Are These Typical Agency Fees?

[Stacey McEwen]

Would love opinions on this

[Michele Rushworth]

The 40% that many galleries take is supposed to be kind of a marketing fee, but many galleries take 50% for new artists. I don't know of any galleries that provide the frames, so it sounds like these folks are planning to do more for their artists than most.

Perhaps this gallery could spell out for you exactly what they do for the $25 fee, and what the 40% goes for, and compare that with what other galleries in town do.

[Linda Nelson]

Hi,

Let's say you would were to sell 5 commissions at $2000 a piece through this arrangement. The total income would be $10,000. Then take away $4500 to pay the gallery for that year. You've now made $5500 for doing 5 commissions.

If you thought of the above figures in terms of financial return on investment (you've invested (spent) $4500 to receive $5500, do you think you could do as well if you instead cut the gallery out and did it yourself with the same investment? I mean could you make $5500 in you spent $4500 on brochures web design, trade show marketing, etc and done as well? I think so. In fact I think you could do it for half that amount. And the benefits are many, but I think the most important is that clients establish a direct relationship with you, and that you "own" any leads generated (in the other case the gallery may foward that prospect to another artist in their line-up.

The gallery is benefitting wonderfully from the framing - which can easily cost $1,000 for a single project.

This above scenario presumes that you get the 5 commissions. You could theoretically spend a few thousand in marketing expenses and get no business. But you don't have to spend a lot to "test" what response you can get from the market.

Example: the first marketing venture I ever did (at the time I had never had a commission and had never tried to get one) I made some brochures (designed them myself, printing at Kinkos - $400), made business cards at home - $50, made some signs and rented a booth/booth space at a local show in an area that was wealthy - $300, made "example" paintings and opened up a wholesale framing acct so that I could frame them beautifully but cheaper - $1,000. Add misc costs and I probably spent $2,000 total to do this first show. I received $13,000 in commissions! And the best part is that the next show I did (the following summer) I spent probably $500(booth/booth space, more brochures and cards), but could "reuse" the frames, paintings, and signs, etc. - so my cost for getting more commissions was lower.

Now let's say I didn't get any commissions from this first show. Well at least I would have had the front seat view in the process to figure out why.

As you can see, a concern of mine in going with a gallery at the beginning of one's career, is that whether you get clients or you get none, you never get to see for yourself why (is it your talent, the marketing, ...)

A thing to consider, thinking really negatively against the gallery (just playing devil's advocate here, so I don't mean to 'dis them) is that technically they probably would love to sell your work for as cheaply as possbile - so that they can get as much framing work as possible.

Now if you're not at all into marketing or selling yourself, maybe this is attractive. But if you can do it yourself, I can tell you I have really appreciated the education and sense of control as a result.

This is not to say an artist/gallery relationship can't be a perfect set-up for both - for example what I described does mean a serious time investment to pull it off - a gallery relationship on the other hand can sure reduce your time involvement spent on non-painting issues.

Hope this helps,
Linda

[Steven Sweeney]

Those commission rates are a shocker at first blush. I remember when literary agents began to bump the traditional 10% commission up to 15%, and how outrageous that seemed. Tell people that an art gallery will get 50% of the $10,000 price of a painting, and you can almost hear swords being drawn to right that wrong.

But of course the well-located, well-appointed and staffed gallery has substantial overhead expenses and it is also engaged in a risk business, for which it fairly charges an after-the-fact premium in the form of a commission. The artist presumably engages the gallery

[Timothy C. Tyler]

After you've read the books about gallery relationships and then you speak to artists who have actually dealt with galleries for years, you'll find that all things are open for discussion.

Some agents take 10% of everything you sell. The artists I know that pay that are happy to do so.

Certainly an artist can buy a lot of ads and exposure for what we give galleries but most artists I know don't resent or begrudge the galleries their part. Galleries own the space and spend time every day with clients. If artists do that they don't paint.

Artists make paintings all day. I've found it best if others do the selling.

[Stacey McEwen]

Thanks for your replies everyone. The gist of what I'm hearing is that these seem to be decent fees, so long as one actually wants to have a gallery represent them.

I currently work full time, and although I think marketing myself would be interesting, I'm having a hard time figuring out how to make the time to do that and still paint. For me, the commission would be well worth it if it could get me exposure to higher income bracket clientele, not to mention leaving me with more time to paint!

Thanks again!

[Linda Nelson]

I most certainly would love to have someone else right now to do my marketing and selling for me - having a gallery to care of all that would really be a godsend because right now - I'm behind on my own marketing ogjectives, and that really worries me. Nonetheless, I find I have so much to learn about portraiture as a business, I have been very glad to through the time investment.

I've worked in marketing for 15 years, so it just seems unatural to not be in control of that aspect, so I'm considering hiring some marketing assistance vs. looking for representation.

I'm sure there's a ton of pluses that I'd be envious of if I would look at the gallery route more seriously, and certainly being represented delivers a prestige to your work that is awesome. Congrats to the offer in front of you and I hope it's the start of a great relationship.

[Cynthia Houppert]

Hi Stacey,

The commission split (60/40) you mentioned in your post is the standard for permanent works (works on canvas and sculpture) in the gallery trade.

However, there would be no additional fees from a reputable gallery since their operating expenses,including marketing plans come from the 40%.

As an art consultant for many years, I would negotiate the 25% if you really want to have them represent your work. Before signing any contracts, contact a member of the Volunteer Lawyers for the Art (they work on a sliding scale)and have them give it a once over. Good luck!

Best regards,

Cynthia Houppert