Royalties.

[Khandro]

I have been approached by a company wanting to use some of my drawings on its products. I was asked if I would care to sell them the copyright and I have declined, but said I would prefer to accept a percentage of the sales. I am a 'fine' rather than a commercial artist and have never done this before.
Is there a standard rate in percentage terms, for royalties in such matters, does anyone know please?

[murraymints]

DT might know....

[murraymints]

http://www.theanswerbank.co.uk/members/dtcwordfan/


Try a fao..

[wolf63]

Don't suppose you can draw cats.

As mm says DT should be of help.

[2sp_]

I have no advice at all, just wanted to say well done!

Would you let us know when your artwork will be hitting the shelves? (If that's not too intrusive.)

[DocHH]

I rather suspect there is not a standard formula. If I were you I would open the negotiations by suggesting a percentage of sales for a specified length of time, viz 5% for 10 years. Only you will know the levels of sales and worth. If you do reach an agreement on those drawings you might be able to get them to agree to buy an option on a fixed fee basis for drawings for future products, with a similar % for a similar period to try and assure future income.

[Khandro]

DocHH; Thanks, they are talking about suggestions for future products and I feel that I should keep the copyright on everything and go for the percentage of sales (which they agree to). So you think 5% would be an acceptable level? It sounds reasonable.
I have suggested that I retain copyright but give them a written permission to reproduce the images up to a certain number, and then renew. Does that sound sensible?

[DocHH]

Putting myself in their shoes, I am not sure I would agree to paying you a percentage of sales and also be restricted to the number of images I could use. From another point of view, once the product is established will they need your image? If they dont and they have reached the limit of images they can use, why should they pay another "Licence Fee"? They could actually afford a drop in sales.
An annual option/retainer fee for future products might tempt them.

[Khandro]

Dochh; I take your point, but its not that the image will promote the product, it will be the image that is the main reason for selling the product.
The finished articles will be a T-shirts (and other items) with my portraits of well-known people printed on them.

[DocHH]

You have to open the negotiations at some point. 5% for 10 years is as good starting point as any. I was told years ago that the best deal is one where both parties feel they have lost out! You must have some idea of how much you would like to earn from this co-operation, and base your discussion around that.

[Khandro]

DocHH; Thanks, that sounds about right.