Is 50% of profits a fair image licensing fee?
May 20, 2012 14:52:17 #
A friend is offering me 50% of net profits for allowing them to use an image I made on a t-shirt they want to sell to area tourists and maybe even on-line.
That sounds very fair to me, but I'm wondering if anyone else here has experience and an opinion on this?
Thanks,
Jeffrey
That sounds very fair to me, but I'm wondering if anyone else here has experience and an opinion on this?
Thanks,
Jeffrey
May 20, 2012 15:04:07 #
I hope I'm too late and you've already accepted his offer!
Warning: Do not go into any other sort of business with this individual. He has offered you WAY too much, and may do it again with someone else!
Warning: Do not go into any other sort of business with this individual. He has offered you WAY too much, and may do it again with someone else!
May 20, 2012 15:04:46 #
Sounds fair to me - as long as you remember that profits will fluctuate with expenses.
Might be better to set a dollar amount per sale. Easier to account for, too.
Might be better to set a dollar amount per sale. Easier to account for, too.
May 20, 2012 15:14:33 #
Danilo wrote:
I hope I'm too late and you've already accepted his offer!
Warning: Do not go into any other sort of business with this individual. He has offered you WAY too much, and may do it again with someone else!
Warning: Do not go into any other sort of business with this individual. He has offered you WAY too much, and may do it again with someone else!
I'm sorry, I don't understand your comment. Are you joking?Which way?
Thx
J.
May 20, 2012 15:16:56 #
Roger Hicks
Loc: Aquitaine
Yes, it's a VERY good deal. Depending, of course, on his definition of 'net' and his accounting standards.
Cheers,
R.
Cheers,
R.
May 20, 2012 15:25:46 #
New2blog wrote:
I'm sorry, I don't understand your comment. Are you joking?Which way?
Thx
J.
Danilo wrote:
I hope I'm too late and you've already accepted his offer!
Warning: Do not go into any other sort of business with this individual. He has offered you WAY too much, and may do it again with someone else!
Warning: Do not go into any other sort of business with this individual. He has offered you WAY too much, and may do it again with someone else!
I'm sorry, I don't understand your comment. Are you joking?Which way?
Thx
J.
I'm sorry to be so mystical. What I meant is: If I were his partner I would not have let him agree to pay so much for an image. If I were his partner I would question his business acumen. But in this matter, I would accept his offer, and make no plans for future ventures with him.
May 20, 2012 16:18:58 #
I understand, and thanks.
Danilo wrote:
quote=New2blog quote=Danilo I hope I'm too late ... (show quote)
May 20, 2012 16:19:19 #
Thanks, Mr. Hicks.
Roger Hicks wrote:
Yes, it's a VERY good deal. Depending, of course, on his definition of 'net' and his accounting standards.
Cheers,
R.
Cheers,
R.
May 20, 2012 16:25:46 #
Carioca wrote:
Sounds fair to me - as long as you remember that profits will fluctuate with expenses.
Might be better to set a dollar amount per sale. Easier to account for, too.
Might be better to set a dollar amount per sale. Easier to account for, too.
What is the definition of "profit"? There was a joke going around Hollywood a few years ago about the profit made by a particular movie. There was even joking at the Academy Awards about it. I think an actor was promised a share of the profits. Despite taking in over $200,000,000, the producers said it did not turn a profit - when you figure in this, that, and the other thing. Anything that would normally be considered profit was given a different term.
When he computes his material costs, travel expenses, office expenses, salaries, insurance, pro-rated depreciation, etc., you might wind up owing him money.
May 20, 2012 16:51:14 #
Good food for thought, Jerry, thank you for that perspective. This is a dear friend and a cottage industry, but I'll iron that out. Perhaps a flat fee per item sold is a better idea after all, as also suggested.
J.
J.
May 20, 2012 17:21:57 #
May 20, 2012 17:26:14 #
donrent wrote:
Me thinks me smell sumtin fishie...... sniff, sniff..
Ok, so, what's usual, then?
May 20, 2012 18:30:41 #
I'm with everyone else here. You might consider finding out how many shirts he needs to sell in order to start making a profit. If he means 50% of each shirt sold, that's an incredible deal. And, if they become popular, your name or logo should show up on the image!! Good luck with this, and I hope they sell a bundle! Let us know how this turns out.
May 20, 2012 22:37:44 #
never go in to business with or buy (car, camera, whatever) from a friend unless you don't mind losing the freindship. on the bad idea scale it ranks right under playing a game of pool for money against somebody named minnesotta.
May 20, 2012 22:51:49 #
sinatraman wrote:
never go in to business with or buy (car, camera, whatever) a friend unless you don't mind losing the freindship. on the bad idea scale it ranks right under playing a game of pool for money against somebody named minnesotta.
As a sidenote, sinatrman: The real Minnesota Fats (Rudolph Wonderone) was not a terribly good pool player, he garnered his fame by taking the name from Jackie Gleason's character in "The Hustler", but there were, in fact, many, many poolplayers better than he.
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