Tips for Responding to Art Licensing Inquiries + Art Licensing Negotiation
When you hear back from a potential art licensing partner for the first time it is SUCH an exciting feeling! But if you’re anything like me when I first started out, the uncertainty around contract negotiation and what to say to potential licensing partners might be filling you with dread…No worries. This post will help you navigate the process with ease.
After almost a decade in the art licensing industry, I’ve put together a systemized process for how to respond to inquiries. And today I’m going to share it with you! If you’re not sure how to respond to a potential licensing partner or how to negotiate your art licensing contract, I’ve got you covered!
Before we dive in, I want you to know that negotiation is expected. I don’t want you to be intimidated by responding to the potential licensing partner. They expect you to ask questions and negotiate, so you’re leaving opportunities on the table if you don’t.
Five Questions to Ask for Any New Art Licensing Opportunity
There are five questions that I ask every time I’m presented with a new art licensing opportunity. Depending on the client I may ask more than this, but these are the five I ask every single time.
I want to know what royalty rates they offer and how they structure their payments – are they monthly or quarterly? Do I get a physical check or do they pay via Paypal? This is helpful stuff to know since getting paid is the most important part of any licensing collaboration.
I also want to know if they are interested in an exclusive or nonexclusive contract. I always push for nonexclusive so that I can reuse my artwork with other licensors or on print-on-demand sites.
I ask what territories they sell in – USA only or worldwide? This gives me an idea of the scope of their reach and what the potential sales might look like.
I also ask them for an estimate of how many products they predict will sell with my artwork. This is a great way to gauge the room and see how much potential the collaboration has.
Then last but not least I ask if they have an affiliate program to see if there is more potential than just royalties for me to earn an income by working with them.
I put together an email template with these questions that I literally copy and paste (with a few modifications) each time I respond to a new art licensing inquiry.
And I’m giving that exact email template (plus two others) to you for free! You can download it as part of my Creative Business Bundle here.
Art Licensing Negotiation Tips
After you get the initial information from the five questions above, you’ll likely want to negotiate to make sure you’re getting as much out of the collaboration as possible.
When thinking about negotiation, I want you to think outside of just rates and royalties. There are so many other things you can ask for that will benefit you! Start by determining what your “asks” art. Here are some of my asks:
The reason I’m asking for all these additional things is because it gives me some bargaining chips. So even if the company pushes back a bit on my end, which I absolutely expect them to, I’ll still wind up ahead. No one has ever said no to my entire list. I always get at least a few of these things.
And these asks can have a domino effect in the long run. For example, pushing back and getting my signature or logo on the product is HUGE for brand recognition. That way, I’m getting my name out there and growing my audience. Meanwhile, it doesn’t cost my licensing partner a thing!
Negotiations can be a stressful part of the process when it comes to art licensing, but having a template can help take the pressure off! I have an email template for the negotiation stage of working with a licensing partner as well. This is also free for you to download as part of my Creative Business Bundle. You can download it here and, I promise, it will make responding to licensing inquiries so much easier!
With a little preparation and a few templates, responding to licensing inquiries will start to feel stress-free! Don’t forget to grab my swipe files for the exact templates I use to respond to art licensing inquiries here in my Creative Business Bundle! Best of luck on your art licensing journey! There is a place for all of us in the surface design world, and I’m so excited that you’re taking this next step in your creative career.