We heard this morning via Andy Goetze’s great (but lately not-so-regularly-updated Stockphototalk blog) that iStock had posted changes to their royalty rates yesterday evening Germany time. The really short version (as far as I understand it) is that as a new, non-exclusive photographer you start with a 15% royalty rate and you can improve your rate (to a maximum of 20%) based on how many credits are used to download your photos. So, to reach a 20% royalty rate, people need to spend 1.4 millions credits on your photos. For ease of calculation, let’s assume a credit costs 1€*. That means people will have to give iStock 1.4 million Euros before you will earn your 20%. Also, this royalty rate is only valid for one year because iStock recalculates your royalty every year based on the previous year’s sales.
Maybe I’m wrong, but that’s how it looks to me. As usual I like being corrected.
* As of today you have to buy 2000 pay-as-you-go credits at a price of 1.908,25 € for the per credit value to drop below 1€ (0,95€)