Commissions to Venue

[HeldInTheMoment]

Hello All!

My wife and I own a small photography business and recently were given an opportunity to be the photographers for a local Motocross Circuit. During our negotiations they have offered us a deal where we are the only ones allowed on the track for photos, can sell our prints or digital photos, but they are asking 20% of our daily earnings as commissions...so we both benefit from the photography being available for their events.

Overall, is 20% fair to give them? We have to drive 4 hours (round trip), bring all our gear, printer, inks, paper, and have all the overhead costs+work. All they supply is track access and a small hut with a power connection to print and edit the photos.

Thoughts or advice?

Thanks!

 

[tirediron]

It really depends on the volume of business you'll do. Unless this is a really big event, it doesn't sound to me like the sort of thing you're likely to do too well on.

 

[HeldInTheMoment]

It really depends on the volume of business you'll do. Unless this is a really big event, it doesn't sound to me like the sort of thing you're likely to do too well on.

They are the only Motocross Circuit in our area, they have riders from multiple states that come to participate. They had a photographer several years ago, but that person just doesn't do photography anymore. Around that time they got a new set of Board Members and haven't restarted the photography option at their events yet.

I did a "trial run" with them last weekend on a practice day and already have a lot of people asking for photos or when I will be back. Overall, I believe there is opportunity here.

The main question I have is about their request for 20% of what I make daily as commission/rent to use their facilities and be the exclusive photographer for their events. Since I have all the over-head costs, time, and work...20% seems high to me, but not unreasonable.

 

[tirediron]

20% seems reasonable if there's enough business to make it worthwhile. To put it in perspective, at the fairgrounds for which I'm an executive board member, the Legion operates our concession for big events. We take 40-50% of the net (depending on event).

 

[HeldInTheMoment]

40-50%...wow

These events are usually fairly large, usually a two (2) day event. Saturday for Practice Runs and Sunday for official races. There are well over 100 riders ranging from young kids on 50cc bikes, all the way to 450cc adult riders.

So I guess 20% isn't too bad...

 

[Designer]

The main question I have is about their request for 20% of what I make ..

For those of you who are new to the art of dealing with organizations, it really isn't about you at all. It is about their organization obtaining some much-needed funds with which to continue operating. 20% is not only fair, it is cheap!

As I wrote above, for those of you who are new to this; it is your responsibility to make sure you make a profit, it is not their responsibility. Arrange your pricing structure to maximize your own profit, and to make sure they get money, too. If everything works out, they will be happy to invite you back.

This is the essence of learning the ropes.

 

[john.margetts]

In business there is only really one question - will I make more money if I do or will I make more if I don't?

When I exhibit in the Usher gallery, they want 50% commission which makes my eyes water. If I don't I save the commission but lose access to their clientele so I do (exhibit).

 

[gsgary]

If it was good the first photographer would not have given up

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[HeldInTheMoment]

If it was good the first photographer would not have given up

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The other photographer didn't give up, he moved for a career and stopped doing photography on the side.

 

[gsgary]

If it was good the first photographer would not have given up

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The other photographer didn't give up, he moved for a career and stopped doing photography on the side.

I've done lots of events photography and MotoX didn't pay because they spent so much on their bikes, repairs and transport

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