Guide to Pricing Commercial Photography

There is a wide range of pricing models in the photography industry from the outdated 'Day rate', to the newer 'License only fees' spread through that range there are five main pricing models: Day rate, Creative fee, Production plus usage, Single image rate, and License only fee.

At Walt Sorensen, we have studied these five pricing models and found that a hybrid model combining the best parts of 'Creative fee' and Production plus usage' is the most fair to our clients.

There are three main cost areas in commercial photography services: Creative Fees, Expenses, and the License. 

Fees: As in any free market, fees will vary greatly among photographers. It's easy to get caught in the trap of shopping price instead of looking for value. With Walt Sorensen we seek to provide our clients with more than just images, we seek to provide value in our photographs. All photographic assignments have a Fee component and an Expense component. The Fees cover the costs to my business for Salary, Time, Overhead, Equipment, Training and Profit. Although many people still use the term Day Rate, few Professional Photographers have a standard day rate. We use Creative Fee rather than day rates. The creative fee includes the value of our creative services. Each project is special and will have specific fees associated with it. Please call or write for Fees associated with a particular project.

Expenses: The Expenses are the incremental costs associated with a particular job, such as Freelance Assistant, Travel, Props, Film and Digital Processing, related Production charges, post production and delivery charges. Each project is unique and will have specific expenses associated with it. Please call or write for expenses associated with a particular project.

Image License: Image License is the most miss understood area of photography services and the area where most photographers and clients make the biggest mistakes. Clients often don't define their needs, which makes delivering an appropriate license difficult resulting in some clients trying to buy copyrights. The following information will help you to define your needs and navigate through the license terms.

The questions to answer to define your licensing needs are:
Who needs to use the photography?
Where will the photography be used?
How long can the photography be used?
Are the needs for the licensing unlimited or limited to a length of time or press run, etc?
Will the photography be used in advertising, editorial or collateral media?
Will it appear locally, regionally or nationally?
What languages will it be used in?
Does the the photography need to be exclusive to the client for a period of time?
Can the photographer re-license the images (or out-takes) to others?
Is a non-compete clause necessary to protect the proprietary nature of the photography?(non-compete clauses have a maximum enforceable life in Utah)


There are 4 parameters in the license for an image.
1) Market - geographic market where the image is used
2) Time - how long the image will be used
3) Size and placement - this relates to visibility of the image. Is the image being used for a 1/4 page ad or a two page spread. Where is the Image/ad being placed on a billboard, website, back cover of a magazine?
4) Number of uses - this relates to the circulation of a magazine or newspaper, or the press run for a brochure, etc. No two clients have the same needs for the use of an image. Should a client pay for 10 years of use as in a million circulation National magazine; for an image that would be used only once in a single local publication? We think not, and we think they should only pay for their needs. 

A sample license might read: exclusive use in local trade advertising by ABC Co. for one year.

Many people also make the mistake of wasting money on buying unlimited usage of an image or buying a copyright when they have limited usage needs. Avoid using the term "buyout"; it has no legal meaning and is subject to different interpretations. Buying the copyright could greatly increase your costs without changing the value that the image has to you. Realistic usage needs should be weighed against budget considerations. Why pay more for something you might not need? Future licensing can be purchased as needed. We have found the fairest model for licensing to be one that charges the license granted according to the client's usage needs, rather than a general license usage. Please call or write discuss your license needs associated with a particular project.

Pay attention to your license. Images are licensed for specific uses, and that information is included on the contract or invoice. It is up to the client to manage the usage of the image internally. Rights not specifically granted are reserved to the photographer. Possession of Digital files or photographic prints does not give one the right to reproduce or copy them. Electronic files should be destroyed after the period of the license has expired. New files will be sent with any relicensing purchase, there is no need to destroy files or to send new file if the relicensing is completed before the original license expires.


Adapted from the ASMP publication 'On Buying Photography' by Terry Pagos and Robert Rathe (http://www.robertrathe.com).  Additional information provided by Peter Krogh (www.peterkrogh.com), and personal industry experience.