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.

Shutterstock Announces New Plan to Protect Each Image and Footage Purchase

Largest subscription stock image site guarantees its entire library of more than 8.5 million images and 140,000 footage clips

New York, October 20th, 2009 – Shutterstock, the world’s largest subscription-based stock photo agency, announced today that it will legally guarantee every file in its vast library by providing up to $10,000 to cover legal costs and direct damages for claims arising from the use of an image or footage clip licensed through Shutterstock.

Thanks to Shutterstock’s thorough and selective review process, the agency has become a global leader in providing affordable, high quality images that comply with the highest legal and ethical standards in the industry.

Shutterstock has now gone a step further by covering key areas of liability, including copyrights, trademarks and rights of privacy and publicity. Under the new plan, which begins today, every file in Shutterstock’s expansive library – which consists of more than 8.5 million images and 140,000 footage clips – will be guaranteed.

“We’ve become an industry leader by earning the trust of stock image and footage buyers worldwide,” said Jon Oringer, CEO and founder of Shutterstock. “Although claims involving our content are extremely rare, we wanted to give our customers an even higher level of comfort by providing up to $10,000 in indemnification.”

Shutterstock’s protection plan, along with its uncompromising commitment to the integrity and quality of its images, solidifies the company’s reputation as a trusted resource for image and footage buyers worldwide.

Move signals Shutterstock’s expansion into the credit-based stock photo market

New York, September 23, 2009 – Shutterstock, the world’s largest subscription-based stock photo agency, announced that it has acquired BigStockPhoto, a leading credit-based stock photo agency, headquartered in Davis, California. Financial terms of the deal were not disclosed.

“BigStockPhoto is a leader in the stock photo industry, and an excellent fit for Shutterstock as we expand into the credit-based market,” said Jon Oringer, founder and CEO of Shutterstock.  “This addition will enable Shutterstock to better satisfy the diverse payment preferences of stock photo buyers worldwide.”

According to the deal, BigStockPhoto will remain a separate entity, and Shutterstock plans to grow the company’s global presence by investing heavily in marketing, infrastructure and user experience.

BigStockPhoto was founded in 2004 to provide an alternative to high-priced stock photography, and to create a marketplace for photographers to sell their work. In addition to its diverse library of 3.7 Million royalty-free photos and vectors, the agency has created a vibrant community of image buyers and submitters from around the world.

About Shutterstock®

Founded in 2003, Shutterstock is the largest subscription-based stock photo agency in the world. Its outstanding collection of premium photos, illustrations, and vectors combined with a selection of innovative, user-friendly subscription plans has made Shutterstock a trusted resource for an expanding global customer base. An industry pioneer in selling royalty-free stock by subscription, Shutterstock was also the first online photo agency to offer editorial photos and launch a video library. Shutterstock Footage offers a comprehensive library of royalty-free video clips available on a per-clip basis or by subscription. For more information, visit www.Shutterstock.com.

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.

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!)

WHOA!  If you’ve read NiltoMil for any longer than 1 day you already know I’m all about speed, workflow and making things simple for us, especially across the smaller sites where it’s not necessarily worth our while to upload unless it’s dead easy.  Well I have had the opportunity to try Canstock’s new bulk upload tool and I’m impressed!

According to Duncan, who is obviously still running things over at CSP after their buyout by Fotosearch, the main benefits of the bulk upload tool include:

• You do not need to categorize images; they will do that for you
• Model releases can be applied in a batch, with a page of 100 images at a time
• Added the ability to upload a photo of each model, for quick identification when selecting releases
• Images can be submitted a page at a time, instead of one at a time
• The interface is faster than ever

According to Matt, me, I had 1400 images backlogged from Canstock because I wasn’t uploading over the last few months.  I uploaded them all one day accidentally forgetting that I had 7 days to get them done.  Canstock came to the rescue by letting me use this bulk tool to finish.  In the first 5 days I’d managed to finish about 400 images in 6 hours.  Once I started using the bulk tool I finished just over 1000 images in 90 minutes!

The bulk uploader is still in beta, but you can activate it on your account in the meantime by going to http://www.canstockphoto.com/beta/

Why am I uploading to  Canstock?  Sales have been crazy-good.  Wait for the end of month but I’ve sold more this month than in the last 6 months put together.  Add in the new $19.80 Fotosearch Sales (which I’m still waiting for …) and it makes sense.  If you bother to upload to anyone after the top 6 you should now include Canstock Photo again.

If you have files that have not sold during the last 24 months, you can decide to offer them to the Free Images API and receive 0.5 credits for each file submitted. Of course, your files will remain on the Fotolia website and may be sold at any time, but they will also be offered for free via the Free Images API.

Offer Conditions

For each unsold file added to the Free Images API, the contributor receives 0.5 credits to their Fotolia account. A file added to this Free Images API will still remain on the Fotolia website and may be sold at any time. When an unsold file is added to this Free Images API, the contributor can not remove the file from this section for at least 18 months. Files from the Fotolia Free files API will be distributed through partners sites using the Fotolia free site API as well as the Fotolia free files section After 18 months, the contributor will have the ability to remove this file from the Free Images API if they so choose.

Procedure

Files which may be added to this Free Images API will be displayed in the Member home > My files > Unsold files section. You just have to decide which files you wish to add to the Free Images API. Upon submission to the Free Images API your credits will be immediately added to your Fotolia account.

Exclusivity and Commission Changes

I was going to post the section on here about Fotolia dropping comissions, changing EL structure, etc. but I have since heard that “a new, corrected version of the newsletter will go out “soon”.”

I don’t believe Fotolia made a mistake.  I think they again changed everything without warning us, let the fallout happen, and will change things that must be changed.  This *again* points to my earlier rant about changing the rules without telling us…it’s bad business.

Conclusions

The Free API thing is “ok” if you want a few bucks.  Maybe you’re $3 from payout and you can add a few images to the freebie collection to make it this month.  Fantastic for you.  I may do this with my wife’s account as she’s made like $47 in 4 years on 20 images.  Put them all in, 10 credits and she makes payout and is “done” on FT.  No worries there.  For me?  I’m not sure – maybe I’ll look over some older files that haven’t sold.

As far as dropping comissions, changing EL structure, etc.  Fotolia – please understand that you keep doing this and eventually people are going to give up on you.  Really.