The Artist Career Training Blog

The 7 Step Cash Flow Cycle of Art Licensing

Aletta de Wal — Mon, 08 Mar 2010 19:55:33 +0000

One of the keys to building an art business that lasts is cash flow. It takes money to make and market art. And then there is always a waiting period between when money leaves your bank account to pay the bills and when you get income from your efforts to pay yourself.

"If you haven't licensed your art before, you may wonder how long it will take to make money. Of course, it can vary and each artist's experience will differ. But below I have outlined the 7 basic stages that will give an idea of what to expect:

1. Create the art. You or your agent show it to manufacturers.

2. Celebrate! Someone is interested! Contract negotiation starts.

3. Sign the contract. (Let's assume it is January) You will get some money now IF you get an advance. In my experience, that happens about 50% of the time.

4. Prepare the art. Make any requested changes or additions to your art and get everything to the manufacturer.

5. Now the manufacturer does their part. They need to make sure everything is formatted and ready. Product needs to be made. It is often 6-12 months between when you give them the art and when the art is on the products, in a store.

6. Product ships. The manufacturer ships the product with your art, say in January - it's now been 12 months since signing the deal.

7. Most companies pay quarterly - so you will be paid 4 times a year. At the end of the quarter, which would be March, they start to do royalty reports and generally have to have them in the mail within 30 days - so by April 30th. You should have your first royalty check by the first week in May.

"As you can see by this example, it can take some time to get the money flowing. Sometimes things move faster but I want you to prepare for this type of time line. If you understand it going into it, you are less likely to get frustrated and give up.

"Once you have things in the licensing pipeline, you start to get very excited at the end of each quarter and watch for the mail carrier!

"Some artists will buck this system and seem to become huge overnight. It is easy to become a little envious. One of my clients once told me that in her experience, it is the artists with slow and steady growththat do really well in the long run, many who are overnight successes lose their appeal to consumers just as fast."

- Article Source: http://EzineArticles.com/?expert=Tara_Reed

So slow and steady wins the race - but you have to start to win.

If you have been following this series, you have already:

~ decided if licensing is for you
~ taken 3 steps if you think you want to license your art

Talk back about your licensing experiences and questions by posting a comment here.

P.S. If you want to know "Five Things Artists Should Consider Before Deciding to License Your Art", join me and Tara Reed* on Wednesday, March 10th at 4:00 p.m. Pacific. Click here to register. If you can't make it, register anyway to get the recording and content outline.

Tara is active in licensing so you will get the latest information and advice that works. After all, we want you to build an art business that lasts and helps you make a better living.

If you prefer learning on your own, check out these resources.

*FTC Disclosure: When we find artists like Tara Reed who have deep, proven experience in a topic that will help you make a better living making art, we put them front and center. When these fine folks offer services and products that are first class, sometimes we agree to help each other get the word out to you with an "affiliate" arrangement, which means that we will earn a small commission for referring you to their resources. Those are marked with an asterisk.

The Best Thing I Ever Learned (How to "Eat an Elephant")

Robin Sagara — Mon, 08 Mar 2010 09:56:00 +0000

Cake image from The Cake NinjaNo, not a real Elephant. Eewwwww!!!

I'm talking about how to accomplish something that seems very large and overwhelming, like managing your art business and marketing your art certainly can.

I KNOW how it feels. I'm faced with it every day of my life, just like you. And a few years ago, after I got over the realization that I would have to INVEST more time, money and brain power into myself and my business than I ever dreamed, I got v-e-r-y overwhelmed and wanted to run away. And sometimes I did. I'd hide under the covers and mutter things like, "Oh My Gawd! This is going to cost me thousands!!"

And then I did something smart and hired Aletta de Wal for some one-on-one coaching time (hint: you should too) and she taught me something wonderful: She told me, "Yes, you do have to invest in yourself, but you don't have to do it all at once." She said, "I know times are tough and it seems overwhelming, but if you DO NOTHING, no one will know who you are." She suggested that I make a list of all the things I wanted to do for my business and my marketing. Then she said to start with the smallest. And I did, and then I did the next thing, and the next, and pretty soon my business was doing better than it ever had.

How do you "Eat an Elephant"? One bite at a time.

PLEASE, I know times are tough and it's soooooo tempting to stop investing, to stop spending money on your business and marketing. But I'm telling you, it's a mistake. Yes, be frugal, be wise, have a long-term plan and keep going, just don't stop.

P.S. Soooo, for those of you who have pondered whether or not licensing your work would be something good to do, here is a first step: Take this class, it's on Thursday 3/10/10 (that's in two days if you're reading this blog post on the day I wrote it). Really, this is good stuff:

Five Things Artists Should Consider Before Deciding to License Your Art. It's only $29.95 and THAT is a wise investment in your future. Come on now, just do it. Skip the double vanilla caramel lattes for a couple of weeks and you've covered the cost. See, that wasn't so hard. Get the info and register by clicking here. And when you're wildly successful write to me and we'll celebrate with a yummy elephant cake!

Learning Opportunities to Help Artist Make More Money

Aletta de Wal — Wed, 17 Feb 2010 18:46:15 +0000

Thousands of Blogs tell you how to make a better living making art. It's great to have so much free information at your fingertips. Isn't more information what everyone wants? Yes and No.

Yes, as long as you can filter what you read for usefulness to you with a questions like these:

Does the author have experience working with artists like you?
If the advice is about painting, will it work for you as a sculptor?
Will the information help you solve your art marketing issues?
Will applying the information make it easier to run your art business?
Will this advice leave more money in your pocket?

No, if you end up in overload - the gap between how much information you find and what it takes to turn it into useful knowledge.

One of my aims is to keep you from feeling overwhelmed and to simplify the business side of art. I don't have experience in every single nook and cranny of the art world. No one does. But I want to answer all of your questions. So I collaborate with art world insiders* with deep "niche" knowledge and experience working with artists.

February Sponsored Spotlight: Art Licensing

Here are three highly recommended resources to help you decide whether or not you should license your art:

1. Read these A.C.T. tips :

~ "License Your Work to Make More Money from Your Originals"

~ "Five Questions That Will Help You Decide If Art Licensing Might be a Fit For You and Your Art"

~ "Three Steps For Artists Who Think They Want to License Their Art"

2. Check out this book: "Art Licensing 101" in The Art Business Library.

3. Join artist Tara Reed* in this TeleClass:

~ "Five Things Artists Should Consider Before Deciding to License Your Art"

Wednesday, March 10, 2010 at 4:00 p.m. Pacific

Stay warm and dry!

P.S. *FTC disclosure: When we find artists who have deep, proven experience in a topic that will help you make a better living making art, we put them front and center. When these fine folks offer services and products that are first class, sometimes we agree to help each other get the word out to you with an "affiliate" arrangement, which means that we will earn a small commission for referring you to their resources. Those are marked with an * asterisk on our web site, in ArtMatters! and our tips.

Three Steps For Artists Who Think They Want to License Their Art

Aletta de Wal — Mon, 15 Feb 2010 18:02:02 +0000

Over 7,000 brands and licenses showed up at last year's Licensing International Expo. The show attracts retailers who are here to find "The next hot property. The next big thing."

Licensing is a way of generating income from your art.

"Licensing art can sound like American Idol™ for art. Put your art on stage and become an overnight sensation! A road to riches, paved with glitz, glamour and lots of cash. When people first hear about licensing, they often hear about the rock stars of licensing. The people making millions that have become household names. Names like Thomas Kinkade, Mary Engelbreit, Debbie Mumm, Paul Brent, Susan Winget and the like.

"This is often what you hear, 'So-and-so's art is on thousands of products each year, selling millions of dollars in retail stores and the artist gets a percentage.' Well yippee! Who wouldn't want to do that?

"But how did those artists get there? There is a lot of work, dedication and persistence that gets you from learning about the industry to becoming a rock star of licensing. Here are three things I recommend artists just learning about licensing do, to decide if licensing their art will be a good fit for their art, their lifestyle and their goals.

1. "Make sure you like the way the day-to-day job will be. Don't just throw on your rose colored glasses and create. Seeing the end goal is good but if you are unhappy with the way to get from zero to millions (or even thousands) you probably won't get there. Like any business, there are steps to take, things to do on a daily, monthly and yearly basis to move you towards your goal. Things like creating art collections, figuring out what manufacturers license art, contacting them (or finding an agent to do your sales and marketing side), etc.

2. "Start to think about your art like an artist who licenses. Thinking like an artist who licenses their art is a shift for many people. Unlike creating art to sell in a gallery or commission work, you need groups, or collections, of art to license, not just single images. Think about products you see in stores with art on them, then consider the pieces a manufacturer needs to make it. Take paper party goods for example. The plate might have a central image and a coordinating border around the edge. The napkins have a repeat pattern. The cups have a solid color and bordered edge. Then you might see a few images used for invitations and decorations. So what does the artist provide to the manufacturer to achieve this party collection? What themes do you see over and over?

3. "Make a plan and create at least a dozen collections to get started. Even if you want an agent, you need to show that you aren't a one-hit-wonder and that you can produce art for licensing again and again. Quality, quantity and speed are three keys to success in licensing. Another reason to create a dozen collections is that during this creation process, you will discover if you actually like thinking and creating like a licensed artist. It isn't for everyone and I believe that there are so many things you can do with art, why not pick something you love and are passionate about?

"When you have your dozen or so collections, start looking for an agent or showing your art to manufacturers. See what they say, listen and adapt."
~Tara Reed

Source: Published with Tara Reed's permission
http://EzineArticles.com/?expert=Tara_Reed

As our affiliate, Tara Reed will be able to answer all of your questions about licensing your work in our upcoming TeleClasses. Tara is active in licensing so you will get the latest information and advice that works. After all, we want you to build an art business that lasts and helps you make a better living.

P.S. If you prefer learning on your own, check out these resources.

Galleries Do Not Lay Golden Eggs

Aletta de Wal — Wed, 10 Feb 2010 18:05:45 +0000

If Aesop had written a fable about galleries, it would have sounded a lot like this one. As you read, replace the word "gallery" for "goose":

"A man and his wife had the good fortune to possess a goose which laid a golden egg every day. Lucky though they were, they soon began to think they were not getting rich fast enough, and, imagining the bird must be made of gold inside, they decided to kill it. Then, they thought, they could obtain the whole store of precious metal at once; however, upon cutting the goose open, they found its innards to be like that of any other goose."

- This passage is from a file from the Wikimedia Commons.

Many artists would love to get a gallery, so they can concentrate on creating art. No more filthy business stuff.

Not going to happen. You are always in charge of managing your side of the business equation, no matter where you show and sell your art. There is no golden goose. Even if there were one, she would have to be popping eggs out at a great rate to support you.

You get more results when you have your eggs in many baskets. You can chose from galleries, art representatives, art consultants, retail outlets and alternative spaces. Many of these have both "store fronts" and on-line presence.

Each of these "baskets" contains eggs of different colors.
Galleries for example, include:

traditional "blue-chip" galleries that select, curate and sell original art to the public on commission,
private galleries that cater to wealthy patrons,
artist run galleries that sell fine art originals and multiples,
retail galleries that sell fine art, fine craft and functional art.

Each "color" appeals to different artists, just as each work of art appeals to different viewers. You choose the mix.

"I just had something happen with a gallery application that is new to me. They want me to rent their gallery and do my own advertising. Does that mean that art is not selling so the gallery rents their space because the market clientele is not buying now?

"I am tentatively planning to retire in one year. I have had several shows and commissions over the years. I am working on a show for 2010 and another one in 2011. ... Yes, I am one of those practical artists and have to make money. ... I enjoy your messages because they depict artists actually making a living with their art. Where do I put my money and confidence that there is a market somewhere for my art?" ~CCH

This artist has already hatched a few eggs through shows and commissions. The next egg is a retail space - sometimes referred to as a "vanity gallery." Anyone who can pay the rent can use the venue to show art for sale. There is no curator or jury. Much of the advertising these galleries do is to artists, so that they can keep the walls full.

Rather than looking at the color of the egg, consider what might hatch. Will showing your art in this venue get you more exposure for your art? If it will attract the kind of audience who likes to buy your art, it's worth considering.

Then do the math. Add up all your art and promotional costs, rental fees, insurance, travel and accommodation, reception, etc. Are you willing to invest up to 40% of the price of your work to put up a show? Now you are standing in a gallery dealer's shoes. How does it feel to hold this egg?

P.S. Some galleries handle the advertising and do not charge a wall fee, but they also typically ask for a larger commission. Check your contract carefully or you may find "hidden costs" - things you thought were covered by the commission but that you are paying for out of your other pocket.

P.P.S.
What's good for the goose is good for the gander. If you want to think like a gallery dealer, check out Katherine Swift's advice.

The Best Thing I Ever Learned (about computing)

Robin Sagara — Fri, 05 Feb 2010 00:38:59 +0000

Keeping your skills sharp is smart. Even if you have help (like me!) to take care of your computing needs, YOU still need to have good skills so you don't end up spending three days trying to print out image labels for a show. True story. Why on earth my client didn't ask me to do it I'll never know. Would have cost them, like, 25 bucks of my time. Go figure. But if you must do it yourself (and pay the opportunity cost), at least have the skills to do it in a reasonable amount of time.

No, you don't have to know everything but you should have a solid grasp of the basics. Take a computer class at a local college or learning center, go online and search for tutorials (hint: big time suck), get some of those Video Professor DVD's (I've used them, they work), or you can do what I do and learn everything from basics to advanced for just about any software on the planet by using the lynda.com video tutorials*. Why? They're the best, hands down. I keep an ongoing monthly subscription to their service so I can learn anything I want for less than the cost of one training book from the bookstore. They do a fantastic job, it's deductible (!), and it's really fun too.

Of course, after you update your skills the very best use of your time is to let me help you so you can get back to doing what you love and what makes you money.

I'm just sayin. ;-D

_____________________________________

FTC Disclosure: If you know me at all you know that I don't recommend something unless I think it's absolutely stellar. All of the resources I recommend are my favorite things, and with some I am an "affiliate" which means that I will earn a small commission for referring you to the resources. Those are marked with an asterisk.

The Best Thing I Ever Learned (about marketing)

Robin Sagara — Fri, 29 Jan 2010 19:50:15 +0000

It was a marketing symposium, at the Ritz Carlton Pasadena, about 20 years ago. Who knew they had a dress code just to check in (sheeshhh). Anyway, lots of heavy hitters in the marketing world, one was the VP of Marketing for Disneyland. She was a-m-a-z-i-n-g. She spoke little, and said a LOT.

In response to a very good question - "How do you know what will work, how do you decide?" - she gave some advice that I've carried with me for years and years. She's right. And although it seems obvious, I watch my clients break this rule over, and over, and over again.

She told us that we'll never know what's going to work until we try it. Then she told us what they do at Disney: They put their heads together and take their best educated guess. They set rules for results, what will mean that it's working, what will mean that it's not. They go with it. If it doesn't meet their criteria for success, they STOP. Even if they've poured tons of money into it. If it does work, they milk the heck out of it. Period. That's it.

Example of something that didn't work and they stopped: They tried a promotion where, oh what was it? Californians got a discount. Just show your drive's license and... They set their rules for success, how many months they'd give it, how many Californian's, etc. The results were not what they wanted, they stopped. They did NOT keep trying to convince Californian's to come to Disneyland, they did not offer more, they did not lower the price. They just stopped.

Example of something that DID work and they milked the heck out of it: Y`all have heard of the Electric Light Parade? It started out as a temp gig to replace a parade that just wasn't ready for prime time. They figured it would be a short run, just to fill the gap. They gave it a couple of weeks. But people went WILD for it. I think it was ten years worth of wild, then they sold off the lighbulbs for $10 each when it finally wound down. If memory serves, they even resurected the parade years later.

She emphasied, "Don't keep putting money into something that isn't working. It won't help."

Reeealllyyyy good advice. And yet I see people doing exactly that, over and over. And just like she said, it doesn't work.

I mention this because while I love supporting artists with administrative, marketing and website services, I really hate to take their money when I realize that something they're doing isn't working well for them. And lately I've seen a lot of what that VP from Disney was talking about, so, ya know, I feel compelled to say something about it.

Need marketing or administrative support for your projects and art business? Need help just getting it going or keeping it going? Give me a shout via email - robin@artistcareertraining.com - or just call me at (310) 649-4434.

All my best to you and yours,

Five Questions That Will Help You Decide If Art Licensing Might be a Fit For You and Your Art

Aletta de Wal — Tue, 26 Jan 2010 19:53:00 +0000

There are no get-rich-quick schemes in art. If there were, the myth of the starving artist would be history.

There are ways to multiply the income you make from the investment you make in your original art.

One way is licensing.

"Licensing" is a way of generating income from your art. Instead of selling originals or selling your designs outright, many artists will grant the right (license) to use their art on a specific product, for a set time period in exchange for a percentage of sales. This percentage is called a royalty. By licensing your art, you have the potential to earn income on the same art piece or collection several times." Tara Reed.

But make no mistake, it does add to your workload, so we want you to be well equipped before you decide to go this route.

Fanfare please! Tara Reed is now the A.C.T. Art Business Mentor for licensing. Tara will be able to answer all of your questions about licensing your work in our upcoming TeleClasses. Tara is active in licensing so you will get the latest information and advice that works. After all, we want you to build an art business that lasts and helps you make a better living.

This week Tara gives you "Five Questions That Will Help You Decide If Art Licensing Might Be a Fit For You and Your Art"

"There are many ways to make money with art, licensing is just one. Licensing means that you chose to give manufacturers the right to put your art on their product in exchange for a royalty. You maintain the control and copyrights to your designs, and you can license the same art to several manufacturers at the same time. (Provided of course, that they make different products.) To help you decide if licensing might be a good fit for you, I have come up with five questions for you to think about. Be very honest in your answers so you don't waste your time learning about and pursuing something that doesn't fit your goals for your art, your way of working and your lifestyle.

1. Do you love to create art?
2. Would you enjoy seeing your art on products in stores? Maybe wrapping paper, dishes, posters, greeting cards, and more?
3. Can you meet deadlines?
4. Do you paint a variety of topics (holidays, seasons, trends) - or - do you have a well developed character or characters?
5. Are you flexible with your art? If a manufacturer asks for changes (maybe colors, or images) will you be offended, or find out exactly what they need?

"If you answered 'Yes' to most of these questions, art licensing might just be for you. I know that when I started I got overwhelmed. There was so much to learn and think about. I wanted to know everything immediately. Sometimes I thought I couldn't do it. But I did and you can.

"Start by learning the basics. Decide what your goals are. Organize the structure of your business. Give yourself permission to relax and learn - the most important thing is to keep your creativity flowing and not become so stressed about what to do that you can't create!"

Article Source: http://EzineArticles.com/?expert=Tara_Reed

Mark these dates in your calendar now and learn more about Tara's teleclasses here.

If you prefer learning on your own, check out these resources.

Are You Happy?

Robin Sagara — Wed, 20 Jan 2010 19:56:14 +0000

Found this at the HopeRevo blog. It's by Headup at (a great blog by the way): Accidental Mysteries

Market to a Captive Audience

Aletta de Wal — Tue, 19 Jan 2010 02:29:55 +0000

We introduced you to Stephanie Hill-Ross, Artist-Owner of Producktion Central, in "Climb the Ladder of Exhibit Spaces." This week, you can read how Stephanie continues to actively market her art to a captive audience in her Salon Tour.

"I went to the salon for a networking session with some of the customers. I was able to set up in one of the empty stations in the front, right off the front desk area. I had made up some promotional flyers with a $10.00 discount limited time coupon to be handed out to participating clients hoping to stir up more interest. I also added the coupon to my website for back up.

"As the customers came in and got settled before their appointments, I was able to introduce myself and enlighten them about the pieces that were on exhibit in the salon. I was also able to access the shampoo areas and talk to some of the customers while their hair was being washed while handing out my promotional information.

"Then, I went over to the dryer area and found some of the clients were already browsing through my catalog. After their drying times were over, I came back to them to discuss what they saw in the catalog and obtained their information for my client listing.

"After working the salon floor, I went down to the lower lever to the newly opened barber shop and took my portfolio with some actual print sample pieces that were not on display. The barber on duty liked what he had seen earlier when he had assisted me in bringing the pieces from my car when I initially delivered them to the salon. He stated that he was interested in purchasing a couple of prints for Valentine's day. I gave him my pricing and a coupon and advised him to place his order on line at the website, and I can come back next week to pick up the money once he's made a decision.

"There is also a retail boutique on the upper level from the salon that is owned by a famous gospel singer named Vickie Winans. I stopped in there and left promotional material with the manager who used to work in the salon downstairs so she was familiar with my work and advised me that she would forward the promotional materials to people that could have solid interest in my work and could possibly purchase them...

"From the 4 hours invested in meeting with the customers at the salon, I collected a total of 20 new potential clients to my listing plus increased my exposure. The majority of the customers in the salon all attend the same local church, so who knows, word of mouth is sometimes better.

"In closing, I've enclosed the photos I took on Saturday for you to share with the rest of the community. I will continue to keep you updated with the results and thanks for your guidance and wisdom."

Again, Stephanie is doing a lot of things right. Here are four more lessons you can apply to your art business:

√ Location, location, location. Stephanie introduced herself where clients come in. She gave them promotional materials directing them to more work on her web site.

√ Marketing is a series of conversations designed to build a bridge between you, your art and your audience. Stephanie "worked the salon floor" methodically. She got out from behind her "booth" and followed clients around the salon. She focused on times when she had a captive audience.

√ Your mailing list is the shortest distance between an event and possible sales. Stephanie built her mailing list so she can stay in touch with her new connections. Building relationships is the bedrock of making sales.

√ Network, network, network. Stephanie seized the opportunity to go beyond salon clientele to neighboring businesses. These people are all part of a larger community at the local church. She is building a local sales force by networking.

Well done Stephanie! Being entertained with art and conversation sure beats reading about entertainers in People magazine.

Maybe the local hair salon is not the venue for you, but there are captive audiences everywhere. Where are yours?

Please share your success stories here.

P.S. A.C.T. Mentor and fine art photographer Bruce K. Haley, Jr. is another example of how to grow an art business by night while being employed by day. Diversification is one of Bruce's ways of attracting more sales. And you don't have to be a photographer to learn from his examples. If you are, that's a bonus. How to Attract More Art Sales and Generate Cash Flow