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Paul Shutterstock

Enhanced License change follow up

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To our contributor community:


As always, we appreciate your feedback and acknowledge that in our communication of January 22nd we didn’t clearly explain our rationale for making changes to the enhanced license payment structure - with that in mind I would like to share more detail regarding the change.


As you have noted here in the contributor forums, our enhanced license sales have been coming under pressures of late and we have been looking at multiple ways to improve the volume of these downloads as they offer much higher priced payouts to you.


We are constantly testing new packages and payment structures for customers with the objective to increase downloads and improve your overall payouts.


Through extensive research, we discovered that the offering which led to the greatest increase in downloads involves providing more flexibility to the price of enhanced licences. No other offering came close. Therefore, in order to offer more price flexibility for enhanced licences, we had to create more flexibility in enhanced licence payouts. The most effective way to do this was to align the enhanced licence payouts with our standard Shutterstock payout terms.


We strongly believe that you will see your payouts from Shutterstock increase over the coming months.


Our success is linked to your success and we will continue to improve our marketplace to attract new and more enterprise customers as well as increase the downloads of existing customers.


I hope this offers more insight to these changes. As always we value your contributions and opinions. If you have any questions, please reach out to us through our support team.

Paul Brennan

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Way back when, Shutterstock would change the prices (of subscriptions) to buyers and then, after a month or so to evaluate buying patterns would set a new rate for contributors. That seemed pretty reasonable and I don't recall any fuss made in the contributor community at the time. Yes, Shutterstock was taking in more money without paying out any more, but it was clear what was going on and we could see the growth. 

 

If you really think you can increase the volume of Enhanced Licenses, why not take the same approach? Keep our $28 payout for a while - which doesn't require you to lose money even at substantial reductions from the current $99.50, $89.80 & $67.96 each - and once you have several months of increased volume to show us, set a percentage rate for the payouts?

 

Edited to add that you haven't (at least in the USA) changed the EL prices at this point, just reduced contributor royalties. If this is about the buyer end of the equation, why haven't you changed the prices?

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"As you have noted here in the contributor forums, our enhanced license sales have been coming under pressures of late"

 

Paul, the reason for that is because you have increased the print-run to 500000!!! Since that came into effect, my income from EL sales dropped dramatically!! My sales at SS is mostly from ELs and I see my income here dwindling fast and furious.

 

Please don't blame you cutting our royalty commission on "pressure".

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Sorry Paul I just don't see it. As mentioned the unit run was raised to half a million, doubling the previous number. This cuts down greatly the number of images that would require an EL because there are fewer avenues that need that large of a run. So right there you pulled the rug out from under us.

 

Now this. With fewer ELs required due to the increased run limit they still will not need more EL licenses just because the price is more attractive to them. They don't need them in the first place! From what I have seen so far people are not getting more ELs that before with this new pricing. Of course it is still soon in the process but no immediate change has been noticed. Oh one thing has been noticed - we are getting less money on our end. So here again the rug was pulled out from under us.

 

Like many other things that have changed you have said that it is for our own good, and our best interest etc, etc, etc. So far it only seems like it is in the best interest of SS. I think I would much more prefer you coming to us and saying look, things are not as good as we thought they would be so we need to cut in different areas. At least that is straight forward and not a bunch of talk trying to make it sound good when it isn't.

 

It seems like as soon as the new people came in things started to go downhill. The phrase "If it ain't broke, don't fix it comes to mind."

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Like many other things that have changed you have said that it is for our own good, and our best interest etc, etc, etc. So far it only seems like it is in the best interest of SS. I think I would much more prefer you coming to us and saying look, things are not as good as we thought they would be so we need to cut in different areas. At least that is straight forward and not a bunch of talk trying to make it sound good when it isn't.

 

 

THIS!!

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"As you have noted here in the contributor forums, our enhanced license sales have been coming under pressures of late"Paul, the reason for that is because you have increased the print-run to 500000!!! Since that came into effect, my income from EL sales dropped dramatically!! My sales at SS is mostly from ELs and I see my income here dwindling fast and furious.Please don't blame you cutting our royalty commission on "pressure".

AGREE!

SS Increasing the print run to half a million killed demand, it wasn't the price!.

Should have REDUCED print run to 100,000 and offered price differentials if change anything.

I thought you Americans lived by the saying ' if it ain't broke don't fix it'. Far too much fixing has been goin on since SS went public.

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"As you have noted here in the contributor forums, our enhanced license sales have been coming under pressures of late"

 

Paul, the reason for that is because you have increased the print-run to 500000!!! Since that came into effect, my income from EL sales dropped dramatically!! My sales at SS is mostly from ELs and I see my income here dwindling fast and furious.

 

Please don't blame you cutting our royalty commission on "pressure".

Exactly.  Unlike contributors, who have the short-sighted view, SS has planned this since long before increasing the print-run to 500000.  That seemed very suspicious at the time and now we see why.  

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I hope this offers more insight to these changes. As always we value your contributions and opinions. If you have any questions, please reach out to us through our support team.

Paul Brennan

 

I see you have had your say without addressing the questions in the original announcement thread and now you are going to run for cover never to be seen again and leave it with the support team to deal with, what a man.

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Well,

 

new market > new opportunities = low payment > more sales (theoretically) - My choice

 

old market = expensive package (2EL only) = $ 28 always - They want

 

2 buttons = peace and tranquility, to each his own, who do not want to sell in Cambodia will be happy at sales in Alabama.

 

It is difficult. Impossible. Software is not feasible?

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We strongly believe that you will see your payouts from Shutterstock increase over the coming months.

 

 

Really?

 

Rest assured we'll all be back to tell you in the May/June time frame.

 

Assuming of course, you're still around.

 

 

 

http://www.cogentmarketing.co.uk/

 

https://www.madcowmo...y?referid=18880

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My favourite Blogger Lee Torrens gives his spin on the pay cut http://www.microstockdiaries.com/shutterstock-explains-royalty-cut-is-to-enable-price-cut.html

 

Doesn't this seem to suggest that we abandon ship ... make a change to the more dominant (deeper pockets) agency? I've resisted being forced into subscribing to "the cloud" but....

I hate having to read between the lines but Paul Brennan's post left me with the same confusion.  

Some tough decisions ahead.

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all my earnings has gone today!! whats happened here??i did not have payments for previous time! My earnings just burnt!

 

As Barry said, you just made payout is all. You'll get an email stating you will receive payment via what ever you put in as a payment option by the 15th of this month. 

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I dont beleive this response brings any more enlightenment to the concerns that were voiced by contributers.

Its just a rehash of what was said previously

 

As was already stated, the increasing priviledges under the regular license ( from 250k to now 500 k) in effect greatly reduced the need for buying an EL

 

so, since everything in business is to drive sales and revenue, was this done with the thinking that this would attract more customers, because of the increased priviledges under a regular license?

Well, sometimes decisions dont always go as planned, no matter how well researched the process may be.

 

Now it looks like this decision didnt acheive the desired results, so insteàd of reversing that, the next best thing is to offer cheaper EL licenses, and at the same time reduce the commision for contributers.

 

Whatever spin is put on this, The result will just be very negative for contributers.

(That is unless EL sales do dramatically increase, and there is a noteable increase in revenue for contributors)

 

But i seriously doubt it since, you know, EL licenses only need to be purchased for 500k+ runs, which now seems to have been a serious mistake.

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