Thursday, January 20, 2011

Changes To The Royalty Structure At Fotolia

Fotolia announce earlier today with an email to their contributor a change tho the royalty structure. It will effect mostly lower non-exclusive fotolia rank contributors by around ~ 5% points.

Dear Fotolia Contributor,

2010 was another record year for the Fotolia community. We set new all-time highs for the number images in our collection, the number of members, and photographer royalty payouts. For 2011, we're implementing some changes in efforts to continue this trend.

Competition in the market is increasing, both amongst the photographers in the community, and amongst stock photography agencies. We've been monitoring the situation carefully, and have continued to increase our marketing spend in the number and frequency of ad campaigns. In addition, Fotolia continued its international leadership in new markets, with the opening of the Russian and Chinese web sites. With the increase in sales, the velocity of the rank changes has also accelerated. In order to sustain our continued efforts in marketing, we are making some changes to the royalty structures at the mid and lower tiers next week.

Fotolia continues to maintain photographer commissions at a significantly higher than those of our major competitors, and our increased efforts in marketing will result in an even higher velocity towards increased rankings.

Please note also that our new recency filter gives some priority to newer and fresher content, which means that the best new photographers with fresh content will have a better chance of rising to the higher ranks.

Thanks for your continued support, and we look forward to a great 2011 together.



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