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Stock photo sites generally neither buy, nor sell photos.

The photos stock photo web sites have on offer are still owned by the photographers that made them. Many photographers discover that the photos they offer to upload to a stock photo house get rejected for technical reasons and having to do with content. (Most stock photo places are looking for photos that have people in them.)

Stock photo houses usually sell non-exclusive use licensing, so use of the same photo can be sold many, many times.

There are 2 basic kinds of stock photo use licensing. The better paying license type is a Rights-Managed (RM) use license. The lower paying license type is a Royalty-Free (RF) use license.

Most of the microstock houses sell RF licensing. Not to long ago Time magazine licensed a photo for the cover of one of their issues that they licensed through a microstock house. IIRC, the photographer's cut was a fraction (pennies) of the $30 Time paid to use the photo.
 
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I'm sorry guys. I might not have explained myself very well last night because some of you actually seem to be somewhat offended by what I said. It was pretty late, I'm sorry

The basic point that some of you got was I want a self sustaining hobby, a hobby that pays for itself. I don't want this to be a job and I don't expect it to pay for itself right now. I just want to go out, have some fun, take some pictures, and sell the good ones. I know I'm not a professional and I know I don't have experience but I don't expect to make large amounts of money...I just want to pay for the equipment I buy. The only questions I really have is:

1. Is this self-sustaining hobby theory a sound one? Am I reasonable in expecting that at least some of my photos might be worthy of selling so that eventually, over a year or two, I might see my initial investment paid for?

No, I would say most of the members of this forum have never sold a photo. Most of the ones who have sold a photo probably lost money doing it. A few make a lot of money, but none of them are doing it with $500 worth of gear.
2. Assuming the answer to the first question is yes where are the best places to sell pictures? I know there are a number of stock photo sites on the internet...are those good?

3. What is a good DSLR and associated equipement a beginner should buy? I'll be willing to increase my budget to 700US$. Now, some of you have mentioned used cameras. Is that wise? Do you guys find that used cameras are reliable? In general I don't like the idea of buying used electronics but if they are reliable I suppose buying used could be a good deal.

Thanks for bearing with me here.

You don't need a DSLR. You want to shoot landscapes and things that don't move. You need a decent P&S, a tripod, and some experience. You'll mostly be shooting at the lowest ISO you can so noise performance shouldn't be an issue. The things you are shooting won't be moving so shutter lag and focus speed shouldn't be an issue.

Basically, your budget and your intended type of photography don't require a DSLR. Either way, the odds are very low that your hobby will pay for itself, and in any case, without a business, paying taxes, insurance, etc, etc, etc, I don't think it should.

I put weekend photographers out to make some side money about half a step above drug dealers.
 
youre way ahead of yourself.
 
KmH is bang on when he says most photos sold are sold to the people in the photos.

Your best bet to try and make a bit of money, and let's be clear on the 'a bit of money', is to get some gear, develop some skill with it, go take photographs of everything and anything at every possible opportunity, develop a portfolio, and then do some marketing. Don't try to compete with the established corporate/wedding/grad photography businesses in your area, it's not your stated goal. With a clear and well done portfolio target the local service clubs, reunion halls, grad parties, family reunions ... etc. Be prepared to sacrifice the nice summer weekends and holiday season weekends to taking photos for next to nothing. On the other hand, buy a camera you can afford, learn to use it best you can, and go have some fun with your family and friends and enjoy photography as a hobby.
 

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