Pricing usage rights and exclusivity

The four axes that define what a client may do with your work, why they're priced separately from production, and the carve-out to never sign away.

Adam Murray6 August 20269 min read
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Two clients commission the identical two-day shoot. Same crew, same gear, same edit, same deliverable.

The first runs it on one Instagram account for a month. The second runs it as paid media across four markets for two years, and it carries a product launch.

If you charged them the same, you gave the second one something enormous for free.

That something is usage, and it's the half of freelance pricing most people never quote.

Production and usage are different products

The production fee pays for making the thing. Your time, your crew, your gear, your overhead. It's a cost, and it scales with the work.

Usage pays for the value the client extracts from it. It's not a cost. It's a licence, and it scales with what they're going to do.

Quote them as one blended number and the client buys the second one for free, because nothing in your quote priced it. Quote them as two lines and the conversation becomes concrete: what exactly are you going to do with this?

That question, asked at quote stage, is worth more than any negotiation tactic.

The four axes

Every usage grant is a point on four dimensions. Name all four, every time, in writing.

AxisCheap endExpensive end
MediaOrganic social onlyPaid social, web, broadcast, out-of-home
TerritoryOne countryRegion → worldwide
Duration6 months2 years → perpetual
[Exclusivity](/glossary/exclusivity)NoneAsset → category exclusivity

Media

Where it appears. Organic social is the cheapest grant: it reaches the audience the client already has. Paid social means it becomes an advertisement, backed by budget, reaching people who've never heard of them. Broadcast and out-of-home are different orders of magnitude again.

The commonest quiet upgrade: a film quoted for organic gets boosted. That's paid media, and it should have been priced. Say explicitly whether paid is included.

Territory

Where in the world. Straightforward, and worth naming even when the answer is obviously one country, because "we've expanded, we're running it in three more markets now" is a conversation you want to have as a renewal, not as an assumption.

Duration

How long. A finite term is almost always better for you than perpetual, and better for the client than they expect, because it lets them pay less now for something they may not need in three years.

Perpetual worldwide rights are not a rounding error. They're the client asking to use your work forever, everywhere. Price them as such, or grant a defined term with a stated renewal fee.

Exclusivity

The one axis where the client is buying something they don't receive: your ability to do things.

Two kinds, routinely confused:

Category exclusivity stops you working with their competitors for a period. It removes a slice of your addressable market, and an unbounded version is a serious commitment that gets sold as a clause.

Asset exclusivity stops the footage appearing anywhere but their channels (including, if drafted carelessly, your own portfolio).

The carve-out that matters most

While you're there, agree two more things that get argued about later:

Raw footage. Is it a deliverable? In what state? Organising and delivering rushes is real work, and "we assumed we'd get the rushes" is a common and entirely avoidable dispute. Assume they don't get it unless you've agreed they do.

Credit. Whether you're credited, and where. Low stakes for them, sometimes high value for you.

How to price it

Here's where most guides hand you a multiplier table. I'm not going to, because there isn't a real one.

Rates vary enormously by market, by category, and by how much of the client's media budget rides on the asset. A table that's roughly right for London advertising is wrong for a Cape Town SME, and presenting one as industry standard is a claim dressed up as arithmetic.

What is universal is the method:

  1. Establish the production fee first, built from days. See how to price a brand video.
  2. Express usage as an uplift on it. A percentage, not a fixed figure, so it scales with the job.
  3. Set the uplift from the four axes, using your own market's rates as the anchor.
  4. Quote it as a separate line.

Where do you get your market's rates? Ask other freelancers in your city and category. Most will tell you. Look at what production companies charge for comparable licensing. Ask the client what they've paid before; a surprising number will say.

Do this once, write down the uplifts you'd use, and reuse them. The point is to have a considered position before the conversation, not to invent one during it.

The conversation

Ask what they're going to do with it, at quote stage. Not as a negotiation move: you genuinely cannot price a licence for an unspecified use. "Where will this run, in which markets, and for how long?" is a professional question.

Offer a shorter term as the default. Twelve months with a stated renewal is easier to say yes to than perpetual, and it's better for you. Many clients prefer it once they realise perpetual costs more.

If they want perpetual worldwide, price it and let them choose. Some will pay. Some will discover they only needed a year. Both outcomes are good; the bad outcome is granting it silently.

Never trade fee for rights. A reduced production fee and broad usage is not a favour. It's a discount on the expensive half. If the budget is tight, narrow the usage, not the fee.

The one that catches people out

An unpaid or heavily discounted job "for exposure" with full usage attached.

If you're taking a job below rate for a genuine reason (a portfolio piece you couldn't otherwise make, a category you're breaking into), take it with the usage tightly scoped. Six months, organic only, one territory, portfolio retained.

The reduced fee is the favour. Don't also hand over the licence.

Where Acumin fits

Invoicing through Acumin takes no commission, and it takes none because it never handles the money: it records invoices rather than processing payments. Invoices sit attached to the booking, the delivery and the rating instead of living in a separate folder, and you can invoice off-platform clients through it too, which is where most freelancers' usage terms end up scattered.

What it doesn't do is negotiate for you or tell you what your market's uplifts should be. That's local knowledge, and it's yours.

How to use this tomorrow

Take your last three invoices. For each one, write down what you actually granted on all four axes.

If you can't answer for any of them, that's the finding: you've been selling a licence without specifying it, and the next contract is where to fix it.


Related: How to price a brand video builds the production fee this scales from. A portfolio that gets you booked is what the carve-out protects.

Written by
Adam Murray
Founder, Acumin

Adam builds Acumin. He spends his days on the same two problems this library is about: working out what a piece of content is actually worth, and getting a brief through production without it turning into something else.

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