New Laws to Help Small Businesses Just Might Help You!
I subscribe to the Gifts & Decorative Accessories daily eNews and on Wednesday, one of the headlines was, “Obama Signs Small Business Jobs Law”. I thought, well, I’m a small business, let’s check this out. I will admit that I wasn’t optimistic that any of it would apply to my business, because I’m so small I didn’t think there would be things in the Law to help little old me. I was pleasantly surprised to find a few things that might! (I’ll be talking to my accountant about it, to be sure!)
President Barack Obama signed the 2010 Small Business Jobs Act into law on Monday. (9/27/10) PLEASE NOTE: It is not my intention to be political or start a political debate with this post. I’m simply pointing out something that might affect your business – hopefully positively.
The two things that caught my eye were:
• Entrepreneurs can deduct the first $10,000 of start-up costs, double the previous deduction. (This could apply to you if you are just starting your business.)
• The self-employed can deduct 100 percent of the cost of health insurance for themselves and their families. (I sure hope this applies to me – I’m self-employed and self-insured and it ain’t cheap!)
I’m sure there is a lot more to it than is covered in the article but I’m excited to see what will help my business get some tax relief this year. As my first employer loved to say, I’m “cautiously optimistic”….
Read the full article at: http://www.giftsanddec.com/article/532021-Obama_Signs_Small_Business_Jobs_Law.php?nid=2069&mid=98664897
Here are links to some other news outlet stories about the story:
http://www.reuters.com/article/idUSTRE68Q4H220100927
http://www.executivegov.com/2010/09/obama-signs-small-business-act/
http://www.aolnews.com/money/article/obama-gets-one-last-economic-boost-before-midterms/19650337
Here’s to your creative success!
– Tara Reed
P.S. If you, too, want to receive the Gifts & Decorative Accessories free eNewsletter, go to http://prefctr.na.epidm.net/giftsanddec/subscribe.aspx to sign up!
Do you want to learn how to build an online piece to your business?
As you know, as well as creating and licensing my art, I also have an internet piece to my business where I write, speak and teach about art licensing. I have learned how to use social media, blogging, websites and more through a series of online and in-person classes and events since beginning this journey in 2008.
I’m excited to be a part of the BLOCKBUSTER ONLINE SUCCESS SYSTEM this November.
I’m inviting you to learn how to make a living doing what YOU love, on your own time, from your own home. Over 30 of the world’s leading experts in online success will be teaching you their secrets. (These are big names – I’m excited to get to learn from them as well as participate as the art licensing expert.)
The best part? Just like my monthly Ask Call Series, you don’t have to leave your home to get in on the learning.
Thanks to the Blockbuster Online Success System (BOSS 2010) a series of virtual webinars that will teach you absolutely everything you need to know about online success. Brought to you by David Mathison, the author of Be The Media – a great reference for harnessing the media to help promote your business.
Click here to see the faculty!*
I understand – it can be a big step to finally embrace your dreams and make them a profitable reality. Maybe you want to add an internet piece to your business puzzle too… If you have even the slightest interest in BOSS, enroll now. Even if you change your mind later, they offer a full money back guarantee so there’s no risk to you.
But if you don’t reserve a seat now you will lose the opportunity to engage in this once-in-a-lifetime opportunity.
It’s time to invest in your future; it’s time to enroll in BOSS 2010:
– Tara Reed
* FTC Disclosure: the links are affiliate links and if you click them and take the class, I will earn a commission for the referral. This is how I will be compensated for my participation in the event – thanks for your clicks and support!
FAQ: Do you need physical product samples to succeed in art licensing?
This question comes up now and again, recently arriving in my email inbox from Lori Kirstein – Resident Artistic Lunatic. (I LOVE her title – I could certainly borrow it!)
Lori asks…
“I have my images up on Cafepress, but when it comes to product in hand, I don’t have any because the final products of my work are Photoshop-manipulated. Do I need to attend to getting “real world” samples – and figure how to do that best – before I get your book?”
(She was referring to the “How to Find, Interact and Work with Manufacturers Who License Art” )
In case you aren’t aware, CafePress is a Print-On-Demand website where anyone can upload art or digital files and when they are purchased, CafePress creates and ships the product.
The answer I gave Lori was “No.” In art licensing you don’t need to have physical samples to get an art licensing deal. Sometimes artists will do digital mockups, to show how their art would look on products, but it isn’t a requirement.
When you do get your foot in the door and get a licensing deal or two, it can be helpful to show those products. Lori could also purchase a product or two from her own CafePress shop if she wanted a photo of an actual product or two for her website. I’ve even known artists to go to pottery stores and hand-paint samples to show – but that does require time and money. The most important thing, in my opinion of course, is to be clear about whether any physical products are licensed or mock-up samples and available to be licensed. I often add a note like this: “These are samples of how the art could be applied to products but are not licensed at this time. Please contact me if you are interested in this collection for your product line.”
Here’s to your creative success!
– Tara Reed
P.S. If you want to create digital mock-ups of your art on products in Photoshop, check out “Product Mock-Up Magic” – we’ve done the hard work of taking photos of products and getting rid of the backgrounds, as well as creating video tutorials to help you learn how to apply repeat patterns to them and more. Take a look at http://www.artlicensinginfo.com/mockup.html
P.P.S. To give Lori some “link love” for her question, you can see some of her work at http://www.cafepress.com/LoriKirstein
It seems I’m a victim of fraud… and now to figure out how to deal with it.
Let’s begin by stating the obvious – FRAUD STINKS.
Fraud costs so many people time and money. Frustration. Headaches. Hassles.
Here is what has happened… I received a Chargeback Notification from Visa International, complete with a signed affidavit from someone in arabic speaking country saying that charges that went through my system were fradulent.
I went in and looked at the charges and noticed that no, the name on the order (an Eric from the UK) did not in fact, match the name on the affidavit (Pattana). Great…
So I called the number to try and learn more about what had happened and how I could avoid this in the future. I was told that unless I use a “Verified by Visa” system for international charges, I was pretty much sunk in situations like this. There is no address matching safety system for cards outside of the US. Great…
Then I decided to dig a little deeper. I did have a new affiliate who, in less than 2 weeks, had earned (and been paid!) over $130… this affiliate was from Thailand. Looking at the activity, I saw some trends. This “affiliate” (I’m using the term loosely and sarcastically at this point) has done an amazing job – better than any other affiliate in a short amount of time. 9 referrals in 2.5 weeks – wow! So how does an affiliate, claiming to use Google Adwords, get such results – from alleged customers in Australia and the UK?
One word: Fraud.
Add a few more words: Stolen Credit Cards.
Shall we add a few more: Very frustrated artist writing this blog post.
So what to do now…
At this point, I’m out the affiliate commissions I’ve already paid this scammer. I will also be out some fees from the credit card companies for accepting and having to refund the charges as others realize that fraudulent charges were made.
I will call and see if there is a way to be proactive and simply refund the other victims before they have to go through the hassle of a dispute. I’ve had to do it before and it isn’t fun.
It goes without saying that this affiliate has been removed and will receive no more money from me. I’m thankful that Pattana was quick to dispute or it could have gone on much longer with more money lost for me.
I have blocked all the IP addresses that were used to make the fraudulent charges.
I will be looking at how to protect my business from similar issues going forward. This may include changes to how credit cards are processed for international customers.
I will also be considering changing how I pay out to affiliates – perhaps waiting a month before paying commissions to ensure that the charges go through appropriately before paying out money. (If you are an affiliate – I’ll keep you posted if I make any changes.)
I called my credit card processor and told them I believed 8 other stolen credit cards were used. They recommended I refund the money so that I don’t end up with 9 chargebacks on my account – I will pay less in fees to proactively refund the money and won’t risk having my credit card processing suspended.
Now I’m waiting to learn more about the “Verified by VISA” and equivalent Mastercard program to verify international credit card orders so I don’t have this issue again. My guess is this has cost me almost $500 – not terrible compared to what many businesses face and the fact that I caught it so quickly but still! That makes a difference in my business, as you can imagine.
And finally…
I hope that this lesson I’m learning can help others avoid the lesson altogether in their business. If you have an affiliate program, watch who is signing up and watch for unusual activity as far as referrals. (All of this person’s referrals were from outside the US, they all had hotmail.com email addresses and I’m guessing – all used stolen credit cards)
Also, watch your own credit card activity and report fraudulent activity right away. It could help vendors like me as well as yourself.
I won’t let this very rotten apple spoil the bunch. Most of my affiliates are amazing and I love more than anything, paying them every month for their help in spreading the word. Thank you if you are one of them – know how much I appreciate you!
– Tara Reed
P.S. It goes without saying to use your own money or credit cards when buying anything, right? 
P.P.S. If you want in on earning by helping promote the products available through the Art Licensing Info family of websites, go to http://artlicensinginfo.com/affiliate-info.html for more details.
NOW is the time to start preparing for the 2011 art licensing trade shows…
Yes, the kids are just getting back in the groove at school and 2011 might seem far away. But this morning at breakfast my son reviewed the calendar and made it seem pretty quick to winter break… “3 full weeks, then a 4 day week, oh yeah! a 3 day week… etc.”
If you are planning to exhibit at any of the 2011 art licensing shows, there is no time like the present to begin planning your art, your booth, your strategies and more.
During the October 20, 2010 Art Licensing Info Monthly Ask Call, Paul Brent will be talking about how to plan your art collections for a trade show, as well as answering questions submitted by artists. To submit your question for consideration, about trade show prep or any other art licensing related topic, visit www.AskPaulBrent.com.
I just discovered this great video that SURTEX did during the 2010 show last May – it gives a great feel for what the show looks like as well as opinions from many exhibitors. (Including yours truly – although they spelled my name wrong, ooops!)
Here are dates and links for the 2011 shows (in date order) if you want to look at your options:
AmericasMart License & Design – January 14 – 16, 2011 – Atlanta, GA
CHA (Craft & Hobby Association) License & Design – January 29 – February 1, 2011 – Los Angeles, CA
SURTEX – May 15 -17, 2011 – New York, NY
Licensing Expo – June 14 – 16, 2011 – Las Vegas, NV
Here’s to your creative success!
– Tara Reed
P.S. Don’t forget! We have two great products to help you put your best show foot forward – “How to Maximize Your Time and Investment in Trade Shows” eBook or the “Trade Show Tactics” teleseminar – buy both and save. CLICK HERE TO GET THE DETAILS.
P.P.S. I also recommend Khristian Howell’s “Confessions of a First Timer” – her insightful eBook about her very first trade show experience. I got some great tips too! THIS IS MY AFFILIATE LINK.
Artists: Are you ready for the 5th annual smARTist Telesummit in January 2011?
I am very excited and extremely honored to announce that I will be part of the 2011 smARTist® Telesummit in January 2011, as the expert in art licensing. 2011 will mark the 5th year that Ariane has assembled an amazing group of people to educate and inspire artists in the many ways to earn a living, build a business, and fulfill your dreams with your creativity. The smARTist® Telesummit will be held January 13/14 & 17-21 of next year.
I’m not sure who all the experts will be but I can assure you that this event isn’t to be missed. I’ve heard too many artists sing it’s praises in years past. From specific avenues of marketing to social media to SEO and more… there will be so much to learn.
I’ll give you more details when I have them but for now, I encourage you to CLICK HERE* and get signed up for the Early Bird Discount notification – why pay full price when you can save a few dollars?
Here’s to your creative success!
– Tara Reed
* FTC disclosure: The links provided are affiliate links and I will receive a commission if you click them and decide to join the telesummit. This is how I am compensated for my time and contribution so I appreciate the clicks!
Dena of Dena Designs over-delivered with great insights about art licensing!
Last night artist Dena of Dena Designs joined us for the Monthly Art Licensing Info Ask Call Series. As always – another great call! I am always thrilled and honored to be able to interview others in the industry who have built great businesses and are willing to share their insights and experiences with the rest of us. Over 120 artists listened live and I’m sure hundreds more will enjoy the replay. My mouth was on the floor when she told us how she got into art licensing – with one paint brush and a pizza pan! (Seriously!)
In case you missed the call, here is what you can learn if you download the free mp3 replay…
We began with some background on Dena’s beginnings in art licensing and how she grew her business. Other topics included:
- How did you get on the DIY Network show, “Embellish This”?
- Is your art done by hand or computer?
- What advice do you have for artists just starting out?
- Any ideas for how to network other than trade shows?
- Did you ever have doubts about your ability to succeed in licensing?
- How do you create your repeat patterns?
- What do you feel is the key to personal branding?
- I have an existing product line, how would you recommend I evolve into licensing?
- How do you approach trend spotting?
- How do you use your blog in your business?
- What inspires you?
- Is it best to create designs for art licensing in a series? How many do you think an artist should have before putting them “out there”?
To get your free mp3, sign up below.
Fun on Social Media!
During the call, it was great to see what people were saying on Twitter and Facebook.com/ArtLicensingInfo – here are a few of the comments -
FROM TWITTER…
#ask @ArtistTaraReed> Dena says shopping & looking at manufacturers of products is a BIG plus 4 licensors.
“Slow and steady wins the race when it comes to building an art licensing business.” #ask
#ask @artisttarareed Dena thinks of her work as a regular job & tries to stay on track – even working out of her home.
Great call with Dena! Lots of “Pearls of Wisdom” from a Pro 
FROM FACEBOOK…
That was amazing and inspirational. Ha! I won’t get my hopes up but maybe I won’t beat up on myself so much about not meeting art school standards.
Tara…. Fabulous call with Dena!
Yes, unfortunately it is called a morgue. I remember this from my old magazine editor days. (morgue relating to reference material clippings…)
Here’s what is coming up next…
Wednesday, October 20, 2010: www.AskPaulBrent.com
In addition to answering questions from artists, Paul Brent will discuss how to plan your art collections for a trade show. Planning your collections, pacing yourself to get the work done and designing for trends for the new year.
Wednesday, November 15, 2010: www.AskAboutArtLicensingDataManagement.com
I will have Hal Gumpert, the FileMaker developer who created my art licensing data base, on the line to explain in more detail how it works, and to answer any questions you have about it. Learn about the software at www.ArtLicensingInfo.com/data.html – then download a trial version to try it out and see what questions you have!
Here’s to your creative success!
– Tara Reed
P.S. To see what we talked about on past Ask Calls, visit www.ArtLicensingInfo.com/audio-archives.html
P.P.S. During the call Dena talked about personal branding and was right in line with what Paul Brent taught in his teleseminar, “Brand Yourself for Success in Art Licensing”. For artists serious about this business – I highly recommend you check it out! www.ArtLicensingInfo.com/branding.html
P.P.S.S. Dena also loves working with an agent. Decide if an agent might be for you by taking the survey… go to www.ArtLicensingInfo.com/agent-or-alone.html
Dena of Dena Designs will be the newest Ask Call Expert – TONIGHT!
Just a quick reminder that Dena of Dena Designs will be answering the questions submitted by artists like you tonight. This is Dena’s first call and I’m so excited to learn more about her and her experiences and advice about art licensing!
If you’ve signed up for a call before, you should have received the dial-in details by email.
If you’ve never participated, head over to www.AskDenaDesigns.com and sign up. Since we have already organized the questions, you can just put “no question” in the box then fill in your name and email and you will get the dial-in details.
The call is at 5:30 pm Pacific / 8:30 pm Eastern and will last for an hour. It’s free to listen live and since it’s Dena’s first call – the replay will be free as well!
I look forward to chatting with you tonight!
– Tara Reed
P.S. Don’t forget! Let’s get social on Twitter (use #ask when tweeting so we can find you!) and Facebook during the call. CLICK HERE to download all the details.
A little inspiration from Billy Joel…
While driving around Portland the other day, I heard this song by Billy Joel on the radio – The River of Dreams. Catchy little jingle and it just spoke to me so I decided to share it. To me, this journey of art licensing is the river. We create through the valley of fear (that we won’t be successful!), the river looks deep and hard to cross (and overwhelming when you are starting)… you get the idea. Just some music today to make you think -
we all end in the ocean… we all start in the stream…
Lyrics to “The River of Dreams” by Billy Joel
In the middle of the night
I go walking in my sleep
From the mountains of faith
To the river so deep
I must be lookin’ for something
Something sacred i lost
But the river is wide
And it’s too hard to cross
even though I know the river is wide
I walk down every evening and stand on the shore
I try to cross to the opposite side
So I can finally find what I’ve been looking for
In the middle of the night
I go walking in my sleep
Through the valley of fear
To a river so deep
I’ve been searching for something
Taken out of my soul
Something I’d never lose
Something somebody stole
I don’t know why I go walking at night
But now I’m tired and I don’t want to walk anymore
I hope it doesn’t take the rest of my life
Until I find what it is I’ve been looking for
(Three beat Pause)
In the middle of the night
I go walking in my sleep
Through the jungle of doubt
To the river so deep
I know I’m searching for something
Something so undefined
That it can only be seen
By the eyes of the blind
In the middle of the night (break)
I’m not sure about a life after this
God knows I’ve never been a spiritual man
Baptized by the fire, I wade into the river
That is runnin’ through the promised land (Long Five beat Pause)
In the middle of the night
I go walking in my sleep
Through the desert of truth
To the river so deep
We all end in the ocean
We all start in the streams
We’re all carried along
By the river of dreams
In the middle of the night
Here’s to getting to the ocean of art licensing!
– Tara Reed
FAQ: What Do I Charge?
Many artists who are new to licensing ask this question. Art Licensing is primarily done on a royalty basis – meaning you will receive a percentage of sales.
This is great when sales are high, because you stand to earn substantially more than you would have been paid on a flat fee or work-for-hire basis. However, there is always the risk that the product won’t do well – for one reason or another – and you will earn little to nothing. This is simply the nature of licensing and you need to decide if you are ok with it.
In art licensing, you share in the success or failure of a product featuring your art with the manufacturer.
This of course means, that artists in licensing spend a lot of time creating art, not knowing if they will earn a dime. We aren’t exchanging time for money, but rather creativity for opportunity. This will feel strange at first, to artists who are used to being employed in a traditional sense or billing by the project or by the hour.
That doesn’t mean having some basic understanding of what to expect in the way of royalties isn’t important.
When you are first starting out, you won’t have as much negotiating power over royalties as when you are a larger business with more name recognition and consumer demand for your art. In my experience, there is little wiggle room on rate, and more on other terms, such as including your name and web address on products or packaging.
The Graphic Artist Guild’s Handbook of Pricing and Ethical Guidelines* is a great resource for all things art fee related. For example, I’m looking at p. 138 of the 12th edition and looking at comparative fees for Greeting Card and Novelty Design. It gives a range of flat fee and royalties for Calendars, Gift Wrap, Greeting Cards, Mugs and more… there are many tables like this in the book. It’s a handy resource I think every artist should have in their library.
Royalty rates vary by industry and by distribution channel – meaning, what kind of store the products are sold in. So if you have a manufacturer who specializes in higher end boutique stores – you should expect a higher royalty than from a company selling into Target. The amount of product sold will vary GREATLY so you need to be compensated differently.
Here’s to your creative success – now go get a copy of the Handbook at your local bookstore or order through Amazon with the links provided.*
– Tara Reed
* FTC disclosure: these are affiliate links to the Amazon listing of the book, if you click it, I will receive a small commission for the referral. This helps me be able to spend my time blogging and is much appreciated!
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