Contract, royalties, collaboration?

[cipher]

I have been asked by a friend if I would be interested in working on a project he is devising. He is an author and has an idea for a book that involves photos and short-stories based on the photos.

So far I've said I'd be interested and we agreed to talk, though we haven't had a chance to get into the nitty-gritty of it.

As many are here who come seeking advice, I'm starting out in the realm of photos for money having mostly shot for personal enjoyment and education until recently. If I were more established, had a good reputation, a full-fledged business, etc, I would be quite sure of quoting a price to do the shoot as a professional. I definitely do not plan to do this without some form of compensation as if it works out, he stands to make money off the work I do and I certainly do not want to give that away.

So with that bit of background, which structure would you be inclined to propose/seek:

1) A contract shoot. Set a rate based on time put in along with post-time, costs, and a suitable margin. Factor in a licensing fee and go from there. (Note that it is a book and not an ad campaign that has a projected set run of copies. On a side note, has anyone ever licensed their work and then been asked to relicense for another run?)

2) A set fee for the shoot (taking into account things as above) with a percentage of the earnings (royalties).

3) A collaboration where there is an agreement on how the proceeds will be split.

I am hoping to work out something that will in the end be fair for both parties. I more-or-less know the financial pros and cons of each scenario (but feel free to point any out in case I've missed something), so I'm looking more for what people would be more in-favour of or have done before.

[Jim Bryant]

Originally Posted by cipher

I have been asked by a friend if I would be interested in working on a project he is devising. He is an author and has an idea for a book that involves photos and short-stories based on the photos.

So far I've said I'd be interested and we agreed to talk, though we haven't had a chance to get into the nitty-gritty of it.

As many are here who come seeking advice, I'm starting out in the realm of photos for money having mostly shot for personal enjoyment and education until recently. If I were more established, had a good reputation, a full-fledged business, etc, I would be quite sure of quoting a price to do the shoot as a professional. I definitely do not plan to do this without some form of compensation as if it works out, he stands to make money off the work I do and I certainly do not want to give that away.

So with that bit of background, which structure would you be inclined to propose/seek:

1) A contract shoot. Set a rate based on time put in along with post-time, costs, and a suitable margin. Factor in a licensing fee and go from there. (Note that it is a book and not an ad campaign that has a projected set run of copies. On a side note, has anyone ever licensed their work and then been asked to relicense for another run?)

2) A set fee for the shoot (taking into account things as above) with a percentage of the earnings (royalties).

3) A collaboration where there is an agreement on how the proceeds will be split.

I am hoping to work out something that will in the end be fair for both parties. I more-or-less know the financial pros and cons of each scenario (but feel free to point any out in case I've missed something), so I'm looking more for what people would be more in-favour of or have done before.

#1 would benefit you more. However, you have to set your licensing fee to what media it will be used for and charge for each. You can give them a discount if they want multiple fees and give them a year for usage rights.

[jdepould]

I'd go with a creative fee (as opposed to hourly). Profit-sharing gets too complicated. Just don't give him a perpetual license.

[mokka]

The problem with profit-sharing and royalties is that if the book fails you get nothing, which is a bit of a risk for you to take on when you don't have any input into most of the project. I would go with something which guarantees you an upfront fee, and perhaps licence for a year, then you can earn money from relicencing if it remains in print, but at least you have your upfront fee.

[andyw]

Unless this guy is a well known author who already makes millions (well a lot) from his books then I would go for #1.

Reason - you are getting paid for your work.

If you go for profit share or royalities there is a possibility you will get nothing.


Yes, I have sold images and then been asked for extensions and or extended areas/usages.
No issues - just price up accordingly.