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Price question again

 
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BALKY
Contributore Level V


Joined: 23 Mar 2006
Posts: 162
Location: Rockaways (Queens, New York, USA)

PostPosted: Wed Feb 15, 2017 2:20 pm    Post subject: Price question again Reply with quote

Hey all!!!
I am glad the board is back and running.

I have a potential client and they asked the following:


It is a 30 second and 60 second (90 seconds total) explainer video that will be posted on YouTube.
The subject matter of the video is Internet Security Software.
I request full usage rights in perpetuity.

Full uusage right is always a tricky part for me. What should i charge ?

Please, anyone?! Smile
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Pavel Kuklin
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Eddie Eagle
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Joined: 23 Apr 2008
Posts: 2393

PostPosted: Wed Feb 15, 2017 3:24 pm    Post subject: Reply with quote

Hey Pavel
If it's not a major software company the average is around $500-1000 total. Internet stuff is still being bantered about regarding rates. If the content lasts more than a year and half without them asking for an update I'd be surprised since so many new developments happen so fast.
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BALKY
Contributore Level V


Joined: 23 Mar 2006
Posts: 162
Location: Rockaways (Queens, New York, USA)

PostPosted: Wed Feb 15, 2017 3:38 pm    Post subject: Reply with quote

Hey, Eddie!

Thanks so much for replying!!!

How can i calculate the rates myself? I mean the buyouts etc?
Is there some sort of a chart?

Thank you Smile
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Pavel Kuklin
(Russian native vo artist)
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Bruce
Boardmeister


Joined: 06 Jun 2005
Posts: 7926
Location: Portland, OR

PostPosted: Wed Feb 15, 2017 3:59 pm    Post subject: Reply with quote

I think Eddie hit the самую голову. If they're a big company with big pockets I'd lean towards $1,000. If they're smaller $500 for the two narrations might be just the ticket. And chances are they'll have to replace the videos as soon as technology changes.


B
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Eddie Eagle
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Joined: 23 Apr 2008
Posts: 2393

PostPosted: Thu Feb 16, 2017 6:51 am    Post subject: Reply with quote

I personally just use a current rate kind of estimate myself. No chart. Keeping current on the gig offers out there and what people have built into their budget is how I decide what to bid on a job. A key part of it is to open a dialog with the producer. Just ask outright what their budget is and go from there.
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Bish
3.5 kHz


Joined: 22 Nov 2009
Posts: 3738
Location: Lost in the cultural wasteland of Long Island

PostPosted: Thu Feb 16, 2017 7:34 am    Post subject: Reply with quote

The reality is that the "in perpetuity" part, however egregious, is probably only going to be a year... two at most. Bruce made the point that technology changes quickly... as does branding and corporate image. We can get stuck on a principle when there's no need. If you want to get rid of the "in perpetuity" part, offer them five years. It takes care of all their short-term plans and pushes it out to a far point where it's almost an irrelevance. I agree with the amounts mentioned. You could always try something like $300 basic session fee plus $300 for two years' usage, or plus $700 for plus five years' usage.
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Bish a.k.a. Bish
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BALKY
Contributore Level V


Joined: 23 Mar 2006
Posts: 162
Location: Rockaways (Queens, New York, USA)

PostPosted: Fri Feb 17, 2017 3:18 pm    Post subject: Reply with quote

Hey guys!

Thanks so much for your replies.

If only i'd been contacted by clients themselves... usually it is studios, sound engineers, etc.

I did quote $750.00 and ... silence.... i must tell ya, this agency has contacted me one more time before with similar inquiries and same behavior. "Clients is interested... " and then... they fade away.

It is always hard to maneuver pricewise when they ask "how much" because once you answer the question, they disappear if it is beyond their budget... they do not want to ask if I d do itfor less. I am always willing to negotiate within reason. I follow the rule always: say the max, can always go lower... but with foreign producers that does not work. Every time i get, i prefer to ask about their budget, though...

This is always painful for me to discuss Frown
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Pavel Kuklin
(Russian native vo artist)
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Greeting: https://vimeo.com/216249549
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Bruce
Boardmeister


Joined: 06 Jun 2005
Posts: 7926
Location: Portland, OR

PostPosted: Fri Feb 17, 2017 3:41 pm    Post subject: Reply with quote

We feel your pain Pavel. We've all faced the wishy washy client who won't negotiate seriously. I'd say stick to your guns (price) and see if they come back. You're a professional who offers a valuable service and they should be respectful. If they aren't then you wouldn't want to work with them anyway, yes?

B
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Yonie
CM


Joined: 31 Aug 2011
Posts: 906

PostPosted: Fri Feb 17, 2017 4:02 pm    Post subject: Reply with quote

People that go silent are usually the ones working in meat markets. Instead of putting some feet on the ground, they transmit a wide signal and wait for the recipients to flock like geese. I see it all the time in Stockholm.
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Rick Riley
Flight Attendant


Joined: 12 Aug 2011
Posts: 807
Location: Portland, OR

PostPosted: Wed Feb 22, 2017 12:40 pm    Post subject: Reply with quote

Apparently I'm not in sync with the rates talked about here. I do a lot of work for all venues, TV, Radio, Internet, Stadium, Event, etc. For an explainer video on You Tube, I would charge standard corporate narration rates. Mine are $100 / minute. I do have a session minimum, but once it's above that on a per minute charge, I just go with the minute rate.

I've seen the number of views for some of these explainer videos on You Tube and they are well less than 500. With that figure in mind, $1,000 is more than $2 / view for the client, which is awfully expensive.

All rates are based on number of impressions, which is a combination of the venue it plays and the length of time it runs.

Where am I going wrong here?
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Lance Blair
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Joined: 03 Jun 2007
Posts: 2279
Location: Atlanta

PostPosted: Wed Feb 22, 2017 3:18 pm    Post subject: Reply with quote

Agreed, it's tricky Ricky! Explainer Videos aren't Corporate Videos - I charge different rates for them, but they're not too far apart. Depends if it's a startup or a national/multinational. If it's some guy with a new aHobo Tounge, yes $2 per view is pricey!

Mind you, one of the first Explainer Videos I recorded was for a company that is now worth 2 billion - and until this year they're were still using the 'meh' explainer video on their landing page! Finally now they have a slick site with filmed spots.
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Rick Riley
Flight Attendant


Joined: 12 Aug 2011
Posts: 807
Location: Portland, OR

PostPosted: Wed Feb 22, 2017 3:41 pm    Post subject: Reply with quote

Lance, I think you're saying the same thing that I am, in a different way. If it's Microsoft, I know that it's going to get a lot more views (impressions) than 'Ed's Backroom Meats', and as I said, all rates are based on the amount of impressions it creates. But when a company like Microsoft or AT&T or YadaYadaYada, comes to me, (I've done work for the first two) the first thing I do is ask their budget. Usually they are willing to pay for the conglomerate they are. If it's not what I think it should be, I'll counter offer, but I never try to be the first out of the box, as I've been surprised and sometimes astounded to the upside by their budgets.

HOWEVER, for small companies that don't get that many hits, the $1,000 starting figure IMO, is pretty high. Especially for a 60 and a 30 that just play on You Tube.

As I said, 'What's your budget?' usually answers the question without too much guesswork your part. It's either 'Sure' or 'How about$...?' and go from there.
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