Originally published as Chapter 7, Negotiating Stock Photography Fees n the book titled The Photographer’s Guide to Negotiating, Allworth Press, NY ISBN 1-58115414-3

Nibbling for More
You will recall that nibbling is going for some added benefit after the deal is done. Here is an example of nibbling with a trade-off.

You have just made a deal with a buyer for the use of a stock image for one thirteen-week advertising cycle. You think that it is likely that the buyer will want an additional cycles of use, but he is not asking for it now because he is unsure and does not want to commit to the additional fee until the company assesses the success of the first cycle. You know that because you tried to sell him extended use during the sales process (you did, didn’t you?), and he refused it because of the risk.

Once you have agreed on the basic deal with one cycle or use, you get a bright idea about saving him money—if he decides on the second cycle. You also use the power of competition to motivate him. Here’s a sample pitch: “Listen, I just had a thought that could not only save you some money, but it also has an element of insurance for you. If you want that second cycle and come back to me later, I am going to charge you the same amount we just agreed upon. Unlike some folks, I won’t inflate the price, because we agreed on it. That has to make them think.) The only thing that could prevent me from relicensing to you is if someone comes to me and asks for, and is willing to pay for, exclusive rights to use the image. I can’t refuse a sure sale for a maybe. I have a proposition for you. If you pay an additional 20 percent, I will guarantee you that I will not license any rights that will interfere with your use of the image for a second cycle, and for an additional 20 percent I will guarantee to license the second cycle with a 30-percent discount off the price we just agreed to. You will get the insurance you need to have the image available, and the 40 percent more you pay now will be partially offset by the 30 percent discount for the next cycle. So your effective cost will only be 10 percent higher for the guarantee and usage. Do you want both options?”

So you can see how a good negotiator is always thinking. In the above scenario, you have chosen to try to put more money in your pocket now rather than wait to see if you can earn it later. It is up to you whether a dollar in the pocket right now is worth more than a greater amount that might come later. Personally, in the situation I just described, I’d take the money when I could get it.

Stay Focused
When selling stock, you have to determine what factors could influence the value of your image, and whether any exceptions make those factors a price booster or buster. Remember you are the buyer’s risk. Like insurance, “ensurance” has a premium attached to it. You get that premium by reinforcing in the buyer’s mind why he wants your image. Only then are you ready to spar over the price level. When you do, you can employ the tactics that fit and also use those that might bring benefit after you close the deal. Stay focused on one thing: Stock licensing means fee negotiation alone. Keep your eye on the price and also on the factors, exceptions, and tactics that can help you get the right price.

(c) 2005 Richard Weisgrau [contact] [bio]