Hi & welcome back! NiltoMil is officially off and running again – I’m keywording, submitting, pushing images and then working on shooting some new today.? I’m going to be pushing some older images even though I know they won’t sell as well as I’d like simply because I want the momentum to begin NOW not in a month when I get new stuff edited.

I’m ready for 2010!? January will be a very poor month since I’m starting so late but February should show some recovery.

In the last 6 months when I was mainly gone:

• Shot weddings – and we have 4 other photographers who shot during that time as well.
• Sold my house/bought a new house – a fixer-upper.? We’ve been working on it almost everyday since Nov 20th for 12+ hours per day.
• Delved into the food styling/preparing/photo world.? I’ve read almost every post on Still Life With, Matt Bites, and many other foodie blogs.? I’ve devoured four entire food photography books including Rinder/Smith’s new book and Lou Manna’s classic.
• Redesigned our business brand
• Traveled to Maine, twice.? Traveled to NYC.

Now that I’m back my goal is to create an income that will pay my mortgage first, other bills later.? Our mortgage is $680.? This is an achievable goal that I do have to reach for. I’ll do a more extensive goals post in the next week or so but that’s the start of it.

Current BME: $575.46, July 2008

Lookstat offers a trial of their new keywording & uploading back office services.? 25 images will be uploaded to up to 10 sites for no charge, no strings, no payment info given.

Now, before anyone asks, you do have to provide your microstock site credentials.? If you aren’t comfortable with providing this to a service provider you need read no further.? Understandably, you’re not going to be interested in this service.? That’s the first stage of getting setup.

Onto my trial!

I ftp’d the 25 images to Lookstat and a few days later started getting confirmation of the accepted and denied images.? I did nothing much in the middle except look at the keywords and approve them.? While in this step you can update, add, remove, change anything you want.? They did a pretty good job on mine though and I didn’t change a lot.

For me, the trial went extremely well.? The images were uploaded, they were almost entirely approved and the rejections were for image stuff not keywords or model releases.

The PROS

Most of the non-creative work taken care of for you.

Better keywording than you probably do on your own.

More time to be shooting & editing.

The CONS

Cost – contact Lookstat for details but it’s not the cheapest service.

Time – the ramp-up time killed me. FTPd the files, waited…waited…then started seeing them.

Handing over credentials – some people will find this a major con.? I don’t, but …

Doing 10 sites for me meant that I had to do the rest on my own – which means either waiting longer to get the keyworded images to sub to my other sites.

Conclusions: Am I going to do it?

For now, no.? During our wedding offseason I’m full time at stock so I have all the time in the world now to edit, keyword, upload and push images through.? This is MY job for the next 6-8 months.? Unfortunately once weddings start in June I will lose all the momentum I build this winter.? I may use Lookstat then to keep uploading for me.? The more images I can get edited between now and June the better, no matter how many I can keyword and edit.? I’m still going to shoot to do as much as I can but it feels really great knowing there’s some backup to keep my flow going.

I encourage any Q&A in the comments – I know Rahul reads them and will respond.? I would love for him to jump in and explain the ramp-up time better than I can as well as anything else he’d like!

Let me quote myself.

I am not going to stick around and pretend to be something I?m not.? Too many people set goals and fail to reach them, yet still continue the journey unfazed.? I often share my experiences and ideas in hopes of helping you.? If I can?t help myself first, I can?t help you.

If I fail to reach both goals (10k images, $25k for the year) by 12/31/09, NiltoMil.com will close for good whether I continue to shoot microstock or not.

At this point in the year it is obvious that I will not reach 10k approved images OR $25,000 this year.

I am modifying what I wrote above.? I am not going to destroy or delete Nil. I am going to stop posting earnings, stop posting ideas until they are working better.? I AM going to keep Nil up for the archives and the posts that often get referenced.? I AM going to continue to put up posts of interest to me – whether that’s of interest to anyone else or not.? My journey will continue.

I need to help myself first.? I need to figure out the steps I should be taking to reach my goal? and when I do, I’ll be back full force with the full effort I can give Nil.? Until then, expect sporadic updates on what I’m doing, how stock is going and what I am trying to do to improve.

Total Earnings: $440.55

That’s a number I can live with.? Granted it doesn’t get me a lot closer to the “mil” portion of this goal but it also represents an increase over August of $13 and an increase over last Sept of $31.? I upload no new photos, keyworded nothing and submitted not a dang thing.? So an increase in my earnings with no new work is definitely motivating and exciting.

As always my fully detailed results are in my Google Spreadsheet here.

Well, the summer is almost over and I’m almost back to work.? September represents the next-to-last month of me not able to focus on microstock.? That being said I’m always happy if I make a few dollars anyways.

Specific results that are important:

Shutterstock finished +$74 from last month.? I would expect something more in the middle like $160 for October.

Dreamstime was way down but Fotolia was up.? I can’t wait to see what happens with Bigstock since the SS acquisition.

NO BMEs for the first time since I started tracking stats – that’s a little disappointing but gives me some new goals and motivations.? I’d like to have one month set EVERY BME just so I had a guideline to improve from.

Others reporting microstock income:

Microstock Diaries

jrtb

CJ Photography

Driftless Ramblings

PDTNC

MelastMohican

Pixels Away

Bankizdjec

Microstock Experiment

MyStockPhoto

Stock Illustrator

I’d like to address something – the time I spend on microstock.? I think some people who read this blog are slightly confused about me slaving away and getting nowhere.

In July, I added 15 new images to my sites.? That means I worked on it for under 1 hour in July.? I made $500 in July.

In June, I added 150 new images.? About 4 hours of work.? I also made $450.? I’ve now in 2 months made $950 on 5 hours of work.

In May, I added 160 new images.? About 4 more hours of work.? Made $400.

Grand total: $1400 while doing 9 hours of work.

What I need to do in order to increase my earnings is actually work on microstock.? I do need to continue improving – I’m just really starting my second year of being a stock photographer.? I need to upload with momentum – that’s proven very successful.? But I’m not sitting here day after day churning out work that isn’t selling.? I’m just simply not putting in the time.

Why?

Our studio has 4 photographers, we’re currently hiring 2 more and we’re going to do between 40 and 50 weddings this year combined.? We’ll likely do another 150 portraits and next year will come close to 70 weddings/250 portraits.? Our wedding and portrait business has brought in over $100k each year for the last 2 and will do so this year and next as well.? I am also in the midst of building a studio management software for photographers that will track clients, billing, orders, calendaring, expenses/taxes, and task management.? It’s a huge project but one I love doing.

All that to say, don’t cry for me, Argentina.? I’m here, I’m going to continue working on micro when I can.? Right now I’m being torn in 3 directions and this one is the least of my issues.

My upload strategy of late has been momentum.? I think if we upload consistently rather than doing Power Week then nothing, we’re going to be better with sales and have a better acceptance ratio.? So far that has proven to be true.? I am now almost a full week into this consistent strategy and what I’m finding is that sales on SS, DT and SXP are rising.? Fotolia always takes awhile and BSP/123RF don’t sell enough to notice trends yet.? This consistent approach is also good for my portfolio.? Let’s take a look at where I was/am as an update.

• Shutterstock 1/1 – 1441
• Shutterstock 6/7 – 2395




• Dreamstime 1/1 – 1570
• Dreamstime 6/7 – 2346




• Fotolia 1/1 – 646
• Fotolia 6/7 – 1696




• StockXpert 1/1 – 1365
• StockXpert 6/7 – 2758




• Bigstock 1/1 – 1540
• Bigstock 6/7 – 2857

5 full months of uploading has nearly doubled my gallery on many sites, +700 or 900 new images on many other sites.? However, I’m nowhere near where I need to be on images, sales or earnings to get what I want.? So this change, along with some other new things I will be doing, will hopefully get me closer to goal.

So from now on, I’m uploading 25 a day 5 days a week, every week.? I think 500 new approved images a month is going to have to be a “good enough” goal.? If I can manage that, by the end of this year I will have 3500 new images or over 5000 on every site (except IS of course!)

Another goal that will happen this month – I’m adding at least a couple batches to DeepMeta for Istock, submitting more to Fotolia and trying to create some images that may sell better than things I have now.? We need to improve out quality to keep up with the best in this business!

Just an update for some of you who have been waiting for information from me or Shutterstock.? I will continue to add to this at the bottom of this list so please check back.

* The email Shutterstock sent is *not* being received as “an official signed letter” and it is very likely at this point that Shutterstock will need to mail you one.? Please do not file your ITIN until this is resolved as you may waste time & money.

* We are still waiting on the answers to two important questions: 1) will US sales only be counted? and 2) what percent of sales are US based?? I will update those AS SOON as I get the information.

* You will receive a form 1042 at the end of the year to show your withheld earnings.?? This may be used to reduce taxes in your own country, depending on your tax laws.? It is proof of withholdings in the US.? http://www.irs.gov/pub/irs-pdf/f1042.pdf

* Please see my previous post for a country-by-country list of threads on Shutterstock to help you deal with the situation.? I will keep it updated for as long as possible/reasonable.

* If you have a SSN or EIN you should contact support@shutterstock.com with that information.? It is possible you do not need an ITIN because all three are “id numbers” which is basically what you need.

* The best step-by-step tutorial on this so far is here.? Your specific country thread may provide more info.

* If your country is not on the treaty list in this thread, do not apply for an ITIN because it will not help you.? You are subject to 30% withholding from the US.? ? Sorry.

* For help in Russian, visit http://www.zastavkin.com/forum for German, see FotoTalk

Yikes!? Ok, full disclosure I am a photographer in the US so all of this new tax & Shutterstock doesn’t apply to me.? I would bet it applies to many of my friends and readers though so I want to cover this to the best of my ability so you guys get some clear, exact answers in one place.

If you post your questions here, I will do my best to get an answer and post it here as well.? I’ve read all 75 pages of the long thread as well as many of the other threads and have seen a lot of answers already.

Edit to add: Shutterstock just emailed me to let me know that whatever questions you post, we can try and get answers to.

What is the issue?

First, read the original post.

If you are not a US citizen or resident, and you do not obtain an ITIN and provide Shutterstock with a Form W-8BEN, US law requires them to withhold 30% from your earnings. If you are a member of one of our tax treaty countries you will have less withheld, sometimes 0% extra.? If your country is not on the list, you will have 30% withheld for income on Royalties.

Why?

US tax law imposes a 30% withholding tax on US source passive income, such as royalties, that are paid to persons who are not citizens or residents of the United States. US tax law requires the person paying the royalties to withhold the tax and pay it to the US Internal Revenue Service. If the person receiving the royalties is a resident of a country that has an income tax treaty with the United States, the withholding tax may be reduced or eliminated. However, to take advantage of the lower withholding tax US tax law requires that the person receiving the royalty payments provide a properly completed Form W-8BEN. US tax law also requires that the person who provides a Form W-8BEN for this purpose have an ITIN.

A lot of people are wondering “why do we pay this – what benefit do we get in the US?”? The answer, although you won’t like it, is that you get the benefit of selling your work in the US and under IRS tax law, you ARE doing business in the United States if you sell to US companies.

More Details

If you are in a country with no tax treaty with the US, you seem to be stuck paying 30% no matter what.

The payouts going out for May will not be affected but June’s may be affected.

If you wish for your account to be removed, the SS CEO is offering to remove it for you.

Yes, US residents pay their tax – we pay it in April as income tax.? We know you pay yours in your home country too.

At the end of the year, you will get a Form 1042 from Shutterstock.? This can be found here: http://www.irs.gov/pub/irs-pdf/f1042.pdf? You will know your tax liabilities in the US.

ITIN Info

• ITIN FAQ’s in English
• ITIN FAQ’s in Spanish
• Obtaining an ITIN from Abroad
• Publication 1915, Understanding Your Individual Taxpayer Identification Number (PDF)

So what can we do?

Step By Step Tutorial

Armenia

Australia

Canada

Czechs

Croatia

France

Germany post

Greece

Italy

Latvia

Lithuania

Malta

Malaysia

Mexico

Netherlands

Poland

Russia

Romania

Serbia

Sweden

UK

How to Notarize a passport (copy) info (multiple countries)

A bit of info in Spanish

All questions for Shutterstock about taxes can be directed to their new forum on tax questions.

Again, if you post your questions here, I will do my best to get an answer and post it here as well.? I’ve read all 50 pages of the long thread as well as many of the other threads and have seen a lot of answers already.

I learned a huge lesson in the last 3 months. That lesson:

“Success requires first expending ten units of effort to produce one unit of results. Your momentum will then produce ten units of results with each unit of effort.” – Charles Givens

What I mean to say, exactly, is that stock is a momentum game. The more quality images you upload, the more people visit your gallery and thus the more sales you have overall. The first bit of starting requires a harder push than later on but you must start and (here’s the lesson of the day) KEEP GOING.

I’ve watched the downloads of several major contributors this month and last. They nearly always are consistently uploading. Image totals go up here and there and the contributors continue to be successful. Another thing I did was watch a few contributors with totals near mine. Some went up, some did not.? For the most part these type of users make up the majority of active contributors – those who are basically spinning their wheels.? The last group needs no monitoring.? They are the contributors who submit a few times, don’t make $10,000 and go away never to be heard from again.

I’m concerned only with the group that uses momentum in its favor.? This group uploads consistently, 50-200 images? a week almost every week.? This group also seems to make most of the money in microstock.

So what is it that keeps the momentum going?? What keeps a contributor going?? I think they are obsessed.? One of my favorite quotes ever is by John Irving.? He said the secret to business was “You’ve got to GET obsessed and STAY obsessed.”? Many start there – how do? you continue your obsession?? What makes you enjoy the business?

Recently I was away for a few months, reconsidering what I wanted to do in microstock.? Over the summer last year I lost my momentum and it really hurt my sales and my mood.? I have in the last few weeks been kicking it back into gear.? It’s time to run again.? I am obsessed with microstock again.? I want to learn, move forward, WIN.? I want to hit goals, hit higher ones and hit ones so high I have to reset them all.? I am officially OBSESSED with microstock and it’s time to get back to good.? I’m not going to let summer stop me this time.? I am shooting again, editing again, uploading again – with more consistency and less “flurry.”? Powerweeks work against me – that’s figured out.? Moving forward in a consistent manner is the goal.? We shall see!

Thanks for reading – I really appreciate all of you guys.? Leave me a comment and I’ll stop by to see what you’ve been working on too!

So I know I’ve gone about two weeks since the last update.? I’m still here – it’s just that season.? We’ve been meeting with brides a lot, shooting some early season engagement sessions, finishing taxes for 2008 and yes, working on a business plan for a new software we are developing.? So let’s take that in order.

Brides and weddings and such are the main thrust of our business.? We own a studio of 4 photographers, each shooting 15-30 weddings a year.? I do all of the editing, most of the marketing and a good deal of the shooting for it.? It has been interesting balancing a “shoot and edit quickly” type of thing like weddings with a “Shoot and then photoshop as good as you can no matter what” type of stock shoot.? I think sometimes I try and edit stock too fast which is why it ends up in rejection mode.

Taxes basically suck.? The more money I make from stock, the more I pay in taxes.? With our wedding business we have figured out where the expenses will go, what we’re spending on so we’re not paying taxes on EVERYTHING, etc.? Stock is basically using the same gear I already have, a few travel receipts and tons of income proportionally speaking.? Making $6000-10,000 in a year is good.? But when you only keep $3500-6000 of that, you have to wonder what you’d need to make for it to be worth it!

Oh and our business plan – we are creating a software for small service business management that will basically do everything – track clients, appointments, shoots, income, invoices, tasks to be done, everything.? It’s going to be amazing and should be done late summer, early fall assuming we can find ANYONE to finance us.? If and when that happens I’ll be sure to post about it as well.? I’m really excited for the possibility of solving some of our problems as well as helping others with it.

So that’s my last few weeks – Sarah’s still shooting and I’ve done some editing.? I think I have 300 edited but not yet keyworded to get on.? That should be a good goal for the next few weeks – keyword everything, edit more, get a few 100s submitted.

Coming up soon on NiltoMil: Picniche’s toolbars, Photoshop tutorials including “Editing without a mouse” and “Workflow Speed 2.”? With the trouble Cushystock has given me lately I may also pull out a Prostockmaster vs. Cushystock post.? Stay tuned (and visit the sponsors to the right who help keep us here!)