When working with a client who doesn’t regularly commission or license photography, explaining your fees can seem daunting. This is especially true when it comes to differentiating between the shoot fee (i.e. the cost of you showing up with your gear), and the licensing fee (e.g. what you charge to use the image on a website). John Harrington, author of More Best Business Practices for Photographers, gave us an easy analogy in an “elevator pitch”-sized morsel that you can use to quickly explain the difference.
“When you buy one copy of a piece of software, you get it for one computer, not for all hundred in the office. But it’s no more extra work for them to give you Microsoft Word. That’s right. It’s the same thing. You’re using my picture ten ways, this is the fee for ten ways. You’re using my photo fifty ways? It’s not going to be five times that, but it’s going to be more.”[youtube]https://www.youtube.com/watch?v=w7z2lrQGf90[/youtube]