Tag Archives: microstock photography

Why I Shoot Stock

This week I’ve been fielding lots of questions about stock photography. Those questions ranged from what rates to pay models, to the best stock libraries to work with, to what is the best sort of content to shoot. The answer to those questions vary with each photographer and what you like to shoot. To set a foundation to answer those questions for yourself, I’ve outlined here ‘Why I Shoot Stock’.

First it’s important to understand that stock photography only makes up a component of my photography income. I am not a full time stock photographer. Many of the points I make below I would take a different point of view if I were a full time stock shooter. Stock is an important foundation to my photography business, and makes up one part of an overall strategy.

Stock makes up an important part of a wider strategy

So, this is ‘Why I Shoot Stock’

1. Stock generates a consistent income year round. Outside of stock photography, I primarily shoot weddings and portraits. Both of these have significant seasonality. I live in Melbourne, Australia and most of my weddings and portraits are local. Down here at the bottom of the world we have hot summers and cold winters. This brings seasonality to my work especially in wedding photography. I am typically busy in spring, less so in mid summer, and busy again in autumn. Winter tends to be very quiet. There are not many people getting married in the darker and colder months of June, July, and August. On the other hand, stock photography provides a consistent income all year round. There are some ups and downs between months, but for the type of content I shoot, the demand is steady year round. That means my downloads and income from royalties are also consistent.

In stock photography, I work on the image. The stock library looks after the sales and marketing.

2. The stock library looks after the sales and marketing. With my wedding photography I look after everything from meeting with potential clients, building a relationship, quoting, pre wedding preparation, shooting on wedding day (with a second shooter!), post production work, delivering images, organizing prints and albums, and delivery of the final products. It is a ‘full service’ proposition and I look after each step of the journey. Stock photography is different. I look after the shoot planning, shooting, post production, and uploading to the stock library. Then they take over. They look after marketing images to potential clients, the download process, the payment from the client, the licencing agreements for use of the file, and any client inquiry or complaint. They also look after payment to the photographer, which happens automatically. For me, the simplicity of this model works well. I shoot and upload, the stock library looks after everything else. That’s why they keep a percentage of the price paid by the end customer.

3. Stock gives me leverage. With my wedding photography work, there is a limit to the number of weddings I can shoot per year. Even with a number of really good second shooters, there is a limit to the number of clients we can look after. And they are nearly all local to Melbourne. Stock on the other hand allows potential sales worldwide and, in a lot of cases, my stock sales happen when I am asleep. They are selling to clients in the USA and Europe during their day time hours, which is in the middle of the night in Australia.

4. Shoot once, sell multiple times. When I shoot a wedding, the income from that wedding only comes once. Now and then a couple order additional items for their first anniversary or another occasion, but mostly the wedding produces an income for me just once. Stock is different. I started shooting stock in 2008. Today, files from 2008 are still producing an income. I love the idea that if I can develop a strong concept, and execute it well, then it can keep selling for years. A single stock image can generate an income multiple times.

Stock photography allows me flexibility. I am not dependent on the client for when I can shoot.

5. Costs today, income tomorrow. Combined with the point above – with stock photography I incur my costs associated with producing the files today. I receive no income until into the future. Some people don’t like this model – they like to be paid today for the work they have done. On the other hand, I like the concept that my costs are incurred today, but my income from those costs is spread out into the future. As my portfolio grows I am building an asset which has value to me in the future. It is the basis for a revenue stream in the years ahead. I like the concept of ‘planting’ now and ‘harvesting’ later.

In portrait and wedding photography, I work to the clients timetable.

6. I work to my own timetable. When I shoot a wedding for a client I plan around meeting their needs. That means I work to their timetable and to their brief. I work hard to make sure I understand their needs and then exceed them. If they really want a shot of the first kiss with a fish eye lens from an upstairs balcony – I’ll do my best to get it for them. By necessity I work to the timetable they set out. In stock, the timetable is all mine. If I have a brilliant idea in the middle of the night and want to get up and shoot it straight away, I can. If I want to work long hours and uploads hundreds of files per week, I can. And if I want to take a holiday and do no stock shoots for 3 months, I can. In stock, I can work to my own timetable. I can work as much or as little as I want to.

7. I can shoot a wide variety of subjects. Image libraries don’t care that I mainly shoot weddings. As long as my images are up to the technical requirements they set, I can shoot any subject matter. I like this variety and flexibility. There are times of the year after a series of weddings where I need a break from shooting with people all day. It’s especially at these time that I enjoy shooting wildlife images and relaxing outdoors. Stock allows me to do this while still being productive. Win, win.

If you have read some of my earlier posts about stock photography you will know that I value the stock photography model as a key part of my business.

Thanks for reading why I shoot stock. If you would like additional information, please see the previous posts I have written about stock photography. The most popular have been Starting in Stock Photography and Simple Stock Concepts. I also have an ebook called Build A Five Figure Income in Your Spare Time. It is for the photographer who is full of enthusiasm and needs a little guidance and encouragement. It goes into more detail on my own stock photography journey and the lessons learnt along the way. You can download it here for $5.

Thanks again for reading ‘why I shoot stock’. Happy shooting.

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’.

Why Stock Photographers Should Crash Their Cars

Let’s just clarify one thing up front in this post, I am not really suggesting you have an accident in your vehicle! I don’t want you to cause any damage, get hurt, or run into problems with your insurance company! I want to make a point as you consider subjects for your stock photography portfolio, and hence the title ‘Why Stock Photographers Should Crash Their Cars’. Read on, I will explain.

I have written blog posts for Beyond Here on a range of subjects related to stock photography. It has been very exciting that many readers have opened stock photography accounts and are now turning their hobby into an income. In the age of digital cameras and the internet, generating an income through stock photography is open to nearly everyone. If you are reading this blog online and you have access to a digital camera, it is open to you.

If you haven’t read those posts, you can find some of them here.

When you are starting in stock photography it is easy to think that your stock images need to be outstanding or very creative. I have found that isn’t the case, and that well lit ‘every day’ images have a market.

That point was reinforced to me this week, when this image was downloaded from my iStock portfolio again. To date, it has been downloaded over 150 times and has generated over US$700 in royalties.

Successful stock images need to be useful not outstanding

So how did this image come about? Unfortunately this is my car! Several years ago it was accidentally backed into the front fence outside our house (not by me!) leaving a dent in the side of the vehicle. I took some shots thinking they were potential stock images which could be used by businesses in the car repair or car insurance industries.

This specific image was taken several weeks after the accident, when I had been out shooting sunrise images. The space in the car park, and the morning light, created a more useful image than the ones I had previously taken in my drive way.

This has turned out to be true and the image has sold steadily since I uploaded it in 2010. At the time I made an insurance claim and, after I paid the policy excess of A$500, the insurance company had the vehicle repaired. It has generated just over US$700 in royalties which, based on today’s exchange rate, is the equivalent to around $900 in Australian dollars. So it cost me $500 and has so far generated $900 in royalties, and that’s why stock photographers should crash their cars.

The point is that successful stock images don’t need to be high impact, creative images – they need to be useful. If you keep looking for everyday useful images you will find that potential stock images are all around you. Shoot them in good light conditions and you will be building a stock portfolio which generates royalty income every day. Thanks for reading ‘why stock photographers should crash their cars’ and please don’t go out and have an accident. Drive safely!

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?

Making the Dream Real

Several readers of Beyond Here have opened stock photography accounts in the last 3 months. Most do so with a sense of hope and trepidation. While it is exciting to see your portfolio growing, it is normal that downloads are slow to begin. Inevitably new contributors get to a point where they say – is this really worth it? Will this effort pay off? And ultimately, am I any good at this? If you are thinking those questions – this post is for you. Don’t give up, read on for 6 tips for making the dream real.

Success in stock photography is open to everyone. Expect a slow start and keep building that portfolio.

Firstly, as a new stock contributor, what should you expect?

(1) Downloads take time. This is a reality so don’t be surprised if you go for several months with few downloads. It happens for a range of reasons, but the main one is that of the thousands of buyers out there – it is highly unlikely that they will see your file on the day it is uploaded and download it immediately. More likely is that when they find your file, they are researching a range of different images for their project. They will think about it for a while, and only then, go ahead with the purchase. Consider also that your file is one of tens of millions of pictures in the stock library. It is unlikely that you’ll make a significant income with only a few hundred images. This process takes time, and a portfolio needs to be built.

(2) Stock is not a get rich quick scheme. Tied directly to the fact that downloads take time is that stock will not make you a fortune immediately. It has made many people fortunes, but it takes time, practice, and dedication. It is very likely that in your first few months, your income will be negligible or small. If that’s the case – don’t worry, it’s normal.

(3) There is competition. A little searching on stock libraries makes this clear. There is competition in stock which means poor quality images will not sell. Buyers have lots of alternatives among well lit, interesting images. This is what will drive improvement in a beginners photography skills – you need to produce good quality, well lit images to succeed in the long term.

Ok, enough of the reality check. So, what about tips for making the dream real? Here are 6 tips for getting past the new contributor doubts.

Tip 1 – Build That Portfolio. The quicker you can build a portfolio, the quicker success will come. If you have uploaded several hundred images with little success – this is the time to push on, not to give up. When I first started contributing to iStock in 2008 there were weekly upload limits of 15 images. Yes, I was only allowed to upload 15 images per week. It took ages to build a portfolio back then. Today, on iStock, that limit is 999. Effectively that means there is no upload limit – you can build your portfolio very quickly compared to what was possible in 2008. Make the most of it – build that portfolio.

Tip 2 – Diversify. A broadly diversified portfolio has more opportunity of success than a very narrow one. Shoot a range of different material. Don’t rely solely on what you have shot in the past. Step out of your comfort zone and shoot something new. If you love landscape photography, try some portrait and macro work too.

Tip 3 – Learn What Sells. Yes, this means studying what types of images are successful as stock. Look at the major stock libraries and search for topics you are interested in. Look at the portfolios of successful contributors. See what makes their work stand out and be successful. Beginners in stock photography often think they can just upload images that have been sitting on their hard drive for years and instantly generate a significant income. I have never seen that happen. The most common path to success is to learn what sells, and then set about building a portfolio with that in mind. Think of it as first understanding stock photography, and then shooting for that market.

Tip 4 – Make Key-wording a Strength. Key-wording refers to adding words to your file. These are important because this is how a buyer finds your files. You need to make sure that your key words are relevant and accurate. To do this, study successful files. Look at how they have been key-worded. It is worth being good at key-wording. It is no good having great files which buyers can’t find.

Finding a niche will accelerate your stock photo results

Tip 5 – Find A Niche. You can find success in stock without having a niche – but it is much easier if you do. This might be an area where you have access to a type of image that others don’t, or you have an intimate understanding of a topic which helps you shoot unique images. Finding a niche is not that hard. I live in Melbourne, Australia where there is a large colony of flying foxes. I found a niche with images of bats – which sell very well around Halloween. Where is your niche? If you are a member of a motor bike club – photograph bikes and bikers. If you’re a plumber, how about plumbing or trades person themes? If you are a mum, how about baby or kids themes? If you catch the ferry across Sydney harbor every day, how about a daily image of the opera house and harbor bridge? Finding a niche is not hard, and will help your stock photography results.

Tip 6 – Keep Going. Nothing in stock photography is more important than persistence. Don’t give up. Keep growing your portfolio, diversifying, and building your knowledge of the stock photography market. Success is open to everyone – you can do it too.

Thanks for taking the time to read ‘making the dream real’. The first 12 months as a stock photographer are the most challenging. If you can make it through that with a steadily growing portfolio, your chances of long term success are very good. Got more questions? Please add a comment to this post. I’ll do my best to answer your question. Good luck in making the dream real!!

How Does Payment from Stock Photography Work

I have written a series of posts on Beyond Here about stock photography, and specifically about micro stock photography. It has been exciting that readers of Beyond Here have opened micro stock photography accounts and are starting to earn an income from their images.

If you’d like to read those earlier posts, two of the most popular posts are here:

One common question from new stock photographers is ‘how does payment from stock photography work?’ My first advice to these photographers is not to worry about downloads and income in the early stages of their stock career, but to focus on building their portfolio. But I understand they still want to know how the payment function works. So here we go.

You need to meet the minimum payment level before requesting a payment

1, Minimum Payments. Each micro stock photography site has a minimum payment level. That is the minimum you need to exceed before you can request a payment. I assume this is so that the micro stock sites are not processing thousands and thousands of very small transactions.

I am an exclusive contributor at iStock where the minimum payment is USD$100. That means, when your balance from royalties from downloads of your images exceeds USD$100 you can request payment of those funds. Other micro stock sites may have different minimum payment levels. When I was contributing to Shutterstock in 2008 and 2009 the minimum was USD$70.

2. Payment Method. Again, the way that you get paid can vary slightly depending on which site you are using. Using iStock as the example you can currently choose between cheque, Paypal, Skrill, pre paid Mastercard, or direct deposit (for US account holders).

I live in Australia and have always used PayPal as my payment method. iStock has a published weekly payment schedule, and the funds appear in my PayPal account within 5 business days from that date. From there I transfer the funds from Paypal to a nominated bank account. It takes a few days to appear in the bank account, but it is a very simple transfer process.

3. Payment Frequency. iStock’s payment terms also outline that you can request only one payment per week. I assume this is so that they are not processing multiple payments to a single contributor. When you are starting out, the USD$100 minimum will seem a long way off. But with persistence it won’t be long until you are requesting a payment every week.

The payment process from micro stock sites is straightforward and they are processing thousands of payments each week. You will need to look into what are the payment methods your stock photography site offers, and then set up the appropriate account. For example, if you decide to use Paypal, you will need to set up a Paypal account and link a bank account to it. This is also a straightforward process which can be done online.

So if you are starting out in stock photography, don’t be anxious about the payment process – it’s easy. Instead focus on building a portfolio of quality stock images and trust that the downloads and royalties will come in time.

Thanks for reading ‘how does payment from stock photography work?’ I hope it has been useful for you.

Moving iStock Forward?

Last weekend iStock, one of the leading microstock photography agencies, implemented some significant changes in the pricing of their images. I outlined those changes in the post My Take On this Weeks iStock Announcements. So what has happened since then, and is it moving iStock forward?

The most significant change iStock introduced was to make files of all sizes the same price. Previously a small size image would be cheaper than a larger size. That meant that buyers who were using the image on the web only would buy the smallest size, and a buyer who was going to use the image in print would buy a larger sized image for a higher price. After the changes, all sizes are the same price.

Contributors will have to wait until subscription sales are reported to fully understand the impact of the changes

So what has been the impact on buyers and contributors? After less than a week of the ‘new iStock’ there is mixed reaction from buyers and contributors. Buyers who mainly purchased small size files for web use have been very vocal that the changes have resulted in a large price increase for them. And in effect, for this buying group, they have. These buyers have expressed their anger in iStock discussion forums and in social media. Many have said that they will use up their current credits and then move to other microstock agencies. To see some examples, check out the iStock facebook page. For me, as an exclusive iStock contributor, it’s pretty ugly reading.

What is unknown is the response from large buyers who mainly purchase larger sized files. For this group the changes are effectively a price decrease. So that should mean an increase in downloads.

The way the new pricing structure works, this group has an incentive to use the subscription program rather than make individual downloads. While individual sales are reported as they happen, subscription sales are only reported in the middle of the following month. So subscription sales being made in September will not be reported to contributors until the middle of October. It won’t be until then that contributors will know whether there has been a large increase in downloads from this buyer group.

What has the contributor response been to date? Well, it has been more balanced than the buyer response. Some are reporting an increase in sales, but many are reporting a decrease. Contributors with a lot of content in the Vetta collection seem particularly upset. These high priced files have become much more ‘affordable’. The price decrease also means a decrease in royalty per download for the contributor. To generate the same total royalty will need a large increase in volume which is not apparent yet. But in reality, contributors will not know the total impact until subscription sales are reported in the middle of October.

What’s my experience? My downloads and average $ per download have both decreased since the changes. That said, we are less than a week since the changes were made.

I am going to resist the urge to jump to any conclusions until we have more data. I’m sorry and disappointed that many buyers of small images are upset and are considering moving to competitors. But I don’t yet know the impact of larger buyers through the subscription program. I will wait to see those results before considering changing course.

I am hoping there has been a large increase in subscription sales. iStock and its owners, Getty Images, will be hoping so too. The direction they are taking iStock is very difficult to reverse, and the customers who leave will be nearly impossible to attract to return. Such a big move would not have been made without detailed research – now I hope the reality matches the research. Fingers crossed.

Are you an iStock buyer or contributor? Do you think the changes are moving iStock forward?

My Take on This Weeks iStock Announcements

Over the last 3 months I have written a series of posts on Beyond Here about stock photography. Several readers have since opened microstock photography accounts and become contributors. Many are turning their passion for photography into an income. Super.

In those posts I have shared my positive experiences with iStock, where I have been a contributor since 2008 and an exclusive contributor since 2010. This week iStock announced some significant changes that will come into effect on 15 September 2014. Here’s my take on this weeks iStock announcements.

First, some background. In April 2014, iStock introduced a subscription offering in addition to its normal offer. This allows high volume image buyers to purchase high volumes at a fixed price. This is an area where competitor site – Shutterstock – had been doing considerably better than iStock for many years. iStock’s subscription offer seemed to be a re-focus on the large volume buyer.

In this weeks announcement iStock states that ‘in only a few months, these subscriptions now represent a meaningful percentage of total iStock sales and materially increased spend per customer’.

It is the final part of this message which I find interesting – the ‘materially increased spend per customer’. In microstock photography there has long been an obsession with the calculation of dollars per download to assess value. The statement from iStock suggests their thinking has changed. If a customer is spending $1000 per month on images and buys 1 image from iStock for the month for $100, the revenue per download is $100. What that statistic overlooks is that the customer is spending $900 with competitors. The announcement suggests to me that iStock are refocussing to look at that remaining $900.

Unfortunately for the buyer, iStock’s highest quality content has previously been excluded from the subscription offer. That is about to change.

So, what’s changing?

iStock are taking several steps to ‘dramatically improve the simplicity of the iStock site, search and messaging’.

The key changes include:

Offering just one payment method – credits
Dividing the collection into 2 tiers
Implementing one price per file

What do the changes mean?

(1) Offering just one payment method – credits

iStock previously offered two ways to pay – the buyer could use credits, or they could use a credit card to pay for images directly. The credit method suited the regular buyer, the credit card method suited the occasional buyer.

Going forward buyers will only be able to use credits. Discussion in the iStock forums suggests that this change will simplify the coding on the site. It seems again, that iStock are focusing on the needs of the large volume buyer and are prepared to fore-go the needs of some smaller buyers. This seems a fair trade off, if the large buyers in the example above bring more of their monthly budget to iStock. I like this approach. It strikes me as another application of the 80/20 rule. I expect 80% of downloads come from 20% of buyers, and iStock seem to be tuning in to that 20% of buyers.

(2) Dividing the collection into 2 tiers

iStock’s collections were previously divided into 4 areas – Main, Signature, Signature+, and Vetta. From the middle of September that will be consolidated into 2 tiers – Essentials (standard content) and Signature (premium content). The old Main content will become the Essentials tier. The old Vetta, Signature+ and Signature collections will form the new Signature tier.

The big implication here is that Vetta and Signature+ content will become significantly cheaper – good for buyers, and potentially good for contributors only if an increase in downloads makes up for the reduction in royalty per image the contributor will receive (because of the lower price).

The second big implication here is that the best content on iStock (Vetta) will now be available to those buyers who have taken up the subscription offer. This will make the subscription offers more attractive.

(3) Implementing one price per file

Currently the price paid per file downloaded depends on which size the buyer wants. A small file suitable for web use only is cheaper than a large file suitable for printing. From the middle of September the price will be the same regardless of the size. This is a very big change for iStock. It will make life much simpler for buyers. It will be to the advantage of buyers needing large sized images and to the disadvantage of buyers only needing small sized images.

Again, this seems to support the view that iStock has asked and listened to what the high volume image buyers want. And they seem to want access to the best images in the subscription offer, simpler collection structures, lower pricing, and more transparent pricing.

What’s my take?

iStock’s moves are bold and have the potential to re-shape the microstock industry again. iStock has a reputation for having a high quality collection of images – and the Vetta collection is the jewel in that crown. There will be high volume, large budget buyers who are now considering switching to iStock. There will also be current iStock customers considering spending more of their total budget with iStock.

I expect these moves will generate a higher volume of downloads, at a lower average price per download. iStock will be counting on the volume increase to drive total revenue increases. Whether that happens will be known in a few weeks.

What’s the risk?

There is a lot at stake for iStock. Successful execution could see benefits for buyers, contributors, and iStock itself. Failure could see current customers move to competitors, and exclusive contributors looking for alternative sales avenues for their images.

Overall, I am very positive about the boldness of this strategy from iStock. I can see benefits for buyers and contributors. But having a good strategy is only half of the challenge – being able to execute it is another question. iStock’s record for implementing major change over the last 5 years is not great – I’m hoping this time it will be different.

iStock is making a big move in 2 weeks time that may re shape the stock photography industry. It seems to be focussing on the needs of the high volume, large budget buyer. I like the focus and the offer. As an exclusive contributor I just hope iStock execute this well.

That’s my take on this weeks iStock announcements. What’s yours?