Monthly Archives: August 2016

Creating New Revenue Streams

The photography business is a very competitive one, with limited barriers to entry and extensive competition. This makes it challenging for both new and established businesses to generate an appropriate financial return. This week I’ve been working with a major financial services business. They are tackling the future needs of their business in a very structured way. I can see their approach to creating new revenue streams being appropriate to photographers. Let me explain.

So what is happening in this financial services business? Their CEO sees a rapidly changing environment driven by new technology, changing client needs, and heightened competition. It seems that in their business, the old model is dying – much like traditional photographer being overtaken by the new tech savvy weekend warrior.

Are you deliberately setting aside time to create new revenue streams?

This financial services business is preparing for the future. It’s how they are doing it that is really interesting. They are preparing by explicitly focusing on different parts of their business. They are very deliberately trying to build capability in creating new revenue streams.

70% of their resources are dedicated to their core business
20% of their resources are dedicated to emerging new growth opportunities, and
10% of their resources are dedicated to long term experiments

So, how might we learn from the corporate world?

Most of the photographers I speak to are focusing one hundred percent of their time and energy on their traditional core business. Most are also seeing eroding margins for this work, or increased competition, or both. They don’t dedicate any of their time to creating new revenue streams. They are hoping that what they have always done will be relevant for their future clients and enable them to make a living. Can you see a flaw in this logic? Without change, the best they can hope for is a slow decline in their business and some seriously long hours.

How could we implement a strategy similar to the financial services business? If you are working 5 days per week, dedicating 20% of your time to emerging new growth opportunities is the equivalent of one day per week. What might this look like? Well, this will be different for every different business, but a traditional wedding photographer might spend that time investing and learning about implementing drone technology into their wedding photography business. This would give them a unique point of difference, and stop their business being overtaken by competitors. Exactly what you do in that one day per week is up to you, the point I want to make is that you could be spending one day per week creating new revenue streams for your current business.

Jigsaw puzzle And what about long term experiments? The financial services business was dedicating ten percent of it’s resources to long term experiments. How could we do this? Ten percent of our time is one day every two weeks. Could you set that aside to focus on a completely new income stream for your business? Could you build onto your current business something that you have an interest in? Maybe a new line of photography, new products, a blog, photography seminars, photography tours? Again the activity is up to you, but I want to encourage you to deliberately set aside time for creating new revenue streams.

Thanks for reading this blog. I hope it has given you insight into how another business is tackling the challenge of creating new revenue streams that can be translated into something meaningful for your business.

More Photography Business Tips from the Under 12’s

I recently wrote a post for Beyond Here called 6 Photography Business Tips from the Under 12’s. It traced the season of an under 12 basketball team, the lessons they were learning, and how that might apply to photography businesses. The season has progressed and last week was the final round robin game of the season. The team has been making steady progress and has won five games and lost four in the final nine home and away games. They have now qualified for the finals series which commence this weekend. As I reflect on the season so far, here are more photography business tips from the under twelves.

Business Tip 1 – Weaknesses Can Be Turned Around. Every sports team has strengths and weaknesses. In this basketball team we have two very tall kids who are invaluable for their rebounding. They regularly grab the defensive rebound and provide the outlet pass to a running guard. On the other hand, both of them have not been strong on scoring. And if you know basketball, you will know that it is difficult to win games if your centers are not scoring.

As the season has gone on, these two kids have gradually built their scoring to the point where they are now regular contributors. So what’s the business tip? Your weaknesses don’t have to remain weaknesses! Work at them. Practice. Bring them up to a level where they are making a positive contribution to your business. Weaknesses can be turned around with focus and time. Don’t accept them as weaknesses which hold you business back. Identify yours and focus. They can be turned around.

Business Tip 2 – Success is Not Defined in a Few Weeks. When I wrote the previous post we were just three games into a long season. The team went through a tough stretch where wins were hard to come by, but in the second round of the competition they have managed more wins than losses. That’s progress. Now they head into the finals on the back of two successive wins feeling optimistic about what the final weeks of the season might hold. If we assessed the season after three games we might have viewed it as a failure. But success is not measured in a few weeks. Business progress, like a basketball team’s progress, can be massive over a few months. Keep moving forward. Don’t define your business based on current results. Keep pushing on. (For another post about business success please see Fail Fail Fail Succeed, Irony)

Business Tip 3 – There Will be Setbacks. Setbacks in business and setbacks in sport are a normal part of life. Don’t panic when they happen. Keep focused, your difficult days will pass. Right at the moment one of the under 12 players is out of action with a broken finger. She is a strong player and will miss four games. In basketball, that’s one of the reasons you have ten players on the team. And it is why you practice with different combinations on the court. Whether it’s a player in foul trouble, or a player out with injury, a basketball team practices with these challenges in mind. While she is out injured there is the opportunity for someone else to shine. Similarly we need to prepare our businesses for tough times. When they arrive, our businesses are ready.

Business Tip 4 – Good Practice Produces Good Performance. One of the most enjoyable aspects of following this young basketball team is the effort they are putting in. There are ten kids and two coaches giving one hundred percent effort at each training and game. And the good work going into practice is starting to produce good performances on game day.

So what can we learn from this? Did your last big shoot meet your expectations? Was there any room for improvement in either your photographic output or the way you conducted your business? I bet there was. So have you practiced since then so that your performance is better next time?

Don’t fall into the trap of thinking you can turn up on game day and just produce the goods. Be like the basketball team and put in quality practice. Then you can expect a quality result on game day.

Business Tip 5 – Persistence is Powerful. There is an element to this basketball team that keeps on keeping on. They don’t give up. Sometimes after a heavy loss they look worn out and dejected but, by the time the next practice session comes around, they are focused on having fun, working hard, and improving. While some teams are limping towards the end of the season, this team is still working as hard as ever. And guess what? They are starting to close the gap on the stronger teams.

Are you letting your business get on top of you? Are you letting short term failures define you and hold you back? Believe you can get to your goals, and persevere. Keep going. Persistence is powerful.

Business Tip 6 – Teamwork is Everything. In basketball and business, teamwork is vitally important. There’s an old sports adage that a champion team can beat a team of champions. That means a well coordinated group can beat a more talented team, and it is the same in business.

Are you building a champion team? Do you have partners and suppliers who you trust and make your business stronger? Who are we talking about? A print supplier, album supplier, second shooters, accountant, business adviser, equipment supplier. The list goes on and on. Focus on building a champion team who will support you when you need them.

Thanks for reading more photography business tips from the under 12’s. Best wishes.

What is the Summer Slowdown in Stock Photography

Are you wondering what the summer slowdown in stock photography is? Have you heard this terminology but don’t really understand it?

Like many types of photography, stock photography goes through seasons or cycles. There are peaks of demand around major events. Think of large events like the US presidential election, the Olympics, or Valentines Day, or major upheavals and social unrest. And there are also peaks and troughs at certain times of the year.

July and August are typically slow months for stock photography sales

The bulk of the world’s population lives in the northern hemisphere – the United States, North America, Europe, and major parts of Asia. Because of the population base these countries or continents represent the majority of the buyers of stock photography. So when those economies slow for a summer holiday, stock photography sales also slow down.

The summer slowdown in stock photography refers to the time of the year when northern hemisphere clients are having a summer holiday, and so stock photographers are experiencing fewer downloads of their images. That happens in July and August each year.

What should you expect in the summer slowdown in stock photography? My own experience as a stock photographer is that the total number of downloads of my files reduces each July and August and then picks up again in September and October. I am writing this post in the first week of August, so if you are experiencing a reduced number of downloads of your files, this is normal for this time of year. Don’t panic. You should see it pick up again in September.

So, it is one thing understand what the summer slowdown in stock photography is, but what do we do about it?

Consider doing more client work in July and August while stock photo sales are down

Exactly what you will want to do about it depends on your own business and circumstances, but here are three options to think about.

Option one. Do nothing. This option recognizes that sales will slow at this time of year, and so your stock photography income will decline during these months. If you have cash flow from other sources, the summer slowdown in stock photography is nothing to worry about and no particular action is required.

Option two. Develop more client work at this time of year. If you are wanting to develop a consistent flow of income you’ll need to build up income from other sources during the northern hemisphere summer months. I do this by shooting more family portraits at this time of year. Family portraits might not be the solution for you depending on what you like to shoot and what your typical client looks like. With planning and preparation its possible to adjust your client work to increase at this time of year. Keep in mind your stock photography income is likely to drop in July and August, and you will need to increase income from other sources.

Not all stock photography sales slow down in July and August. Consider shooting content which will sell well during this period

Option three. Develop stock content which isn’t impacted by the summer slowdown in stock photography. Not all stock photography markets experience a slowdown in these months. Where I live in Melbourne, Australia it is the middle of winter in July and August. It is also a time where there are very few public holidays. This is generally a good time for stock photography sales and I see steady downloading of my Australian themed images in July and August. Perhaps there are geographic markets or specific content you could shoot for which don’t slow down in the northern hemisphere summer months?

Thanks for reading what is the summer slowdown in stock photography. I hope it has helped explain the seasonality which occurs in stock photography and given you some options to consider. Happy shooting.