Commercial Licensing Quote Builder
Stop freezing when clients ask for "commercial usage." This calculator shows exactly how usage rights, duration, territory, and exclusivity affect your licensing fee—and gives you a defensible quote to present.
Why Licensing Matters
Understanding Commercial Licensing
The Value Equation: A client's willingness to pay is based on the value they extract, not your cost to create. A small business using your photo on their website gets modest value. A Fortune 500 using it in a Super Bowl ad gets enormous value. Your pricing should reflect this.
Stacking Multipliers: Think of each license term as a multiplier. Base rate × Usage (web=1x, TV=3x) × Territory (local=1x, global=2x) × Duration (1yr=1x, perpetual=3x) × Exclusivity (non-excl=1x, full=2x). A global, perpetual, exclusive TV license could easily be 12x your base rate.
Protect Your Future: Every exclusive or perpetual license you grant eliminates future income from those images. If you license exclusively to Brand A, you can never sell to their competitors. Price that opportunity cost into your fee.
Common Questions
What is photo licensing and why does it matter?
Licensing is permission to USE your photos in specific ways. When you sell a "photoshoot," you're selling the creation. When you license, you're selling usage rights. A brand paying $500 for a shoot but wanting to use images in a national TV campaign for 3 years is getting far more value—and should pay accordingly. Licensing captures that value.
How do I price licensing for commercial photography?
Key factors: (1) Usage channel (web vs print vs TV), (2) Territory (local vs national vs global), (3) Duration (3 months vs perpetual), (4) Exclusivity (can you sell to competitors?), (5) Client size (startup vs Fortune 500). Each factor multiplies your base rate. A local web-only license might be 1x; a global exclusive TV campaign could be 10-20x.
What's the difference between licensing and a buyout?
A license grants specific, limited usage rights. A buyout transfers all rights—the client owns the images completely. Buyouts should cost 3-10x a typical license because you can never resell or reuse those images. Never grant a cheap buyout; if they want full ownership, charge accordingly.
Should I give clients perpetual usage rights?
Almost never at the same price as limited terms. Perpetual means forever—they'll use those images for 10+ years while you can't relicense them. If a client insists on perpetual, charge 2-4x what you'd charge for 1-year rights. Or offer a discount for shorter terms to steer them away from perpetual.
Related Tools
This calculator provides estimates based on industry norms. Actual licensing rates vary significantly by market, client, and individual negotiation. This is not legal advice—always use proper contracts and consider consulting an attorney for high-value licenses. Rates shown are illustrative; research your specific market.