There’s a sobering dose of reality on Wired about the effect of the global network and the entry of millions of new providers into various markets. One market that is highlighted is the booming effect of the microstock community, where selling images for a few pennies is now fiscal glory for the masses. I’ve always wondered if these photographers knew they were actually losing money, that everyone else was taking advantage of the situation, and the only real loser was the photographer.
Wired makes a compelling read, but in black & white, the author points out how the graphic designer is more than happy to take the money that used to go to photographers, and line his own pocket with the leftovers, increasing his profit, while the photographer made $O.20.
“I was using Corbis and Getty, and the image fees came out of my design fees, which kept my margin low,†notes one UK designer in an email to the company. “iStockphoto’s micro-payment system has allowed me to increase my profit margin.â€
So, the designer gets to keep the money that they would have been paid to a photographer (via an agent), and this still isn’t enough to make most microstock shooters realize they’ve “lost” anything. I’ll bet that UK designer was able to use all of that “extra” money; the photographer obviously didn’t need it or want it. – And photographers just keep racing to the bottom like hoardes of rats. And when all the food has been eaten…?
I guess this is due in part to the mere commoditization of images, vs. any sense of ascribed value for what the “client” gets. It’s all about thee earnings per picture per year math.
End rant….
Gary, have you ever thought of reversing the tide by creating your own microstock agency where you are willing to pay out more than 20 cents per photo to these photographers that are inundating the microstock companies with their, sometimes, high quality photographs.
Let say you offered to pay photographers $20 instead of 20 cents each time their photo was used. Of course, you would bill your clients a MUCH higher rate for the use of that photo, insuring a healthy profit margin for yourself. Just think how many of these photographers would prefer submitting their quality photographs to your stock agency that paid 100 times more than the run-of-the-mail microstock agency.
There’s no reason why your firm shouldn’t also benefit from the extra money that’s being left on the table by these photographers who are grateful to receive 20 cents for their images, when you could be profiting from their ignorance (and generosity) too just like the graphic designers and microstock agencies are.
You point out correctly that for many there is just the simple arithmetic of RPI, but note also that there is another category of the microstock photographers who do not “loose” anything since the alternative for them would be shooting purely as a hobby. The barrier of entry in most traditional agencies would make it difficult enough for them that they would not bother.
Peter:
That’s a great point, and I’d be lying to say it never crossed my mind. However, as tempting as that is, that would likely lead to lot’s more work for me, in so far as I’d need to find all the venture capital to put together a site capable of handling the flood of contibutors wanting instantaneous results. I need a beer just thinking about it… (Shudder) Still, I bet a successful venture like that could fund a few pints of nice Irish stout.
QT:
One thing I’ve learned by listening and asking a few questions along the way is that many of these photographers would have loved getting into a traditional agency first, but the door was slammed shut on their toes. But like a pack of hungry termites, they gained entry to the market by simply chewing out the door frame.
I have to wonder, if some of the taditional agencies had been able to see the shift in the market place coming, would those interested shooters been invited into the fold of the Trads, vs turn them being out into the wind, only to find shelter in the waiting arms of the Micros?
Some of the top stock agencies out there have daunting quantity requirements that only full-time assignment pros could meet. I’m not surprised at the result. There’s many talented photographers out there that can’t meet that quantity and hence are probably scared off. My theory anyway.
I never even heard of micro stock before you put up your blog Gary. Thanks for keeping us informed!