Tag Archives: iStockphoto

7 Business Lessons from Being a Stock Photographer

Regular readers of Beyond Here will know that selling images through iStockphoto and Getty Images is an important component of my photography income. I’ve written many posts about stock photography, from getting started, through to how to use props, and many topics in between. I regularly get asked about the business or financial side of being a stock photographer. Based on my experience, here are 7 business lessons from being a stock photographer.

What starts as a small trickle of coins, can transform into a rapid flow

Business Lesson 1 – Small Amounts Do Add Up. The first image I received a royalty for on iStockphoto back in 2008 was a cityscape from Melbourne, Australia. I shot the image while a friend and I went on an evening photo shoot. We walked around the city, chatting and shooting night city images. The royalty from that first download was US$1.26. While that amount seems tiny, I was excited as I could see the potential for that amount to grow, and for an individual image to be downloaded hundreds of times. That image has since been downloaded a further 49 times to reach 50 in total. So far. While each royalty amount might be small, over time they will add up, and can add up to a significant total. Don’t be discouraged by small amounts when you are starting – be excited for the potential of those amounts to grow.

Business Lesson 2 – Significant Income is Possible From Stock Photography. While I have a large portfolio of stock images I am a ‘small fish’ in the stock photography world. My annual income in US dollars is well into the 5 figures and has been since my third year as a stock photographer. That makes a significant contribution to my overall photography income and adds to my wedding and portrait work. More successful stock photographers are generating incomes in the hundreds of thousands of dollars per year. Many people start out in stock photography thinking that you can not earn worthwhile amounts. I’ve found that to be untrue. (If you’d like to read more about how to generate a worthwhile income please check out my e-book Build A Five Figure Income in Your Spare Time.)

Flying fox images have been a lucrative niche for me

Business Lesson 3 – Finding a Niche can be Very Profitable. When I started contributing images to iStockphoto my portfolio was a diverse collection of random images. It took me some time to find what I liked to shoot, and where there was a market. I found the intersection of supply and demand in my Australian wildlife images and specifically in flying fox images I shot near my home in Melbourne, Australia. I have continued to upload flying fox images as they sell year round and peak in sales just before Halloween. Finding that niche helped me realize that stock photography could work for me.

Business Lesson 4 – Buyers Care About a Useful Image. And nothing else. Buyers don’t care where the image was shot, what camera you were using, or who you are. Buyers only care about the image. So, if you think your equipment is not good enough, or that you will start when you get the latest version of Photoshop – realize that they are just excuses. Buyers don’t care. As long as you can meet the stock libraries quality standards there is no reason not to get started.

Many stock photographers no longer need a home base

Business Lesson 5 – Location Free Careers are Reality. What’s a location free career? It is a career which is not dependent on where you live – and many of the world’s most successful stock photographers are making that real. They can travel and shoot and upload and get paid all without needing a permanent home base. As long as they have a digital camera, a laptop, and an internet connection they can work anywhere. And increasingly they don’t even need to carry all their gear with them – they can rent it at their next location.

US dollar income is handy for my business

Business Lesson 6 – A US Dollar income is handy. My royalties from stock photography are paid in US dollars. When they are transferred to me each month they are converted into local currency. As the Australian dollar goes up and down versus the US dollar it is very handy to have a US dollar income. The price of photography equipment in Australia goes up and down in line with the exchange rate – so having a US dollar income protects me from exchange rate volatility.

Business Lesson 7 – Successful Images Keep Selling. I wrote this post analyzing my recent downloads on iStockphoto. It showed that nearly 50% of my current income was being generated by images shot and uploaded 4-5 years ago. This was an important lesson for me. It highlighted that successful images have a lifespan of several years. It is worth taking the time to shoot well thought out concepts as they will generate an income for many years. In many ways, building a stock photo portfolio is building an asset which will generate an income into the future. It is worth taking the time to do it well.

Successful images are likely to keep selling for several years

Thanks for reading 7 business lessons from being a stock photographer. I feel it only captures a tiny fraction of what I’ve learnt since first getting into stock photography in 2008. If you have questions, please feel free to contact me via email or by leaving a comment on this post.

Using Props in Stock Photography

Welcome to the 100th post for Beyond Here! Along the journey so far I have tackled a wide range of subjects including business tips, photography book reviews, wedding photography tips, gear reviews, and many more. I have also written many posts on stock photography as readers look to transition their photography from hobby to income through stock photography. Today, we look at using props in stock photography.

Why use props? Props enable images to have a stronger link to a specific theme. In this image, a cute portrait is transformed into an image which displays nationalism or patriotism by using a national flag.

Using a national flag brings a strong theme to the image

Are props expensive? In each of the images in this post, the props I have used are inexpensive. The Australian flag in this image cost $8 at a variety store. Variety stores are a great source of props and many of them are inexpensive.

A piggy bank helps create a theme of financial or money problems

Does using props work? In my experience, using props to create images with specific themes is effective in producing downloads. While more generic images can also be popular, images with clearly expressed themes are more likely to be successful in a world where there is huge volumes of generic images.

Props can be used to create conceptual images to highlight a point

As you gain experience in working with props, they can be used to create conceptual images to highlight a point. In this image a $1 set of sticky notes has been used to create a concept of business overload, stress, being over scheduled, and tearing her hair out.

Do props always need to be used with people? Definitely not! Check out any of the major stock photography sites and you will find an extensive range of images which use props only. They are often used to communicate a specific theme. In this range of simple images, using just alphabet blocks and color – there is an almost unlimited range of images you can create. Where does this type of image get used? An image like this, which has a clear literal meaning and bold color are very popular for use on blogs. They immediately focus the readers attention on the subject and support the text. Don’t forget online uses when you are creating stock images!

Props used alone can also be very effective. This simple image series with bold color have been popular on blogs

Thanks for reading about using props in stock photography. Good luck for your next stock photo series!

A Step By Step Guide to a Studio Stock Photo Shoot

Many of the posts on Beyond Here refer to the benefits of stock photography as a part of a professional photographers total income. It is also a great place to start for people who want to become professional photographers. That is how I got started. Perhaps you are working on your camera skills? Or you are still refining your workflow? Or perfecting your post production skills? Or building your experience? Stock photography is a great way to build a portfolio and generate an income while you are perfecting your craft.

Getting started in stock photography can be daunting which is why I have written posts to help photographers get going. Please see Starting in Stock Photography, Simple Stock Concepts and Why Stock Photographers Should Crash Their Cars.

I regularly get asked about how to set up a stock photography shoot. So here I run through the process from my most recent shoot. I’ll cover everything from planning to completion, in a step by step guide to a studio stock photo shoot.

Simple props can help communicate themes in stock photography. This image concept is business choices.

Step 1 – Develop a Theme. To prepare for your stock photo shoot you need to first develop a theme. I am working on an extended series for my iStockphoto portfolio around ‘women in business’. It is a very large market – and also a very competitive one. For this shoot, I focused on shooting a series of corporate business woman images – the concept can work for people looking for images of female entrepreneurs, executives, business coaches, corporate regulators, I’m sure you get the idea. One of the advantages of shooting stock images like these are that they are very flexible and have multiple potential uses.

To find a model, have a look at ModelMayhem or a Facebook group.

Step 2 – Find Your Model/s. Now that you have a theme, you need to find a model. This is easier than you think. If you do not know someone who has the look you need, there are places to find people interested in stock photo work. Two good sources are ModelMayhem or Facebook groups in your area. I live in Melbourne, Australia and there is a very active Facebook group called ‘Melbourne Models and Photographers’. Check whether your area has a similar group. Write a brief of the requirements and ask for expressions of interest.

Step 3 – Put Together Sample Images. To enable you to prepare well, the next step is to put together a series of sample images. I do this to help me clarify the style of image I want to create, and to share that vision with the model. For this shoot, I emailed a link to the model who was then able to view the sample images and understand what was required for the shoot. This included the type of wardrobe to bring, and the appropriate style for hair and makeup.

Step 4 – Organize the Shoot Details. This step is being clear on the logistics of the shoot. For this shoot we organised a morning shoot to start at 9am and finish at 10.30am. Be sure to be clear with the model on the time, location, and any additional details – like parking or transport. I also like to confirm in writing the timings, and the requirements for wardrobe, hair and makeup.

Step 5 – Prepare Equipment in Advance. Step 5 is to prepare the equipment for your shoot in advance. At the time of your shoot, you want to be able to maximize your shooting time, so you need to be ready in advance. This includes having your studio space clean and tidy, lights set up, camera batteries charged, memory cards cleared and ready to go, and lenses on hand if you plan to change lens during the shoot. For this shot I used the 70-200mm and 24-105mm lenses. They were both cleaned in advanced and placed close to the shooting area so I could change them easily. I use a range of props to help communicate different themes. I place these on a table near the shooting area so they are readily accessible, and enable me to move quickly between different themes without interrupting the flow of the shoot.

Different wardrobe can help you produce a broader range of images.

Step 6 – Brief the Model. Briefing the model is important to make sure the photographer and the model have a common understanding. To do this, the photographer needs to be clear on what they intend from the shoot.

Avoid the ‘get in front of the camera and we’ll see what happens’ approach. This is not likely to produce the results you are looking for.

For this shoot, the model and I swapped email before the shoot to clarify the requirements. Then I printed the sample images and we went through them together before we began shooting. Twice during the shoot we stopped for a break for us to check the sample images to confirm our understanding of the style of images we were trying to create. Take time to brief the model. You can’t assume the good ideas in your head have been understood by the model if you haven’t taken time to discuss them.

Use different emotions to communicate your message

Step 7 – Conduct the Shoot. Thorough preparation through steps 1-6 should make sure your shoot goes well. In this case the shoot was a 90 minute shoot in a studio environment. By using different props and wardrobe we were able to shoot a range of different images in a short space of time.

When you are shooting, keep in mind that not every shot has to be a happy, smiling shot with the model looking directly at camera.

There is a large market for all sorts of different emotions communicated through the image. There is a place for the happy, confident image. There is also a place for sad, depressed, bored, stressed, anxious images. Speak with your model to make sure you develop a range of images from the shooting time.

Don’t overlook the importance of appropriate keywords.

Step 8 – Edit and Upload Images. As a stock photographer, having an efficient work flow is very important. I typically like to have all images from the shoot reviewed, edited and uploaded within a week of the shoot, and when possible, before my next shoot. I find that working promptly through the editing and uploading process helps my workflow by getting through to the end of the project promptly and letting me get on to the next idea.

If you have done a good job on steps 1-7 this work can be undone if you don’t use appropriate keywords for your image. Keywords are how you image will be found by potential buyers. Don’t overlook the importance of keywording as part of your editing and uploading process.

For the image shown here the keywords I use are – business woman, corporate business, female, one person, caucasian, business suit, arms folded, brown hair, adult, white collar worker, professional occupation, smiling, expressing positivity, studio shot, vertical, isolated, isolated on white, young adult, business person, business, waist up, brown eyes, looking at camera, white background.

Remember to provide feedback to your partners at the end of the shoot.

Step 9 – Feedback. Producing stock images is a collaborative effort. In this shoot it was between the photographer and the model. In other shoots there may be more than one model, a hair and makeup artist, and a stylist.

Step 9 is about providing feedback to your partners in the shoot. It is important to close out the shoot with feedback on what has gone well and what could be better, and to seek that feedback for yourself.

From this shoot I provided a link to the images in my stock photography portfolio so that the model could see the final product. It is important to me that the model sees them, as she did a very good job and I would like to shoot other stock concepts with her. Don’t overlook Step 9 – provide feedback to your partners.

Thanks for reading a step by step guide to a studio stock photo shoot. I hope this has been useful in describing the steps in a stock photo shoot, and will help your shoots to run smoothly.

iStockers, Why the Shift to Subs is Good

I have been an iStock contributor since 2008, and an exclusive contributor since May 2010. I have written a series of posts for Beyond Here about stock photography and the changes going on at iStock. Today I tackle the growth in subscription sales and, for iStockers, why the shift to subs is good.

In September 2014 iStock announced changes to the subscription program. I covered those changes in this post. Since then my subscription sales have been growing strongly. I summarized that progress in this post. Another month has passed. I have had another strong month for subscription sales, and many iStockers are reporting their strongest subscription sales month. So what does that mean?

iStock is a viable option for big buyers shopping for an image subscription program

Well, it means that iStockers are seeing more downloads of their images at a lower average price per download. My experience is that my ‘normal iStock’ downloads initially declined and have now remained steady. For those of us who have been iStockers for several years, it is a big change not to see your balance changing frequently. Instead of being reported in real time, the downloads through the subscription program are only reported once per month.

More downloads, lower average income per download. Why would this be good?

I see four key reasons for iStockers, why the shift to subs is good.

(1) The subscription program drives repeat business. One benefit of a subscription program is that it builds repeat business for iStock. Buyers use the service each day or week or month for many, many months. This can only be good for contributors in the long run. We want buyers shopping at iStock and continuing to shop at iStock.

(2) Greater consistency of income. Lots of downloads at a low average income per download produces consistent income from month to month as you are not reliant on a single large sale. While you may not see your balance moving every day, when the sub downloads are reported you can see the subscription program is being used daily by buyers. I expect we will see much less variability in income from month to month as the subscription program continues to grow.

(3) In time, buyers will move from competitors. It has long been felt that the quality and variety in the iStock library is superior to other microstock sites. (Keep in mind, I am biased as I am an iStock contributor! The reality is that I haven’t checked competitors sites for some time). Now that the subscription program appears to be gaining traction with buyers, we can expect that clients will move to iStock over time – continuing the growth in iStock subs downloads.

(4) Big buyers will be attracted by the subscription program. The real benefit of the subscription program is for large volume buyers who need large numbers of images per month. Think ad agencies, newspapers, and magazines. Big buyers coming to iStock will be positive for iStock contributors.

The iStock sub program is making a noise

On the flip-side, because of the growth in sub downloads and the lack of growth in ‘normal iStock’ downloads it has become very hard to achieve redeemed credit targets. My personal experience is that this year I am unlikely to achieve the redeemed credit target required to maintain my current royalty level. I expect this is the experience of many contributors, and see iStock being under pressure to change the redeemed credit targets. I hope I’m right as I don’t fancy a reduced royalty rate.

Thanks for reading iStockers, why the shift to subs is good.

Growth in iStock Subscription Sales

I have been generating income through stock photography for over 7 years, and have written a number of posts for Beyond Here about stock photography. I continue to see stock photography as a great way for a photographer to enter the business of photography, and for established photographers to generate a steady year round cash flow to supplement their client work. (If you are new to stock photography please see this post Starting in Stock Photography)

The world of stock photography has changed significantly from when I started, and now consists of several very large image libraries with millions of images each. I choose to be an exclusive contributor with iStock (reasons are outlined in this post – Why Be Exclusive on iStock).

Stock photography sites give you access to buyers around the world. What’s your next move?

During September 2014 iStock made several alterations to their operating model. At the time there was an outcry from contributors and purchasers of small sized images. I wrote several posts which covered the changes (My Take on this Weeks iStock Announcements, Moving iStock Forward, and Understanding the Changes at iStock). iStock seemed to be focusing on the large volume image buyer – like ad agencies, publishing houses, and media companies – through its subscription sales model. So, what has happened to the growth in iStock subscription sales? Has there been an increase? And what are the implications for contributors?

Firstly, has there been growth in iStock subscription sales?

My personal experience has been that the subscription program does seem to be delivering. I have seen month on month growth in subscription sales with the exception of the seasonal downturn in January. (Keep in mind I am just one of thousands of contributors on iStock).

Note – in the graph I include both subscription and partner program (PP) downloads. I have very few images in the partner program and the number of downloads from PP is minimal. So, the growth you see is driven by growth in iStock subscription sales.

Subscription downloads from my iStock portfolio continue to grow

What has happened to ‘normal’ iStock downloads over the same period? My normal iStock downloads initially declined in the period for September to December 2014. Since then my ‘normal’ downloads have stabilized with very little variation on a month to month basis.

What are the implications for iStock contributors? I see 5 implications from the growth in iStock subscription sales.

1. Continued growth in iStock subscriptions sales. The trend is up, and I expect we will see continued growth. For contributors that will likely mean a continued increase in overall download numbers, at a lower average price per download.

2. Steady or slightly declining ‘normal’ downloads. My experience to date has been steady month on month ‘normal’ downloads despite an increase in portfolio size. I also expect this trend to continue. On a positive note, I am encouraged that we don’t seem to be seeing a wholesale switch from ‘normal’ to subscription sales. All going well, that means the iStock customer numbers will be growing overall.

Stock photography needs patience. Keep building your portfolio. The downloads will come.

3. Steady monthly income, variable weekly income. As normal iStock downloads (which are reported as they happen) make up a smaller percentage of my total downloads, my weekly income is now quite variable. However, the growth in the subscription sales (reported once a month) is seeing my monthly income be more consistent than it was before the change. Now that iStock makes payment to contributors automatically once per month, the week to week variations really don’t matter. The lesson here – ignore the week to week variations, and only assess your performance at the end of each month.

4. Difficulty in achieving redeemed credit targets. Redeemed credits currently don’t apply to subscription sales. That makes achieving the targets and increasing your royalty rate very difficult. I can’t see that the redeemed credit idea can survive in its current format. I suggest not getting too focused on redeemed credits. Trust that the powers-that-be at iStock will introduce a revision or a new system for determining royalty rates.

5. It’s tough to become exclusive. Many Beyond Here readers have opened iStock accounts in the last year (hooray!) But achieving the requirements to become exclusive is really tough now (driven by the growth in sub sales which don’t count currently toward the exclusivity criteria). I expect that the redeemed credits issue is going to be a higher priority – but the criteria for becoming an exclusive contributor will need to change if iStock want contributors to only submit their images to iStock. In the meantime, continue to build your portfolio and enjoy the growth in subscription sales.

Thanks for reading ‘Growth in iStock Subscription Sales’. Please leave a comment with your experience or your questions. Happy shooting.

Inside a Stock Photography Shoot

I am in the process of shooting a series of stock images of business people. This is a very popular category of stock images, with continual demand for fresh content. Images like these are used extensively in websites, brochures, corporate communications etc. You can probably imagine, this is a very big market. So this post looks behind the scenes, and takes you inside a stock photography shoot.

Lighting is important. The model needs to be well lit, with a pure white background

Lighting. Once you understand how to light images like these, it is straight forward to produce a wide variety of business images. And equally, if you make a mess of the lighting it can be very hard to produce usable files. For this shoot I used a lighting set up very similar to what I outlined in this post. It has one off camera flash to the left of camera, fired by a remote trigger through a shoot through umbrella. In this case it was a 43 inch umbrella. The model is lit with just the one light. The background (a white muslin backdrop) is lit separately through another off camera flash, again fired by a remote trigger (you can read more about the triggers here). This ‘blows out’ the background so that it appears completely white. That flash unit is placed between the model and the backdrop.

Space. It’s a misconception to think you need a large studio space to be able to shoot these kinds of images. The room this image was shot in is 3.2m wide and 6m long. The backdrop is 3m x 3m and just fits across the width of the room.

Makeup, wardrobe and posing are key to effective images.

Wardrobe, Makeup, and Posing. Wardrobe, make up and posing are very important in shooting this style of image. The model needs to be believable and realistic – in this case she needs to look like a professional business person. For this shoot we used two different colored shirts – one white and one blue. We also took images with the jacket on and jacket off. That helped provide a range of images – some of which look more formal, and some which look more informal.

The brief for her makeup was ‘light and natural’ which she did very well. It helps to reinforce the ‘real business people’ theme.

Posing is also important for this type of shoot. When we weren’t using props we focused on a ‘natural and confident’ look like in this image. Because of the studio setting and the beauty of digital photography we were able to shoot and review each image until we got the right look. While this image is very simple it has flexibility – the model could be anything from corporate executive to a home based entrepreneur.

Shoot Length and Process. This shoot took 90 minutes and that is fairly typical of my stock photography shoots. I find that is long enough to get a range of images, but not too long that the model or the photographer get bored!

We started this shoot with straight forward poses like the one above and then move to more specifically themed images using props. Mid shoot the model took a wardrobe change giving us the opportunity to assess the images taken up to that point and to plan how to make the most of the remaining time.

Corporate Whistle Blower. This image uses a sports whistle as the only prop.

Post Production. I aim to keep post processing to a minimum on stock photo shoots. I import the files to Lightroom, check for sharp focus, set the white balance and make minor changes to color saturation and contrast. Importantly, I make sure the background is pure white. This is a short process which takes 1-2 minutes for each image.

Where to from there? I complete model releases and look after any paperwork with the model before we start the shoot. That means that after post production, the file is saved as a JPEG image. From there it is uploaded to iStock (along with model release form). It then goes through an inspection process and, assuming it passes, is added to the stock database and is available to be downloaded. That’s it – inside a stock photography shoot.

Note, the model in this shoot is Klara. She is an up and coming model in Melbourne, Australia and is originally from Frankfurt, Germany. She is a great person to work with. See her current work here.

Thank you for reading ‘Inside a Stock Photography Shoot’. If you would like to receive regular emails from Beyond Here, please add your email address in the sign up box in the margin of this page. Thank you.

Why Be Exclusive on iStock

This week I have had two separate people asking me questions about where to contribute their stock images. I see many benefits in being an exclusive contributor to one site. And that site for me is iStock. So, why be exclusive on iStock?

First, for anyone not familiar with iStock – it is one of the best known microstock photography websites. It is owned by Getty Images. I have been contributing to iStock since 2008, and have been an exclusive contributor since May 2010. (You can read an introduction to stock photography here).

When you start on iStock, you begin as an independent contributor on a royalty rate of 15%. Your royalty rate can increase as you have more downloads of your files. When you reach 250 downloads, you qualify to become exclusive if you want to.

Contributing to many stock sites can be time consuming. Being exclusive can be a great time saver.

Why be exclusive on iStock? For these 6 reasons:

1. Higher Royalties. As an independent contributor your royalty rate starts at 15%. As an exclusive contributor that immediately jumps to 25%, and can go as high as 45% depending on your downloads and ‘redeemed credits’ (I will save an explanation of redeemed credits for another post). The point is iStock pay higher royalties for exclusive contributors.

2. Different Collections. Independent contributors files go into a collection called Essentials. These files cost 1 credit each. Exclusive contributors can also have files in the Essentials collection, but their new files default into the Signature collection. Signature collection files cost 3 credits, so again, exclusives can earn higher royalties by having files in a higher priced collection.

3. Better File Placement. Where your files appear in search results is driven by a complex algorithm. One factor is whether the contributor is exclusive. Exclusive files will generally, but not always, appear before independent files giving them a better chance of being downloaded by the buyer.

4. Time. Uploading and key wording images to multiple different sites is time consuming. While there are tools available to make this process easier – for me, I enjoy spending more time shooting or relaxing, and less time uploading and key wording.

5. Faster Inspection Times. Exclusive files have their own inspection queue which generally has a turn around of less than 24 hours. Its nice to upload files knowing they will be reviewed promptly, and displayed in the search results soon after.

Being exclusive offers higher royalties and access to different collections

6. Getty Images. Files from the Signature+ collection are automatically mirrored onto the main Getty Images website. To get files into the Signature+ collection, exclusive contributors can nominate them at the time they are submitted. They will then be inspected for inclusion in the Signature+ collection. Having files on the Getty Images website is an additional place for your files to be downloaded from. The Getty Images royalties is a significant and growing part of my monthly royalties.

So, why be exclusive on iStock? Those are the 6 reasons for me. Exclusivity has worked very well for me, and helped stock to become a key component of my photography income. I am happy to answer any questions on iStock exclusivity – please leave a question on this post. Equally, if you have experience to share with Beyond Here readers, please use the comments section under this post. Thanks for reading ‘why be exclusive on iStock’.

Request Your iStock Payment Today

21 January 2015 is the final day to make an iStock payment request

iStock, one of the best known microstock photography sites, is making changes to its payment frequency. Instead of being able to request payment once a week, from the end of January 2015, payments will automatically be made once per month. So, if you would like to request one more payment, request your iStock payment today.

What are the key dates? Wednesday 21 January 2015 is the final date to request a payment.

What then? After January 2015, money left in your iStock account at the end of each month (above the minimum payment threshold) will automatically be paid to you on the 25th of the following month. For example, if you have $376 in your iStock account at the end of February, this will be paid to you on 25 March.

What do you need to do? To make a final payment request, do that today (21 January 2015). To receive the automatic monthly payments beyond January 2015, you need to register how you want the payment to be made and your tax details. You can enter these details on your account after 22 January 2015 on the iStock website.

Thanks for reading ‘Request Your iStock Payment Today’. If you are an iStock contributor I hope this has been useful to you. If you are not an iStock contributor and would like to learn more about stock photography please see this post – Starting In Stock Photography.

iStock Changes Payment Frequency

Beyond Here has been following the changes in the micro stock photography industry, and particularly the changes at iStock. This coming week, on 21 January 2015, iStock changes payment frequency options for contributors.

Previously contributors were able to request payment of their earnings on a weekly basis as long as their earnings were above the minimum payment threshold. That process was outlined in the earlier post How Does Payment from Stock Photography Work.

Midnight on 21 January 2015 (PST) is the final date you will be able to request a weekly payment of earnings from iStock

What are the changes? 21 January 2015 is the final date that iStock contributors will be able to request a payment of earnings. After this date, contributors will be automatically paid on a monthly basis, as long as they are above the minimum payment threshold and have entered their payment details.

Who will this impact? This change will effect all iStock contributors. This isn’t an opt in or opt out exercise, it is a change in the way that iStock operates to be more in line with its parent company, Getty Images.

What impact will it have? This change will have the biggest impact on contributors who are currently requesting a payment on a weekly basis. Instead of the steady cash flow of a weekly payment, those contributors will be paid monthly. To operate their businesses they will need to plan for the more ‘lumpy’ cash flow of monthly payments. Ironically those that it will impact the most are those contributors who generate all or most of their income from iStock and rely on the weekly cash flow.

What benefits are there? Not many that I can see from a contributors point of view. For iStock it will simplify their payment processes and presumably bring some cost savings. How that might be reinvested for benefits for contributors or customers hasn’t been made clear by iStock yet.

What do I need to do? If you are an iStock contributor and wish to make a final payment request – this needs to be done by 21 January 2015 at midnight MST. Keep in mind the time difference to where you live. Then you need to make sure your payment details are entered in your profile so that you can be automatically paid on a monthly basis. That first monthly payment will be made on 25 February 2015.

Thanks for reading ‘iStock Changes Payment Frequency’. If you are running or plan to run a photography business and would like regular articles from Beyond Here, please sign up in the area in the margin of this blog.

Understanding the Changes at iStock

Since Beyond Here began in June 2014, many readers have become aware of the opportunity presented by selling their images through microstock sites. Several readers have turned intent into action. They have opened accounts and are building their portfolios.

Many iStock contributors have seen a decline in income since September. I have seen a small overall increase.

I have been a contributor to microstock sites since 2008, and an exclusive contributor with iStock since 2010. iStock has made significant changes in September 2014. I covered those developments here:

We are now 2 months since those changes. This post covers my experience and expectations, and I hope it helps your in understanding the changes at iStock and how you can make the most of them.

The Changes – iStock made a series of changes in September 2014. The key ones are outlined below.

Offering just one payment method – credits. Previously there were multiple ways to pay, now credits is the only way for customers to buy files on iStock. In addition, and this is the key point, there is now a strong pricing incentive for regular buyers to take up a subscription plan. I have seen this pricing strategy in other online photography businesses too. A good example is Adobe making it very cheap now to use Photoshop and Lightroom by paying a monthly fee rather than buying the product outright. The advantage for Adobe, is very steady and predictable cash flows, instead of large ‘lumpy’ one time sales of their products. In addition, monthly subscribers typically are very ‘sticky’ customers who don’t go elsewhere.
Dividing the collection into 2 tiers. This has effectively simplified the collections and the pricing structures on iStock. This is not universal popular with contributors – but I view it as a step in the right direction by making it easier for image buyers to understand the different collections and price points.
Implementing one price per file. This is the most controversial change. It effectively means a price decrease for buyers who typically bought the largest sized files, and a price increase for buyers who bought the smallest files.

The Impact for Contributors

I am an exclusive contributor at iStock. For exclusives, the total revenue for each month is made up from 4 sources – ‘normal’ istock sales, extended licence sales, subscription and partner program sales, and sales via the Getty Images.

Normal istock sales and extended licence sales are recorded and credited in real time. Subscription and partner program sales are reported once per month – typically near the beginning of the following month. Getty Images sales are reported once per month – typically near the end of the following month. So effectively, an exclusive contributor will need to wait until nearly the end of November to fully understand October sales.

What has my experience been? September was a fair month. Overall download numbers were good. There was not a noticeable shift between normal downloads and subscriptions. I was fortunate to have several extended licence sales and a strong month for Getty Images downloads.

In October I started to see the impact of the changes. My iStock normal downloads fell by 10% from September and my subscription sales increased by 110% (from a small base). The effect was a significant increase in total downloads, and a small increase in income. (Note, October Getty Images sales have not been reported yet. When these are credited to contributors a full month on month analysis will be possible).

While it is early days, my experience is that the iStock strategy is working. They appear to be focusing on the large volume buyer as outlined in my earlier post and generating increased volume of downloads at a lower average price per download.

The increase in sub sales is seeing reductions in average income per download. This is being offset by increases in download numbers.

Implications

The changes have several implications for contributors. The way I see it, to develop your own strategy you will need to consider these issues:

Increase in subscription sales. iStock seem to be succeeding in attracting high volume buyers through the subscription plans. This will see a strong increase in subscription sales. These are currently reported once per month.
Decline in normal downloads. For buyers of reasonable volume, the subscription plans are very attractive. This will see an increase in sub sales and a decrease in normal downloads. As normal downloads are reported in real time, contributors will see fewer downloads and revenue being added to their accounts on a daily basis.
More variable income. iStock income used to be very steady week to week. Because of the shift to sub sales it is likely that contributors incomes will be higher in that week, and lower in other weeks. I’d like to think iStock is considering a way to report sub sales in real time, but that has not been the message from iStock so far. For now, contributors will need to plan for more variable weekly income.
More challenge in meeting Redeemed Credit (RC) targets. A contributors royalty level currently depends on achieving RC targets. Sub sales do not attract RCs making the step up royalty levels harder. This adds weight to the argument that iStock are going to have to revise the RC system entirely in the next 12 months. iStock have deferred this decision for another year by maintaining current royalty levels for 2015. This is of great value to existing contributors, but not much help to new ones.
It is going to be tougher to meet exclusivity requirements. To become an exclusive contributor currently requires you to meet a minimum number of ‘normal’ downloads. Once you become exclusive you receive higher royalties. Exclusivity is getting harder to achieve due to the shift to sub sales. My view is that iStock will have to change this criteria if they want to attract contributors to be exclusive.
Income may decline in the short term. The shift to sub sales is negatively affecting many contributors income at the moment. This is because sub sales generate less income per sale than ‘normal’ iStock downloads. It will take time to attract more larger buyers, and for the volume increase to offset the reduction in earnings per download.

I continue to be optimistic about the long term impact of the changes iStock have made. There is some “change pain” being experienced by contributors at present, and it will take time to adjust to fewer ‘normal’ downloads being reported per day. As for the future – I’d like to see iStock move to real time reporting of sub sales, changes to the RC system, and continued growth in total download numbers.

Thanks for reading ‘understanding the changes at iStock’. I hope this has been useful for you. If you are an iStock contributor, what has been your experience? or concerns?