Eric Hamilton – Celebrity / DJ / Nightlife Photographer

Posts Tagged ‘business’

View the full set on Flickr.

Wow. I’m blown away. The first meeting attendance was double what I expected it to be. Lots of great discussion, networking, some really talented and creative professionals in attendance. We had a good mix of photographers, designers, and even a few people who regularly contract out creative services. The networking potential here is terrific.

What an awesome start. Our little meeting space at the library was bursting at the seams. It’s clear we’ll need to get the downstairs conference rooms for future meetings, which might make scheduling a little more difficult, but we’ll work it out.

Clearly there is a lot we can learn from each other, and it seems that this group is filling a very real need. The interest was very clear, and the energy and excitement at the meeting was very encouraging. I think everybody walked away with a sense of optimism. I know a few photos were shot, so please comment and post links if you upload a set. Link to any meeting reports, as well.

Pictured above (in order), Photo John (PhotographyReview.com), Spencer Henderson (Art Director for Utah Business magazine), and the bottom photo is Karen Crook, discussing the challenges of compiling 8 years of varied creative work into a cohesive portfolio.

Thanks to everybody who showed up. If you missed out, please join us at UTFreelance.com for details on the next meeting. See you all next month!

The big topic floating around the photo blogosphere right now is the subject of working for free. We have some great write-ups by a lot of really smart guys. In case you missed the conversation, here are some of the better posts (discussion and partial link list inspired by Strobist.com and 1001 Noisy Cameras):

• Strobist.com – Four Reasons to Consider Working for Free
• Chase Jarvis – Will Work for Free?
• Vincent Laforet – Work for Free? “1 project a year at most”
• Kenneth Jarecke – A photojournalists perspective
• Don’t miss John Harrington’s three part shoot down
• TWiP offers a summary of David’s points
• A Photo Editor interviews Bil Zelman, who shoots pro bono, but not for free
• Free is Killing Me! (SportsShooter)
• Then, of course, there’s my article from March about When to Work for Free, suggesting a trade-for-access strategy that got the ball rolling for me.

Readers of my blog may already know that I advocate shooting for free in order to get your start, and to keep the ball rolling ever onward toward your dream career, but I don’t want anybody thinking that I condone willy-nilly freebies for just anybody. To get my career started, I went straight to the biggest electronic music promoter in Utah. They have a long established reputation for putting together great shows with great headliners, consistently. I went straight to the top of the food chain for my little niche industry, got in through friendships and networking connections, shot a handful of shows to build up an impressive portfolio quickly, and in the mean time charged everybody else my target rates, and sold photo licenses from the “free” gigs to cover some of my costs (but not all… I took a net loss on those gigs).

These days, that first promoter is still a customer, and they pay me now, but converting them from a free customer to a paid customer has not been an easy task, through no fault of theirs. I didn’t do a great job of educating them on the value of photography. Now that I’ve been doing this for a while, my clients are starting to see it and realize the benefits, but it’s too little, too late.

The whole process was a serious challenge, from start to finish; dumping thousands of my own dollars out-of-pocket into a client relationship I was not sure would ever pay off. Honestly, it was scary, it was irrational, and if I had to do it all again — I would.

But I would do it differently. I would be more careful. And I would put higher numbers on those invoices. It’s harder to raise your price later than to set it where you need it to be to begin with. Put your true value on the invoice, whether you’re offering a freebie discount or not. Let people see the figures you really need to bring in to reach your pressing income goals. I was initially afraid that the sticker-shock would scare them away, but that was the wrong outlook. Those who are scared off by sticker-shock do not buy photography enough for you to pursue them as serious clients, anyway. You’re better off pursuing clientele that values photography, and will display loyalty, rather than hire the first jerk with a camera who offers to do it cheaper.

You should be very careful when you work for free. Here’s some advice:

* If you’re doing it for a charity, have them cut you a check for your normal rates, then make an equal (and tax-deductible) contribution to their charity.

* Regardless of who it’s for, always send them an invoice with your normal rates, minus a discount (up to 100%) — just to emphasize that this is a business, and they’re getting something of real value.

* Be sure that you can use the project as a stepping stone to your dream career. Imagine where you want to be in three years. Does this project take you in that direction? (This was the ONLY reason I did what I did. That access was worth every penny I spent on it, and that was a lot, see below).

* There is plenty of wisdom behind the “never, ever work for free” message. You need to understand that photography is expensive. LIVING is expensive. There is inherent value in what you do. See the point above about the invoice. This can help your psychology as much as it educates the client.

* BEFORE you do anything for free, decide how much money you want to earn per year, and work up a serious Cost of Doing Business calculation. Factor in replacing your camera bodies every two years (shutters wear out when you’re working full-time), a budget for glass and flashes, insurance (individual medical insurance is very expensive), liability coverage, transportation costs, client entertainment, contingencies… Did I mention your salary? Better not forget that one.

If you do this realistically your annual CODB should fall somewhere in the neighborhood of $50,000+ / year. If it’s much lower, and you’re just getting started in your photography career, do it again, and ask an established pro to look over your numbers for you. You’ve missed something important, I guarantee it. It took me several months to come to grips with my true cost of doing business.

Now recognize that you might need time off for illness, that there will be slow weeks, or even slow months… consider that you may only work 40 weeks per year. How many gigs can you really squeeze out per week, factoring in processing time, client discussions, delivery, and your marketing and business activities? Keep in mind, many photographers cite 80% business, 20% shooting.

Multiply the number of gigs per week by the number of weeks you can shoot per year (~40).

Average charge per gig = annual costs / gigs per year. Let’s call that Average charge per gig number The Big Sacrifice.

Now, when somebody asks you to shoot for free, ask yourself, “is this opportunity worth $The Big Sacrifice? Am I willing to pay that much money to work for these people?”

The sooner you realize that free isn’t free, the better. It sure is easy to forget all those numbers in the spreadsheet — until the bills come due, that is.

Every time a “free” gig comes up, imagine that the “client” is a pair of Girl Scouts at your door. Are those cookies really worth $The Big Sacrifice? If it’s a great project, or a great cause, and you really think it’ll help your career, go for it. But don’t pass out those freebies without seeing $The Big Sacrifice flash in your head, really big, in red.

Today I sent an email to a client who backed out of a booking at the last minute. I had to explain to him why I needed to shoot a competing party on the night of his event, so my overhead costs wouldn’t get wasted. I like to be open with my clients about the financial realities of my business. I hope they understand, because they’re all commercial clients, and they all have similar issues in their own business. I told him a little bit about how my business works financially, and why it was imperative that my shooting day didn’t get wasted.

It all has to do with my cost of doing business. Every shoot night, I have $560 in fixed overhead costs to cover. It must be covered or bills go unpaid. A lot of people question that figure and wonder why it costs so much. Here is a small sample of my cost of doing business:

Last week I had to replace a $400 camera lens. In the next month or so I need to buy a new camera body before my shutter wears out on the current body. The shutter is guaranteed for 100,000 clicks. I crossed the mark a while back. The new camera body will cost about $1800.

I’m quickly running out of storage for photos. A new Terastation for the 2007 photo archive will cost about $550. I need it within a week or two.

The computer workstation I built last summer to process photos is on its last legs. Repairing it will cost about $1,000. I really should have done it last week. If it fails now it will really hurt my business.

I should also have a backup workstation to process photos on temporarily if something goes wrong with the primary. Cost? About $2600 for a tricked out Mac Book Pro I can use on location at photo gigs. I would have bought one last year if I could fit it into my finances. It seems like a much higher priority now that my primary is acting up…

Here are a few other little things that add up:

Standard business insurance / liability riders, industry dues and magazine subscriptions,
software licenses and website subscriptions, transportation, printing, client entertainment, contingencies, taxes, and so on. I also have two interns and a personal assistant who are essential to my work flow. They all need to get paid, too.

All told, my monthly expenses add up to $5567.89 — not including my food and mortgage! Keep in mind that I can’t shoot every day. A lot of my time gets spent processing and uploading photos, estimating and invoicing, and trying to connect with new clients.

Want to be a professional photographer? The first thing you need to do in terms of planning is to calculate your cost of doing business. Once you’ve done that you have to come up with a business plan and pricing strategy that takes your full expenses into account.

While you’re working on that business plan, keep in mind my favorite advice: Don’t shoot what you think other people want to buy. shoot what you love, and figure out how to make it pay! For me, that means nightlife, electronic music events, fashion, beauty, glamour, and so on. Maybe your thing is flowers. Whatever it is, it costs you money. Knowing how much it costs you to shoot and how much you need to earn is vital to your business.