Royalty Deficits

I just had to share this information. Great insights from Invotex.  This was published today in TLL (The Licensing Letter) Daily Advisor, an email newsletter offered by EPM Communications. 

“Royalty Deficit: Licensees Tend To Underpay, Says Invotex
Since today is Tax Day, here’s an item about auditing. According to the 2013 Royalty Compliance Report, compiled annually by Invotex, only 11% of audited licensees report royalties accurately. While 27% underreported and underpaid by 1%-5% in 2013, almost the same number (25%) underreported and underpaid by over 100%, according to the royalty compliance specialist. The remaining 26% underreported by between 6% and 99%. The top three errors that lead to the underreporting and underpayment of royalties are underreporting sales (with 55% doing so), misinterpreting the licensing agreement (38%), and overstating deductions (28%).”

 

Stradling the Fine Art and Commercial Art Worlds

I interviewed Aletta de Wal, who founded Artist Career Training (A.C.T.), about  Fine Artists Vs. Commercial Artists. A.C.T. started in 1996 and since then it has grown from a local coaching practice into a “virtual university” delivering training to artists who want to make a better living making art. She is equal parts artist, educator and entrepreneur. I have worked for several years with Aletta and appreciate her many talents and her sharing these insights. There are great ideas, important realizations and new information for all types of entrepreneurial artists here.

J’net Q: How do fine artists differ from those in more commercial areas, and do you find many who also want to license their work?

All artists have much in common – they use their talent, skill and creativity to interpret a subject, theme or message; produce art on spec and/or accept commissions; and earn income from their work.

Differences arise in the source of inspiration, the purpose for creation, the display of the finished artwork and ownership of copyright.

• Fine artists inspire themselves. The purpose is emotional – to appreciate the beauty of a person, an object or essence of an idea; stimulate curiosity and reflection; or convey a message. The purchaser chooses where, when and why to display the work. Fine artists retain copyright and may use the work for derivative purposes.
• Commercial artists draw inspiration from the client for the artwork. The purpose is commercial – to create images that will inspire viewers to purchase objects, services and programs or advocate for a cause. Commercial art is displayed in reproducible media for ads and logos and licensed by manufacturers for use in products. Commercial artists create “work-for-hire” and copyright belongs to the purchaser who may use the work indefinitely. (J’net note: not always, that’s why we learn to license our work!)

I do find many more artists want to license their work these days. The idea of licensing has become more acceptable to fine artists and many commercial artists have often been exposed to the possibilities through their assignments. Less obvious to many artists are the shifts required in thinking about their art, how it may be altered, who is in charge of the final version and how they may need to alter their work habits to meet the demands of licensing.

J’net Q: How can artists wanting to make money from their creations benefit most from your advice?

My role is to advise artists on how to get the life they want from being an artist. The artists I’ve worked with who have been most successful are hard-working, diligent and persistent.

Artists who benefit most from my work with them:

• Are clear about why they make art and the lifestyle they want in a family, workplace or community;
• Have a strong body of signature work;
• Are willing to learn and take action to display their work and run a legal business;
• Are able and active in developing relationships with viewers, arts professionals and media.

I do not believe one size fits all. Artists deserve to express their creativity not just in their art, but also in the way they run their art business. My approach is personal and hands-on. I am direct about what needs to be done. I provide a path, structure, accountability along with road-tested practical tools and advice. I encourage my clients to do something every day to move their career forward, even if only for 15 minutes.

J’net Q: What advice do you give to artists who want to ‘live’ both in the fine art/gallery world and explore licensing to a broader audience? And conversely, what advice would you give commercial artists who want to explore sales in galleries?

Artists who want to live in both worlds are taking on two distinct business and marketing plans and a double workload.

• Fine artists who want to do “commercial” work must be prepared to take direction from clients without feeling that their work is “compromised.” If they want to license art they create, the work must have broad, popular appeal and be suited to use in branded advertising and on manufactured products.
• I’ve worked with many “commercial” artists who want to explore fine art later in life, especially graphic artists whose work pre-dates computerized graphic software. Their path is to soften the lines of their art, find their “voice” and the audience and venues where their work will gain appreciation.

J’net Q: Aside from galleries, what other kinds of venues can artists make money with their art?

Once upon a time in the art world, the pinnacle of pride for artists was to exhibit in a gallery. The fairy tale was that one day you would meet the gallery dealer of your dreams.  This savior from all things marketing would come riding in on a white stallion.

Artists still want to get into galleries. Galleries are still looking for artists who qualify. But how do you qualify? You need experience exhibiting and a track record of sales. And here comes the Catch 22. If you don’t have this experience, how do you get it?

You climb the ladder of places to exhibit your work. The reality of today’s art world is that you can now exhibit your work without shame in a host of alternative spaces. You just have to match your type of art with the location and the people who go there. Here is a starter list of 36:

• Airports
• Architects’ Offices
• Art Fairs & Expos
• Artist Co-Op Galleries
• Artist Open Studios
• Artist Volunteer Organizations
• Book Stores
• Cafes
• Design-Build Portfolios
• Elevators
• Furniture Stores
• Garden Shows
• Hospitals
• Interior Design Services
• Jewelry Stores
• Kitchen Contractors
• Libraries
• Medical Offices
• Museum Shops
• Nautical Equipment Rental
• Online Galleries
• Personal Care Facilities
• Private Clubs
• Public Art Programs & Installations
• Quilting Stores
• Rental Galleries
• Restaurants
• Retail Stores
• Sports Clubs
• Tea Shops
• University Galleries
• Vegas Hotel Lobbies
• Workshops
• Xylophone Dealers (ok – I’m reaching here!)
• Yelp
• Zoo Shops

There are many benefits of showing in alternative spaces:

• You get exposure for your work to an audience in your own neighborhood. You may already know some of them – but do they know about your art? (And maybe a local gallery will notice you.)
• You get feedback about your work. You learn what has the most appeal to the audience. You gather testimonials to use in your marketing. And you learn what to change.
• You don’t have the added expenses of shipping, handling, travel and accommodation. And you can check on your art frequently to make sure it is still there and in good shape.
• You build relationships with the venue owners and staff. You show them that you are a good community member because you support local business by making their space more attractive at no cost to them.
• In return, they give you access to their clientele and suppliers. They become part of your informal sales force by talking about you and your art.
• You build your own mailing list – an asset that always impresses galleries.

J’net Q: What are the five most important tips you can give ‘entrepreneurial’ artists who wants to have a successful business?

1. Create a “brand” for your art that starts with a signature body of work; business name, logo and domain name that reflect your identity; personal public presentation of your work and accomplishments.
2. Make connections and build relationships with people who may become viewers, buyers representatives and sources of referral.
3. Make work as an artist; make plans as entrepreneur; make connections as a business partner.
4. Take full responsibility for your results; monitor your progress and make indicated adjustments to plans, actions and relationships.
5. Do what you say; finish what you start; be on time; say please and thank you.

Free Events for Cartoonists/Graphic Novelists and Authors Interested in Licensing

Today I just wanted to reach out and share with you some free events that may be of interest to you.

1) For cartoonists, comic book creators and those interested in graphic novels, Publisher’s Weekly is offering a free webcast ‘The Evolution of  the Comic Book Era post 2012′.  The hour-long live web cast will feature an extraordinary panel that will “look at the comics and graphic novel market focusing on three topics: the rise of comic and graphic novel sales in both traditional bookstores and comic specialty shops; how the growing impact of digital comics is sending consumers into stores and how digital comics are helping the sales of print comics; the launch of new digital comics imprints and the growing popularity of Kids Comics, indie female creators and web comics.  Click here is more info and how to register for the free event. I can’t wait for this myself!

2) I will be a guest on ‘Publishing Insiders’ blogtalkradio show this coming Tuesday, October 30th at 4:00 p.m. PDT (7:00 p.m. EDT) The topic will be ‘Authors: are you Licensed?’ and I will be interviewed by Penny C. Sansevieri and co-host Paula Kraft.  This show is known for providing insider scoop on everything publishing–revealing the secrets of New York publishing along with tips and strategies for marketing your self-published book. If you are a published author, or are thinking about traditional or self-publishing, this will be a great event for you. No need to register, just click the microphone picture link below at at the appropriate time. And here’s the number to call in with your questions: (347) 838-9287.

3 Character Building Tips from ‘Over the Hedge’ Cartoonist Michael Fry

If you are interested in creating characters that will become household names, then you will appreciate these tips from Michael Fry, co-creator and writer of the Over the Hedge comic strip.  These are just a fraction of the practical and valuable information to be shared next week, October 15-17, as Michael and I (former Dilbert VP of Licensing) teach ‘Building Character-How to Cash In On Your Characters Without Losing Your Soul,’ a six-hour webinar that will guide you through the intersection between art and commerce.  (To Register or Learn More)

Character Building Tips from Michael Fry:

1. Most successful characters are extensions of yourself. Both your best and worst self. The more honestly and clearly you see your strengths and flaws, the more authentic your characters will be.

2. Audiences care about characters they can relate to. But not in a generic way. Your characters should be a specific as possible. The audience will relate to those aspects that are specifically relatable to them.

3. No one cares about your character or creation as much as you do. NO ONE! Your publisher or syndicate represents many properties. You represent one. Your interests are similar. They are not the same.

They say content is king. But the truth is that viewers and readers fall in love with characters, not content. Whether it’s a novel, graphic novel, children’s book, comic strip, web comic or web animation, characters are what attract loyal fans. Join us next week and learn, as Michael puts it, “How I got two comic strips you’ve never heard of made into a prime time TV series and animated feature film.”

This is part of the Worldwide Creators’ Intensive series from All Art Licensing, where our goal is to bring you the best information and advice for creators, at really affordable prices. Check out the details here.

Free Friday Ask J’net Q&A is tomorrow

You don’t have to wait to get answers to your pressing art licensing questions, just register for tomorrow’s Free Friday Ask J’net Q&A. If you have never joined us before, you just send in your questions and I answer as many of the questions as I can in the hour long session.  And if you register, and then can’t make the live event, you can always get an audio download of the class for only $10.

Here are just a few of the questions I’ll be answering tomorrow morning, October 5th from 9:00 am – 10:00 PDT (that’s 12:00 noon-1:00 pm EDT).  Click here to register; and make sure to include your question (and even tough and detailed questions!) on the registration form at the bottom. Register now.

Q. What would you consider as the ideal background for an artist considering to enter the field of Art Licensing?

Q. I’ve been licensing my art on my own for more than ten years and grew the business from $30K to $240K annually, but now the business is slipping. I know my art is still marketable and on-trend, so why am I be making less money?

Q. As artists, how do we know when we’ve got everything ready to start searching for an agent? For example, website, materials?

Q. No matter how I try to get licensing deals, the only ones manufacturers are offering me are flat fee deals, what should I do?

Q. What happens if I do a deal with a publisher and they never produce my book?

Q. How are agent/artist relationships changing?

Q. When I have done a few deals, how do I get the business to the next level?

Q. I can’t seem to get myself to create a real mailing list? Should I buy one?

I am thrilled to continue to share my 30+ years of creative marketing, licensing and publishing experience with you in this and other classes.  Please join me for the Free Friday tomorrow, the free Introduction to Art Licensing course on October 10th, or join Michael Fry and I as we delve into ‘Building Character-How to Cash in On Your Characters Without Losing Your Soul’ October 15, 16 and 17.

Class Schedule & Registration for October 2012.

Hitting Your Targets

Fall is in the air and business is growing for those of us who are actively marketing our products and services. Don’t wait until the New Year to assess how your business has done this year. No matter how you want to approach it—dollar revenue, number of deals, number of new and existing clients or products—taking a tally gives you an invaluable perspective on marketing your business.

Marketing your business is absolutely crucial. It also may be simpler than you think if you keep focused.

One of the key marketing factors that I find new, and even experienced, art licensors get wrong or completely overlook is their target audience.

Make sure you always:

1. Identify your target audience.
2. Reach out to your target audience and communicate with them effectively.
3. Learn how you turn the target audience from prospects into sales, customers, fans, etc.
4. Know if you have reached the audience and have been successful (whatever that is for you).
5. Repeat 3, 4 & 5.

So, ‘how do you decide your target audience?’ This step will influence how your time is spent and nearly every aspect of your business every day, hereafter. First of all, most entrepreneurs have more than one target audience—a business-to-consumer (B2C) and business-to-business (B2B) target.

These two questions will determine your B2C target audience:

• Who does your painting, art, graphic design, cartoon, writing or other creative work appeal to in the marketplace? Be specific as possible.
• What types of product or media should carry your ‘creative’ to consumers? Your answer will depend on the desires, interests, lifestyles and purchase habits of your audience(s).

Please don’t fall into the ‘everyone loves my art/design/photography/character’ trap. I often hear creators declare that their creation appeals to everyone…but to be honest, it probably doesn’t. So get real. Narrow it down to a primary and secondary, identifiable and reachable, audience segment.

Then to achieve your business goals, and to reach your audience(s), ask yourself whose assistance in the ‘business’ marketplace do you need. This will identify your B2B target audience, and it will vary greatly depending on your goals.

Some B2B targets you probably need to reach are:

• Licensees—who do you want to license your art, property or brand? These are the manufacturers of all the worlds’ products that could sign a licensing deal to produce your creative on their product and wholesale it to retailers.
• Agents—if you are looking to sign on with an agent, then they are an important target audience for you to woo. Do you need a licensing agent, literary agent, illustration rep, gallery agent or another specialized kind of manager/salesperson/marketer?
• Retailers—do you want to go directly to retailers and offer them an exclusive licensing or purchase opportunity with your art, designs or brand?
• Trade Media (magazines, web sites, newsletters and more)—these are the media channels where you reach the other businesses, the licensees, agents, and retailers, for example, to make them aware of your business.
• Consumer Press (magazines, television, radio, websites, newsletters, promotions and more)—the media channels to reach your customers and potential customer to make them aware of your creativity and brand.

Now that I’ve got you thinking about the target audiences related to your business, go back and see if your web site, brochures, presentations, logo, trade booths—and all those critical branding elements—are making the impression you want on the businesses you must reach and influence to close sales. And ask yourself if the products that are being licensed or produced are the best designs and quality you can get into the marketplace for your valued customers.

Awesome October Classes

I’m back with an ’Awesome October’ of classes scheduled and wanted to share it with you today. If you have animation, television, movie and product licensing dreams for your character concepts then this is your chance to learn from a fantastic businessman, creative dude and teacher, Michael Fry, who co-created Over the Hedge (with partner T.Lewis).  Michael and I are joining forces to teach ‘Building Character: How to Cash In On Your Characters Without Losing Your Soul. ’This is the first webinar in All Art Licensing’s Worldwide Creators’ Intensive Series for Fall 2012/Winter 2013.  These courses are designed to bring top names,  highly qualified speakers, to creators around the globe.  We will specialize in providing detailed, immediately useful, information at a price nearly any artist can afford. These are always online events (webinars) so you can attend from anywhere, ask questions, and download the course and presentation soon after the live event for further study.  You never need to worry about missing one spec of valuable information. And of course, it’s time for another Free Friday, Ask J’net Q&A, so read on…there is something here for everyone.

Ask J’net Q&A - Friday, October 5, 2012 9AM PDT (12 Noon EDT)

Join me for our next, wildly popular Q&A class, where you have the opportunity to tap into my knowledge,  experience and brainpower.  This one hour class is a ‘live’ phone event where you provide the questions and I provide the answers – for FREE! Below I’ve listed just a fraction of the questions I’ve answered over the years.  So sign-up today and don’t forget to send in your questions on your registration form!

• How do you organize a licensor’s web site to appeal to manufacturers?
• As an artist, do I need a blog?
• How risky is it to do spec work?
• When signing licensing deals, should a press release be done for each company?
• If I don’t like doing borders and patterns, can I just do stand alone images?
• What are the traits to look for in a good manufacturing partner?
• What design and theme trends will be seen on product this year?
• How do I get started in art licensing?
• What are private label products?
• What would be the first 5 questions I ask a manufacturer, if they express interest in using my artwork for licensing?
• How do I negotiate a royalty with a major manufacturer that wants to pay a flat fee?
• When I copyright a “collection” of designs under one copyright, are they all covered?
• When creating seasonal art, how far in advance are manufacturers shopping for it?
• How can I determine if I need an agent or not?

Introduction to Art Licensing – Sponsored by the Graphic Artists Guild - Wednesday, October 10th 11:00 AM PDT (2:00 PM EDT)

A great class for those thinking about or entering the art licensing field. Learn about how art licensing works in this live webinar — which is FREE for Graphic Artists Guild Members. It will cover the fundamentals of art licensing and provide insights to help you determine where you fit into this business. I will teach the art licensing process, timelines, today’s artist requirements and challenges that are to be expected, as well as valuable information on retailers, the agent/artist relationship, and much more. If you are already a ‘Guild’ member, you can sign up on their site for free, or become a member to take advantage of other benefits and then register.  All registration for this event is being graciously handled by the Graphic Artists Guild. Awesome-thank you! Register here.

Worldwide Creators’ Intensive - Building Character: How to Cash In On Your Characters Without Losing Your Soul

Mon-Wed, October 15 -17, 2012 (6+ hours of training—register before 9/30 and it’s only $85)

Taught by: Michael Fry, Co-Creator ‘Over the Hedge’ and Creator ‘Committed’ (Bio) and J’net Smith of All Art Licensing / DILBERT Marketer (Bio)

They say content is king. But the truth is that viewers and readers fall in love with characters, not content. Whether it’s a novel, graphic novel, comic strip, web comic or web animation, characters are what attract loyal fans and licensors. Audiences want to own and share a piece of what they love, whether it’s a T-shirt, a plush toy or a major motion picture. But how do you get your character from the page or screen to the store or theater? Build an audience and licensors will come, right? Yes, that’s part of it. But there’s more — a lot more to making sure your characters get the best shot at becoming household names.

Please join the co-creator and writer of the Over the Hedge comic strip, Michael Fry, and I for a 6 hour webinar held  over three-days that will guide you through the intersection between art and commerce to best develop and market your characters to their maximum potential. The live seminar includes an extensive downloadable audio and PowerPoint presentation that outlines each step in the process from creation, publication and brand building to promotion and licensing for television and film. You can learn more, register or see the  daily schedule for Building Character online or click here for a printed version of our Worldwide Creators’ Intensives for Fall 2012/Winter 2013.