How much to charge client?

[Phantom4pros]

Hi everyone,

I have seen this Forum for years and there's many experienced people here with more Drone work than me. I am small Youtube channel who started around 1 year ago. I am hobbyist and love making Drone videos.

My question is, I have a received an email from a Real Estate company who wishes to pay for my Drone footage for a property marketing video, to be shown online only for 48 months. They have asked what the cost would be for using it and any special usage terms.

Can anyone on here who has experience in selling their Drone footage would advise me on what to charge and what special usage terms should I be giving?

Thank you

 

[LarBear360]

They want you to shoot new video? Or are they asking for video you already shot as a hobby?

 

[Bone4Drone]

Hi everyone,

I have seen this Forum for years and there's many experienced people here with more Drone work than me. I am small Youtube channel who started around 1 year ago. I am hobbyist and love making Drone videos.

My question is, I have a received an email from a Real Estate company who wishes to pay for my Drone footage for a property marketing video, to be shown online only for 48 months. They have asked what the cost would be for using it and any special usage terms.

Can anyone on here who has experience in selling their Drone footage would advise me on what to charge and what special usage terms should I be giving?

Thank you

I asked my neighbor what he thought and he said you should, "soak 'em till they bleed and then send in some goons to make them pay some more...." My neighbor works for the IRS so his advice might be a bit harsh.

 

[Phantom4pros]

They want you to shoot new video? Or are they asking for video you already shot as a hobby?

Thank you for your reply.

So, they want to use a video I uploaded on YouTube for their project for 48 months and are interested in using this footage in one of our property films. They wanted to know my Footage terms.

I have no idea how much to charge and I have researched thoroughly through Google and couldn't find a value. Also, what terms would I need to arrange with them.

 

[Phantom4pros]

I asked my neighbor what he thought and he said you should, "soak 'em till they bleed and then send in some goons to make them pay some more...." My neighbor works for the IRS so his advice might be a bit harsh.

Your neighbour sounds fun

 

[Canyon Mike]

Thank you for your reply.

So, they want to use a video I uploaded on YouTube for their project for 48 months and are interested in using this footage in one of our property films. They wanted to know my Footage terms.

I have no idea how much to charge and I have researched thoroughly through Google and couldn't find a value. Also, what terms would I need to arrange with them.

If you've already created the footage, then charge by the impression -- i.e. viewing. Put a time fence on their use, but retain rights to the content. Good luck.

 

[Phantom4pros]

If you've already created the footage, then charge by the impression -- i.e. viewing. Put a time fence on their use, but retain rights to the content. Good luck.

Thank you for your reply.

"charge by the impression -- i.e. viewing" How much should that be? And how would I retain the rights for the content?

I am assuming I need to draft some kind of contrat. Anyone has any contract examples?

 

[LarBear360]

It's complicated to say the least. Real Estate is big business and as such typically have hefty budgets to work with.

I don't fly commercially but did once own and operate a full service video production company. There was never a standard price for anything. They gave us a budget and we gave them a proposal describing what we could produce for that budget. We delivered the end product after which they could do whatever they wanted with it. If the client wanted to play a game of "Guess My Budget" we quoted an "average cost per minute" for a finished video.

With that in mind, I would look at your local market and what it would cost the client to produce what you already have and then charge a little less than that. Anything more and they can easily hire someone to go out and copy your shots and they will own it outright.

I would also avoid anything that involves any kind of on-going licensing or payments. It gets really messy when it comes to collection. Our productions were not for rent or produced on any kind of licensing model. If you're not in the business of producing videos for money, negotiate a price and get out. Take the money and run.

I won't go into Part 107 aspects as it's a debatable topic when it comes to selling footage you had no intention on selling in the first place. My personal take is the FAA isn't concerned with something you recorded while flying for fun. This transaction, whether it happens or not, will not impact safety one way or another.

But if this leads to more work, a Part 107 is going to be required if you want to avoid any legal obstacles moving forward.

I realize this doesn't directly answer your question, but I hope it will give you another way of approaching a fair market value of your work.

 

[Adamborz]

I do real estate photography/ videography and am part 107. You didn’t mention if you’re 107 and if not I wouldn’t sell your videos to a real estate company because their fines get very hefty if using footage from uncertified drone pilot. Now if you are certified, I’d sell your footage for set price and provide them something (on paper) giving them unlimited rights to it.

Price is gonna vary depending on your location. I’m in PA and realtors are cheap in my opinion, I charge $125 per house just for aerial pictures and will usually include very short video clips for free if they want. If they want something longer or with lots of fancy editing then I’ll double that price.

If you’re selling to a broker (like remax etc) not to individual realtor I’d probably charge more but I wouldn’t try to soak them... I’d try to give them a good price and hope to get more work in the future. I would try and negotiate a by line in the video at the end with your info too for free advertising.

 

[Canyon Mike]

Thank you for your reply.

"charge by the impression -- i.e. viewing" How much should that be? And how would I retain the rights for the content?

I am assuming I need to draft some kind of contrat. Anyone has any contract examples?

You'd have to look at their analytics data to see, but set a minimum. And, yes, I suggest an agreement, setting both compensation and IP rights.

 

[Phantom4pros]

It's complicated to say the least. Real Estate is big business and as such typically have hefty budgets to work with.

I don't fly commercially but did once own and operate a full service video production company. There was never a standard price for anything. They gave us a budget and we gave them a proposal describing what we could produce for that budget. We delivered the end product after which they could do whatever they wanted with it. If the client wanted to play a game of "Guess My Budget" we quoted an "average cost per minute" for a finished video.

With that in mind, I would look at your local market and what it would cost the client to produce what you already have and then charge a little less than that. Anything more and they can easily hire someone to go out and copy your shots and they will own it outright.

I would also avoid anything that involves any kind of on-going licensing or payments. It gets really messy when it comes to collection. Our productions were not for rent or produced on any kind of licensing model. If you're not in the business of producing videos for money, negotiate a price and get out. Take the money and run.

I won't go into Part 107 aspects as it's a debatable topic when it comes to selling footage you had no intention on selling in the first place. My personal take is the FAA isn't concerned with something you recorded while flying for fun. This transaction, whether it happens or not, will not impact safety one way or another.

But if this leads to more work, a Part 107 is going to be required if you want to avoid any legal obstacles moving forward.

I realize this doesn't directly answer your question, but I hope it will give you another way of approaching a fair market value of your work.

Thank you for that detailed reply. Much appreciated.

"I won't go into Part 107 aspects as it's a debatable topic when it comes to selling footage you had no intention on selling in the first place. My personal take is the FAA isn't concerned with something you recorded while flying for fun. This transaction, whether it happens or not, will not impact safety one way or another." - does this apply to someone living in UK?

Just clarify something, I am from UK and recorded my footage in Singapore. The company that wants to buy my footage is based in Australia (I know a lot to take in).

I have done a lot of research in to the value of this it ranges from:

Phantom 4 & Pilot- £600 per day​

Video Editing starting at £500 (Post Production)​

There is no standard rate for drone photography services. Applications range from real estate photography to building inspection and drone operators can charge from £200/hr to £5,000 per session. It does not really cost you any money to fly your drone or edit the footage, so your price will be determined by the value you provide instead.

​

So, it all depends on how much someone wants to pay for something. I'll start high and see where the client goes.

 

[Phantom4pros]

I do real estate photography/ videography and am part 107. You didn’t mention if you’re 107 and if not I wouldn’t sell your videos to a real estate company because their fines get very hefty if using footage from uncertified drone pilot. Now if you are certified, I’d sell your footage for set price and provide them something (on paper) giving them unlimited rights to it.

Price is gonna vary depending on your location. I’m in PA and realtors are cheap in my opinion, I charge $125 per house just for aerial pictures and will usually include very short video clips for free if they want. If they want something longer or with lots of fancy editing then I’ll double that price.

If you’re selling to a broker (like remax etc) not to individual realtor I’d probably charge more but I wouldn’t try to soak them... I’d try to give them a good price and hope to get more work in the future. I would try and negotiate a by line in the video at the end with your info too for free advertising.

You'd have to look at their analytics data to see, but set a minimum. And, yes, I suggest an agreement, setting both compensation and IP rights.

Than you. There's a lot to take in.

 

[Phantomwolf]

You can also make it easy on yourself by asking them to make you an offer and present it in a contract to be signed by you. If you like what they put in there, sign it and all is done. But... if you don't understand something that's in it, or even if you think you understand all of it, have a lawyer vet it and explain it to you. That might cost you $125 but it will save you a lot in the future. A plus to that is when all is said and done, you will have a contract that you can use over again and you'll have a good idea what charges will be acceptable to you. After all, the Realty company will have a good idea of what it's worth to them. Remember, something is only worth as much as someone is willing to pay for it.

 

[LarBear360]

Ah, UK. I did not see that in your profile.

In that case Part 107 would not apply. As much as our government is attempting to run our lives over here, their arm doesn't reach that far. You will need to consult your local laws.

And now that you're dealing with a company located outside of your country, I would be even more careful with this opportunity. Forget contracts altogether as enforcing anything would be cost prohibitive. I would be more concerned with whether or not the company at the other end is legit and not trying to scam you.

I like what I saw later in this thread; rather than play the game just ask them to make an offer. If it sounds too good to be true, it probably is. A common scam in the US is to "over pay" an invoice with a check and ask for the return of the "over payment" usually in the form of a wire transfer. The check will turn out to be fraudulent and by the time your bank advises you of this, your money is gone.

Or, just make up a number you know you would be happy with and leave it that. But whatever you do, don't get into any transaction that may require you to send them money.

Personally, I would never even attempt to deal with anyone outside my country unless they were already known to me or had been previously vetted by a reliable source. That's just me. I'm always assuming someone is trying to rip me off!

 

[Phantomwolf]

Ah, UK. I did not see that in your profile.

In that case Part 107 would not apply. As much as our government is attempting to run our lives over here, their arm doesn't reach that far. You will need to consult your local laws.

And now that you're dealing with a company located outside of your country, I would be even more careful with this opportunity. Forget contracts altogether as enforcing anything would be cost prohibitive. I would be more concerned with whether or not the company at the other end is legit and not trying to scam you.

I like what I saw later in this thread; rather than play the game just ask them to make an offer. If it sounds too good to be true, it probably is. A common scam in the US is to "over pay" an invoice with a check and ask for the return of the "over payment" usually in the form of a wire transfer. The check will turn out to be fraudulent and by the time your bank advises you of this, your money is gone.

Or, just make up a number you know you would be happy with and leave it that. But whatever you do, don't get into any transaction that may require you to send them money.

Personally, I would never even attempt to deal with anyone outside my country unless they were already known to me or had been previously vetted by a reliable source. That's just me. I'm always assuming someone is trying to rip me off!

Extremely good advice. Very well put.

 

[Phantom4pros]

Ah, UK. I did not see that in your profile.

In that case Part 107 would not apply. As much as our government is attempting to run our lives over here, their arm doesn't reach that far. You will need to consult your local laws.

And now that you're dealing with a company located outside of your country, I would be even more careful with this opportunity. Forget contracts altogether as enforcing anything would be cost prohibitive. I would be more concerned with whether or not the company at the other end is legit and not trying to scam you.

I like what I saw later in this thread; rather than play the game just ask them to make an offer. If it sounds too good to be true, it probably is. A common scam in the US is to "over pay" an invoice with a check and ask for the return of the "over payment" usually in the form of a wire transfer. The check will turn out to be fraudulent and by the time your bank advises you of this, your money is gone.

Or, just make up a number you know you would be happy with and leave it that. But whatever you do, don't get into any transaction that may require you to send them money.

Personally, I would never even attempt to deal with anyone outside my country unless they were already known to me or had been previously vetted by a reliable source. That's just me. I'm always assuming someone is trying to rip me off!

Definitely right on.

I know the US has a real tight grip on Drone owners and it's only a few who let the whole Drone community down by reckless behaviour. Here in the UK, it's turning into the same thing as there's some really stupid people who are flying around Airports or near Airports.

Completely agree, this definitely sounds "to good to be true". I am definitely NOT going to send any money or get into a game of that nature. I have researched the company, the person I talking to (they are on LinkedIn), but also, I will be arranging a phone conversation.

These days, in a Covid situation, there is a queue of people trying to scam and make "a quick buck".

Thank you everyone for your advice and I guess I am an optimistic and always see good in people. Let's see what happens...

 

[LarBear360]

Definitely right on.

I know the US has a real tight grip on Drone owners and it's only a few who let the whole Drone community down by reckless behaviour. Here in the UK, it's turning into the same thing as there's some really stupid people who are flying around Airports or near Airports.

Completely agree, this definitely sounds "to good to be true". I am definitely NOT going to send any money or get into a game of that nature. I have researched the company, the person I talking to (they are on LinkedIn), but also, I will be arranging a phone conversation.

These days, in a Covid situation, there is a queue of people trying to scam and make "a quick buck".

Thank you everyone for your advice and I guess I am an optimistic and always see good in people. Let's see what happens.

Definitely right on.

I know the US has a real tight grip on Drone owners and it's only a few who let the whole Drone community down by reckless behaviour. Here in the UK, it's turning into the same thing as there's some really stupid people who are flying around Airports or near Airports.

Completely agree, this definitely sounds "to good to be true". I am definitely NOT going to send any money or get into a game of that nature. I have researched the company, the person I talking to (they are on LinkedIn), but also, I will be arranging a phone conversation.

These days, in a Covid situation, there is a queue of people trying to scam and make "a quick buck".

Thank you everyone for your advice and I guess I am an optimistic and always see good in people. Let's see what happens...

Sounds like you've got a handle on it. Good luck and be sure to let us know how it goes.

 

[hmobley]

Considering you need a Part 107 License for anything on you tube, considering the edit time, considering to be legal you need an observer, considering many places require a business license, considering you really need hourly insurance, Considering planning the job, weather, etc. I start at $300 per battery, thats about 20-25 minutes on my Phantom 4 Pro, but each job is cost specific

 

[LarBear360]

Considering you need a Part 107 License for anything on you tube, considering the edit time, considering to be legal you need an observer, considering many places require a business license, considering you really need hourly insurance, Considering planning the job, weather, etc. I start at $300 per battery, thats about 20-25 minutes on my Phantom 4 Pro, but each job is cost specific

You apparently missed the fact that he is based in the UK.

 

[Phantom4pros]

Considering you need a Part 107 License for anything on you tube, considering the edit time, considering to be legal you need an observer, considering many places require a business license, considering you really need hourly insurance, Considering planning the job, weather, etc. I start at $300 per battery, thats about 20-25 minutes on my Phantom 4 Pro, but each job is cost specific

Definitely, anyone can charge anything someone is willing to pay for.

I guess clients / people don't realise how much effort and concentration it takes to put a drone in the air. (Sensible and Law abiding) Drone pilots are really an asset to the Community. I just love going to countries where you can take off and land anywhere you want without worrying about range of airports, aeroplanes, military bases etc.