Hi all, I have a question regarding a greeting card distributor who may want to buy some of my photos. Here is the letter he sent me. I don't know if this is a good deal. Please help if anyone can. Thanks. Steve THE CONTRACT IN ESSENCE STIPULATES THAT ALL IMAGES USED ARE COPY RIGHTED BY YOU, YOU WILL RETAIN OWNERSHIP OF ALL IMAGES, AND THE CONTRACT SIMPLY LICENSES US TO MARKET THEM. THERE IS A ROYALTY AMOUNT PAID UPON THE SALE OF EACH CARD WHICH IS .03 CENTS PER CARD, WHICH FOR EXAMPLE, IF SOLD IN BOXES OF 15, YOUR ROYALTY IS .45 PER BOX. ROYALTIES ARE PAID TWICE A YEAR THIS ESSENTIALLY BECOMES AN ANNUITY, IF WE SELECTED TEN IMAGES THE FIRST YEAR, AND NOTHING AFTER THAT, YOU WOULD CONTINUE TO RECEIVE ROYALTYS NOT ONLY FOR THE REMAINDER OF THE CONTRACT, BUT UNTIL ANY EXISTING INVENTORY IS SOLD OUT EVEN AFTER THE TERMINATION OF THE CONTRACT. 1] There is no set dollar amount that can be stated as to potential income. 2] We do not purchase the photo,you retain ownership of the image, the back of the card lists copyright to you. 3] compensation is at the rate of 3 cents per card upon sales, with payments made twice each year, June 30th, and end of year at as of December 31st. 4] There is no way we can predict or guarantee what the sales will be, there are two many intangibles 5] the way we 'test the waters' is to place copies of the cards in the hands of the sales people the first of the year, and let them book orders, most Christmas card aelection and purchasing is finished by the end of May, based on the orders taken, we determine which images to print and quantity. Our minimum print run is 2500 cards (166 boxes), and we have often had print runs in excess of 10,000 cards. As you can see the money is made on having a variety of images, not just two or three. And of course, once the image is included in the line, it becomes an annuity, and produces income in future years with out any other input.
