Microstock - 123rf

123RF.com

123RF is an online, royalty free, international microstock photography provider operating with the micropayment business model. Images cost between 1 and 10 credits, depending on size (with credits ranging from $0.75 to $1.00 each). 123rf.com is currently ranked 9,100 on Alexa[1]. The company is wholly-owned and developed by Inmagine Corp LLC. Since its debut in June 2005, 123RF.com today hosts over 1,5 millions stock photographs and vector illustrations with over 8,000 photographers and illustrators.

Contributors

Contributing photographers' sample images are screened for quality and suitability before being approved. Photographers must be over 18 years of age to join (Or have a parent consent form).

Once approved, photographers can begin uploading their work through the website. They supply keywords, categorize the image, and submit to the "inspection queue", where each and every image is examined to ensure that it meets the standards of quality, usefulness and copyright and trademark laws.

Contributors receive a commission of between 20% and 50% of each sale, depending on whether or not they are "exclusive".

Purchasing and Use

Each approved image is added to the searchable online database, where it can be found by purchasers. Depending on the original size of an image, it can be bought in Web, Print, Ultra High and Ultra High XL TIFF. These cost 1,2,3 or 10 credits. Files can be downloaded immediately, and used in almost anything. The basic license prohibits only a few uses, such as web templates, print on demand, adult materials, etc. Any prints runs over 500,000 must pay additional royalties. Extended licenses are available for purchase to cover certain needs not met by the basic license agreement.

Introduction to Microstock Photography Industry

Stock photography consists of existing photographs that can be licensed for specific uses. Publishers, advertising agencies, graphic artists, and others use stock photography to fulfill the needs of their creative assignments.

A customer who uses stock photography instead of hiring a photographer can save time and money. Stock images can be presented in searchable online databases, purchased online, and delivered via download.

What is microstock?

Microstock photography is an offshoot of the more traditional 'stock photography'. Microstock photography tend to source their image almost exclusively via the Internet; do so from a wide range of photographers (including amateurs and hobbyists), and sell their images at a very low rate (anywhere from $0.20 to $20.00) for a royalty-free images.

In the 2000s the microstock photography industry, led by iStockPhoto and later Dreamstime, Shutterstock and BigStockPhoto, Fotolia, 123RoyaltyFree (123RF), Stockxpert, LuckyOliver emerged as a rapidly growing market. Using the Internet as their sole distribution method, and recruiting mainly amateur and hobbyist photographers from around the globe, these companies are able to offer stock libraries of good quality for very low prices.

Each microstock company uses a different pricing and payment scheme. Photographers can upload the same pictures on multiple sites or, with some agencies, become an exclusive supplier and receive an increased commission.

There is no fee to post photos on a microstock site. However, microstock companies do not accept everyone or all photographs. Each employs a team of reviewers who check every picture submitted for technical quality, as well as artistic and commercial merit. Photographers add keywords that help potential buyers filter and find pictures of interest.

The mindset of microstock supporters is that quantity will prevail and photographers will end up making as much from many small sales as they would from a few large sales on a traditional stock photography site.

Royalty-free

"Free" in this context means "free of royalties (paying each time you use an image)". It does not mean the image is free to use without purchasing a license or that the image is in the public domain.

* Pay a one-time fee to use the image multiple times for multiple purposes (with limits).

* No time limit on when the buyer can use an image.

* No one can have exclusive rights of a Royalty-free image (the photographer can sell the image as many times as he wants).

* A Royalty-free image usually has a limit to how many times the buyer can reproduce it. For example, a license might allow the buyer to print 500,000 brochures with the purchased image.

Industrial Trends

The industry is expected to grow due to increasing awareness of intellectual property especially in developing region such as China and India.[6] In year 2007, more images are sold than the past three (3) years combined. The microstock segment will continue to grow.

Microstock will have moderate increases in pricing over the next year