What are Buy out fees? How do they work?

Whether you are new to hiring talent or to being hired yourself, buy out fees can come across as complicated. Phrases are often used like usage, rollovers and buyouts.

When it comes to hiring talent, there are two things that you will be required to consider when it comes to pay.

• Your time and skill on the day. (your day rate)
• The exposure you will receive for the material. (consider that representing a brand will in turn mean competitors cannot use you for a long time).

The alternative arrangement that may be agreed is a “Flat fee”. These are most associated with low budget films and small companies with a small reach. You can expect a higher day rate, but no exposure pays.

Usage fees are for commercial work, whether it be radio, T.V or print media; the company will pay a usage fee to allow them to associate the content captured for usually either…

1. 1 year
2. 3 years
3. Perpetuity

Buyout – What does it mean? They own my content

It does mean they own the content that you shot, and you cannot claim any more royalties for it, it does not mean you cannot be in other commercial work. But it is important to remember that other brands will be unable to use you if they are a competitor.

How much should I be paid for usage?

The simple answer is that there is no fixed rule. The offer is accepted regardless of whether it is £30 or £30,000 that will form the contract. Things that will impact the rate significantly is where the content will be shown and for how long. As mentioned previously, it is also important to consider the size of the brand hiring you. McDonald’s will warrant a higher price than a local takeaway store.

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