UPDATE: We've recently communicated changes to Marketplace that go into effect June 30th, 2018. For more details regarding these changes and how they may affect you, please visit our Marketplace Transition FAQ.
For photographers who submit their photos to 500px Marketplace, we work to license your content in three ways.
- Platform (Unassisted) Sales - these are e-commerce sales through 500px.com and all localized versions of the site worldwide
- Direct (Assisted) Sales - 500px also has Direct Sales teams based in Toronto dedicated to representing the commercial interests of our Marketplace photographers in the best possible way. These teams manage, maintain and build relationships with key clients around the world.
- Distributors - 500px partners with Distributors or resellers who work directly with local brands and advertisers in specific territories. Most Distributors operate their own websites where they host 500px Marketplace content.
What does a Distributor do?
Distributors, also known as the Channel or Distribution Channel, are strategic partners that represent 500px Marketplace content and package 500px Marketplace content to fit their buyers needs in parts of the world where 500px Marketplace is not well established.
Why does 500px need Distributors?
In most cases, Distributors have their own direct sales contacts, websites and client base and can lean on these established relationships or platforms to further expose 500px Marketplace content to a larger audience. Distributors contribute and expand on our mission of rewarding visual creativity across all regions of the world. Distributors also provide brand awareness and in some cases Marketing resources for 500px Marketplace content in their respective territory.
Distributor Payouts - How do I get paid for Distributor sales?
Distributors resell 500px Marketplace content on their own websites and then monthly or quarterly, report their sales to 500px. 500px then processes Distributor royalties through our payment system and the sales appear in individual photographer’s Stores as License Name - Distributor sale.
Distributor Payouts - How does the royalty split work with Distribution sales?
With any Distribution sale, there are three (3) parties involved in the royalty split - the Distributor, 500px, and the photographer. 500px has negotiated competitive royalty splits with each of our Distributors ranging from 40% of the initial sale, to as much as 60% of the initial sale. As per our Distribution agreements, we cannot disclose the exact royalty percentage for each individual partnership.
Distributor Payouts - Can you describe what you mean by three (3) parties involved in the royalty split?
For example, if 500px were to have an even-share royalty agreement with our Japanese Distributor, Amana, then 500px’s initial share would be 50% of any sale transacted by Amana .
If for instance they were to license an image for $250.00 to their client in Japan, the royalty breakout would be:
Initial sale price - $250.00
Amana’s share - $125.00
500px & Photographer share - $125.00
Then, based on the individual photo’s Representation Rights (Exclusive or Non-Exclusive) the Photographer share is either:
Exclusive - $75.00 (60% of $125.00)
Non-exclusive - $37.50 (30% of $125.00)
Distributors set their own pricing as per industry standards but in many cases we have Minimum Pricing Guarantees established in an attempt to offset the impact of three parties involved in the royalty split.
Distributor Sales - How can I tell the difference between a Direct sale and Distributor sale?
License Name is where 500px displays this information for photographers. These sales will be labeled as Distributor sale in a photographer’s Store, as opposed to the file sizes we currently display in this section for Direct sales - Medium, Large and X-Large.
How do I know if my 500px Marketplace images are part of the Distribution Channel?
In accepting the Contributor Agreement, photographers grant 500px the right to distribute any images submitted to the 500px Marketplace as per Section 5. Grant of Rights:
- Grant of Rights
5.1. Subject to this Agreement, Contributor grants Company either an exclusive or a non-exclusive license to market, sell and distribute Selected Images throughout the world, either itself or through using the service of Distributors, and to reproduce, distribute, publish, transmit, broadcast, display, exhibit, adapt, crop, modify, recast or enhance, any Selected Image, alone or in combination with any other material, in any media or
embodiment, now known or later developed, for any lawful purpose, including the right to distribute and sell.
What if I’m not interested in licensing my Marketplace photos through the Distribution Channel or through Distributors?
You can always opt-out if you’re not interested in harnessing the power of our Distribution Channel. As noted above, photographers submitting images to 500px Marketplace grant 500px the right to distribute their content, but we always strive to provide our photographers with a choice. We implemented the Distribution Opt-Out and communicated the changes to our photographers via notification messages at log-in and on the home feed. We've left the decision to each individual 500px Marketplace photographer as to whether or not they want to participate in our Distribution efforts.
How does the Distribution Opt-Out work?
500px Marketplace Photographers can opt out of Distribution via the Distributor Opt-Out page in Settings: https://500px.com/settings/distribution . After that, we’ll work with our Distributors to remove the images from their website(s) in a reasonable timeframe.
I've sold a photo that I removed from the Marketplace completely - How was this possible?
Once a photo has been added to the collections of any of our Distributor's platforms, removing the photo from the 500px Marketplace does not remove the photo from any distributors who have already added the photo to their collections. The 180 day timeframe is in place to allow our Distribution partners the time to remove any content by request of the contributor who has opted-out of distribution. Even still, as per the Contributor Licensing Agreement, Section 2.3, we can not guarantee content is removed right away - http://static.500px.net/docs/contributor_licensing_agreement.pdf
Where can I get more information about Distribution?
Our Distribution landing page has additional details: https://licensing.500px.com/licensing/distribution/