RT Microstock Infos: Stockphotolicense.com Explains Free and Paid Image Use Online http://bit.ly/bcYfsp microstock togs photog

COVER. EVERY. ANGLE.: Similar images and avoiding mistakes when planning... http://bit.ly/cv5AHG microstock

Guest Blog Post- From hobbyist to professional artist

Whenever the microstock business receives a mention in the media, it is usually accompanied by the common description of microstock artists as amateurs, hobbyists, and stay-at-home moms or dads who have a consumer-level digital camera and some vacation photos they hope to make a quick buck off of. While those descriptions may accurately represent many artists working in the microstock field today, there are many others who consider microstock their profession. A number of things can factor into why the amateur title may be a fitting description for many microstock artists, but this does not mean that amateur status is permanent and are a few things that you can change today that will elevate your position in the stock imaging world. Changing your outlook on your microstock work and how you approach your craft can help to turn a hobby into a job.

There is a frequently used phrase in self-help and confidence-building circles: “Act as if.” You may have heard some slightly different versions of this saying, but in all of them the underlying principle is the same; How you conduct yourself has a direct effect on what you become and where you end up, in all aspects of life. In microstock, acting as if you are already a professional may spur you on to truly becoming one. Take a look at your typical microstock day and think about how an outside observer would regard your activities. Do you conduct yourself in your daily life like a hobbyist or a professional?

One of the quickest and easiest ways to transform your microstock hobby into a job (part-time or full-time) is to re-assess your work-flow and make changes that shift that work-flow into a more efficient, business-oriented process. If you are working in a cluttered area, with many distractions and very little organization, clean up your workspace and create an environment that is more like an office. Create a schedule for yourself, and stick to it. If you only have an hour a day to devote to microstock work, make sure that you put in that hour every day, and around the same time each day. Finally, make decisions based on good business choices, not personal preferences. Don’t limit your choice of agencies to work with based on your personal feelings about them. If you are only working with one or two agencies because they are your favorites, you are restricting your earnings potential and making an amateur decision. If you start to think and act like a pro microstocker, you will quickly transform your hobby into a job and your income will reflect this change.

Contributing writer Mike McDonald. Thank you so much, Mike. See Mike's Cutcaster studio here and his website here. Come on Mike. We want some more of your awesome work here at Cutcaster.

What does Shenk think about all of you?

Interesting article on the rise of Microstock and amateur photogs for everyone out there. Amateur photographers are shaking up the global market for licensed images far quicker than video is for broadcasters, and even Bill Gates's privately held image bank, Corbis, is having to reinvent itself.

Here is the last sentence of the article, ""There will be a shake-out in this space in the coming years but we're happy with what we are doing. We think Corbis has the resources and patience to succeed in the long-term. We will beat them with better [commercial] execution.""

I agree with him about Corbis having the resources (see Bill Gate's pocketbook) and the shakeout (see LO and hearing Albumo up against the ropes) but we will have to wait and see if they can execute better. Up to this point they haven't instilled us with confidence.

Impact of Microstock felt far and wide in Getty's memo

Daryl Lang at PDN is one of my favorite journalist and reports on some really interesting developments in the photo world. Today, he wrote on Getty's disclosure that showed how Getty believes that microstock customers and usages are the cornerstone for future growth. Bravo for Cutcaster and our contributors!

"Customer research suggests that approximately 40-50% of microstock demand is comprised of entirely new end-uses," the memo says. "As a result of the combination of new customer segments and new end uses, volumes of microstock images are 15-20x greater than traditional stills." Those are numbers that I think could be understated.

This makes one believe that the guys at Hellman & Friedman, who are about to close their deal to buy Getty are banking on microstock being a goose that can lay a golden egg for them. It's clear they are listening to their bankers, Goldman Sachs, who during their pitch to investors to take Getty private outlined some impressive growth for iStockphoto and other microstock sites. See the numbers below to hear what the bankers think.



According to Goldman, it appears that the iStockPhoto business, currently just 14 percent of total revenues, is expected to account for 22 percent in 5 years.

Getty published a graph in the papers that show volumes of traditional stock image licenses on a slippery slope downward since the beginning of 2006, while microstock volumes have nearly tripled. (Getty acquired iStockphoto in early 2006 for 50 million dollars, rather cheap now based on all the projections and performance so far.)



Something that Daryl pointed out that I found interesting but sad for Jupiter, "is that Getty now considers AP Images its second-largest competitor after Corbis. Previously, that distinction belonged to Jupiterimages." Since I am a former stock trader I checked out the price in the markets and it was trading at $1.34, the lowest since 2001. I bet, like others probably, that Jupiter gets taken over. They have great web properties.

Other interesting facts from the memo were:

Looking at the entire market, Getty's top dogs guesstimate the market for imagery is between $7 and $8 billion annually. Around sixty percent (60%) of that is commissioned, the rest is stock.

That would put stock imagery at around a $2.4 to $3.5 billion business, according to Getty.



What does this mean for the market and Cutcaster? I agree that the user base and usages for microstock photos and videos are increasing at an extraordinary pace and the buying market should be growing for everyone. We have always talked about making the pie bigger for everyone without trying to cannibalize one site's earnings. Everyone can prosper because of the new users and new usages creating more demand for microstock images and video. Educational tools and resources will need to be developed to show new buyers how this market can work for them and how to license content securely and legally instead of just taking it. Introducing a new set of buyers to the space as well as usages is exactly what Cutcaster is looking to do and what we have been researching. We don't want to be labeled as just a stock company but an image licensing community which is open to all but still secure for all participants. If a new class of buyers emerges I think the 2 to 3 billion dollar market for stock could easily double. Just ask Dan Heller. That would double or triple contributors' monthly payouts across all the sites they contribute to.

Read the complete story on Getty's disclosure here.

Comparison of Microstock Referral Programs

Everyone wants to make a little extra money while doing what they love. The questions always is, how do you find those ways? Referral programs are one way Microstock videographers and photographers can pad their overall earnings with not a lot of work and a great way for Microstock websites to get new members and content.

In one of Lee Torren's last blog entries he compares the different affiliate and referral programs found at the leading microstock sites and outlines which ones are the best value for trying to make extra money while submitting to these sites. We have said it on here before but Lee Torrens does a really great job over at Microstock Diaries and we have really learned a lot from our conversations with him and his very educational blog which maps his experience in the microstock world.

Here is a chart he created but for a complete rundown on all the info he aggregated check out the post on his site.

Website -> Deal for Buyers -> Deal for Contributors -> Statistics -> Enrollment

iStockPhoto , $10 once off, NO, NA, Accept agreement

Shutterstock, 20% up to $50, $0.03, Full, Automatic

Dreamstime, 10%, 10%, Some, Automatic

Fotolia, 15%, 10%, Full Automatic

BigStockPhoto, 35% 1st purchase, $5 once off, Some, Automatic

CanStockPhoto, 10% up to $50, $5 per 50 sales, Some, Automatic

123rf, 15% for 1 year, $0.03 for 6 months, Full, Automatic

StockXpert, 10%, NO, Full, Application & review

LuckyOliver, $5 once off, $1 once off, None, Automatic


It's a great read for anyone trying to earn more money from referring new members to these sites and also a good comparison of the different programs that are out there. It's definitely going to help us in choosing our affiliate program here at Cutcaster. Hey Lee, do you think it is necessary for a site to reward a referrer for both buyers and sellers they send to a site?

Credits- Photo downloaded from MorgueFile and is the copyright of Cohdra

Image Production Arms Race!

What's your take on Micro-Stock and its affect on the overall Stock Business? There has been much debate on what the micro-stock companies have done to the entire stock production industry. What's your take on how it has affected it and has it been good, bad or unavoidable?

About the Image has a few articles on the subject that will serve to show both sides of the argument and the numbers behind the story. Click here for a closer look at micro-stock numbers and here for an editorial look at the issue.

How has this affected your business and what will you do in the future to counter it?