Monthly Archives: September 2018

Letter to Mark Getty from an iStock Contributor

I have been reading in Petapixel that Getty Images to be Fully Controlled by the Getty Family Once Again. According to that article the Getty family have taken a majority stake in the business, and will take full control. Mark Getty led the negotiation and purchase on behalf of the Getty family. I know very little about the broader Getty Images business, but I have been a contributor to iStock since 2008. I used to love iStock and the high volume, low price business model. With major changes to iStock over recent years it no longer looks like the site I joined in 2008. With this post, it’s time to write a letter to Mark Getty from an iStock contributor outlining the issues and to make suggestions to make iStock great again. 

“G’day Mark,


My name is Craig Dingle. I live in Melbourne, Australia and have been an iStock contributor since 2008. I’ve been reading in Petapixel that the Getty family has taken a majority stake and full control of the Getty Images business. I’m sure you are doing that as you see potential for a good investment. In the stock photography side of the business, and specifically iStock, I see considerable potential but not on the current trajectory. I’ve outlined the issues and potential solutions from a contributors point of view.

Background

When I first joined iStock it was a vibrant community made up of photographers from around the world. iStock was known as the micro stock industry leader, and for the high quality content on the site. It was a badge of honor to be an exclusive iStock contributor. There was a dynamic contributor forum, and contributors who were submitting strong content were making a considerable income. That’s not the case today.

money

Up until 2012/13 contributors could make a significant income in microstock

Where it All Changed

Many things have changed about iStock since 2008.

Where the fundamental shift occurred was when iStock stopped selling licences to contributors images – and starting selling subscriptions. At this point, the most important change in iStock history happened. The interests of iStock and contributors were no longer aligned.

iStock is interested in selling subscriptions. I can see why. With a subscription iStock’s monthly income will fluctuate much less than if it were based on a percentage of image sales revenue.

Where is the misalignment? The contributor is still receiving a percentage of the amount to licence their image.

In my case, I was exclusive and on a 35% royalty. I decided to drop exclusivity last year and now receive 15% royalty as an independent contributor. That means I see many royalties of less than USD$0.20 per download. The lowest royalty I have received for a download is US$0.02. (Some contributors report seeing royalties of US$0.01 but I haven’t had one of these – yet!)

Contributor Royalty Rates Versus other Microstock Libraries

So, one issue is the misalignment of Getty Images interests with contributors interests. The second issue is how the royalties are structured and what it means in royalty per download for your contributors.

Contributors are sometimes receiving US$0.02 royalty when a customer licences one of their images via iStock. Let’s let that settle in for a moment. It’s worth repeating. Contributors are sometimes receiving US$0.02 royalty when a customer licences one of their images via iStock.

iStock’s major competitors overcome this by offering minimum royalties. I now contribute to Shutterstock. My minimum royalty there is US$0.33. It’s not much per download, but it is 16 times higher than iStock is paying on some downloads. iStock is paying contributors much lower royalties per download than the other major microstock agencies.

What’s the Implication of Paying Contributors so Little?

At the level of an individual contributor – the implication for me is that it no longer makes financial sense to contribute images to iStock which have any cost of production. That means I only contribute content that has cost me nothing to produce.

All my other content goes to other agencies where there is a greater financial reward for the contributor.

Again, let’s pause and let that settle in.

Melbourne lifestyle

My stock photography has focused on lifestyle content in the last 3 years. I don’t upload it to iStock as the financial returns are not there.

Other contributors will be in the same boat. I expect that iStock – previously the market leader in microstock – is becoming a dumping ground for contributors of low cost of production images. That’s not likely to make any difference to the iStock collection or business in the short term. But in the long term, iStock risks being the low quality, low price image library. I presume you’ll need to do massive volumes to make that business model work.

Contributor Reporting

An outcome of the royalty structure is that iStock contributors see a major delay in reporting. We get visibility of what content has been licensed at what prices on the 20th of the following month. So for August sales, I see reports on the 20th of September.

Mark, I imagine Getty Images has a monthly board meeting in the middle of each month. I imagine financial results are tabled at that meeting plus management commentary for the previous month. Can you see the irony here?

While Getty Images reviews the previous month’s financial results, contributors are still waiting for their financial reports.

To compound the issue for iStock – your competitors are miles ahead in this area. Each time one of my files is licensed on Shutterstock I get instant notification on my smart phone. It tells me which image was downloaded, what my royalty was, and the total amount Shutterstock now owe me.

The process I take to receive the same information on iStock is – wait until the 20th of the following month to receive data. Then, I download a text file. I save it to my computer desktop. Then I upload it to Qhero stats function to see what has sold for what amounts.

Shutterstock is leaving iStock behind by making it easier for contributors to run their business.

New Content Visibility

When I look at the Qhero stats functionality I see it is mainly my old files which customers are licensing. I’m not getting a return on recent files, which is a major disincentive to upload new content. You can read more about that in this post iStock Shutterstock Comparison.

iStock has identified issues with ‘search freshness’ but there is no evidence that it is taking action. The lack of sales of recent content is a further disincentive for contributors to add fresh material.

Melbourne lifestyle

My new stock content is going to other stock libraries, not iStock

Priorities to Make iStock Great Again

I have more than 10,000 files on iStock so I have a vested interest in seeing that business succeed. As the Getty family take majority ownership and full control, these are my suggestions for priorities to make iStock great again.

Priority 1 – Align the Interests of Contributors with iStock. When a customer licences an image (who’s copyright belongs to the contributor) there must be a financial benefit to the contributor as well as to Getty / iStock. Please don’t suggest that US$0.02 is a fair financial benefit to the contributor.

Priority 2 – Get Serious about Reporting for Contributors. Ironically, iStock doesn’t have a business without contributors content. We are partners. iStock need my content, and I need iStock’s distribution strength. If you want me to produce current, fresh content, you are going to need to build reporting which supports that.

Priority 3 – Find Ways to Reward High Quality Content. The first 2 priorities are the necessary first steps. Priority 3 must be finding ways to reward high quality content. I can tell you directly that I won’t invest in paying models, hiring venues, and paying assistants to receive US$0.02 per download. If the iStock team think back to the high quality collections of the past (Vetta and Signature+) these were real incentives for contributors to excel.

Priority 4 – Clarify the Business Model. iStock is getting confused as to whether it is an image library for royalty free content, or a broker of contract work between customers and contributors. The Custom Content initiative would not be happening if the core stock photography model worked better for contributors and customers. I see this as a distraction from iStock’s core business.

Conclusion

Mark, I genuinely want the iStock business to be successful – and much more successful than it is now. I would love to be proudly telling people I’m an iStock contributor. That’s not the case today, and I fear that the current trajectory means poor outcomes for contributors in the short term, and for the iStock business model in the medium term.

I hope the Getty family taking majority ownership and full control is an opportunity to steer the ship on a new course.

Kind regards,

Craig Dingle”

Note, I don’t really expect Mark to read this content, nor to respond. But I hope that it is helpful for photographers considering stock photography options to understand the current market and make decisions appropriate for their goals. Thanks for reading this letter to Mark Getty from an iStock contributor.

Photographing Different Commercial Jobs

This year I have been growing my business in sports and stock photography, and winding back slightly my wedding photography commitments. Over the last 3 weeks I’ve been asked to shoot two different commercial jobs, one for a bathroom renovation business and one for a cookie business. I often find myself in a dilemma about whether I should be photographing different commercial jobs.

Where Do These Jobs Come From?

I get these requests from personal relationships or referrals. The bathroom renovation business came across me at a recent sports shoot. You can read about that shoot in More Win Win Win Photography Ideas. The owner’s son attends that gymnastics club and made contact with me after the event.

The cookie business is run by an old friend of mine. He was visiting Melbourne and we caught up for breakfast. In the course of discussion he outlined that he needed images of his product as they have new packaging. Naturally, he asked if I could help.

product photography shoot

My simple set up for shooting boxes of cookies on a white background

Why the Dilemma?

I know that these clients want to deal with someone they know and trust. That’s why they’ve asked me to help.

The dilemma is twofold. First is that my business plan is to grow in sports and stock photography. Work outside of that is not helping achieve my business goals. Second is that I don’t regularly shoot this style of content. While I can produce acceptable results, I’m sure they could achieve stronger images by working with a photographer who specializes in the type of work they need.

What Did I Do?

For both of these jobs I decided to go ahead but for different reasons.

For the bathroom renovation business I considered that they will have ongoing work and need those jobs completed at specific times. I like clients like this, as most of the work is mid week when my team and I have availability. On top of this, they were nice people and make payment promptly. I like doing business with people like this.

For the cookie business, I took this job as it was for an old friend. So I’ve ended up photographing different commercial jobs for 2 clients this month.

Cookies

This is the type of image produced for the cookie business.

What Do I Expect for the Future?

The bathroom renovation business will need images each time they complete a job. I expect ongoing work from them. I am planning that I won’t shoot all of these myself, but will outsource some to other photographers depending on the location of the property, the time frame for the job, and my own workload.

The cookie business I expect to be a one off job and don’t expect any ongoing work. My friend lives in another country so it was just chance that he was visiting Melbourne and had his products with him. That might be a good thing as I wouldn’t want cookies and photos to mess up a great friendship!

What If I Don’t Want to Shoot this Type of Job?

If you are a regular reader of Beyond Here you’ll know I have a simple mantra of making sure the customer is happy. If I didn’t want to shoot these jobs, or was not able to, I would refer them to a photographer who could help them. In that sense I would help solve the customer’s problem even if it didn’t benefit my business. You never know when goodwill generated by helping a customer will generate additional business.

What Would You Do?

Do you face the dilemma of photographing different commercial jobs? Are they a distraction to your main business? What do you do?

Thoughts on Successful Photography Businesses

I often get asked about secrets or insights to running successful photography businesses. I’m not sure there really are any secrets, so I’ve called this post thoughts on successful photography businesses.

cheer leading competition background

For the State Champs we’ll be back at the same venue as Winterfest

This week I had a reminder of 3 things that are important in running successful photography businesses. The reminders came about after I was asked to shoot the cheer leading and dance Victorian State Championships in 2 weeks time. I have written two posts earlier about my experience shooting a large cheer leading and dance competition. You can read about those here:

So what are those three thoughts on successful photography businesses?

Thought #1 – Happy Customers are Key

I apologize for the simplicity of thought #1! That said, it is worth repeating and digesting – happy customers are key. I do all I can to make sure my customers are happy as that will lead to referrals and other business opportunities. Most times it is easy to make customers happy. The real test is when things go wrong. In that case I’ll do everything possible to put it right, even if it means I lose money on that job.

Gymnast

The opportunity to shoot cheer leading came from doing a good job shooting gymnastics

In this case my ‘customer’ was the national sports photography business I was shooting for. I knew that they needed good, reliable photographers in Melbourne. Doing a good job at the first event I shot for them has lead to a follow up job.

Thought #2 – Repeat Business is Important

Happy customers leads to referrals and also to repeat business. Again, in this scenario, the national sports photography business have multiple events in multiple locations all year round. As it happens, the State Champs are being held at the very same venue as the event I shot with them a few months ago. This will make this job relatively straight forward and definitely low stress.

I know the people I’ll be working with, the venue we are shooting at, and the sport we are covering. That’s the beauty of repeat business. From the national sports photography business point of view, they know I’ll do a good job and will be reliable. Win win.

cheer leading

At the State Champs I’ll aim to take some phone shots which aren’t quite so blurry!

Do you have repeat business opportunities? Can you create some by following up with some of your happy customers?

Thought #3 – Relationships and Communication Drive Everything

Behind the national sports photography business are people. (Amazing insight isn’t it!) In this case I was able to connect with the owner of the business at the first event and strike up a good relationship. She lives in a different state, and since then all our communication has been via email. She is easy to deal with and a good communicator. I try to be the same in return. It is good for both of our businesses to work on relationships and communication. So, it’s more than just being a good photographer, it’s important to be a good partner. Relationships and communication facilitate that.

No genius insights this week – just reminders of good business practices. Thanks for reading thoughts on successful photography businesses.