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Francisco J Ramos Gallego

For those who have not understood yet (New Earning Rules)

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This is what its really about "So I'm currently in level one. Instead of getting $0.25 per download, what am I going to get now?

We are moving to a percentage based earnings model for all licensing plans. The amount contributors earn from each download is a percentage of the price paid by the customer for that license.

This means your commission will always be a percent of what the customer paid for their license. The flat rate commissions (like 25¢) are going away." If someone buys the biggest image pack at $149 a month for 750 images thats 20c an image. When the new earnings structure goes into effect, the payout for subscription plans will not be less than 10¢.

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Have prepared this table for my understanding. Hope it helps you too.

S.No. Subscription Plan / month Cost per image           Earning            @ 20%
PHOTO
1 5 images - standard license 9.80 1.96
2 5 images - enhanced license 99.50 19.90
3 10 images per month- monthly no contract 4.90 0.98
4 10 images per month- annual with monthly billing 2.90 0.58
5 10 images per month- annual with advance billing 2.49 0.50
6 25 images - standard license 9.16 1.83
7 25 images - enhanced license 89.80 17.96
8 25 images - enhanced license ($ 1699) 67.96 13.59
9 50 images - monthly no contract 2.50 0.50
10 50 images - annual with monthly billing 1.98 0.40
11 50 images - annual with advance billing 1.63 0.33
12 350 images - monthly no contract 0.57 0.11
13 350 images - annual with monthly billing 0.48 0.10
14 350 images - annual with advance billing 0.39 0.08
15 750 images - monthly no contract 0.33 0.07
16 750 images - annual with monthly billing 0.27 0.05
17 750 images - annual with advance billing 0.22 0.04
VIDEO
1 10 video clips - annual with monthly turnover $ 159 per month 15.90 3.18
2 10 video clips - monthly no contract 35.90 7.18
3 10 video clips - annual with advance billing 13.32 2.66
4 20 video clips - annual with monthly billing 9.95 1.99
5 20 video clips - monthly no contract 33.45 6.69
6 20 video clips - annual with advance billing 8.33 1.67

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41 minutes ago, Dinesh Hukmani said:

Have prepared this table for my understanding. Hope it helps you too.

S.No. Subscription Plan / month Cost per image           Earning            @ 20%
PHOTO
1 5 images - standard license 9.80 1.96
2 5 images - enhanced license 99.50 19.90
3 10 images per month- monthly no contract 4.90 0.98
4 10 images per month- annual with monthly billing 2.90 0.58
5 10 images per month- annual with advance billing 2.49 0.50
6 25 images - standard license 9.16 1.83
7 25 images - enhanced license 89.80 17.96
8 25 images - enhanced license ($ 1699) 67.96 13.59
9 50 images - monthly no contract 2.50 0.50
10 50 images - annual with monthly billing 1.98 0.40
11 50 images - annual with advance billing 1.63 0.33
12 350 images - monthly no contract 0.57 0.11
13 350 images - annual with monthly billing 0.48 0.10
14 350 images - annual with advance billing 0.39 0.08
15 750 images - monthly no contract 0.33 0.07
16 750 images - annual with monthly billing 0.27 0.05
17 750 images - annual with advance billing 0.22 0.04
VIDEO
1 10 video clips - annual with monthly turnover $ 159 per month 15.90 3.18
2 10 video clips - monthly no contract 35.90 7.18
3 10 video clips - annual with advance billing 13.32 2.66
4 20 video clips - annual with monthly billing 9.95 1.99
5 20 video clips - monthly no contract 33.45 6.69
6 20 video clips - annual with advance billing 8.33 1.67

From #12-#17, it looks quite terrible.  It is getting closer and closer to Getty's price.  Everything looks terrible for videos.  

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Getty is giving away our images. Seems like it’s the future here as well. As many have pointed out SS will compete with IS in the race to the bottom and to end this industry. Who are willing to ‘sell’ images for 0,10 dollars - or less ..? Interesting they are willing to dig their own graves - and others as well because they are forced to join the race if they are selling the same images. Wonder if they have special arrangements with the big earners because their businesses must be going down as well?

It used to be fun processIng and submitting images. Today not that funny (maybe also A little because of the Coronavirus ...) In the near future you feel kind a useful idiot imo.

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14 minutes ago, Firn said:

Someone in the announcement forum said that Shutterstock said their 350 sub plan was the most popular. I don't know the source of that statement, but if tht's true, we can expect mostly 0.10$ in the future.

I assume that this is so, the first months of the year. Those who work actively and have good portfolios will reach at least level 4 by February. Plan 350 (let's Say) is popular but not the only one. In General we should wait for June 1 and see what happens

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The fact that they had to introduce a 10 cent minimum payout speaks volumes.

This microsite market may still have growth potential for the agencies, but for 'professional' contributors it is dead. I'll probably would have to upload a year or two worths of images just to make good the financial loss from this new payment 'incentive'.

It is not worth it.

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SS should've really communicated this better. Not just say "you will earn this percentage, look at our many plans and work it out for yourselfs".

Doing it in their rushed way has led to a lot of unnecessary confusion. 

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My problem:
When I got the mail with the exciting news, I was as angry as most of the others, especially the downgrade every year made me angry. I also had the impression that we earn considerably less with the new model than before. 
The question is:
Is it really true? And is there a way to earn more?
The answer is difficult, because it depends mainly on which subscription models SS sells. 
And I don't know that.
So I made a few small, certainly not completely correct, thought games. It's not as fine as the tables above. But that might give us a slightly better feeling for what to expect.
Basis of these mind games: 
On the sales side an "average" to "weak" contributor with 100 DLs a month and 0.33 per DL.
So 33 per month.  
Then I looked at the prices for photos (German site of SS). As far as I understood it, there are 7 different prices, which differ in the kind of subscription and especially in the number of pictures. 
The "highest group" (HG) includes subscriptions with 350 pictures (0,45 / picture) and 750 pictures (0,27 / picture), the arithmetical average is 0,36 / picture. 
The "medium group" (MG) comprises subscriptions with 10 pictures (2.90 / picture for beginners, otherwise 4.90) and 50 pictures (2.50 / picture), the arithmetical average being 3.43 / picture. 
The "Low Group" (LG) includes ODs with 5 pictures (7.16 / picture) and 10 pictures (9.8 / picture), on average 8.48 / picture. 

Ok, now I take the 100 images / month of our average seller and calculate 3 scenarios for the first month (15% share, minimum 0.1😞

Scenario 1 : 50% HG, 25 MG, 25% LG 
Result: 49,66
Scenario 2: 40 % HG, 50 % MG, 10 % LG
Result: 42,44
Scenario 3: 60% HG, 30 % MG 10 % LG
Result: 34,15

Since the model has errors due to the averaging process anyway and the assumptions made are uncertain, I have decided not to use the Euro-Dollar conversion. 

Scenario 3, with an HG share of 60%, thus comes to about the same as before. 

Ultimately this means that the share of bulk buyers (which I don't know) is the decisive parameter. From about 60% bulk buyers on, things get critical, below that it could still end "well". 

However, since I assume that SS can also calculate, I assume that the proportion of HG will be more than 70%. And we will make less of it. 
But this is only my unfavourable assumption.

My annoyance is not so big anymore and I tend to wait and see how things develop. 

(And with this post I probably collect a lot of red arrows) 

 

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3 minutes ago, Studio 2 said:

I have a concern, maybe unfounded, that the buyers plans will change too which will lead us back to square one.

Yeah, I'm afraid so.
And the changes will certainly not be in our favor. 

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2 hours ago, Serge Vo said:

Calculations will only be useful if we know which subscription plan is the most popular with customers. Then you can roughly calculate the estimated revenue.

lets assume they sold 100 pieces 350 package, 100 pieces 10 package. Total downloads are 35000 and 1000. So roughy only %3 of total subscription sales are from 10 package. %97 is from 350 package. Of course in june 1 it will be clear but it is obvious that more than %90 will be 0,10 dollars sales for contributors.

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Average for my entire photo portfolio so far is $ 0.35 per photo, with earnings through $0.25 / 1.98 and later $ 0.33 / 2.48.

A simple average with 20% earnings comes to $ 3.46 per image. Even if this is incorrect by +100%, i earn more per dollar than the current calculations.

Just trying to be positive. Waiting for 1st June to see how correct/ incorrect are my assumptions.

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Yes, interesting post @geogif, I tried to see it in a positive way too, especially because my numbers from IS are usually better than here with a similar port size & downloads. Here it's been all those 25c sales in the crisis, there it's been all sorts of things but only very few of these 6c affronts. But I'm realistic like you too, the goal is not to get more buyers to the site or have us profit... it's just a means to assure growth during a time of stagnation by cutting cost

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30 minutes ago, Firn said:

How did you came to the number of 3.46$ per image at 20% earnings? I can't follow the calculation. If a customer buys an image as part of the 750 image package, that is 0.22$ per image and 20% of that are 0.04$, or, in that case, as it was assured that 0.10$ would be the minimum, 0.10$. So what used to be a 0.25$ earning till now will be a 0.10$ earning (and the sad part is, that also at 25%,30% and 35% it will still only be 0.10$!) and what used to be a 2.48$ on demand eraning will be 1.43€ as that's 20% of 7.19€, (sorry, still can't find the price for on demand sales in $, just in €, but it is even less in $) which is the price for a customer with a 25 image on demand pack. Even with the more expensice pack that's still 1.96€ only and that's the most you can expet from a on demand sale at 20%. No matter how I look at this, I can't see how you come to any conclusion where at a 20% rate you will earn more than before, unless most of  your sales come from the much rarer 10 or 25 subscription packs, which I find to be an extremely unlikely scenario.

I would love to be optimistic as well, but...why in the world would Shutterstock change their commission plan, if it meant that we would get more money and they less? They know the math perfectly well and unlike us, they know what kind of sale packs are the most common and they most certainly made the choices with their own gain in mind, not ours.

My average is a very basic average of serial nos 1 to 17 in the table above. Not a very accurate representation though.

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36 minutes ago, Sybille Reuter said:

my numbers from IS are usually better than here with a similar port size & downloads. 

The model from SS is in January nearly same as IS for non exclusive.

Difference is the minimum (IS does not have) and the opportunity of getting more than 15 % later in the year.

So SS will attract more contributors than IS ......?

But we are running in circles.

In the end it depends which contracts are offered and sold.

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Been ill.  Still not fully recovered. Come back and this.  My brain is not working, but have read the email.  Issue is without knowing what the images are actually going to be selling for impossible to work out how much will earn.

Except for old business rules - if you need more money you either raise your prices or lower your costs. 

 

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7 hours ago, Dinesh Hukmani said:

Have prepared this table for my understanding. Hope it helps you too.

S.No. Subscription Plan / month Cost per image           Earning            @ 20%
PHOTO
1 5 images - standard license 9.80 1.96
2 5 images - enhanced license 99.50 19.90
3 10 images per month- monthly no contract 4.90 0.98
4 10 images per month- annual with monthly billing 2.90 0.58
5 10 images per month- annual with advance billing 2.49 0.50
6 25 images - standard license 9.16 1.83
7 25 images - enhanced license 89.80 17.96
8 25 images - enhanced license ($ 1699) 67.96 13.59
9 50 images - monthly no contract 2.50 0.50
10 50 images - annual with monthly billing 1.98 0.40
11 50 images - annual with advance billing 1.63 0.33
12 350 images - monthly no contract 0.57 0.11
13 350 images - annual with monthly billing 0.48 0.10
14 350 images - annual with advance billing 0.39 0.08
15 750 images - monthly no contract 0.33 0.07
16 750 images - annual with monthly billing 0.27 0.05
17 750 images - annual with advance billing 0.22 0.04
VIDEO
1 10 video clips - annual with monthly turnover $ 159 per month 15.90 3.18
2 10 video clips - monthly no contract 35.90 7.18
3 10 video clips - annual with advance billing 13.32 2.66
4 20 video clips - annual with monthly billing 9.95 1.99
5 20 video clips - monthly no contract 33.45 6.69
6 20 video clips - annual with advance billing 8.33 1.67

 

 

and again, i assume these are for USA market.  Does SS charge the same price in all places.  We now get the full brunt of regional discount with no way to get out.  At least Alamy has the decency to allow to get out of unfavourable arrangements.  Hop-out of large Sub plans is a Must.

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1 hour ago, Dinesh Hukmani said:

My average is a very basic average of serial nos 1 to 17 in the table above. Not a very accurate representation though.

it's not Not Accurate, it's plainly wrong.  Again @Kate Shutterstock please provide usual mix of sales Per Market, so we can analyse the impact.  Any agents would have done that for their partners.....  Any time I have changed commission structure for partners, this was provided for them as a mark of RESPECT.  The lack of such clearly shows SS contempt towards us.

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What hurts particularly is, SS had made their review process a lot more stringent over the past few months, which meant contributors had to work extra hard and meticulously to get their work accepted. So they expected high quality work from the photographers who submit images BUT they're now going to be paying much less than they were paying them when they were accepting mediocre content.

So SS wants to have their cake, eat it and kick you in the butt while they're at it. At least on IS, when they screwed contributors over, they accepted everything, regardless of image quality. They were at least being more honest. They paid us 2 cents but you could also upload any shitty picture you had without a problem.

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5 hours ago, geogif said:

Then I looked at the prices for photos (German site of SS). As far as I understood it, there are 7 different prices, which differ in the kind of subscription and especially in the number of pictures. 

Thank you very for info !

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3 hours ago, geogif said:

The model from SS is in January nearly same as IS for non exclusive.

Difference is the minimum (IS does not have) and the opportunity of getting more than 15 % later in the year.

So SS will attract more contributors than IS ......?

But we are running in circles.

In the end it depends which contracts are offered and sold.

Seems that you are wrong.

IS pays per what customer actually used from package.

SS will pay assuming full usage.

Its a big difference

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