Working with licensed images

[Justin]

I'm looking towards working with local artists/designers and wondered if anyone already does this?

Interested to know how you work out agreements/licensing payments and so on.

[Andrew]

Usually on the larger level rights are purchased to print the agreed merchandise. You then print/sell as much as possible over the next year or period of agreement to turn a profit. In those rights you would have had confirmation which images were included and if it is sole use for your product area or a certain geographical area etc. Those is often the kind of thing for the larger agreements but a template for smaller ones as well.

With the smaller levels you can have flexibility though and if they have not previously done this then you often work it out together. A commission basis is good if you are dipping your toes I and might be 15 or 20% of your sale value. They will always want more but you end up selling less so it is finding the balance where both can work. Trust is needed in this scenario so open book is required and records of where sales have gone. This is why the first option is the way companies eventually go, just not as cost effective for starting down this route.

Brand licensing show at London is worth a visit although most are looking for the larger deals. It gives you a feel for things though and where you might want to end up.

I am sure there will be template agreements about that can be adapted. When I did this year's ago it was with someone I already had dealings with so kept it simple and no legal costs involved. Most of the licensing I deal with now is indirectly.

[James990]

I had my fingers burnt with koolart people. They were a right pain, and it cost me a fortune, and not much profit in it. So for me I keep to my own images now.

[socialgiraffe]

As Andrew says.

Without being disrespectful forget the "big boys", there are specialist merchandising companies who are a one stop solution for everything and have very good relationships with suppliers and customers which means they get superb deals etc (remember the thread about phone cases printed for £1.19 ea).

You best bet is a profit share deal with whoever it is you are wanting to trade with. If your shop is set up correctly then they should be able to log in a see their sales without you having to provide the information each time. I I have this set up for a couple of American companies, they take 15% of the sale price and it is paid bi-monthly. The first few months are key as you have to build that trust with each other. You will also need contracts regarding where you can sell the items you have a rights deal on.

[Justin]

I'm not interested in license deals with big companies. This is for local designers and artists that I already know just wondering what the best way to set up an agreement is.

[socialgiraffe]

This is for local designers and artists that I already know just wondering what the best way to set up an agreement is.

Profit share it is then :biggrin:, that way they have a vested interest in selling the items you are creating.

[mrs maggot]

ask Pisquee, as that is one of the reasons he started isn't it that he could not find what he needed at a reasonable price. As an artist, I am sure he can tell you what the normal rates are (ish), and what you could offer -

[Andrew]

ask Pisquee, as that is one of the reasons he started isn't it that he could not find what he needed at a reasonable price. As an artist, I am sure he can tell you what the normal rates are (ish), and what you could offer -

I thought he sold his partners designs through wholesale and direct retail rather than licensing images?

Are you looking to retail the finished product Justin or sell via wholesale?

[Justin]

Are you looking to retail the finished product Justin or sell via wholesale?

Both

Appreciate the input thus far guys, cheers.

[pisquee]

Yeah, we started buying in our own kit as we couldn't get good enough results from commercial print/graphics shops in London for scanning or printing for being able to reproduce my wife's artwork.
We now sell our products both wholesale and retail.

We have licensed some of our designs to a few companies, with the average royalty being around 10% - but that is those companies licensing our designs to print themselves onto their products and sell themselves - they do all the work, and we get a cheque.

When we work with other artists (to date) we've always done it on a wholesale model, i.e. they have to buy MOQ of the products they're wanting their designs on - and they have to provide artwork ready to print.

We are currently looking to take on artists to license their designs to put on products, for us to sell through our retail and wholesale channels, and this would be at 10% of sale price to go to the artist. In this scenario, we wouldn't expect the artist themselves to want/need to also see the product, but would/could sell the product to them at the wholesale price minus the commission.