What to charge for a first request to use a design for packaging

Question

I've just been approached out of the blue with a request to use one of my illustrations on the packaging on a snack food product and the website that will market it. I've never had such a request and have no idea what to charge. From what I know from the initial email and research online afterward that the potential client is a new start-up ready to release a snack food line in a few flavours. I am based in Ireland and they are based in Korea.

I intend to find out, a) the time required for use, b) the region of distribution, c) the use of the illustration (which I was told will feature on the packaging itself and on the website), and d) the likelihood (or not more than likely) of exclusivity for rights to the illustration.

This is all well and good but I simply have no idea where to even begin to think about setting a price. Any advice on a possible ballpark for fees would be much appreciated.

Cheers.

Answer 1

(This is a verbatim copy of the answer I just gave here. Not trying to be lazy, I just felt it fit this question just as well.)

A fair fee is one you're willing to accept and one they're willing to give you.

But there can be other variables involved. The big one is whether or not this is an exclusive license. If they are asking to do this but don't want anyone else to be able to do it, then you need to charge much more as it's prohibiting you from selling a license to others. On the other hand, if they're just asking for one copy, and don't care if you make 1000 more, then you can perhaps treat it more as commodity pricing.

Addendum for your specific question of:

Any advice on a possible ballpark for fees would be much appreciated

We simply can't ballpark it for you online as there's simply way too many variables. But for starters, you could consider what rights-restricted stock licenses are in your region. They will, of course, also vary wildly, but may give you a ballpark to start with. But in the end, it's as much a sale game as it is a science. Eye'em up. Are they a giant corporation? Maybe aim high. Is it local ma-and-pa store? Maybe give them a break.