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Are you saying that you make as much per image selling on your own site as you make from either iStock or Shutterstock? Or is the "particular agency" something like Canstock? And do you have clients who you can direct to your site or are you relying entirely on search engines?I really do not see how simply through SEO someone can match the returns generated by Shutterstock. But, of course, I might be wrong, and if I am I would like to know how to perform that particular trick.
the annual commission per image is probably a tad less than $2.50. Obviously the longer-term contributors can be expected to earn more and the newbies somewhat less than that average figure.
my read of their SEC filing is that they paid out $39.3 million in royalties to 35,000 contributors. So the mean contributor is making something like $1,100 a year by posting their work on the site. (I don't know exactly what the distribution looks like; we only know that no entity received more than 10 percent of the royalties paid out.)
Quote from: Karimala on May 14, 2012, 23:59Now we know for sure the agencies read MSG! From the Prospectus:QuoteINDUSTRY AND MARKET DATA Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources and on our knowledge of the markets for our products. These sources include BCC Research, Zenith Optimedia, BIA Kelsey, Microstock Group Forum, Cisco, IBISWorld, Netcraft and MagnaGlobal. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified any third-party information and cannot assure you of its accuracy or completeness. While we believe the market position, market opportunity and market size information included in this prospectus to be generally reliable, such information is inherently imprecise and we cannot give you any assurance that any of the projected results will be achieved. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate is necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us. Cool! Where can we find the prospectus?
Now we know for sure the agencies read MSG! From the Prospectus:QuoteINDUSTRY AND MARKET DATA Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources and on our knowledge of the markets for our products. These sources include BCC Research, Zenith Optimedia, BIA Kelsey, Microstock Group Forum, Cisco, IBISWorld, Netcraft and MagnaGlobal. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified any third-party information and cannot assure you of its accuracy or completeness. While we believe the market position, market opportunity and market size information included in this prospectus to be generally reliable, such information is inherently imprecise and we cannot give you any assurance that any of the projected results will be achieved. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate is necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.
INDUSTRY AND MARKET DATA Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources and on our knowledge of the markets for our products. These sources include BCC Research, Zenith Optimedia, BIA Kelsey, Microstock Group Forum, Cisco, IBISWorld, Netcraft and MagnaGlobal. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified any third-party information and cannot assure you of its accuracy or completeness. While we believe the market position, market opportunity and market size information included in this prospectus to be generally reliable, such information is inherently imprecise and we cannot give you any assurance that any of the projected results will be achieved. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate is necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.
From an investment perspective, the most obvious red flag, though, is that their revenues have more than doubled in the last several years, but their net income has been stagnant. They're having to spend a lot more money on sales and marketing than they did back in 2008. If that trend continues, something will have to change on the revenue side.
Quote from: Microbius on May 15, 2012, 05:22Quote from: Karimala on May 14, 2012, 23:59Now we know for sure the agencies read MSG! From the Prospectus:QuoteINDUSTRY AND MARKET DATA Unless otherwise indicated, information contained in this prospectus concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources and on our knowledge of the markets for our products. These sources include BCC Research, Zenith Optimedia, BIA Kelsey, Microstock Group Forum, Cisco, IBISWorld, Netcraft and MagnaGlobal. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. We have not independently verified any third-party information and cannot assure you of its accuracy or completeness. While we believe the market position, market opportunity and market size information included in this prospectus to be generally reliable, such information is inherently imprecise and we cannot give you any assurance that any of the projected results will be achieved. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate is necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and elsewhere in this prospectus. These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us. Cool! Where can we find the prospectus?Gbalex posted a link. http://www.microstockgroup.com/shutterstock-com/ss-ipo-it%27s-done/msg255125/#msg255125
Is the 45 million cost of revenue supposed to be what they paid out to contributors in that year?In January 2011 kelly said istock was paying out 1.7 million a week, roughly 90 million a year.This would mean that Shutterstock is paying out half of what istock is paying their contributors.I hope I misunderstood that, I would find that very, very scary (from an istock exclusive perspective).
How do I participate in the IPO? I'm located in Europe. I could spare a few thousand dollars for some SS Stocks...
It's in The Atlantic article I linked to above Cobalt. A guesstimate at least.
Quote from: Perry on May 15, 2012, 13:13How do I participate in the IPO? I'm located in Europe. I could spare a few thousand dollars for some SS Stocks... Ya even I would like to participate in the IPO... but how...?I discussed today from one of my share broker and he told that I cannot invest in the ipo since I am living on different country.
Quote from: bhr on May 15, 2012, 13:31It's in The Atlantic article I linked to above Cobalt. A guesstimate at least.I think 39.3 million in royalties is too high, that only leaves 6.2 million for 70 employees, infrastructure, renting an office in new york, plus other expenses. The employees alone could cost more than that.
Quote from: traveler1116 on May 15, 2012, 13:35Quote from: bhr on May 15, 2012, 13:31It's in The Atlantic article I linked to above Cobalt. A guesstimate at least.I think 39.3 million in royalties is too high, that only leaves 6.2 million for 70 employees, infrastructure, renting an office in new york, plus other expenses. The employees alone could cost more than that.So do you think their contributors are earning less than $2.62 per portfolio image per year on average ? It seems a very small number.
Yep, probably a lot lower. The costs they include are credit card transactions for 550,000 customers, image review for 6+ million of images, 70 or more employees salary, facilities, website, infrastructure, etc.. Hard to see how that could be paid for by 6.2 million dollars.
Quote from: traveler1116 on May 15, 2012, 13:50Yep, probably a lot lower. The costs they include are credit card transactions for 550,000 customers, image review for 6+ million of images, 70 or more employees salary, facilities, website, infrastructure, etc.. Hard to see how that could be paid for by 6.2 million dollars.<sigh> Why don't you just read the report rather than invent your own figures? Here you go, I'll do it for you;"Cost of Revenue. Cost of revenue increased by $13.2 million, or 41%, to $45.5 million in 2011 compared to 2010. Royalties increased $10.8 million, or 47%, driven by an increase in downloads from existing and new customers. We anticipate royalties growing in line with revenues in 2012 and beyond, although royalties as a percentage of revenue may vary somewhat from period to period. Credit card charges remained substantially unchanged at $5.1 million as increasing card volume in 2011 was offset by significantly lower credit card processing fees per transaction as we switched the majority of our credit card processing to a new vendor in 2011. We anticipate credit card charges increasing in 2012 and beyond as credit card transaction volume increases. Employee-related costs increased $1.1 million, or 60%, driven by increased headcount in customer service, content and website operations to support increased customer volume and a more robust website infrastructure. "I know they used to pay just 5-6c per review back in 2007, if I remember correctly. If we assume that might now be 10c then it still only accounts for about $1M.The annual commission per revenue that we have derived can't be a million miles out anyway. My own port earned $3.40 per image at SS last year (on the highest rates). At IS it was $2.77 and the difference is widening on a monthly basis as earnings at IS have reduced whilst earnings at SS continue to grow.
10.8 / 13.2 x 45.5 = 37.227Not sure how The Atlantic is getting their number.
Not arguing and you may well be right. Can you explain a little more ?My thinking was this:Revenue cost increased 13.2 of which 10.8 was royalties. Therefore I was assuming that royalties are 10.8/13.2 of total revenue cost.Aren't the percentages are a red herring ?