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

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.

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.

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!)

Yes!  My goal was to hit $500 for only the third month ever (first since my BME last July) and I did it!

Full earnings spreadsheet is here.

With February’s income totaled, I have reached $508.89

BME: IStock, Fotolia, CanStock (DT $1.10 off)

Shutterstock went up $45 this month, a decent start but not where I want to be.  I expect Shutterstock to be well into the $300s for March.  I am starting to gain traction there again so I hope to regain my momentum.

Dreamstime nearly hit a  BME but failed by $1.10 to reach it.  It was my third month in four with basically $103.

IStock is the same old, same old.  Still 89 images but a new BME of $17.81 so whatever change they made to Best Match has helped me lately.  My last two months are my best two months in 4 years.

Fotolia did the expected and more than doubled this month due to my doubling of portfolio size.  Last month I went from 646 images online to 1350 and now at 1599 so a huge leap from Fotolia was expected and received.  Fotolia became just my third agency to start crossing the $50 barrier.

123RF and Bigstock did about usual.  No surprises.  I would like to see some growth though.  These two were earning $22-30 for me in June and same now but I’ve added nearly 800 new images!

StockXpert continues to improve.  my second $30+ in a row with only my EL month beating it (2nd BME).  I like the reviews there, I’m climing up their user charts and everything is starting to go well for me there.

The only other real surprise this month was Canstock.  I have been dumping my portfolio on Canstock because of the new Fotosearch acquistion of CSP and so far so great!  My previous *FOUR YEAR* earnings were $61 on around 125 images and lately on 470 images.  I finished uploading my portfolio so I now have just over 2000 images there and this month made $26.55 which is HALF of my all-time earnings there!  It won’t make me rich but it’s a start for Canstock.  When Canstock finishes 5th on your list, you know something is weird!

Yaymicro, FotoMind, MostPhotos and most of my small and new sites (Image Catalog, CutCaster, Vivozoom) all were at $0 for the month.  When I do Powerweek I will NOT be uploading to those sites.

Microstock Diaries

jrtb

CJ Photography

Microstock Junction

Driftless Ramblings

PDTNC

MelastMohican

Pixels Away

Bankizdjec

Microstock Experiment

This won’t be a huge surprise for anyone that follows my numbers at all anymore but March is going to be *huge* for me.  I  have done the work in February – not as much as possible but a decent amount of work.  I think I will be rewarded for it.  So many people want to doomsday and naysay on how stock is going but next month we’ll see if that’s true for me.

Why do I predict such a huge month?

• February is going to finish as my best month since July (BME).  I’m back to my max levels from before.
• According to 123RF, I submitted 450 new images in February (that would be 450 to all sites).
• My Shutterstock gallery is nearly 2000 now with 550 new since Dec 31st.  They are selling very well.
• BMEs on at least 4, maybe 5 stocks tomorrow.
• As summer comes, sales pick up naturally.  Add in the work from this month and the work I’ve done in Jan. and will do in March.  It’s coming together.
• Finally – I’m doing Powerweek v3 from March 8 through March 14th.  I will be posting about that more around the 3rd or so.

So overall March is looking like the month to beat for me.

I’ve felt challenged lately – many people have found the site.  A lot of them question my “insane” $1,000,000 goal.  I understand that.  I disagree with where I’ll end up, but I understand.  I think it’s doable or I wouldn’t bother trying.  Of COURSE it’s not doable from where I am today.  I get what needs to be done.  Keep watching!

Most bloggers in microstock are very polite, respectful and friendly to everyone.   I try to be the same but there are some times and some issues that push my buttons and I think it’s appropriate to respond to issues that come up.  I would like to say that I will talk to, help and work with any agency that wants to listen.  On the other hand, I don’t feel bad for the agencies that get upset by criticism and don’t change.

(Short version: I’m going to bust some chops.  Don’t like it, fix it.)

• Categories – I would love to know the stats on images bought through categories vs. keywords.  Are these seriously necessary?
• Shutterstock refusing to update the photographer side of the site (views, easy image management, etc).
• Banning & removing contributors for having differing opinions on how things should work.
• Fotolia flat out changing the rules mid-stream without telling anyone ALL THE TIME.
• Flat sales in a down economy – this is when we should be picking up new business partners for life.
• 123RF’s negative review wording “bad this” “poor that” “Snapshot” – ack!
• Editorial captioning rules that are ridiculous – and this includes almost every site that allows editorial images.
• Some sites show off work on their main page that has blown highlights, poor lighting, and looks awful.  It wouldn’t be accepted if you submitted it today – don’t show it off!
• Submission processes that take too long: IStock, Fotolia and several smaller sites – I’m talking to you.  This is a time-oriented business.  Make it FAST for us.
• Small sites that promise to do things different and get no sales.  Ever.  That’s not different.  That’s the same if you’re a small site.  Here’s a hint: photographers + images + sales = more of all of the above.  Thousands of images with no buyers, thousands of buyers with few images – neither works.  Stop trying to do it overnight and BUILD your site.
• Inconsistency.  I subbed 50 to a site and 45 were rejected.  I resubmitted in anger the same exact 45 with *no* changes and 43 were accepted.  Please. Fix. This.
• Make things easy – how many times do I have to repeat this on the list for stock sites to get it?  Not just submissions – make getting our money easy, make resubbing for missing model releases easy, make updating an image data easy. (thank you Bigstock for nailing this!)
• If I submitted an image 3 years ago and I have better PS skills now, allow me to replace the image with a better upload without losing all my stats, views, etc.
• Sites without FTP annoy me.
• Great looking/usable sites without views/sales/revenue – what IS that?  You have the site right.  Just sell.  If you can’t sell, close the business.  This business is ALL sales.
• Get rid of images 4+ years old with no sales.

Okay I’m done for now.  Please feel free to comment, wish me luck in my next career…(laughing), etc.  Someone has to say it.

We reached a few portfolio milestones this month already and may reach a few more before the month is out.  This is the current list and what we hope to accomplish by the end of the month.

On 123RF we are at 1973 on our way to 2000.  We will definitely surpass this goal by 1/31/09.

At Bigstock we passed 1500 by a ton – 1878 out of 2000 as well and could easily hit this mark.

Dreamstime sits a bit lower with 1733/2000 but I have just over 100 pending.  Assuming a good final 9 days, we could make it close.

Fotolia will be our big surprise for the month.  We started the month with 646 images and may top 1500 before the month ends!  Go me!    I have pushed nearly 600 images into the queue there this month.  And yes, next month I plan to finish that up and do Istock a few times as well.

Istock is only 89/100 and close to reaching my *first* milestone.  Sad, I know.

Our Shutterstock gallery is just over 1500 images at 1635/2000.  I don’t know if we’ll get 365 more approved in just over a week.  I would like to hope so … we shall see.

StockXpert gallery size is 1651 passing the 1500 mark earlier this month and headed toward 2k as well.

So our average gallery is nearing 2000 images.  Not good enough but a start.  We’ve also decided to spend a good portion of February improving our image quality to a level that will SELL a lot better.  I’ll post some trials soon.