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Paying the Photographer

Photography has many different categories and business models. There are photographers for weddings, portraits, seniors, events, architecture, commercial, fashion, nature, fine art, stock, the list can be virtually endless; if you can think of a category I can probably name a photographer that specializes in it. With each specialty there seems to be a different payment method and in some cases it makes total sense.   A portrait photographer probably should be paid at the time of the photo shoot and a wedding photog should get 50% down to book the date and the balance the day of the wedding. But when these payment models are applied to other types of photography I begin to wonder.

 

I specialize in high-end estate and portrait photography but that is not the only work I do. I have different payment terms for each part of my business. Also how I get paid depends on who I am working with, not just the type of photography I am doing. If I am doing portraits for an individual, model or just regular family type portraits, I need to be paid at the time of the shoot. The reason is simple; I may never see that client again. They can just up and disappear.  Corporate portraits are a different story.

When I am doing corporate work, whether it is for the annual report or headshots for the company website, I don’t expect payment upfront or at the time of the shoot. I can do a Purchase Order (PO) or just a straight up billing at net30, depending on my client’s accounts payable model, not my billing model. I work with you not against you.

 

I understand how business is done and that does not usually mean getting paid up front. Many vendors feel that they should be paid at the time that services are rendered rather than when the final product is delivered and I understand that but that isn’t normal in the B2B world. For the longest time things like POs at net 30, 60 and occasionally 90 were the norm. Today there are corporations that are demanding net 180! Really? Net 180? Ouch!

 

Net180 has multiple purposes and it’s not because they don’t want to pay their bills. This is usually for very large corporations and what they are doing is trying to qualify their vendors and filter out the little guys that can’t carry a burden for 6 months. The odd thing is that many of the smaller vendors actually do this all the time; at least some photographers do. Stock photographers carry a net180 or more all the time. They shoot with no idea when, or even if, they are going to get paid. Many a stock photoshoot has sat for long periods of time waiting for those one or two clients that need that image. Stock images don’t make themselves; good stock images are made by good stock photographers who have the ability to see the future of the client’s needs and make the investment in studio time, models, makeup artists, props, etc. to make an image that is desirable next week, month or year.

 

Although I am not a stock photographer I also make an investment in your future as well as mine. I usually don’t ask businesses for payment up front. I want to do business with you and I want that to be as stress free as possible. What I do is I ask you how you want to handle the payment. I work within your current business model, I take the time to learn how you do business and I do everything in my power to make sure that your business with me goes as easy as possible.  After all, having to make special arrangements and having to jump through hoops to get the images you need is not what you want. In today’s business environment the idea is to make doing business easier. That is my goal when you choose me to create the images your company needs.

 

Let’s make it easy to push your business to the next level, together.

8 replies
  1. Jeff Leech
    Jeff Leech says:

    Well said Michael,
    You have mastered making businesses want to do business with you.
    It is really common business sense that a lot of people do not get.
    Especially without alot of B2B experience.
    Take care,
    Jeff

  2. jack foley
    jack foley says:

    Hi Michael,
    Lots of good thoughts. I do have so objections to some things though. First off, if I wanted to be in the money lending business I would have chosen a career in banking, at least I would be making interest on that money. Giving anyone net 180 is giving them an interest free loan. Not good business practice in my humble opinion. The large corporations are not trying to weed out anyone who will let them use their money for free for 6 months while they invest it. They are in the money making business, the same as we are. Granted for some clients we will accept some terms that may not be perfect but let’s not lose sight of why we are in business in the first place. I am not referring to the love of image making here, I am speaking about earning a fair wage for producing a quality product, that our clients will then use to increase their sales. Being a strong business person is is an important, highly respected quality in any self employed person. I do agree with your thoughts on stock photography, however, who knows if any stock will ever sell, but you are going into that with your eyes open. Just my thoughts. soap box out.

  3. Trish Gant
    Trish Gant says:

    Hi guys,
    you’re all right in your own ways. There’s nothing wrong with making the payment process easier for your clients but there is a limit to how much borrowing I am comfortable with. I’d love to see the look on my bank manager’s face when I tell him I can’t pay him back for another 180 days!

  4. Kate Caudillo
    Kate Caudillo says:

    We do about 60% of our event photography business B2B, and the other 40% is school and individual event clients. You are completely right that you have to set up different payment arrangements for businesses, weddings and schools. Each type demands a different structure. However, I have never, and would never accept 180 days. We have had businesses never pay, and we have had businesses go out of business. Now, we take a $250 retainer to hold the date, and payment either 2 weeks prior or the day of the event. If they are a new client that we have never worked with before, we will accept Net30 if we are very close to their event, and they have a Net30 policy. But the next time they work with us the know they need to have us paid by the day of the event. You just have to educate your clients about how you work. Make sure that your payment structure works for your business.

  5. Mike Irby
    Mike Irby says:

    Hi Michael!
    I agree with many of the things you said with some exceptions. When working with a new client, especially from out of town, I ask for a 50% deposit to book the project and I get it. I just confirmed a 2 day project with a major restaurant group and asked for a deposit. They are based in Fla., were extremely nice and set me up for payment right away, within 7 days of my deposit invoice to them. Shoot is in several weeks. I’m thrilled and can’t wait to handle their project. I always go the extra mile, but with a client like this, sky’s the limit. To me, this builds trust.

    I have changed my terms to basically 50% to book a project and net 10 or payment with delivery of final images. I’m working with clients of all size from 1 person to major corps. Now occasionally I will book a project without a deposit if the company is local and when I quote the project I spell out the terms as net 10 with delivery of final images. Not a problem. And certainly if I have worked for them prior.
    No one is questioning this. This works for me and it lets the client know I am serious about taking care of them.
    In this economy, reasonable cash flow in my pocket, is my norm.
    I have had no major corp. or anyone ask for extended billing. Legitimate players know the lay of the land. I have not lost a project by terms.
    As far as billing longer than 30 days? NO. I’m not the bank as was said earlier. Think about it, we did the prep, shot the project, did the post, and delivered the final images to the client. They are ready to go and can and are used right away.
    I’m going to wait an extended period to be paid? Why? 180 terms? Yes, for all invoices above $1,000,000.
    You’ve seen the signs in restaurants “In God we trust… all others pay cash”. I know if I go the the shore half the vendors only take cash. I know it and am prepared when I get pizza at Mack & Manco in O.C.
    It’s just training the client/customer. It’s like the client thinking ” Wow, I have a great photographer…but he wants to be paid when he delivers his images”. And your point…?
    By the way, my invoice clearly says “all images copyright and license and use is granted with invoice payment received in full”. No problems.
    Try it…you’ll like it!
    Mike

  6. Deirdre
    Deirdre says:

    I too ask for 50% up front of whatever fee I charge. For portraits, the remainder is due at the session. For commercials, well that depends, but I generally would ask for 50% upfront as well and the rest in installments of 25% or the remainder when the project is complete. And when complete, that is usually in 10 business days 😉

  7. Ghislain T.
    Ghislain T. says:

    Good food for thought although I would disagree on the net180 which is clearly a commercial / financial abuse from big corps. I ask for a 30% to 40% downpayment from my BtoB customers and it has never been an issue. I am flexible on the time required payment of the remaining 70% to 60% … and am usually paid within 10 business days after delivery of pictures 😛

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