDs before things moved online.
Further, things were doing really well, for both iStock and Shutterstock for a while. IMO things could have continued that way long term - if Shutterstock were the culprit, the really big gains at iStock up to Sept. 2010 wouldn't have happened.
In terms of ruining the industry, want to talk about the deal Google did with Getty? Or Fotolia's toxic Dollar Photo Club? Or 123rf making its parent company, Inmagine, a distribution partner so they get two bites at the apple from the buyer's price? Or iStock cutting contributor royalties to 15% from an already low 20%? Or Deposit Photos paying a subscription royalty while the partner site sells at 99 euros?
Can't imagine all of that can be laid at Shutterstock's door.
2834
« on: February 25, 2015, 11:40 »
All the linking to any private Lightboxes on closeup pages you might have created is gone as of yesterday. The new style of closeup page is live now.
Yesterday, all I got were 404 errors on any asset detail page - mine or someone elses, logged in or logged out. Today, I'm back to the old style pages. I assume they're having some issues with the rollout.
2835
« on: February 25, 2015, 11:38 »
I have only token files left at iStock, so I have nothing personal to share, but I hear chat from a number of current exclusives - and some graphs with trends over time although not specific numbers - and they'd see 15% lower as an improvement for them  Some are still getting some decent money from the files submitted via iStock and sold at Getty, apparently. Words like "sales have fallen off a cliff" keep coming up...
2836
« on: February 25, 2015, 11:29 »
Thanks for the additional information. I assume that the lower competition is a result of having fewer images on the site and the astonishingly low download numbers - a buyer theoretically entitled to 13,000 images in one year only downloads 350 on average - tied to low prices and relatively few images.
This model doesn't scale well - at least not for the contributor - should the agency become successful. I have to believe that the subscription downloads will increase, thus lowering the return per download, and $2 for a credit sale average isn't all that high.
My return per download at Shutterstock - a mix of subscription and credit sales - hovers around $1 per download, with lots of competition and decent volume. I can't imagine you'll improve your royalties for contributors as the site gets more successful - it's generally worked the other way around. Sites are nicest to contributors when they need content to get started, so low rates at the beginning don't bode well, in my experience.
2837
« on: February 24, 2015, 21:16 »
Raises, most of the time, don't go to the deserving. The way Shutterstock can help us, and themselves, earn more money from our content is to continue trying to eat Getty's lunch and lure away the higher value sales - corporate clients and such.
When I returned from exclusivity at iStock (summer 2011) my return per download was in the 60 cent to 75 cent range. At the end of last year it was hovering around the $1 mark (high 90s; only once, last April, did it go over $1)
If they can get my return per download up to (let's say) around $1.25, I'll consider that a raise even if the rates haven't changed. More high value sales and fewer basic subscriptions should be easily possible for them and won't give the shareholders or finance geniuses heart failure that their costs of goods is going up.
2838
« on: February 24, 2015, 18:18 »
so does Canva provide on demand printing like Cafe Press or something, otherwise how else would you print some of the products you can design if it can never leave their design program?
You download a PNG or PDF of your entire design, not the individual pieces. So if you have text over the photo, for example, that's how it prints and to change that you need to go and modify the design on Canva. I think you get to modify the design within 24 hours without paying again, but after that you'd pay a second time as if it were a new design (not certain about that as I don't use the site as a designer).
2839
« on: February 24, 2015, 17:58 »
The big difference here is that Google is redistributing the image to its clients, like a distributor or partner agency - Google sells ads and is offering images as part of the package (a discount, effectively, so the ad buyer doesn't have to buy their own license).
A designer is hired to produce a brochure for a client and the client licenses the image. The designer produces a web site for another client and the client licenses the image. Each of those clients may use the image multiple times in multiple projects, but client A cannot share the license with client B because that's redistributing the image, something their license prohibits.
The Google/DT deal is different, and not in a good way
So what your saying is that when Google lets one of the 10,000 clients use the image those clients can now also use it 10,000 times, thus 10,000 X 10,000 = 100,000,000 ?...
No. Google can't transfer the right to redistribute to anyone else. The issue is that Google sells it multiple times - each time to a different client - when the contributor only gets paid for one sale to Google.
2840
« on: February 24, 2015, 14:59 »
..., I guess I don't understand how having the image restricted to their online design program is any different then purchasing an image and doing something with it on your own computer as a graphic designer?
You never get the image on your computer is the difference. It's micro rights managed licensing, in effect. $1 lets you use it in one project, and if you have 4 projects you pay $4. RF licensing you get the money once and that's it. The reason having it in their design program matters is that it provides a way of enforcing usage. At microstock prices, who'd police the traditional rights managed license? Something you paid for the rights for a book cover in Germany only for 12 months and now you're using it worldwide over 3 years and owe extra money. Getty could afford to chase people up when licenses for that sort of usage were very expensive.
2841
« on: February 24, 2015, 13:56 »
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.
2842
« on: February 24, 2015, 11:38 »
...For instance in DT rules for image use on the web for anyone buying an image not just Google, they are allowed 10,000 uses ... In fact in just about all instances anyone purchasing a RF image is then making money from the image in some way or another either by placing it on a product or using it with a service they provide. So is Google any different in this regard?...
The big difference here is that Google is redistributing the image to its clients, like a distributor or partner agency - Google sells ads and is offering images as part of the package (a discount, effectively, so the ad buyer doesn't have to buy their own license). A designer is hired to produce a brochure for a client and the client licenses the image. The designer produces a web site for another client and the client licenses the image. Each of those clients may use the image multiple times in multiple projects, but client A cannot share the license with client B because that's redistributing the image, something their license prohibits. Some sites permit images to be included in template products (a form of redistribution) with the purchase of an extended license. That's why this DT deal is granting Google a very very broad extended license for one year for $2 royalty to the contributor. If via SS's deal with Facebook, 100 ads are sold with my image, I make $38.00; if it were DT's deal with Google, I'd make $2 The Google/DT deal is different, and not in a good way
2843
« on: February 24, 2015, 11:29 »
... the important question is whether ANY of them would have found the image otherwise, much less PAID for it
I disagree that this is a good reason to accept an unreasonably low extended license payment - $2, effectively - just because (a) they'd have stolen one otherwise or (b) it's a small size. A bad deal can't be made better via the above reasoning, or the "it hadn't sold on DT anyway" reasoning. Every time you accept a crappier deal with the notion that "it's better than zero", you're just setting things up for an even worse deal down the road. Not to mention that many of the items that haven't sold much at DT have sold well elsewhere - unless you're exclusive there, think about the fact that you're undercutting future sales at other agencies. I've opted out - I don't sell cheapie extended licenses anywhere (I opt out at PhotoDune for example) - but I think the folks who opt in are taking too little up front cash for a a broad license with some vague hope that the deal will bring in something better down the road.
2844
« on: February 24, 2015, 11:17 »
An update on my exchanges with Envato support. 1. The escalation (support in the UK) was only to ask "...if you've raised your specific concerns with our Finance Team? You can reach them directly via: [email protected]" I replied that I hadn't because I assumed they had no ability to change what Envato is doing, only to try and explain why I should change my accounting at tax reporting to fit their new scheme. 2. Even on account closing, they don't pay out your balance unless it's over $50, so I'll watch my balance and open a support ticket at that point and they'll close my account for me.
2845
« on: February 23, 2015, 23:49 »
I'm so excited - 20 or so of my backlogged images are now online! It appears they are being handled in date order (these were from October 4th and newer ones are still in review).
There were a couple that had a (S) rejection - does that mean soft, and is there any way to know what Canva didn't like? If not, it doesn't matter much - I wouldn't resubmit anyway, but if there is a subject matter you don't want more of, or processing you didn't want, it helps to know. Saves both of us time in the long run.
2846
« on: February 23, 2015, 23:08 »
Alamy's unpredictable (for me), so some months it's much more than 123rf but other's Alamy is zero and 123rf has never been zero. Taken annually, 123rf has always easily beaten Alamy.
As far as which sites to place your work with: it's complicated.
There are some disreputable sites that just shouldn't get your work (you can see the discussions here about sites which have been caught in all sorts of underhanded behavior). For other sites with a sales track record, my view is that it's unlikely, for most of us, designers who shop at a particular site or two will go and hunt out your work if it's not there. You probably will not see those sales as the designer will buy someone else's work from their preferred sites.
When sites are new or trying to grow, it's absolutely worthwhile to withhold providing work to a site that has terrible prices or policies, but once it's established, unless you can organize a mass exodus, I don't think you'll change where designers buy.
I've left a number of sites over concerns about their practices or terms, but not over low prices per se.
2847
« on: February 22, 2015, 20:17 »
Ok understood, but for us in the US I will just report their cut as an expense, keeping my total income from Envanto what I actually net. I am not a tax attorney but it seems pretty simple to write off their cut as a cost of doing business. So if I make $1000 in a year and they report $3300 income, I am going to write off $2300 as an expense. Maybe I'm oversimplifying it.
You're not oversimplifying it, but in my case, it makes a whole lot of things complex. I do stock part time. Given that all the gear and my home office are used for other things as well, I don't write any of it off (keeping track of the proportions, days and hours is just not something I want to do). All the travel we do is family travel, and again, not specifically for stock, and I don't deduct any of it. I don't pay models or rent venues; I have a bucket load of computers for other purposes too. I probably pay a bit more tax than I owe, but I report what the agencies pay me, as a sole proprietor. I don't want to have to start keeping track of all the expenses to do the books the way you would with a "real" business, but if Envato starts reporting more than they actually pay me, I'm not up for overpaying even more by paying tax on that, and I don't want to deal with the recordkeeping to start a full set of books. Avoiding the hassle of an audit (I'm not worried about owing money, but the time spent digging up all the paperwork and organizing it) is a priority; I don't see how I can handle claiming expenses from just this one agency without risking raising some audit red flag. For a few hundred a year it's just not worth it to me. YMMV
2848
« on: February 22, 2015, 18:36 »
That's 40% of the minimum "floor" for credit sales - 40 cents a credit - that they guarantee us even if the item was a freebie or sold at such a huge discount that the actual cost per credit was lower.
I don't get those often (mine are 18 cents per credit); if they started to show up a lot I'd be more concerned
2849
« on: February 22, 2015, 18:33 »
I got a reply back to my request to close my account and was told that my message had been forwarded "to the necessary staff for consideration." And maybe I'm reading too much into it but to me, "for consideration" might suggest that they could be reconsidering the implications of this new policy, particularly if contributors are requesting to close their accounts because of it.
So anyone considering closing their account, I'd suggest contacting Envato to let them know that you're even thinking about it. Maybe if enough people express an interest in parting ways with them, they might fix this mess.
I got back something similar that they were "escalating" and would be in touch shortly. I'm not fussed either way about the outcome, but I do think it's worthwhile to take the opportunities we can (like with DPC) to make it clear to the agencies that poor treatment of contributors will have consequences. I can't imagine they can back away from the whole scheme, but I can perhaps imagine that they'll treat PhotoDune differently - because they're acting just like an agency, setting prices and reviewing contributions for inclusion or not. I don't know about the EU contributors, but I'd be happy if they just issued the 1099 to me for the money they actually paid me, regardless of the convoluted invoice scheme they've cooked up. So I guess that's another possible way out of the conundrum for a subset of contributors.
2850
« on: February 21, 2015, 14:21 »
I received a reply from Envato support this morning (asking about whether 1099s would be issued for 2015 tax year to US residents, and if the fictional income - royalty plus author fee - would be listed on it). It pointed me to this blog post from October http://marketblog.envato.com/news/us-authors-tax/At the end of the post it says: "16. What is reported on the 1099? The income of the US Person is reported on the 1099.
When you sell items on Envato Market as an author, you are making a transaction directly with every buyer who purchases your item. Your income is the gross value of this sale to the buyer. In an immediate follow-on transaction, Envato charges authors an Author Fee which is an expense against your income.
Our fee structure changed on September 1st, 2014 to reflect our services to buyers. Buyers now purchase both an item, and pay a Buyer Fee to Envato. Author income is only the portion of the sale which is for the item (i.e. not the separate Buyer Fee transaction). Again, Envato charges authors an Author Fee against that income.
The Statements page is being updated to provide authors with all the information they need to complete their tax return."So I think I need to wind up my dealings with Envato; now the only question is if they will pay me the balance owed (which is currently under $50) if I quit today. If not I'll have to hit $50 and then remove images, get paid a month later and then close my account. It's a shame, but they're such a low earner, they're not worth the hassle.
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