I'm now at the stage were all the pieces are ready to print. I have a clear idea of how much I'm gonna charge for the prints, and the majority of the production expenses, but I've a few questions and areas I need advice on:
What exactly is the Creative Fee, and how would you determine how to price it?
Anyone got any advice on the best way to format the financial proposal/quote for a project, specifically a private commission?
Any advice of taxation matters related to the sale of art?
Paperwork/Contracts do's and don'ts?
No offense meant here, but shouldn't everything everything you mention have been dealt with and addressed before you began the commissioned project? Doesn't the definition of commissioned pretty much mean all this stuff got done before you started? When you say the pieces are ready to print, do you mean that you've done everything on spec up to this point? - "I'm confused..." (Said like the old guy in the movie "Moonstruck")
(1) A Creative Fee is what you charge to make the photos. Some people mistakenly think it is a Day Rate, but that is just an over simplified way to think about it. It can be based on a per day, but it doesn't have to be. It's what you charge for your skill and talent and tools to "Create" the image the client wants. It is usually a line item charge independent of expenses, use, pre & post-production charges. Personally, I like to call mine a "Creative Services Fee" - since the addition of the word services seems to help the bean counters to swallow it a bit easier. Most photogs I know might charge a Creative Fee of $500.00 - $5,000.00 per day on location, and depending on whether it is an editorial, corporate, or commercial client. For clients that like one big number vs. lots of little line item numbers, you can include all of the expenses, use, production fees as part of the Creative Fee, just make sure to adjust the Creative Fee upwards by the appropriate amount.
(2) Quote the same as you would for any other client. The fact that it is a private commission should make no difference. I write my license as a written Rights Advice, where I spell out exactly what rights the client will be getting to use the images, and which rights I am keeping or restricting, as in "All other rights are reserved".
(3) Don't ask photographers for accounting or legal advice. There's too much at stake to gamble on advice from non-specialists.
(4) Do make sure everything is done right the first time, and done professionally. Make sure your indemnifications and liabilities are fully covered any protected. Make sure everything communicated is put into writing, and spelled out properly on your estimates, invoices, license, and that your deliverables are on par with what your client expects to receive, and as you promised to deliver.
- Like I said to start, this is all stuff that needs to be fully arranged and set up with any client
before starting any project.
Good luck, and hope some of what I mentioned is / was helpful.
