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How Much to Charge for Video Licensing? The Definitive Guide!

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How Much to Charge for Video Licensing? Video licensing allows you to hand over the rights of your video to someone in exchange for money. If you own a video that you need to license, it can be pretty challenging to determine how much to charge for video licensing. The fair rate to license your video depends on a lot of factors that are hard to figure out.

Typically, you should charge the video licensing fee for your footage depending on the size of the company, their reach in the media, the frequency of usage of your footage, the duration of their usage, and what it cost you to record the footage. As a rough estimate, your fee should be 10% – 20% of your daily rate.

Read on to find out more about how you can figure out an exact amount to charge for video licensing.

How Much To Charge For Video Licensing?

Mostly when companies hire videographers to record some footage, they pay these professionals for their services and naturally own the final edited piece of the footage. That’s how it normally works. So most videographers never have to deal with determining a licensing fee.

However, some companies do pay to acquire the rights to your video in addition to paying you for your services. They will ask you how much you charge for licensing your video. Now, this may confuse you at first and leave you wondering how you should do the math.

Whether you already own a video that you need to license or you want to license a video that you recorded yourself, there are a number of factors that can help you determine the right fee. These include:

  • The size of the company or whether it is an individual or a business asking for the video license.
  • Their media reach. For instance, will it be used in one single commercial online, or will it be shared across all of their media channels?
  • The frequency of their usage. Will they be only using it once, or do they want rights to unlimited use?
  • The duration of their usage. Is it once, for a year, or forever?

These factors should help you figure out a fair fee to charge for video licensing.

However, you should note that this is not the only way to figure out the cost. These are just a few factors that matter when determining a fair fee. You can also charge them based on how long it took you to record the footage and how much work you put in. Besides this, you should consider how much the party would have paid a professional to record a video of similar nature.

Here is a scenario to help you figure out the right fee for your footage.

You recorded footage of yourself riding a mountain bike on a difficult trail. Now imagine a local business wants to use this footage for an outdoor ad. They will be airing the ad on TV for the entire country to watch. They require non-exclusive rights to the video and will be using it for a few months. So if you were to determine a fair licensing fee for this situation, you should ask for about 20% of your daily rate for licensing the video for every day they use it. You can then add the production cost to the entire fee.

So let’s say your day rate is $200, and the video’s production cost is about $700. You will be charging 20% of $200 for every day they use it and then add $700 to the final estimate. So, in this case, it would be $40 (20% of $200) multiplied by the number of days they use it for plus $700. So for a month, it would be $1900.

But That’s Not a Fixed Number…

Of course, you can increase or decrease your rates depending on the size of the business you are licensing your video to. You will also have to charge less from an individual as compared to a business. Generally, photographers charge 10% of their day rate to individuals and 20% of their day rate to businesses.

However, if a company requires exclusive rights to your video forever, you will need to charge a lot more. It could cost them thousands of dollars to acquire the exclusive rights to your video.

You can find out more about licensing in the following resources:

How Much is a Music License for a Salon?

How Much Is a License to Play Music at Work?

How Much Does a Song License Cost?

When is a Licensing Agreement Used for Video Game Development

A Mechanical License Agreement: All You Need to Know