Today I decided it would be a great time to review the FAQ of making money in Art Licensing…
Many people have asked me what expenses I could possibly have because I work from home and I ‘paint’.
Computers, printers, software and scanners aren’t free. And the ink you go through printing things to submit or show– that adds up quickly.
Websites, reference books, trade magazines, … there are expenses.
Invest in your business but don’t go into major debt if possible. Watch your cash flow and spend wisely. Investments can be in the form of training (like books, classes, seminars or personal consulting), attending or exhibiting at trade shows, upgrading a printer or computer. Grow as your business grows.
The Cash Flow Cycle of Licensing
If you haven’t licensed your art before, you may wonder how long it will take to make money. Of course, it can vary and each artist’s experience will differ. But below I have outlined the 7 basic stages that will give an idea of what to expect:
- Create the art. You or your agent show it to manufacturers.
- Celebrate! Someone is interested! Contract negotiation starts.
- Sign the contract. (Let’s assume it is January) You will get some money now IF
you get an advance. In my experience, that happens about 50% of the time. - Prepare the art. Make any requested changes or additions to your art and get everything to the manufacturer.
- Now the manufacturer needs to make sure everything is formatted and ready. Product needs to be made. It is often 6-12 months between when you give them the art and when the art is on the products, in a store.
- The manufacturer ships the product with your art. Assume this happens in January– it’s now been
12 months since signing the deal. - Most companies pay quarterly – so you will be paid 4 times a year. At the end of the quarter, which would be March, they start to do royalty reports and generally have to have them in the mail within 30 days – so by April 30th. You should have your first royalty check by the first week in May.
As you can see by this example, it can take some time to get the money flowing.
Sometimes things move faster but I want you to prepare for this type of time line. If you understand it going into it, you are less likely to get frustrated and give up. Once you have things in the licensing pipeline, you start to get very excited at the end of each quarter and watch for the mail carrier!
Here’s to your creative – and dare I say realistic – success!
– Tara Reed
I love this post! It is very helpful. Thank you!
Thanks Tara! I just got my first licensing deal back in September and won’t see my first check until next March – the excitement sure does fade while you’re “patiently waiting.” I appreciate this reminder about not giving up 🙂
Looking forward to joining you in the “successful artists making money” club very soon!
Kristina
Congrats Kristina!
Hello Tara, thanks for your example of the cash flow.
My question is: How much money do I get pay at the end of every quarter? Is that money enough to make a living?
Thanks
Ariel – How much you make all depends on the price of the product, how many units are sold, etc. Varies from deal to deal…
Great read Tara as i just signed up with my agent this month. I am not experienced but this post is reminding me to stay put 🙂
I am currently
considering some licensing possibities. Would love to get your help or an agent, etc.
Google Ken Polinskie images.
Thanks Ken Polinskie
I had no idea that it takes that long,but now that you have explained it, it makes total sense. Thanks!
I just had my first products arrive in stores with more to come. My first contract was signed in September 2013… Tara’s article was right on target with me!
Congrats Monica! 🙂
Thanks so much for this reminder! I’m nearing the time for my first royalty check and it definitely has been a long process. I’m beyond excited to start seeing some money! 🙂
Thanks, Tara. To the point and helpful, as always.