Have you ever considered art licensing as a way to sell your work and even earn a passive income? When leveraged effectively, art licensing can be a fantastic way to release your designs out into the wild and make the most of them. Just imagine it: one of your paintings is a real crowd pleaser, and in addition to selling the original, your legions of fans have asked you to sell prints of your work.
But why stop there?
Art licensing takes your original work and allows for partnerships with retailers, companies, and other buyers that are interested in using your design on their products. And while it’s one thing to track down the companies that would be likely to license your art, the next step is to make contact.
With decision makers being inundated with creatives hoping to land a deal, it’s important to think about how to break through the noise and stand out. Your best bet? Take a look at your network to see if you already have connections that might be willing to make an introduction.
Especially if you’re in the early stages of your career, you may question who you know well enough to go to bat for you. But the good news is that it’s not always necessary to know these people too intimately. In fact, you might be surprised at how willing people are to make introductions—this is the foundation of networking platforms like LinkedIn. It’s simply up to you to make use of these tools when it comes to connecting with other creatives and decision makers.
Working diligently to add smart contacts increases your chances of finding valuable connections, which brings you one step closer to successful art licensing. In most cases, you can politely ask for an online introduction. Just be sure that your creative portfolio is up to snuff and showcasing your best and most recent work while maximizing your LinkedIn presence so that potential clients understand precisely what you do.
But this is just the first part of the puzzle: art licensing is nuanced, and you want to speak the same language as your clients to establish an enthusiasm for the potential behind your work. From understanding the look of individual brands to offering something new and unique, let’s break down some of the more important things you’ll need to consider when breaking into the art licensing market.
Your future in art licensing starts with your work.
Art licensing relies on themes
At the end of the day, regardless of whether you receive a formal introduction or boldly cold call a decision maker, the end result boils down to your work. In branding, ranges of products typically have similar themes so help consumers distinguish who they are buying from. This means that art licensing considers how the artwork will play across different brands.
Showing multiple themes with complementary images that can be used across a range of products is ideal—consider creating your work in sets. For example, if you have a fun illustration of a dog in sunglasses enjoying time by the pool, think about how you might expand upon this theme. Perhaps you can illustrate other characters enjoying typical summer activities, or even create distinctive icons of popular things we associate with summer (an ice cream cone or a bottle of sunscreen). How you approach this exercise is yet another extension of how you express yourself creatively, so while there are no wrong answers, think critically about how well the individual images play together. Simply aim for sets of at least 5 images to be sure that you’re communicating a larger visual narrative.
From bold patterns to elegant florals, art licensing thrives on unique designs.
Art licensing aims to set trends, not follow them
As a fundamental part of creative branding, art licensing looks for innovative designs to stand out and establish a strong visual identity. That means that you need to bring your most exciting designs to the table—regardless of whether they’re your latest masterpieces or an oldie that never saw its full potential. As a member of the Graphic Artists Guild so brilliantly put it, “A character you drew as a child may have been trying to get itself on products for years. It’s just waiting for you to learn what you need to know to make the best licensing deal for yourself.”
If you’re interested in character-forward art, develop their profiles and consider them both individually and as a whole. Build a universe for them to inhabit, including a series of plots they might play out. How can this new world generate a fan base? And more importantly, how can it help a licensee value and see the mutual benefits of collaborating?
If your approach to art licensing relies on patterns, illustrations, or photographs, you’ll want to take a different approach. Your art tells the visual story of the product, so develop unique lines that correlate with special occasions and “thematic buying”, like back to school or the holidays. Just remember: buyers are looking for something fresh and unique to make their work stand out, so think about how to appeal to their fan base and demographic in an exciting new way.
Work with social media
LinkedIn is arguably the best place to make professional contacts, but that doesn’t mean that you should neglect the other platforms that are out there. Our recent deep dive into how to best harness the power of social media offers a more thoughtful take on how to get started, and we highly recommend taking a look before you start your hunt for art licensing opportunities. First impressions matter!
Once you’ve established a professional presence on your platforms of choice, follow prospective companies and their key employees. Not only is this a fantastic way to initiate personal contact, but you’ll stay informed about their needs and up to date on their latest projects and initiatives. Just be sure to keep posting work that is relatable: if you’re looking for an art licensing deal, you need to share art that’s appropriate. Don’t be afraid to spoon feed your audience: it’s never a bad idea to shout out exactly what it is that you do.
Personalize your communications
It doesn’t matter if it’s an invitation to connect on LinkedIn or a professional proposal: personalization is key to grabbing someone’s attention and making a connection that can turn into a potential contract. Take the time to research any previous projects and success stories that you can reference to make the most of this opportunity, and be sure to mention any referrals if you’ve been put in touch directly.
In three to five paragraphs at most, be sure to:
- Introduce yourself and share any personal connections you have to the buyer or company.
- Say something savvy about the products so the manufacturer knows you’ve done your research.
- Transition into a discussion about why you think your art is a good fit.
- Link to your website and share samples of your work.
- Thank the recipient for their time and attention.
- Mention that you’d like to reach out again.
After you’ve hit “send”, make a note in your calendar to reach out again (one month is usually a good amount of time). It’s rare that an introductory note will instantly yield an art licensing deal, but that doesn’t mean there’s no interest in your work. It’s simply up to you to keep in touch, stoke the fires of interest, and share your latest and greatest. Remember: following up is arguably more important than making initial contact. Just because you didn’t hear a response doesn’t mean your email went unread.
Leverage your online presence to break into the art licensing world.
Work with an art licensing agent
You may already know that many commercial artists thrive with the help of representation, but did you know that there are special art licensing agents? Equipped with the know-how and contact lists to aid the right artists, an agent can identify potential licensees, represent you at trade shows, present proposals, and negotiate license agreements.
Another reason you may want to work with art licensing agents? They’re industry experts, which means they have the knowledge to help you develop and position your work so it’s a suitable candidate. Just be sure that your work is not in direct competition with any of the other artists on their roster: you want your style to “dovetail” and complement, not be in direct competition.
Understand agency agreements
The art licensing world takes contracts very seriously—don’t put yourself in a bind by blindly signing something. Understand what the commission structure looks like and make sure that you’re not bound to the agency should they not be getting you any work. An unfair contract might penalize you for moving on, regardless of their performance. Your smartest bet? Hire a lawyer to look over the fine print and explain, in simple terms, what you’re committing to. In particular, you’re going to want to understand:
- The scope of the agency. This section defines what work the agent will be authorized to present, as well as the product lines and territories covered. Some work may have the potential for publishing, software, film, or other uses that are not typically licensing merchandise categories. You may want to have another agent who specializes in those areas, or you might have one agent for the east coast and west coast, depending on their reach.
- Exclusivity. Other than the areas mentioned above, most agents would be exclusive within their defined scope. This means that the agent is the only agent that can represent your work in those areas. In most cases, an exclusive agency means that the agent is entitled to a commission from any license entered into during the term of the relationship, regardless of whether the license resulted from the efforts of the agent, you, or a third party.
- Ownership and control. You should retain the ownership and copyrights and have final approval over all license terms: make sure that nothing in the agreement transfers ownership to the agent. Don’t give the agent the general signing authority on your behalf. You should also retain final approval rights over all artwork and product prototypes and samples.
- Commissions And Expenses. Commissions can run anywhere between 30% to 50% of gross licensing revenue, especially if you’re just getting started. Some agents may also require you to pay certain expenses like trade show costs, the cost of creating promotional packages, and travel costs. Make sure that any expense over an agreed upon amount is pre-approved, or put a monthly cap on payments. You don’t want to be surprised by high invoices at the end of the month. Where possible, list any expenses you both know will be paid by you, and those that will not, in the agreement.
- Terms. Typically, art licensing agents require an initial term of 2 to 3 years to see how the relationship will develop. That may sound lengthy, but it often takes time to properly develop your work and make the necessary connections to land you a deal. If you’re concerned about a lengthy commitment, it’s worth discussing your right to terminate the agreement if certain performance benchmarks are not being met.
- Termination Of Agreement. We hope it’s a fruitful collaboration, but just in case, termination is one of the most important clauses: you don’t want to be stuck with someone who isn’t pulling their weight. And while we can’t control the economy or predict market trends, termination should always be available for breaches of the agreement, like not paying royalties or signing agreements without your approval.
- Post Termination. If you’ve experienced success due to an agent’s efforts and still decide to part, most will expect to be compensated (at least for a limited time). Of course, you shouldn’t be paying someone that isn’t working on your behalf, but sometimes their efforts brought in contracts that are still going strong, and it’s reasonable that they’d expect to be paid. Make sure you understand every possible scenario in layman’s terms before signing.
- Royalties. Art licensing usually means getting paid through royalties, depending on the type of product. If a royalty is to be paid, be sure it is based upon gross sales—not the net receipts, or profit. A typical deal is to give the artist 5 to 12 ½ percent of the net wholesale price received by the manufacturer from its distributors. However, certain types of products can go higher. For example, typical royalty rates for prints and posters are around 10-15% whereas licensed gadget cases or similar can be around 4-7%. Just check in with other professionals and the Graphic Artists Guild Handbook to make sure you’re getting a fair deal.
A Free Art Licensing Agreement
If you’re working with companies that regularly license artwork, you’ll likely be provided with an art licensing agreement. If that happens, we strongly suggest you have an attorney look it over, since it’s likely to favor your client.
Many agreements are so full of legal language that can make them difficult to understand, or they might leave out key terms that can provide important protection. In other cases, however, you’ll be providing the contract, so we’ve provided an example that you can use.
The agreement not only provides legal protection but lays out the rules by which the artwork can be used. Yet like any contract, this one also has its share of legal language, so we also recommend adding a summary of the basic terms to your invoice that explains, in colloquial and understandable language, what the images can and can’t be used for and how long the agreement will last. That will help avoid any misunderstandings while also providing you with legal protection.
Be aware that there are sections that are variables and should be changed to accommodate your project, so read carefully. This sample agreement is for general use and may not be appropriate for every situation, but understanding our needs and making the necessary changes should cover your bases.
You may also want to have an attorney look it over to ensure it’s tailored to your business and, more importantly, the local laws. A review of the agreement should cost a lot less than asking an attorney to create the agreement from scratch, so don’t neglect to make this important investment in yourself.
SAMPLE ART LICENSING AGREEMENT
This Artist Licensing Agreement (the “AGREEMENT”) is entered into effective this date, [DATE] between [ARTIST NAME] (“ARTIST”) and [CLIENT NAME] (“CLIENT”). All references to the Client in this Agreement shall include Client’s parent companies, affiliates, and subsidiaries.
Scope of this Agreement. This Agreement applies to any image, graphics, digital assets, or digital images created or taken by Artist and delivered to the Client (collectively known as “IMAGES”). This Agreement governs the relationship between the parties and in no communication or other exchange, shall modify the terms of this Agreement unless agreed to in writing.
Rights: All Images and rights relating to them, including copyright and ownership rights in the media in which the Images are stored, remain the sole and exclusive property of the Artist. This license provides the Client with the limited right to reproduce, publicly display, and distribute the Images only for the agreed upon terms as set forth in the Client Invoice and signed by both parties. Images used for any purpose not directly related outside of those terms must be with the express permission of Artist and may include the payment of additional fees, unless otherwise agreed to in writing. Images may contain copyright management information (CMI) at the discretion of the Artist in the form of either 1) a copyright notice © and/or 2) other copyright and ownership information embedded in the metadata or elsewhere unless otherwise agreed to by the Parties. Removing and/or altering such information is prohibited and constitutes a violation of the Digital Millennium Copyright Act (DMCA) and Client will be responsible to the Artist for any penalties and awards available under that statute.
Relationship of the Parties: The parties agree that Artist is an independent contractor and that neither Artist nor Artist’s employees or contract personnel are, or shall be deemed to be, employees of Client. No agency, partnership, joint venture, or employee-employer relationship is intended or created by this Agreement. Neither party is authorized to act as agent or bind the other party except as expressly stated in this Agreement. Artist and the Images or any other deliverables prepared by Artist shall not be deemed a work for hire as defined under Copyright Law. All rights granted to Client are contractual in nature and are expressly defined by this Agreement.
Creation: The manner and method of creating any Image is solely at the discretion of Artist and the Client has no right to control Artist’s manner and method of performance under this Agreement. Artist will use his/her best efforts to: (a) ensure that the Images conform to Client’s specifications; and (b) submit all Images to Client in publishable quality, on or before the applicable deadlines.
Delivery: Artist may select delivery of photographs in JPEG, TIFF, PNG, or other standard formats at a resolution that Artist determines will be suitable for the Images as licensed. It is the Client’s responsibility to verify that the Images are suitable for reproduction and that if the Images are not deemed suitable, to notify the Artist within five (5) business days. Artist’s sole obligation will be to replace the Images at a suitable resolution but in no event will Artist be liable for poor reproduction quality, delays, or consequential damages. Unless otherwise specifically provided, Artist is not responsible for providing images 1) larger than 8”x10” at 300 dpi or 2) in a format higher than 8-bit or in RAW format. Artist has no obligation to retain or archive any Images delivered to Client.
Fees: All fees and expenses payable under this agreement are required no later than ten (10) business days from the delivery of the Images and payable irrespective of whether Client makes actual use of the Images. If full payment has not been received within thirty (30) days all rights are revoked at Artist’s discretion. In the event rights are revoked, all images in the possession of Client will be removed from all forms of media and permanently destroyed within ten (10) days. Client shall provide Artist with written statement that all images have been removed and destroyed.
Cancellation: If Client cancellation of this Agreement prior to 1) Stated delivery date on the Client Invoice or 2) within one (1) month of this agreement, Client will pay any expenses incurred and a twenty-five (25)% cancellation fee. For Client cancellation within two (2) days of the delivery date, Client is responsible for one-hundred (100)% of the fee and any expenses incurred.
No Exclusivity: This Agreement does not create an exclusive relationship between the parties. Client is free to engage others to perform services of the same or similar nature to those provided by Artist, and Artist shall be entitled to offer and provide services to others, solicit other clients and otherwise advertise the services offered by Artist.
Transfer and Assignment: Client may not assign or transfer this agreement or any rights granted under it. No amendment or waiver of any terms is binding unless in writing and signed by the parties. However, the invoice may reflect, and Client is bound by authorizations that could not be confirmed in writing because of insufficient time or other practical considerations.
Indemnification: Client will indemnify and defend Artist against all claims, liability, damages, costs, and expenses, including reasonable legal fees and expenses, arising out of the creation or any use of the Images or materials furnished by Client. It is the Client’s responsibility to obtain the necessary model or property releases are ensure they are full effect and in force.
General Law/Arbitration: This Agreement sets forth the entire understanding of the parties, and supersedes all prior agreements between the parties. This Agreement shall be governed, interpreted and enforced in accordance with the laws of the State of [STATE]. Any claim or litigation arising out of this Agreement or its performance may be commenced only in courts physically located in [COUNTY] [STATE], and the parties hereby consent to the personal jurisdiction of such courts. In the event of any litigation arising out of or relating to this Agreement, the prevailing party shall be entitled to recover its attorneys’ fees incurred in the litigation. If parties are unable to resolve the dispute, either party may request mediation and/or binding arbitration in a forum mutually agreed to by the parties.
Severability: If one or more of the provisions in the Agreement is found invalid, illegal or unenforceable in any respect, the validity and enforceability of the remaining provisions shall not be affected. Any such provisions will be revised as required to make them enforceable.
Waiver: No action of either party, other than in writing agreed to by the parties, may be construed to waive any provision of this Agreement and a single or partial exercise by either party of any such action will not preclude further exercise of other rights or remedies in this Agreement.
IN WITNESS WHEREOF, the parties have caused this Artist Licensing Agreement to be duly executed as of the dates written below.
[Client Name]
By: __________________________________ Name: __________________________________
Title: __________________________________ Date: __________________________________
[Artist Name]
By: __________________________________ Name: __________________________________
Date: __________________________________
(Please see our legal disclaimer before using this document.)
Breaking into the commercial art world can feel daunting, and even experts with storied careers experience the occasional hurdle. But with art licensing, you have a unique opportunity to diversify your career, showcase your artwork on unique products, make a nice chunk of change up front, and even collect royalties for past successes. It can take a little initiative to make those first contacts, but once you do, art licensing is a lucrative industry that’s here to stay. Just do your homework, put in the work, connect with the right people, and identify the right opportunities. We can’t wait to see your art on the shelves.
Have you considered art licensing? What draws you to this market, or keeps you feeling hesitant? We want to hear your story. Let us know in the comments!