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Fees for creative services consist of two components: the performance fee for the creative work, and the usage fee for use.
This fact is often difficult for clients to understand. Why should they pay for „use“ if the work has already been compensated for? What is a „creative“ work anyway? Is it protected, and what happens if it is used without payment? Money and creativity – a dual perspective.
Let’s define creativity! Difficult? Then we ask ChatGPT:
Creativity is the ability to develop original and valuable ideas, concepts, or solutions to problems. It involves the ability to combine existing knowledge, experiences, and resources in novel and unique ways to create something new and useful.
In short, a Creative person is someone who sees and realises options, solutions, and possibilities where others are waiting.
Creative solutions are always based on conscious or unconscious references, knowledge, or inspiration. Nothing can be created purely on its own, even if we still buy into the myth of the brilliant designer in the black turtleneck sweater. Creativity is always built on a network of information, knowledge, and processes: it requires expertise, an optimistic attitude, interest in the unknown, a fair amount of persistence, resilience when things don’t work out, and, crucially, collaboration.
It may be possible to make money with work if you’re lucky or in an exceptional position. However, getting rich through paid work alone is difficult. Why? Paid work refers to earning an income for a set number of working hours. So, you can earn a lot of money with creativity, but not even with perseverance, because the number of possible working hours is limited, and the hourly rate for creative service providers is not as high as that of many other professions.
Since creative services often achieve a significant monetary, intellectual, or technological impact over a more extended period of time, creatives sell not only their work but also the rights to use these services. The following categories apply to determining the costs of this use:
These components result in a factor that is multiplied by the service fee and added to it. Voilà, the final fee is calculated. If the use is extended, a subsequent calculation is made.
If nothing is explicitly agreed upon between the creative person(s) and the customer regarding usage rights, the doctrine of transfer of purpose applicable in copyright law applies:
Accordingly, in case of doubt, rights are always only granted to the extent necessary for the contract. For example, if a subject is created for a specific advertisement, in case of doubt, it is permitted for single use only for that advertisement, not for further use, e.g., online or for other advertisements in a different context.
Absolutely. Only if exclusive use is agreed upon can clients ensure that a creative solution is available only to them.
If this is not the case, solutions can be sold to any number of clients and competitors. Ideally, it should be clearly regulated whether the creative creator retains the right to use further (only for their own portfolio, or also for other clients?) or whether the client is granted exclusive rights.
