Please read PART ONE too!

Licensing

Licensing is a funny thing. Many artists have been lead to believe that it’s a magic word and will make them rich and famous immediately because they see So and So’s art all over. That’s wrong. No one product or contract will do either for you.

1. Trust your instincts and don’t let jealousy get in the way. Just because you see someone else’s art on a product doesn’t mean you know it’s actually a good deal for them.

2. There are two aspects to product licensing: royalties and exposure for your art. Ideally you want both and if you get neither it’s no use at all. You get only small percentage of what the product sells for wholesale (i.e half the price you see in stores). Don’t let anyone tell you that licensing is going to make you rich OR that it’s just free advertising that you aren’t supposed to make any money from.

3. If you've never heard of the company or product and are unsure of the quality or what it looks like, ask for a sample and don't sign anything until you do. If they're proud of their product they shouldn't have any problem with that. If it's something you can already find in stores that's a good sign, because you already know it sells and can see what it looks like.

4. Research as much as possible even if you have heard of them. Does the company have a professional web site? Does it look like they’ve been in business for a while and have experience? Is it a home business or do they have employees? Google them and see what you find. Look them up on the better business bureau web site. Ask other artists who work with them about it. Find out what stores the product sells in. Find out what price the product sells for wholesale and retail.

The company should be able to tell you these some of these things if they are interested in you. If they are secretive and won't answer questions it’s a really bad sign. Remember if you have doubts you can back out at any time before you’ve signed a contract.

5. Don’t be afraid negotiate contracts and know that you CAN. You’re not a nobody. Remember, they have no product without your art. If something bugs you and you want it changed ask. If you can’t understand something ask for it to be rewritten in plain English. Ask a lawyer to look at it if you need to, or even family and friends if they know anything about business or law.

A good contract will give your the right to audit sales records and include clauses allowing you to get out if the deal goes bad, as well as explain what happens if the company goes out of business. Always make sure there is a way to get out.

6. Don’t give up your rights. If selling something yourself is important make sure you can still do that. Giving them an exclusive right to do something is their best interest but usually not in yours. It is preferable to include a list of images on a contract rather than all your art. That allows you to license that art elsewhere if it doesn't work out (for example if the company doesn't end up making a product you signed for). You might want to avoid exclusives unless you sure the company's sales justify it.

7. Get everything in writing. Get contacts signed on paper. That may sound old fashioned but it’s important. If you have questions or concerns make sure they are answered. If you have problems document everything.

8. Is the product in question something you can make and sell on your own? Some things are and some cannot be made by hand.

The difference is:

Licensed product:
The company may be able to sell much more than you can by yourself. Perhaps the production cost is too high for you or you have no idea how to go about getting product X manufactured. You will always be able to buy the licensed product at a discount and sell it. Licensing may be right for you if you'd rather leave the work to someone else.

Making or having it made yourself:
You will have ultimate control over the product quality and how it's manufactured and sold. This is most likely going to cost you a lot more and be a lot more work (you probably won't have employees help you). Do you have the time to do shows and promote it? But, if you are willing to do that it may be more fulfilling. It just depends what's important to you.

9. A good company won't have to be begged for samples, checks, or catalogs. They will send them out on time when the contract says they will. They will also answer your questions promptly.

10. It's your art (and your reputation). No one else's. You are allowed to be choosy.

If you check this all out first, hopefully you won't do anything you regret and will be happy with the company/ies you chose to sign with. It's important to be able to have confidence in the people you work with, but that comes from knowledge. The most important thing to do is ask questions and think before you act.

Much of this also applies to galleries: If someone wants to put your art or craft in their gallery makes sure you can check out the shop and have a contract. Sending it somewhere out of state where you can’t check up on it is not a good idea. Galleries have been known to go out of business and disappear with the artwork. This has happened to even established illustrators like John Howe.

Links:
• Resources for Artists from Porterfield's Fine Art
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•How to Benefit from Licensing
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PS. No, I don't think everyone is out to get you. There are plenty of good professional people out there, and now you'll know when you find them.