Recently another artist I know can't seem to comprehend why I don't use some
venues that he personally likes very much. And it's not for lack of intelligence,
it's just that he's got a different way of doing things.
The reason I'm writing about this is actually that I think this is something
any artist who's looking at venues should consider.
Some venues both online and physical locations will ask for money up front, or
regardless of if you actually sell anything. Other venues charge a percentage
of the sales, and still others charge membership fee.
First of all anything that charges a membership fee the first question is what other
benefits come with it, because if you are getting enough out of that membership that
you feel it's worth it even if you weren't selling something that's actually a pretty
reasonable way to go. While I don't personally know of venues where this would be the
case I also haven't personally sought them out, and even if there are none anyone
could say that about now that doesn't mean there won't be in the future.
The membership question can be different than the question of being charged regardless
of weather or not you make a sale. Here's where my friend and I differ. He doesn't
have a problem putting his money on the line regardless of weather or not he makes
a sale. So he uses (and has tried to push me toward) a venue that involves me
making a non-refundable payment up front. I on the other hand actually ruled out any
print on demand company that would charge me if I made nothing for any reason. So while
for my shop I do get charged a percentage of my commission when I sell something I
also pay nothing unless my work does sell.
Here's the flip side, first the amount I'm actually charged if I sell actually does add
up to more than if I were selling massively and would just pay up front regardless of
how my sales were that month. Second of all in most cases there's no cap on what that
percentage can add up to. So they guy who's a good enough sales men to know he's going
to make $1000.00 on that $20.00 fee for that venue rather than agreeing to say 5% of
every sale adding up to $50.00 actually did save himself $30.00 if there's no rule
capping the amount that percentage can add up to. Someone like me on the other hand
who's strength does not lie in sales but in the process of creating the products to
be sold, or who literally can't afford to risk loosing the money for any reason making
that percentage at the back end deal is actually the better way to go even if it does
cost the extra $30.00.
However one type of venue I would strongly recommend avoiding (unless they do a good
enough sales job, and/or offer enough other perks to justify the added cost, which most
places won't) is any place that charges both an up front/flat rate fee such as membership
or rental for display space, sales or no sales and then charges you a percentage of whatever
is sold on top. The reason being that if you say have to pay $20.00 a month for the space
and then 5% of all sales then basically if you sell $1000.00 worth of artwork then you
are on the hook for $70.00 of that. The only exception is if that $20.00 is going to
something such as a membership fee that also buys you other perks that actually justify
the $20.00 when you assume that you won't make a single sale in which case you are back
where you would be assuming they just charged you a percentage of the sales when you do
make them.
Again membership fees are a bit different than space rentals, but when choosing a sales
venue for your artwork, or anything else it's important
to consider the actual costs and risks of using that venue, and yes sorry every artist who
doesn't like math you do need to do a cost benefit analysis. Admittedly there are benefits
I would recommend considering beyond just financial loss/gain, however even for a hobbyist
I strongly recommend minimizing your financial risk, and managing any risk you do take.
As a rule however one of the biggest I would follow if I were a gambler (which I'm not),
would recommend anyone follow in business and in money making hobby's: Never risk money
you are not prepared to lose.
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