Re: FLASH: Pricing Guide (+ Licensing)

[Franke James]

Re:

http://www.clearnet.com/english/pcs/coolstuff/games/clearnet_pinball.html

>I'm still having a real difficult time thinking they couldn't make back

>the basic expenses with $30,000.


Laura,


Thanks for your reply on the Clearnet pinball game. This opens up an

interesting discussion...


Whether the agency made their money back or not is of little concern (except

to them ;-). Splashworks were very smart to do a licensing deal because then

they participate in the success of their work, beyond hourly/project fees.

Besides as the creators they hold the copyright and might as well exercise

their rights -- unless they've signed away their rights. The client will

initially pay less through a licensing deal then if they buy all rights to

the game, for all time. And if it's such a success that they want to renew

the license then it's win/win for everyone.


The basic premise of licensing is that the creators receive ongoing revenue

from original work which they've created. It's the same model as a

best-selling author getting paid royalties 15 years down the road. Shockwave

and Flash artists will benefit from understanding the value of copyright and

the power it gives them to sell specific rights, to specific parties

(clients) for specific lengths of time, in specific industries and media. 


The concept is also similar to performance fees which some ad agencies use

(and which we have used successfully). If you create a "hit" you'll earn

more money than if you create a dud. Makes sense to me. Fee for service, or

project based work with a set fee, is a hard way to make a living. Yes you

do get paid. And you do attract new clients but as soon as you stop working

(for a holiday, or egad retirement!) you stop generating income. With the

licensing model you can earn money while you sleep, just like creative

artists in other fields. Unless you're an employee who has signed away their

rights, or an artist who agreed to a "work-for-hire" contract, your rights

are protected through Copyright laws.  A great reference tool on copyright

is the Graphic Artists Guild Handbook: Pricing and Ethical Guidelines (ISBN

0-932102-09-3)


-- Franke


Franke James, Jamesgang.com

______________________________________________

The World Animation Celebration May 30-June 4, 2000 -- Hollywood, CA

http://www.jamesgang.com/jamesgang/press/index.html

Franke James, Jamesgang.com, will be moderating the panel: "Economic models,

business models, animation and the brave new world on the Internet"

Featuring Shockwave.com, Icebox.com, Disney Online and more at The World

Animation Celebration. Talent search for Shockwave and Flash animators


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