Saturday, October 1, 2011

Veer Improves Subscription Royalties


Veer makes good with their contributors after a large outcry on the very low subscription rates they announced in September.  They have gone back to the drawing board and raised the rates to a more industry standard with some extra bonuses compared to the other guys in town.  Below is there full write up on how the royalties brake down for contributors. 



Veer Subscription Royalties Update
Last week Veer announced its plan to launch a subscription service. Though we expected
the response to be positive, we offered contributors the opportunity to opt out of the
program if they so desired. The response from contributors has been loud and clear.
Obviously we missed the mark.
We’ve asked for your feedback and have been listening carefully over the last few days
as we went back to the drawing board to revise our royalty model. Two key issues were
raised by contributors:
1. Basic plan royalty per download range of $0.10 to $3 is generally good but a minimum
    of $0.25 per download is preferred.
2. Extended license plan royalty per download of $0.13 to $3.75 is far below expectations;
    there are other subscription sites averaging $28 per extended license download. This
    was a deal breaker for many contributors.
So here’s what we’re going to do.
Firstly, we’re raising raising the rates of our basic subscription to have a minimum royalty
of $0.25 per download. We’re also raising the maximum royalty from $3 to $4.95. The
range is now $0.25 to $4.95 per download, per image-buying customer.
Secondly, we’re changing the subscription extended license plan. Instead of a daily
download model for subscription extended licenses, Veer will enable subscription
customers to easily purchase extended licenses on a per-image basis, as we do now on
veer.com. If a customer purchases an unlimited reproduction license for your
subscription image, you’ll earn $35 for the extended license, in addition to your
subscription royalty per download of between $0.25 and $4.95.
For example, if the average subscription customer downloads nine images per day and
the general range of downloads is between five to 15 downloads per day, then here’s
how much a Veer contributor will earn with the revised subscription royalty model:
Customer downloads 15 images per day=$0.33 royalty per downloaded image
Customer downloads 9 images per day=$0.55 royalty per downloaded image
Customer downloads 5 images per day=$0.99 royalty per downloaded image
And if a customer adds an unlimited reproduction license to your image, you’ll get an
extra $35 per image on top of the subscription royalty.
See the updated rate card for all the details.
We believe these new subscription royalties are competitive and will be an attractive new
revenue stream for participating subscription contributors.
For anyone who communicated a subscription opt-out message to Veer and would now
like to opt in, simply send a message to contributorhelp@veer.com with the subject line
“Opt In” and we’ll make sure your images are included in the subscription site. You’ll
have until October 21, 2011 to let us know, but the sooner the better.
Please note that if we decide to offer a daily download subscription extended license in
the future (with much better rates), then you’ll have the opportunity to opt out of that
as well.
Veer puts a high value on open communication and collaboration. Once again, we really
appreciate your honest feedback and we've taken it to heart. This has been a learning
experience for us. We’re inspired by the engagement of our contributors and we hope
you continue this engagement by joining us on the launch of Veer Subscriptions.
Sincerely,
The Veer Contributor Team