Pricing problems - microstock vs contract work

helix7 · #1 (**permalink**) 12-04-2007, 10:02 PM

Just ran into this situation twice recently, and thought I'd share and see how many others have had similar experiences.

I've been contacted by people (usually through istock) about contract work, typically doing custom icon sets or othre illustration projects. These inquiries usually are about a set of custom icons, designed per specific requirements or needs, and obviously delivered exclusively to this client (not for use or sale anywhere else).

Most of the time, these inquiries don't turn into anything. In fact until now I've never even gotten a response back about custom work once I've given the person a rough quote. Based on the response I did just receive, I think I've figured out why...

his guy just emailed be back after I quoted him $625 for 25 custom vector icons. A very fair rate I think, considering the amount of work that goes into a custom icon set and the fact that I would be making these icons for him and no one else, and only his piece of software would ever depict these icons. Essentially he's getting a custom set made to his specs and requirements, based on his feedback and comments, and the exclusive rights to the icons.

He replies saying basically that my rates are outrageous considering the fact that I sell sets of icons at istock for a few bucks per download. He thinks that I should be charging a marginally increased rate for custom work, and countered with an offer of $100 saying, "Its more than I think I should be spending, but in the spirit of negotiation I can offer $100 for the job."

As you might guess, I replied saying that I welcom fair negotiations, but and what he was proposing was far from fair, and that was the end of it.

So this all got me wondering, have any of you encountered such people? Do you find that selling in microstock at such low prices has created problems in negotiating custom work or exclusive rights sales?

Karimala · #2 (**permalink**) 12-05-2007, 01:53 AM

I haven't, but I just had an idea.

Dreamstime and LuckyO offer exclusive buyouts (images at LO have to be exclusive though). Maybe something you can do is set a buyout price on your icons at those sites and point this buyer (and others) to those sets to show them how much you are selling your non-custom RF work for. Might give you some leverage in negotiations for custom work.

bryan_luckyoliver · #3 (**permalink**) 12-05-2007, 02:08 AM

Hey Helix-
I can't speak from an istock experience, but you probably need to sell yourself differently on your own website. If a couple bucks is what the client sees, then they may not have a reference point for your value. The idea that you sell something a couple hundred times makes stock interesting- but the client may not have any idea of the time involved in each icon. They need to understand this value. It's not just your time, but your skills.

I've done 150 icon projects- nearly killed my eyes

. I quoted based on 2 hours an icon (some might take more, some less). I'll tell ya, selling icon design can tough. If you can't resell the icons, I would just let it go- he's going to have a hard time getting custom work done for less than you quoted him.

Bryan

Batman2000 · #4 (**permalink**) 12-05-2007, 04:36 AM

This is why I never use my real name at micros. My micros "brand" is a sort of a low cost one. At other agencies (like Alamy) I offer other kind of works under a different brand.

It is the risk we have by selling at micros, we risk not having an opportunity to sell our work at higher prices, since we could be perceived as cheap.

Karimala · #5 (**permalink**) 12-05-2007, 05:34 AM

Quote:

Originally Posted by bryan_luckyoliver

Hey Helix-
I can't speak from an istock experience, but you probably need to sell yourself differently on your own website. If a couple bucks is what the client sees, then they may not have a reference point for your value. The idea that you sell something a couple hundred times makes stock interesting- but the client may not have any idea of the time involved in each icon. They need to understand this value. It's not just your time, but your skills.

Bryan

Much better idea than mine. LOL Long term planning...that's the ticket!

sharpshot · #6 (**permalink**) 12-05-2007, 08:59 AM

I just looked and there are a few icon sets on Alamy. Might be worth putting some on there, to attract the customers with deeper pockets.

icon set vector stock photography and photos from picture agencies and photographers

Batman2000 · #7 (**permalink**) 12-05-2007, 07:18 PM

I think that the market for those at Alamy is seriously compromised by the huge availability at micros of similar sets. Even if a set is extraordinarily good the huge price difference will work against the more expensive ones.

helix7 · #8 (**permalink**) 12-05-2007, 07:36 PM

Quote:

Originally Posted by bryan_luckyoliver

Hey Helix-
I can't speak from an istock experience, but you probably need to sell yourself differently on your own website. If a couple bucks is what the client sees, then they may not have a reference point for your value...

Thanks, Bryan. That's exactly the direction I was thinking of going in. I have even been working on a completely new website to market my freelance/contract work. Putting some distance between my regular work and microstock will likely help to give potential clients a better reference point for what my work typically goes for.

designalldone · #9 (**permalink**) 12-06-2007, 11:20 PM

Quote:

Most of the time, these inquiries don't turn into anything. In fact until now I've never even gotten a response back about custom work once I've given the person a rough quote. Based on the response I did just receive, I think I've figured out why...

About 3 weeks ago someone contacted me through iStock asking for a quote on a set of about 30 - 40 custom icons. It seemed like a very generic email, as if they'd sent it to a bunch of people in the hope of just getting the cheapest quote possible. I sent a reply with an extremely reasonable quote (I'm terrible for underquoting and then regretting it later on!) but my biggest concern was that the guy wanted them in about 2 days time, which was pretty ridiculous!

Needless to say, I didn't hear anything back (which I was actually quite glad about!) but I do get the overall impression that just because someone can download an illustration for a few dollars, they think an illustrators freelance rate should be of a similar level :cry: