There are 3 basic ways the companies got their art for products.
- They have in-house designers who are paid a salary to design art for products.
- They buy art out-right. Many artists prefer to sell a piece of art upfront and let manufacturers do whatever they want with it. They usually get a physical, sometimes digital, piece of art and the manufacturer has to adapt it to their product. The artist receives the payment and a new piece of art.
- They license art. Why would a company choose to license art?
- In-house designers cost money. The manufacturer has to pay the designer a salary, payroll, taxes, benefits, annual leaves and superannuation, etc. Also an in house designer can’t do all styles of art so they will be limited by the skill-sets of their designers
- Buying art outright may be less expensive on the surface but there are hidden costs. The manufacturer has to get someone to manipulate the art, fit it to templates, adjust colours, etc. This is often done by art licensing artists.
- Licensing art has several advantages:
–No salary, benefits, annual leave to pay.
–Royalties are paid according to sales so the payments due will be based on the success of the product.
– If the product sells well, they pay you more. Not as well, they pay you less.
– Licensing allows a company to work with many different artists without having them on payroll.
– It is a cost-effective way to get a wide variety of styles and techniques.
-If an artist has name recognition in the marketplace, at the retail and/or consumer level, a manufacturer can use that to their advantage by offering products with a known following.
Need help in mapping out your Art Licensing journey?
- Just starting out? CLICK HERE
- Been working in your business for two years or more? CLICK HERE
Call Vinh on 0410 636 138