The financial landscape for photographers has always been unpredictable. You might have a great year followed by months of little to no work. This ebb and flow can make it difficult to maintain a consistent income.
Coming to you from Scott Choucino with Tin House Studio, this candid video explores the financial challenges many photographers face. Choucino shares insights from his own experience, noting that many photographers struggle because they fail to see the bigger financial picture. It's easy to get caught up in the moment, especially when you're making good money, and think that this will continue indefinitely. But as Choucino points out, the reality is often far different. The photography industry is known for its ups and downs, and income can be incredibly sporadic. This fluctuation can lead to serious financial problems if you're not prepared.
Choucino explains that many photographers make the mistake of spending too much during good times, buying expensive gear or renting large studio spaces, without considering the inevitable downturns. They see the money coming in and assume it’s all theirs to spend. However, this short-term thinking can quickly lead to financial difficulties when work dries up. Choucino advises against this approach, emphasizing the importance of being conservative with your spending. Instead of basing your expenses on a month-by-month income, he suggests looking at your finances over a longer period, like a year or more. This way, you can better prepare for the lean times that are almost certain to come.
Another significant issue Choucino highlights is the decline in usage fees, which has put even more strain on photographers' incomes. As expenses continue to rise, from rent to utilities, the fees paid for using images have been dropping. This trend makes it even harder to sustain a photography business, especially for those relying on mid-level jobs. Choucino warns that this could lead to many photographers leaving the industry, unable to maintain their businesses with the shrinking fees. This situation could result in lower-quality work being produced by those willing to take on jobs at lower prices, ultimately leading to a potential shift in the market.
Choucino’s message is clear: be cautious with your finances. The photography industry is currently in turmoil, and it's more important than ever to manage your money wisely. Avoid unnecessary purchases, save for the future, and plan for the times when work isn’t coming in. This conservative approach might not be as exciting as splurging on the latest gear, but it could be the key to staying afloat in these uncertain times. Check out the video above for the full rundown from Choucino.
""They say they aren't making enough money anymore" but they actually never were making enough money!" What an interesting perspective. Money comes and goes and the biggest lesson a photographer needs to learn is how to budget during lucrative months so that the dead months aren't filled with anxiety.
Scott's second point about licensing fees dropping which will cause all the pros to quit which in tern will cause the industry to demand better photographers (who charge higher licensing fees)...yeah I don't know if that's going to happen or not.
Granted, budgeting is extremely important, as is staying out of, or minimizing, debt. That all deals with the expense side of running a business. But why assume there will necessarily be dead months, especially in Scott's case of three to six months or more? If that's what's happening, I'd suggest taking a closer look at your sales and marketing strategy.
I'm somewhat biased as an older person, but I suspect too many small businesses rely totally on social media, SEO, referrals, or some other type of passive sales activity to generate clients. Instead of waiting for the agent to call, why not get on the phone and make a few calls yourself? Probably because nobody likes to do it. But I feel strongly that to maintain a regular workflow, one must take a more proactive approach to selling.
I sell most of my photos to commercial art buyers and interior designers. I send out mass emails and postcards, but the large majority of my work comes as a result of researching new commercial building projects, calling the developer, finding out who will be selecting the art, and calling them. It can be frustrating getting the information, but it all starts with a phone call... a skill set largely ignored in modern times but, in my opinion, as relevant as ever.
Bottom line is that if work is non-existent for months at a time, there's something wrong with your sales and marketing.
This is info for the Pros but here is some info for the late comers say those in full time jobs then retiring in the US or forced to retire due to health and being on Social Security at no matter the age. I am a hobbyist by way of disability but still able to get around and play with a camera and capturing images of many things and have amassed a couple thousand images but never sell just make prints as gifts. Why you may ask! In the US if on Social Security those funds as well as any other income is taxable and there is a 50% and 85% level, so even with a modest pension or income the addition of the Social Security income added in if at a level the whole for individual Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. and More than $34,000, up to 85% of your benefits may be taxable. And for married combined income* that is
Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits. And More than $44,000, up to 85% of your benefits may be taxable. This is a tax on those SS benefits mooneyes.
When you go into many grocery stores or big box stores you will see many disabled working to get a little ahead but getting slammed also.
Now I have been asked if I sell many many times but say no and due to today being a digital world and prints not on walls but images are on devices I just give my site and say just view and enjoy. Mainly I have no idea what some prints would be worth.
I say all of this mainly to let one know what is ahead of them and to figure a plan to make the best of it and really have do idea how those living on just SS even at the highest levels and having to pay a supplemental to Medicare every year make it.
No one tells you about all this except maybe your grandparents when you see them from October to December going over the many plans.
For me the getting out and playing with my camera in the digital world I no longer have to buy film and pay develop fees and a quite time on my computer keeps me away from the boring boob tube where we now have gone back in time and glad I never wasted the time anyway!
What I do is get prints made and a few frames around and change out prints every week.
71 and on SS for 27 years Thankfully 24 year military retired and VA disabled. I recommend a good career with a pension before doing a Photography career and train your eye then.