The Basics:

When artists are starting out we are often so eager to be published that we are happy for anything that comes out way and don’t stop to think. This article is designed to help you avoid the pitfalls that inexperienced artists often encounter.

Unfinanced Entrepreneurs:
“Unfinanced Entrepreneurs” was term coined in an articles by Mark Evanier. These are people with grand plans and no track record to back in up. They draw you in with tall tales of how when their project is published it will be the next big thing and sell tons. They can’t pay you right now, but you’ll make plenty in royalties after it’s published. Or worse they want you to work for “exposure”, because the commissions will come rolling in after their project has made you famous. They are working under the assumption that what you do is easy, quick and fun. Remember, nobody asks plumbers to work for exposure. These people pop up like a whack-a-mole on art and freelance web sites and you need to know how to look out for them.

Read the original articles here [http://povonline.com/cols/COL210.htm]
and here [http://povonline.com/cols/COL224.htm]

Small and Startup companies:
Illustration reference books often only cover how to deal with large companies or list prices for publications with large national publication. If you are an artist in a niche genre (fantasy, sci-fi, comics, games, pure bred dogs, carnivorous plant enthusiast art, and so on) you will often work with self-published authors , small publications and startup companies rather than TIME magazine.

While you may have an understanding of how things should work in the professional world, your client doesn’t always have business experience. They may have started the company because they loved the subject and thought they could make a better publication. Despite good intentions it isn’t out of the ordinary for these businesses to fail before publishing anything. The ones who don’t may just need a little help.

If stuck on pricing because you don’t know the size of the publication, it never hurts to just ask what their budget is.

Write up your own generic contract or find one in the Graphic Artists Guild Handbook or similar to be ready for anyone who doesn’t have their own. You’ll also have to be ready to take responsibility for print specs, and following up on payments.

If you walk into this expecting professionalism from everyone you’ll be disappointed. Amateur businessmen may not be afraid to use intimidation tactics and the artist’s own inexperience against them. They haven’t been in the business long enough to realize or care that it hurts their reputation.

Portfolios and rejections:
You’ve probably heard it before but it can’t be repeated enough. If you submit your portfolio to a publisher and get a rejection it doesn’t always mean you suck (sometimes it might but...). Most of the time it means you aren’t good enough yet or they aren’t publishing anything that your art fits at the time. If you practice you’ll be better in a year and you can send them an update.

Spec work and contests:
Spec work is when someone asks you to do work without pay in they hope that you will be published or paid if they like it. It’s not in your best interest to do this. Often companies will offer contests for a logo or illustration for which the winner gets published. You might do this if you think you can win, but most likely you won’t and meanwhile they just got hundreds of free designs to choose from instead of taking the time to commission someone they liked from the start. Read the fine print and make sure they aren’t claiming ownership of all entries.

Royalties after publication:
This is not always a bad thing and is the norm with product licensing. But keep in mind you are taking a chance if you agree to create new work for publication this way. You probably shouldn’t do it unless you have extra time on your hands.

Work-for-Hire:
“Work-for-Hire” is supposed to mean your publisher owns the copyright after you get paid. You won’t be able to sell prints or the use of that art to someone else later. But, sometimes it just means that you aren’t employed by the company and do keep the copyright. Work-for-hire is pretty standard in the gaming industry for example, but many companies allow artists to sell prints of the art. Read contracts carefully and ask questions to make sure you aren’t giving up rights you don’t want to.

Copyright Infringements:
Always watermark anything you put online with your name or logo in a graphics program. You can’t always control where your art goes but at least if it’s floating around uncredited on sites like flickr or photobucket, your name is on the image. The better known you become the more it will happen.

According to the Digital Millennium Copyright Act most web sites need to provide a way for intellectual property owners to report violations. You will find their guidelines on the Terms of Service or Copyright pages. DMCA notices are pretty much standard everywhere. You can also find some stock letters at [http://www.plagiarismtoday.com/]

Take the time to search ebay (and other online auction sites) for products with whatever type of art you do once in a while. There are tons of products that can be made with a few supplies and a home computer. If you find anyone selling your art you can file a VERO report [http://pages.ebay.com/help/tp/vero-rights-owner.html] and have it removed. If you recognize anyone else’s art being used suspiciously email them about it so they know.

For more on that see my article here: http://news.deviantart.com/article/41934/

Another thing to be aware of if you do figurative art is PSP (Paint Shop Pro) hobbyists online. They make signature tags and images used on myspace and forums. Some will ask permission to use your work, but lots won’t. You may find your art floating around in a form you didn’t intend, with the background removed and sparklies added to it. There are many sites that collect these images called tubes, sigs, tags or glitter graphics. These sites should comply with the DMCA but they aren’t always eager to.

Licensing:

Licensing is a funny thing. Many artists have been lead to believe that it’s a magic word and will make them rich and famous immediately because they see So and So’s art all over. That’s wrong. No one product or contract will do either for you.

1. Trust your instincts and don’t let jealousy get in the way. Just because you see someone else’s art on a product doesn’t mean you know it’s actually a good deal for them.

2. There are two aspects to product licensing: royalties and exposure for your art. Ideally you want both and if you get neither it’s no use at all. You get only small percentage of what the product sells for wholesale (i.e half the price you see in stores). Don’t let anyone tell you that licensing is going to make you rich OR that it’s just free advertising that you aren’t supposed to make any money from.

3. If you've never heard of the company or product and are unsure of the quality or what it looks like, ask for a sample and don't sign anything until you do. If they're proud of their product they shouldn't have any problem with that. If it's something you can already find in stores that's a good sign, because you already know it sells and can see what it looks like.

4. Research as much as possible even if you have heard of them. Does the company have a professional web site? Does it look like they’ve been in business for a while and have experience? Is it a home business or do they have employees? Google them and see what you find. Look them up on the better business bureau web site. Ask other artists who work with them about it. Find out what stores the product sells in. Find out what price the product sells for wholesale and retail.

The company should be able to tell you these some of these things if they are interested in you. If they are secretive and won’t answer questions it’s a really bad sign. Remember if you have doubts you can back out at any time before you’ve signed a contract.

5. Don’t be afraid negotiate contracts and know that you CAN. You’re not a nobody. Remember, they have no product without your art. If something bugs you and you want it changed ask. If you can’t understand something ask for it to be rewritten in plain English. Ask a lawyer to look at it if you need to, or even family and friends if they know anything about business or law.

A good contract will give your the right to audit sales records and include clauses allowing you to get out if the deal goes bad, as well as explain what happens if the company goes out of business. Always make sure there is a way to get out.

6. Don’t give up your rights. If selling something yourself is important make sure you can still do that. Giving them an exclusive right to do something is their best interest but usually not in yours. It is preferable to include a list of images on a contract rather than all your art. That allows you to license that art elsewhere if it doesn't work out (for example if the company doesn't end up making a product you signed for). You might want to avoid exclusives unless you sure the company's sales justify it.

7. Get everything in writing. Get contacts signed on paper. That may sound old fashioned but it’s important. If you have questions or concerns make sure they are answered. If you have problems document everything.

8. Is the product in question something you can make and sell on your own? Some things are and some cannot be made by hand.

The difference is:

Licensed product:
The company may be able to sell much more than you can by yourself. Perhaps the production cost is too high for you or you have no idea how to go about getting product X manufactured. You will always be able to buy the licensed product at a discount and sell it. Licensing may be right for you if you'd rather leave the work to someone else.

Making or having it made yourself:
You will have ultimate control over the product quality and how it's manufactured and sold. This is most likely going to cost you a lot more and be a lot more work (you probably won't have employees help you). Do you have the time to do shows and promote it? But, if you are willing to do that it may be more fulfilling. It just depends what's important to you.

9. A good company won't have to be begged for samples, checks, or catalogs. They will send them out on time when the contract says they will. They will also answer your questions promptly.

10. It's your art (and your reputation). No one else's. You are allowed to be choosy.

If you check this all out first, hopefully you won't do anything you regret and will be happy with the company/ies you chose to sign with. It's important to be able to have confidence in the people you work with, but that comes from knowledge. The most important thing to do is ask questions and think before you act.

Much of this also applies to galleries: If someone wants to put your art or craft in their gallery makes sure you can check out the shop and have a contract. Sending it somewhere out of state where you can’t check up on it is not a good idea. Galleries have been known to go out of business and disappear with the artwork. This has happened to even established illustrators like John Howe.

Don't just take it from me:

• Graphic Artists Guild Handbook: Pricing & Ethical Guidelines is also a great resource for artists and illustrators and has advice on contracts.

• Resources for Artists from Porterfield's Fine Art
http://www.porterfieldsfineart.com/newartists.htm

• How to Benefit from Licensing http://www.dpandi.com/howtos/licensing/

• http://www.no-spec.com/