500px Marketplace Closing Down

Posted on 5/31/2018 by Jim Pickerell | Printable Version | Comments (0)

Contributors to 500px Marketplace are finally learning what Visual China Group (VCG) has planned for them. VCG has just sent them a message outlining some “major enhancements” that are coming. “

“These changes will help maximize your potential earnings by positioning your content at the right price and with the right distribution. Starting July 1st, 2018, we’re offering our community an exclusive opportunity to work with our newest global distribution partner, Getty Images,” the message says. (emphasis mine)

Marketplace contributors need to think carefully about what the “right price” means to VCG and Getty. Last December we did a story entitled “Why Creators Are Dissatisfied With Getty” that showed that one-third of the sales were for gross license fees below $5.00, 55% below $10.00 and 73% below $20.00. These were gross fees. If photographers receive a 50% royalty then they will get one-half of these numbers.



While Getty promises that your royalty rate will “remain unchanged,” Getty has a history of lowering royalty rates once they have contributors locked into exclusive agreements. The majority of their contributors are getting 20% of less.

I recently had communications with another photographer who has been contributing to Getty for many years and has a large collection with them. In 2017 the photographer received royalties of less than $1.00 for 41% of sales. Another 38% of sales generated royalties between $1.01 and $5.00 and the royalties for 88% of total sales were less than $10.00 each.



Marketplace was originally sold to contributors as a way to get “Premium” prices for their work, not as a way to “undercut Microstock pricing.”

Getty does occasionally distribute to some premium customers and can sometimes get higher prices. In the case of this photographer royalty of over $100 were paid on less than 2/10ths of 1% (0.17%) of the sales.

Most contributors to the 500px Marketplace were opposed to Microstock and allowed 500px to represent their images because they promised higher prices. Before signing any exclusive deals, contributors should think long and hard about what they are agreeing to, and not be misled by the Getty Images name. If you really want to earn revenue from your images it may be time to submit them somewhere else.



Also see these stories:

VCG acquires 500px     2/26/18
http://www.selling-stock.com/Article/vcg-acquires-500px

Marketplace agreements will be terminated    3/30/18
http://www.selling-stock.com/Article/500px-marketplace-in-transition


Copyright © 2018 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

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