New Pricing Strategy For RM

Posted on 5/9/2012 by Jim Pickerell | Printable Version | Comments (0)

Evolveimages.com has introduced a new simplified licensing model for Rights Managed (RM) Images that they call EvoRights. EvoRights focuses on four primary price drivers: use type (commercial or editorial), intended media (print, digital or both), duration and geographic distribution and allows customers to determine the usage fee in as little as three clicks.

If the Use Type is Editorial and the Media is Print the fee for cover usages is 1.5 times the fee for any inside usage. There is no breakdown for the size of use on the page or for circulation. If the Media is Digital the fee for use on a home page is 1.5 times the price for use on any other web page.

In the Territory option there are four breakdowns: North America, Europe, Rest of the World and Worldwide. The base price is for North America. The price for any use in Europe is 1.2 times the North American price. Thus, use in a country like France, Germany or Greece will cost more than any use in North American. The price for use anyplace else in the “Rest of the World” is the same as in North America. The Eastern Europeans may wish they could get out of Europe. If a customer wants to make worldwide use of an image the cost is only 1.3 times the base price.



The duration options are limited to 1, 2 or 3 years. The 1 year price is the base price. For the second year, the fee is 1.75 times the base price and for 3 years it is 2 times the base price. This time period certainly won’t satisfy any educational customer in today’s market. Such uses would have to be negotiated separately. Mark Ippolito, CEO and Co-Founder of Evolve says that Evolve Images is focused on selling to the Commercial market rather than the editorial. But, despite that fact they have had some good editorial sales so far.

One of the most unique aspects of the pricing model is that the fee varies depending on the customer’s industry. Many RM distributors ask customers to input their industry, but the industry chosen usually does not affect the price. On Evolve Images the following 12 industry categories are defined



Price Factor Industry Category
   
1.7 Alcohol & Tobacco
1.25 Banking & Financial Services
1 Broadcasting, Arts and Entertainment
1.5 Chemical/Pharma
1 Construction
1 Food & Natural Resources
1 Health & Beauty
0.8 Non Profit
1 Professional Services
1.1 Retail & Marketing
1.2 Tech/ Telecom
1 Transportation/ Tourism

Image use in six of these industry categories are priced at the base price. If the customer is a Non Profit the price for usage is 0.8 times the base price. The other five industry segments must pay more. Customers from the Alcohol and Tobacco industry are charged 1.7 times the base price and Chemical/Pharm customers are charged 1.5 times the base price. It is interesting that Energy and Automotive are not separated out as industries. Ippolito say they may add other industry categories later. For now Energy would fall under “Natural Resources” and Automotive would fall under “Transportation.” Both of these are base price categories.

EvoRights also offers price accelerators for images that are more costly to produce. Ippolito says, “a still life of a coffee cup shot against a white background should not be priced the same as an image of a young couple (model released) in a cafe (property released) drinking coffee.”



He continued, “we believe great images should be easy to license. ‘Easy’ means fast, simple and fair. Traditional royalty free licenses meet the criteria for ‘fast’ and ‘simple,’ but we believe don’t return enough value to photographers. Traditional rights managed licenses may be ‘fair’ to copyright holders, but are overly complex to execute and manage.”

Price Accelerators


In addition to the four basic price drivers, EvoRights allows for price accelerators (multipliers) for various factors including: model released images based on the number of models, aerials, high production value images, etc. At Evolveimages these factors are applied to the image when it is uploaded. Accelerators have no relation whatsoever to the buyers intended use of the image. The existence of these multipliers is hidden from the customer and only apparent if the customer compares prices of various images.
 
Here’s a small example of how these accelerators work.

  flower 1 person 2 people 3 people crowd highway street scene
            aerial 17 models
Factors base 1.1 1.21 1.34 1.46 1.1 1.61
               
Editorial/Digital/NA/1 year $132 $145 $160 $176 $193 $145 $213
Editorial/Print/NA/1 year $462 $507.5 $560 $616 $675.50 $507.50 $745.50
               
Commercial/Digital/NA/1 year $220 $242 $266 $293 $332 $242 $354
Commercial/Print/NA/1 year $770 $847 $931 $1,025.50 $1,127 $847 $1,239

Many of the images on the site are priced at the base price depending on whether the use is Editorial or Commercial and used in Print or Digitally. If there is one person in the picture the base price is multiplied by 1.1. For two people the multiplier is 1.21; for three 1.34 and for a crowd it is 1.46. An aerial view of a highway interchange that obviously required additional costs to get the picture is priced at 1.1 times the base price. The additional factor decision is made at the time the picture is placed on the site.

Partner Program


Evolve Images has also announced the EvoRights™ Partner Program that will provide FREE access to qualified photographers and agencies to their simplified pricing and licensing model.

To encourage broad adoption among both image buyers and distributors, Evolve is making the licensing model - including all usage options and pricing calculator - available at no charge to qualified image licensing professionals in exchange for reciprocal links to and from participating partner websites.

Evolve will provide Partners with the usage structure, price tables and accelerators. The actual base prices and accelerators are determined solely by each Partner. Evolve will actively promotes its Partners and Partner images through its own digital media marketing campaign including email, blogs, social media marketing and SEO. To learn more about the EvoRights Partner Program check out this link or send an rznvy


Copyright © 2012 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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