Gross income broken down for the independent photographer

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If you are considering becoming a professional independent photographer, look at some of these numbers. Of course, you may want to keep your day job and do this as a hobby instead.

One thing most self-employed people know about their business, if they are successful, is that only a tiny part of what you charge a client is what you will take home to pay the bills.

These are my numbers, which will vary widely from business to business. Your age makes a big difference in medicine, for example.

According to my numbers this morning, I could break down every $100 into four major categories:

  1. $19 Medical Expenses
  2. $36 Business Expenses
  3. $14 Federal and State Taxes [Self-Employed pays double vs. staff person; no, you don’t get to take home more because you don’t spend more as a staff person. The company pays that other 1/2.]
  4. $31 Net Income
Once you start figuring out where all your money is going, you get a lot better at ensuring your prices are high enough to survive. Surviving is paying all your bills and doing it on time. If I weren’t debt free, another piece of the pie would be for interest. 9% credit card interest may turn into a 3% loss of income to pay off debt.
So after working on those numbers, I went to lunch and, while eating, broke my tooth. After a trip to the dentist, I now changed some of the numbers by 1%. Medical went up by 1%, and net income went down by 1%.
You cannot plan for all emergencies. You cannot count on a certain income coming in, either.
Most business owners run a tight ship most of the year and then, in the last quarter, talk to their accountants and then might do some upgrades to equipment or other purchases to help lower their taxes and make capital improvements.
Many business owners will give more to their church in the last quarter or a charity. The reason for the delay is the importance of reserves.
If you are young, in your twenties, and unmarried, your medical expenses could be drastically lower than mine. I am covering my family, and I am in my fifties. Just being that old will give you higher rates for medical insurance.

Advice to the Humanitarian Photographer on Getting Published

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A young boy in the village of Konadouga, Burkina Faso, whose native language is Senara and the formal language taught in French. This is just a mile from the Ivory Coast border where rebels had been fighting.

Photographers, for the most part, are some of the most compassionate people you will ever meet.  They want to help organizations they encounter but often find most of their photos never seeing the light of day.

I am often getting emails from photographers returning from overseas and having a collection of photos they want to share. They want to get the stories in front of people.

A typical email will look something like this:

“I would like to ask for your advice. I want to send the photos to different magazines and newspapers with the hope that the photos will help generate interest and donations for the organizations I cover. How should I approach these media outlets?”

Here is my advice for anyone wanting to do humanitarian photography and want to help those organizations by getting their work published.

Remember throughout that your purpose is to connect the audience to the subjects. If you forget one of these, you will be unsuccessful at any time. Why should your audience care? Why do the issues need their story told?

Letzia stays at home, and her husband works in the fields in Akil in the Yucatan region of Mexico.

Before your go

For many reasons, the time to connect with media outlets is before you go and not after. The primary reason is that had the media outlet known you would be doing the coverage; they could have given you the valuable direction that would increase the chances of being published.

If you can write or do videos as well, then be sure and offer these skills as part of the package. I know many humanitarian photographers who provide some of these skills to their clients:

  • Twitter feeds while on the field
  • Blog posts when they return for the client 
  • Multimedia package
  • Audio recordings for the web

An editor often directs you to cover a certain angle that would appeal to their audience. If you are interested in the organization, you do what you can to get the organization in front of the audience.

The story will change before you even go if you take the time to reach out to as many media outlets as possible. They may also have an account for you to cover while you are there.

These boys are enjoying the stream just outside the village of Konadouga, Burkina Faso. They were surprised to see the white man with the camera taking their photo. In just ten miles, we went through 30 languages spoken by the tribes in the area. (Photo By: Stanley Leary) [NIKON D2X, AF Zoom 18-50mm f/2.8G, ISO 100, ƒ/6.3, 1/90, Focal Length = 27]

While you are there

It is rare that I have ever been on an overseas trip that the story we thought we would do doesn’t change after arriving. In some form, they will tell you that you just missed it or it didn’t happen while you were here.  This doesn’t matter if you did all your research to perfection. Often people heard something different than what you said, or they didn’t want to risk telling you the truth and you not coming to help them.

Be sure you get the names of people in the photos, the places you were when you took the images, and a good description of what is going on that isn’t always understood when looking at the picture.

Types of photos

Everyone smiling and looking at the camera are snapshots and memory joggers. For the most part, this is not what the media is looking for at all.

I have written about the three types of photos: 1) “Literal” Snapshots, 2) “Artistic” Snapshots, and 3) “Expressive” images that are taken for others and not yourself. For more about those three styles, you can read this earlier blog post:

Visual Storytelling: Three Stages of Composition

Feb 27, 2011

We all start with the literal snapshot and often revisit this stage of photography. These literal snapshots are primarily taken for the photographer. These photos are “memory joggers.” They help you remember the moment.

Here are some significant mistakes photographers make while doing “humanitarian photography.”

I wrote about them before, but I think this warrants repeating here again.

Street scenes in Tikul in the Yucatan, Mexico

Some clues that you have crossed the line into narcissism:

  • When asked why you are doing the photography, you are motivated to have a good experience.
  • When your conversation is all about the gear, you are using. This is an indication of self-indulgence.
  • When evaluating a trip, you have that country stamped on your passport.
  • When you cannot tell the stories of the people, you just met on the trip.
  • When you cannot explain how your photos are helping further the work of the people in the pictures.
  • When you are taking people’s pictures and rarely have ever asked permission or care to request permission.
  • When you ask people to look at your pictures.
  • When you evaluate the photos based on how artistic they are for your taste.
  • When you are pushing all the time to go with teams on trips.
  • Have a mentor and ask how well you are doing.

You need to pause and be sure the reasons you are doing the coverage are for the people that need the help. The more you serve them, the more rewarding it is than serving yourself.

The Mexican side of the border is Agua Prieta, Mexico, which borders Douglas, AZ.

How to keep a healthy ego

  • You know your purpose for photographing on a trip.
  • You know the subject well.
  • You have taken the time to get to know the people you photograph.
  • You are asking permission to photograph people.
  • You always have in mind your audience when taking photos.
  • You have people calling you to be involved in their projects.
  • You are concerned that the images you made are making a difference.
  • You are worried about exploiting people and their situation for your gain.
  • Have a mentor and ask what you can do to improve.
  • You know when someone else would do a better job, and you step aside for now.
  • You know you need to improve and feel the burden to improve for your client’s sake.
The fence is the barrier between Agua Prieta, Mexico, and Douglas, Arizona. [NIKON D3S, 24.0-120.0 mm f/3.5-5.6, Mode = Aperture Priority, ISO 12800, 1/60, ƒ/5.6, (35mm = 120)]

When you get back

Contact those who were interested in running your work. Maybe a quick photo as a teaser and then a short message you just returned. You will be getting your job to them by a specific time.

Some editors will have given you a deadline before you go. Always try to meet the deadline and exceed it and get the material to them before they ask for it.

Be sure to explain if the coverage had to change and why. If they have traveled at all, they will understand. They may not know if it is not at all along the lines of what you talked to them about, and in this case, it might not run in their media.

You can always go back to all those editors who turned you down, which I highly recommend, and let them see what you have. They may change their mind.

Should a photographer list their prices on their website?

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Yes and No: It Depends

Listing your prices depends on what type of customer you have. For example, if you are shooting for public portraits and weddings, you should have your prices listed.

Another way to think of it is, are you doing B2B or B2C? B2B is contemporary shorthand for a longtime business-to-business sales practice, while B2C represents business-to-consumer. B2B deals primarily with other businesses, not the general public, and B2C provides products and services directly to the end user.

Having your price listed helps you and the customer.

It helps you by acting as a filter. Once the customer has gone to your website and seen your prices, they are already aware of your fees when they call.

When looking for a gas station, I use the GasBuddy App to help me locate a station and see the prices before I drive.

If you tell people to call you, you better be ready for phone calls during dinner, bedtime, or anytime.

Most of your portrait and wedding customers want to know if you are within their budget before conversing with you; frankly, most photographers want qualified leads.

Two ways to list pricing

First, you can post your full menu of prices. Posting what you charge for a sitting fee and your print prices is excellent.

If your greatest fear is the photographer down the street seeing your prices and undercutting you, you have many more problems. They can always get a friend to call and get your prices.

There will always be someone cheaper than you. Race to the bottom on pricing is an authentic experience once you have been in the industry for a few years. You must raise your rates sooner or later if you have kids at home to feed.

Second, you can indicate that your prices start at $300 with an average order of $500. But, again, be careful that you are truthful. Don’t try to get them in the door with a low price so insignificant that they must go up to get what most people need.

Be sure not to use a link to a pricing page, then give them a price starting quote.

You can also list your basic packages and what they include and then state that you would call for higher-end packages. Again, remember how you worded this, which can make those upper packages more desirable.

21 Jewel High-End Railroad Pocket Watch Hamilton 940–Not your $19.95 Timex Watch

Sidebar about Prices

Some customers can go very high-end. They like to buy things like Rolex or a Lamborghini because they don’t want what they get to be what all their friends have. They want an exclusive package that is not easily attainable.

Some photographers list their prices, which are out of sight to go after this market. However, if you can pull off the high-end service necessary with this type of photography, you might be able to lure people with your prices.

Commercial, Advertising, and even Editorial photographers

Due to the nature of the clients and how they will use the photos, it is not boilerplate; you are best not to have any prices published. Not listing your prices is not because of your competition finding out, but the number of variables to figure a fee makes it almost impossible to have standard prices.

Many use portraits on a website to accompany a salesperson’s bio. The same type of photo could be used as their brand for a national ad campaign. You might charge $1,000 for one use, $5,000 for another service, and even $30,000 for another usage.

Yamaha YTR-734 trumpet

How do I find out the going rates?

You might be new to charging for your photography. I always get calls from beginners who want to know who they can trust.

First of all, there is no going rate. Photographers decide what they will charge for headshots in a market; if they get together, that would be illegal.

For comparison purposes, think if you were starting as a construction worker. It might take you a day to do a job that, after about five years of experience, you could do in a couple of hours. Also, the quality is better with all that experience. If you continuously charge a day laborer rate, then the person hiring you will most likely get ten times more work from you in five years than they would when you first started for the same day rate.

Remember, many factors affect what you can charge. Your experience, quality of work, and expenses can impact that price.

I advise those starting out to keep their overhead as low as possible. Don’t buy the most expensive gear, car, or house; always eat out when you are beginning. Do just the opposite. Cut out every luxury you can so you can charge a rate less than those with years of experience. Be sure your rates will cover all your living expenses and ability to run your business.

You will have to suck it up for the first few years until you have enough clout to charge higher rates and get them.

Jay Maisel, Bernie Boston, Hugh Morton & George Tames at the Southern Short Course in Charlotte, North Carolina on May 10, 1986.

Warning About Other Pros

Too many seasoned pros try to tell those beginning to charge similar rates. Establishing your style will take time; getting reasonable rates will be challenging. You must also be sure you are charging enough to make a living. Building your clients takes time, so I recommend keeping your overhead as low as possible when starting.

How much should I charge?

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It is quite common for a professional photographer to get a call asking to use a photo and the photographer doesn’t know how to give a quote for the usage.

Understanding Copyright

First let me start with understanding of copyright. It is safe to say that unless you have permission from a photographer to use a photo you cannot use it without opening yourself up to copyright infringement.

If a photo qualifies in Public Domain then you can use it.  Accurate photographs of two-dimensional visual artworks lack expressive content and are automatically in the public domain once the painting’s copyright has expired (which it has in the US if it was published before 1923).

There is also the category of Creative Commons License. Here the photographer has given permission for use of their images for non-commercial use. What is considered “non-commercial” is debated. To be sure you are OK clarifying before using would be a good idea.

If you are searching Flickr just look on the side navigation with all the tag and group information, it’s listed in that area with a link to what kind of license it is.

The other category is called Fair Use which can allow for use of images without compensation. My interpretation and I am not a lawyer, but if you are a student and working on a project for a class you can use images. However, if that student publishes those say on the internet could be a violation of copyright. When teachers start using the material it becomes a problem once they publish and distribute the material. Showing a news clip for a class to discuss would most likely fall under Fair Use.

When in doubt get the photographer’s permission.

The Phone Call

I have gotten numerous phone calls from colleagues on quoting on some of the strangest uses. My first place to look for starting is the software FotoQuote. It sells for $149.99 and most everyone I know that buys it usually recovers their money in the first few times they use it.

FotoQuote has over 300 stock photo pricing categories and a wealth of coach information.

Often clients are asking for a variety of uses and FotoQuote lets you even create “Quote Packs.” This is where you might include all advertising uses and exclude editorial. Just remember there are over 300 categories alone in this software package of categories.

Besides what category you are also giving permission for how big the image will be used. For example is it the main part of an ad or just a spec? Will they use your photo for the cover or just a thumbnail head shot with an article?

How often they use the image makes a difference as well. If they are publishing only 300 brochures for a meeting verses a print run of 5 million should be priced differently.

How long they get to use the image is also another variable. Will they use the photo one time, one month, one year, multiple years or unlimited should impact your price.

The first few times I was quoting on large projects I could feel the sweat on my forehead and my heart racing. I was having a panic attack.

Guidelines for quoting

Here are my tips for quoting on a usage. We need to first start with your base. If this is an assignment the basic price should be about the same for similar assignment, the differences in price are for the use. So, an executive portrait for a print on the wall in the companies headquarters verses it being use on billboards and running on the cover of Forbes Magazine will change the price, due to usage.

  1. Always ask what their budget is for the project up front. Sometimes they will give you a better deal than you would have asked.
  2. Be prepared to negotiate. Your first quote will often be countered. Therefore it is better to quote a little higher and have room to drop your price.
  3. Whenever you change your price you should change the usage terms.
  4. To speed the process along, I recommend going to a client with three prices. Your rock bottom price, middle range price and the high end price. This makes them see you as already trying to work with their budget. 

 Creative Fee and Usage Fee

When quoting on an assignment separating the creative fee and usage fee is a good idea. In addition to the creative fee you might have expenses as well listed.

I would suggest trying your best to encourage the client pay for as much usage up front. To help encourage them it would be great to list usage fees for future purchases.  I would probably state the time these prices will still be good as well.

For example you might allow them for an unlimited usage right now for $10,000. If they come back to you later that price should be much higher.  By putting this in writing and up front with the client you are showing them you are being transparent and trying to work with them.

Magazines

One category in the FotoQuote database I find helpful is the going rates that are known for different publications. Many of the magazines listed will even let you know the rights and there going rates.  Basically they set the price and you decide to except their terms or not. Sometimes you might be able to get a better rate if you have a specialty or the only one with access to the subject.

I think of using FotoQuote like a pilot does when they are flying in the clouds, they are using the instrument panel to help guide them.

Remember FotoQuote is a guide and not prices fixed by the industry. These give you some starting points to help you negotiate.

Just as important as FotoQuote are other photographers. This is why I joined American Society of Media Photographers [ASMP]. I can pick up the phone and ask other members their advice. Often some of them have more experience than I. I am not calling for prices as much as also how to communicate with clients. Often how you word something can make a huge difference.

Seven Reasons Not to Become a Freelance Professional Photographer

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7) Not a self-starter—In your first year or so you will be getting up with no photo shoots on your schedule. You must be able to fill your day with something that will be productive. If you are someone that takes initiative and rarely needs someone to tell you what you should be doing at work, then you might make it as a professional photographer.

6) Procrastinator—You may know what you need to do each day, but you can easily get distracted and not stay on task. If you have seen the movie “UP” then you will recognize the comment—Squirrel.  I know a good number of former photographers who just didn’t get around to doing what they should have been working on and now they are no longer working professional photographers.

Nikon D4, 70-200mm, ISO 6400, ƒ/2.8, 1/100–Marc Broussard

5) Hate rejection—If you get easily discouraged then you do not want to go into business for yourself—in any field. Just because your family and friends think you are a great photographer is not the same as everyone lining up to pay you to take photos. If you have people lining up and begging you to shoot things for money—then this is way different and makes you the only person I know to be in that situation. Successful photographers are only selling to 5 – 10% of those people they have contacted. 90 – 95% of the time they are rejected.

4) Poor Negotiator—For the most part photography is not so cookie cutter. This is very true for the commercial photographer. Each job is different from the rest and requires you to price differently. Due to this there tends to be a lot of negotiating with clients. Sometimes this may sound harsh when someone is trying to get you to lower your price.

Nikon D4, Sigma 120-300mm ƒ/2.8 DG OS HSM S, 2X, ISO 10000, ƒ/4, 1/2000

3) Do not like taking direction—many “artists” tend to think they know better what they need to create. Unless you are going to be a “fine art photographer” then you will need to execute other people’s ideas. You will need to learn how to bend to keep a client and get paid.

2) Do not like sitting at a computer for long periods—You will need to spend time editing your work for sure, but you will spend a lot of time connecting with people through emails, website, blogs, creating printed materials and searching the web for clients to name just a few of the things you will need to be doing on a computer.

Nikon D4, 85mm ƒ/1.4, ISO 200, ƒ/1.4, 1/80

1) No business skills—You need to understand pricing of your services that will help you make a profit for the long haul is not easy to do. You also have to be a risk taker in running your own business. Almost nothing is a sure bet and you will have to put money behind ideas that may or may not work. You also need to know how to market yourself to the world.

Now you don’t have to be good at all these things, but they all must be done to remain a professional photographer. You can outsource some of these, but the outsourcing will cost more than if you did them yourself. At a certain point in your growth of your brand you will find it necessary to outsource some of this to grow your business.

You might think of more things to add to this list–but freelancing full-time is not for the faint of heart.