Re: Graphic Art Design Royalty Rates

MessageGraphic design is most often commissioned or purchased for a flat fee, perhaps because tracking and reporting sales and paying royalties is so onerous in relation to the fee paid.

There are no reliable average rates. It very much depends on the client, the application and the market. For example, it is one thing to license the licking tongue of the Rolling Stones, another if you are Matt Groening producing Simpsons' product, and yet another if you are a working graphic designer doing something for a local t-shirt or greeting card company. Which is perhaps to say, that you have to look at the revenue potential, how many units are being produced for sale at what price.

There are few resources to give you direction either but I was able to find this overview of the licensing of graphic design for greeting cards: http://www.greetingcardassociation.org.uk/licensing.htm

also this:
"For greeting cards, a flat fee generally ranges between $275 and $500, while an advance against what is generally a 4% to 6% royalty tends to be between $150.00 and $300.00. Royalties are paid on the wholesale price of the card. Related products like giftwrap and boxed stationery sets, which are more complicated to execute, may command higher price advance against what is generally a 4% to 6% royalty tends to be between $150.00 and $300.00. Royalties are paid on the wholesale price of the card. Related products like giftwrap and boxed stationery sets, which are more complicated to execute, may command higher prices."
http://www.greetingcard.org/pdf/GCA_Artist_Guidelines.pdf

It would be very helpful to the list if, after you have negotiated your license, you could let us know, without being too too specific or course, how you worked out the formula.

Robert Labossiere MFA LLB
Toronto

• Original Message ----- From: Jim Gehrke To: CNI-COPYRIGHT -- Copyright & Intellectual Property Sent: Wednesday, July 13, 2005 5:00 PM Subject: [CNI-(C)] Graphic Art Design Royalty Rates

Greetings. I am wondering if anyone can point me to a good source for average royalty rates for graphic art work. I may be looking at a contract soon and want to know the financial context for graphic artists. I realize there are many variables that may change the overall compensation under a contract, but again, this would be for a point of reference. Thanks.

Jim Gehrke
Gehrke & Associates, SC
123 North 86th Street
Wauwatosa, WI 53226
414.774.0874
414.774.4837 Fax

www.gehrke-law.com

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