November’s One-A-Day Q&A – Question #17

17 11 2016

Q: What markets are growing and are manufacturers offering more flat fees than licenses to avoid altercations? 


A: Since the major economic crash in 2008, the licensing industry took a huge hit and we have seen many more manufacturers requesting to do deals on a flat fee basis.  The art licensing industry has done a pretty decent job in getting back to where it was before that big downturn, but yes, we are still seeing more people offering flat fees than ever before.  What I don’t see is people really understanding that sometimes flat fees can still be a good deal, especially if you’re doing high-end, short-run, products that will not be mass produced. In some cases a flat fee So, whether you like it or not, in today’s art licensing marketplace, you need to learn how to evaluate whether or not that flat fee is a good deal.

We are seeing most of the growth in licensed products in the areas of food, apparel (predominantly fashion and sports based properties, however), accessories (eye wear being the largest growth component), publishing, including e-publishing (and fueled by digital celebrities and entertainment) and pets.  Those are really the key areas.  I’d love to say that there has been a huge amount of growth in home décor and stationery and other things like that, but it’s just not true. You have to think about where you can get some traction with your art and if any of those areas are of interest, and a thematic and design match, then that could be a real benefit for you.




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