Art Licensing : The Basics

This is a post I’ve been meaning to write for some time, since I get a lot of questions around the topic, where to start and how to actively start licensing with companies. Although there are many great courses out there to help with this, I thought I’d share a bit of my own insight.

Let’s Look at different types of Licensing and some of the key terms……

So what is Art Licensing?

Essentially it’s a way of brands ‘renting’ your artwork for a specified period of time and with certain rights. You may have encountered licenses that are ‘non-exclusive’ or ‘exclusive’ and buyouts also. Usage is also very important and the territory in which your designs can be used.

Non-Exclusive’ licenses are designs which can be used across a range of products. You may have a design for example that is licensed for home decor but can use the same design on fabric. Most clients will ask that the design isn’t used within the same product category, however you can use it on different products in another sector. It may also be with non-exclusive licenses that you can actually use the designs within the same product category - this is quite normal with art prints for example. This is a great system to maximise income since you can sell with a broad range of sites across the world.

Exclusive’ licenses are any that mean you have to remove your design for sale to any other product category. This obviously gives the client complete exclusivity but can be restrictive if it’s a popular design. However exclusive licenses generally sell at a higher rate and again for a specified amount of time, so at the end of the term you are free to license the design again.

Full Buyouts mean the client will own the design in perpetuity. This can be very lucrative since you can sell at a much higher price, but again it can limit your income ultimately if it’s a successful design that would elsewhere be licensed repeatedly. It is also the case that you are handing over full copyright of your design with a full buyout so you can’t claim any future rights of the artwork.

It is very important to keep track of what designs have been licensed and what product categories as you don’t want to risk licensing the same design twice! I personally use a site called Artonomo where clients can register to view my designs and I can add private notes so I can see what has already been licensed. This is especially useful if you are starting to license a lot of designs as it can sometimes be difficult to remember which design is where.

A good licensing agreement is essential. If the client doesn’t provide you with one of theirs, then you can easily produce your own. I would advise always including the type of license, usage (ie. which products the design will sell on), the territory (ie. UK or Worldwide) and a description and images of the artworks in question.

Now we have gone over the basics of Art Licensing I will talk about pricing, and also links to some great courses and resources on the topic.

Royalties vs Flat-Fees, Rates and negotiation…

This is definitely a tricky one! Sometimes it’s a case of how long is a piece of string. There is no easy formula when it comes to pricing for licenses but it is a good idea to have a range for rates that you’re happy to work within.

The average rates are often dependent on the country you are licensing to, with some paying less than others. It is worth doing your research and you can always ask if the client has a budget! This makes it a bit easier but can also mean you may sell yourself short. It really depends on the type of client interested in your work and what they are willing to pay.

It’s worth mentioning here that Licensing can be tough. There is a lot of competition for licenses and generally the industry isn’t as lucrative as it once was. However that’s not to say there are no great opportunities out there still! It’s all about finding the right company for your style and that feels like a ‘good fit’ for you. Also bear in mind the size of the company when quoting. Smaller start-ups won’t have the same budgets as bigger brands, but again this isn’t a reason to work for too little. Just accept that this is another factor as to consider.

So what about actual figures? There is quite a lot of mystique in the industry around this but happily more artists are talking more openly about pricing. There are some great Facebook groups for example where you can ask for Pricing help, and also a number of courses (I will link these below). Additionally having an Agent can be beneficial in this respect since they have the experience of an acceptable market rate.

Something really important and which I don’t have the space to go into in much detail is flat-fee payments vs. royalties. Royalties can be more lucrative in the long-term but may take several years to come to fruition. A usual range for royalties is 3-10% and are usually paid quarterly (but some also pay monthly or even yearly). A flat-fee is money up front which can be beneficial. However the drawback to this is if a design performs amazingly well then you will receive no further payment. A good balance would be an advance, and a smaller percentage of royalties at the same time, and this is something I have encountered on a couple of occasions.

I hope this a helpful starting point regarding pricing, and as I’ve stressed there are so many different factors affecting pricing. It’s always worth doing some research and although this is sometimes hard to find, it’s not impossible. Never work for free and charge what you are worth!

To help you become more comfortable with Art Licensing and learn from the experts…

Here are some great resources I have come across and used which will help you navigate the world of Art Licensing. So do take a look. None of these are affiliate links, just sites and courses that have worked for me. Some are paid and some are free which is great if you have a budget.

Pricing and Income:

Sketch Design Repeat Artful Pricing and Negotiation

Sketch Design Repeat - information about how much you can expect to earn through royalties.

Mable Tan - an Australian surface pattern designer with a huge number of resources and downloadable guides (she talks specifically about pricing rates too).

Graphic Artists Guild Handbook

Facebook Group - Fair Pricing for Surface Designers

Facebook group- Surface Pattern Designers and Illustrators

Facebook Group - Art Licensing with Mable Tan

Bonnie Christine - 60 x 60

Introduction to Art Licensing

Cat Coq has an amazing blog and shares information about her journey in Art Licensing on this in-depth blog post.

Good Type

Juliet Meeks

Lauren Lesley You Tube

Leverage your Art Course

General Resources

Creative Howl list of Art Licensing agencies.

How to Reach Out to Brands

Elizabeth Silver ‘Pitch Kit’

Thank you so much for reading this lengthy blog post! Please do let me know if you have any further questions in the comments below!

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