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Author Topic: SS Subscription increase = pay increase?  (Read 5121 times)

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« on: March 12, 2007, 21:52 »
I am hoping YES. Because sales are dragging

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« Reply #1 on: March 12, 2007, 23:10 »
Unlikely.  I have been having difficulty working out exactly how SS makes a profit.

Think about it:  a monthly subscription costs $159 for a maximum of 750 downloads.  If each of those downloads pays a commission of 25c, the COST to SS is (750 x 25c = 187.5).

Unless I am overlooking something.......

So perhaps it has been operating as a loss leader, and now it has a library it can increase subscription rates to generate its profit.

Unlikely that contributors will get more.....

« Reply #2 on: March 13, 2007, 01:27 »

Unlikely.  I have been having difficulty working out exactly how SS makes a profit.

They're probably banking on the facts that ...

a)  Not many customers will use their full download of 750 images per month. How many people need that many images?

b)  Out of those 50'000 contributing photographers, I guess that a load will never reach their $100 payout limit.

c)  And there will also be a significant proportion of contributors who will give up on SS, because it takes them an age to reach $100, (or they'll die, or will have have marital bust-ups, or other major crises in their lives) and forget they have images online. But those forgotten images will continue to earn for SS.

I base those last two observations on personal experience. I went through a phase where I spread the word about SS as widely as I could to get referrals, and the tiny commission. Of the people who were accepted, not one became a regular contributor. They all have small static portfolios ranging from 5 to 100 or so images. I get a few cents every day from their sales, but I guess that hardly any of them have, personally, taken a payout.

« Reply #3 on: March 13, 2007, 02:16 »
The biggest one is probably a) above.  It is not 750 per month but 25 per day.  Each month has 8 weekend days plus some omonths ahve public holidays.  So SS profits on these days when DL slow as the 25 per day is use it or lose it from what I understand.

« Reply #4 on: March 13, 2007, 03:11 »
Well, ever since I started looking at this microstock business a few months ago I have believed that prices and commissions would rise over the next two or three years.  The days of the 25c are numbered.  It is just a question of time.

Two comments in SS's release above are important.  One suggests that they are raising prices (and hence commissions) in order to continue to attract the best images.  That suggests a commission increase is indeed on the cards.

The other remark is their 'supply of fresh images in each search'.  This ties in with observations made on this board that once images stop being 'fresh' their sales die away.

« Reply #5 on: March 13, 2007, 03:33 »
yeah it sure would be nice with a pay increase, but i am not holding my breath.

How shutterstock makes money.  As has been mentioned before, it is simply a law of averages.  They know how much the average down loader downloads (far less than 750/month), and can set their prices to make a profit from that.  With thousands of subscribers I don't think the total downloaded varies too much from their calculated average.

« Reply #6 on: March 13, 2007, 06:34 »
On there forum they have said they will review the commission at the same time they did last year (april) when the price went from 20 to 25c.

A price increase seems to support they will  :D but maybe it is to avoid putting commissions down  :(

Note that 123rf pays out 50% for their commissions and it has been averaging about 33-34c. I am not sure how their pricing compares to SS though.

« Reply #7 on: March 13, 2007, 07:24 »
25 images per day but downloading is not so easy and 99% subscribers don't use all available credits...


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