Want to make more money from your videos? Video licensing is the key. Here's how it works:
You let others use your videos for a fee
You keep ownership and control
You earn money every time someone uses your video
Why it's a game-changer:
Multiple income streams
Wider audience reach
Passive income potential
You control how your content is used
Here's what you need to know to get started:
Understand different license types (exclusive, non-exclusive, sole)
Set clear terms for usage rights and permissions
Price your content based on factors like usage duration and reach
Use tools to track license usage and payments
Pro tip: Use AI tools like Video Tap to create multiple content pieces from one video, increasing your licensing opportunities.
Ready to boost your video revenue? Let's dive in and learn how to make it happen.
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Video Licensing Basics
Video licensing lets content creators make money from their work while keeping control. Here's what you need to know:
What is Video Licensing
Video licensing is giving others permission to use your video content. You set the terms - how, where, and for how long they can use it. It's a way to earn extra cash from your videos beyond just views or ads.
Think of it like this: A news channel might want to use your footage of a big event, or a company might want your video for their ads. You get paid each time someone uses your video this way.
Common License Types
There are three main types of video licenses:
Exclusive License: One party gets the only right to use your video. You might get more money, but you can't license it to anyone else.
Non-Exclusive License: Multiple parties can use your video. You might get less money per license, but you can sell more licenses overall.
Sole License: It's in the middle. You keep ownership, but let a brand use the content under specific rules.
For sponsored content, you might use a sole license. The brand can use the video, but you decide how they use it.
Understanding Rights and Permissions
When you license your videos, you're giving specific rights. These can include:
Letting someone make copies of your video
Allowing someone to share or sell your video
Giving permission to edit your video
Letting someone show your video to an audience
Be clear about these rights in your agreement. You might let a company use your video on social media for six months, but not let them edit it.
Usually, the more rights you give, the more you can charge. But be careful - giving too many rights might limit what you can do with your video later.
Copyright lawyer Kevin D. Smith says, "The main point here is that the venue for teaching does not have to be limited to a traditional classroom." This shows how different situations can change licensing terms.
When you're making a licensing agreement, think about:
How long the license lasts
Where the video can be used
Who can watch the video
If the video can be changed
If you need to be credited
By being clear about these things, you protect your work and can make more money from it. For example, you might charge more for use worldwide than in just one country, or for allowing big changes to the video versus using it as-is.
Understanding video licensing basics helps you turn your content into steady income. Remember, each licensing deal can help you make money, reach more people, and build important relationships in the industry.
Planning Your License Strategy
A solid licensing plan can supercharge your video revenue. Here's how to craft a strategy that'll boost your income and keep your content safe.
Finding Your Best Content
Not all videos are money-makers. To spot your golden eggs:
Check which videos are already killing it
Look for one-of-a-kind footage that people might want
Think about hot topics or content that never goes out of style
David Freiheit, a Canadian lawyer turned vlogger, made over $100,000 from his viral videos. His secret? "Be original and keep at it", he says. His video of a squirrel swiping his GoPro? News outlets couldn't get enough of it.
Setting License Rules
Clear rules keep your rights safe and buyers in the know. When you're writing these:
Spell out what buyers can do with your video
Say where they can use it
Tell them how long they can use it
Be clear about what changes they can (or can't) make
Alexandria Agresta, a thought leadership pro, says: "Before you sign on the dotted line, make sure the brand's plans match your goals." This keeps your work true to you while making the most cash.
Setting the Right Price
Pricing can make or break your licensing game. Think about:
How long they get to use it
What kind of file you're selling
Who's going to see it and how it'll be used
How much people want stuff like yours
Here's a tip: Start by charging 10-25% of what you'd ask for a sponsored video. If you charge $1,000 for a 30-second sponsored clip, you could ask $100 to $250 for a license.
For context, Getty Images charges about $499 for a 30-second 4K video with some limits, and over $7,000 if you want to go wild with it commercially.
Splitting the Money
Sharing the wealth can get your content out there faster. Try these:
1. Fixed Rate
Give partners a set cut of what you make.
2. Tiered Structure
The more money that comes in, the bigger their slice of the pie.
3. Performance-Based
Link their share to how well the content does.
Whatever you pick, make the rules crystal clear. Set goals everyone can see and measure.
Take YouTube's content ID program. It lets music publishers spot their tunes in YouTube videos. If a video hits 10,000 views, it might join YouTube's revenue sharing club. Music publishers could pocket up to 25% of the profits for licensed songs.
Writing License Agreements
Let's break down how to create solid license agreements for your video content. These agreements protect your work and help you make money.
Key Parts of Your Contract
Your license agreement needs to cover:
Who's involved (you and the buyer)
What video they're buying
What they can do with it
How long they can use it
Where they can use it
If it's just for them or if others can use it too
How much they'll pay and when
How to end the agreement
Time and Location Limits
Set clear rules on when and where your video can be used:
Time: Short-term for hot topics, longer for evergreen content
Location: Different prices for local, national, or worldwide use
Here's an example:
You could sell a viral local event video to a big news company for $5,000 to use for a month. But charge $15,000 for them to use it worldwide for three months.
Defining Usage Rights
Be clear about how they can use your video:
Where it can show up (TV, websites, social media)
If they can edit it
If they can sell it to others
For example, you might let a company use your drone footage in their TV ads and social media, but say no to them selling it to other businesses.
Payment Terms
Make sure you get paid:
Decide on a flat fee, royalties, or both
Set clear payment dates
Add late fees to encourage on-time payment
Here's a real example:
Getty Images charges about $499 for a 30-second 4K video with limited use. They charge over $7,000 for unlimited commercial use.
Templates can help you start, but it's smart to talk to a lawyer to make sure your agreements are solid and protect you.
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Making Money on Multiple Platforms
Want to boost your revenue? License your video content across different platforms. Here's how to make the most of it:
Platform-Specific Options
Each platform has its own way of handling video licensing:
YouTube: Use Content ID. It finds and monetizes your content when others use it. In 2022, this system paid out over $5.5 billion to creators.
Facebook: Their Rights Manager works like YouTube's Content ID. It protects and monetizes your content on Facebook and Instagram.
TikTok: They're still working on licensing options. But their Commercial Music Library lets creators use pre-cleared music in videos. This could lead to music licensing money.
Stock Footage Sites: These can be big money-makers. Take Getty Images. They charge about $499 for a 30-second 4K video with limited use. For unlimited commercial use? Over $7,000.
Going International
Taking your licensing global can really pump up your earnings. Here's how:
1. Research Local Markets
Find out what kind of content different regions want. Nature documentaries might be hot in Europe, for example.
2. Adapt Your Content
Think about making local versions of your videos. Add subtitles or dub them. This can make your content more valuable in international markets.
3. Partner with Local Distributors
They can help you navigate local rules and connect you with buyers. BBC Studios, for instance, distributes content in over 200 territories worldwide.
4. Understand International Copyright Laws
Every country has its own copyright rules. The Berne Convention covers 179 countries and is a good starting point for international copyright protection.
Exclusive vs Non-Exclusive Rights
Choosing between exclusive and non-exclusive licensing can really impact your earnings. Let's compare:
| Aspect | Exclusive Licensing | Non-Exclusive Licensing |
|---|---|---|
| Money | More per deal | Less per deal, but can make multiple deals |
| Control | More say over content use | Less say, but wider distribution |
| Market Position | Stronger in specific markets | Reach more markets |
| Flexibility | Stuck with one licensee | Can work with many partners |
For example, you could license your drone footage of a rare natural event exclusively to National Geographic for big bucks. Or, you could license it non-exclusively to many news outlets for wider exposure and more total revenue.
Working with Partners
The right partners can supercharge your licensing efforts. Here are some ideas:
1. Content Aggregators
Companies like Jukin Media specialize in licensing viral video content. They've paid out over $25 million to video creators since they started.
2. Licensing Agents
These pros can negotiate deals for you. The Licensing Group Ltd., for example, has landed deals for big names like Lamborghini and Kawasaki.
3. Multi-Channel Networks (MCNs)
While not as popular as they used to be, some MCNs like Studio71 still offer valuable services in content distribution and licensing.
4. Cross-Platform Partnerships
Team up with creators on different platforms to reach more people. A YouTube creator might partner with a TikTok influencer to create and license content across both platforms.
The key to successful multi-platform licensing? Keep your quality high while getting your content out there as much as possible.
Running Your Licensing Business
Let's break down how to manage your video licensing operation effectively.
Keeping Track of Licenses
Staying on top of multiple license agreements is key. Here's how:
Use specialized software. ivitec's MediaSeeker tracks where your content is used in real-time.
Try Veritone's AI-powered platform to manage and monetize your video assets.
These tools help you keep tabs on active licenses, when they expire, and how they're being used.
Checking Content Usage
Make sure licensees stick to your terms:
1. Use Content Recognition Tech
ivitec's software spots your content even in low quality, without watermarks. It watches specific channels 24/7 and flags unauthorized use.
2. Do Regular Audits
Check licensees' platforms yourself from time to time. One SymphonyAI client found under-reported subscribers and views during an audit, which led to big changes in earnings reports.
3. Set Up Reporting Systems
Have licensees report their usage regularly. ivitec offers easy API integrations to make this happen.
Getting Paid
Set up smooth payment systems:
Use software that creates invoices based on usage reports. It cuts down on manual work and mistakes.
Offer different ways to pay. Think wire transfers, credit cards, and online platforms.
Spell out late fee policies in your agreements. Maybe charge 5% extra for payments over 30 days late.
Following the Rules
Stick to legal requirements:
Keep up with copyright laws and licensing rules. Remember, there are over 300 streaming video services in the U.S. alone.
Use next-gen Digital Rights Management (DRM). It gives you flexible control and real-time data.
Have lawyers review your licensing agreements regularly. This matters more now that deal terms are getting shorter and are re-negotiated more often.
Make sure your team knows why protecting content and following DRM policies is important.
Using Video Tap to Boost License Value
In today's video licensing market, getting the most out of your content is key. That's where Video Tap comes in, offering a smart way to pump up your licensing revenue.
Video Tap
Video Tap is an AI-powered platform that turns long videos into different types of marketing content. Here's how it can make your licensed content more valuable:
1. More Content, More Opportunities
Video Tap takes your videos and turns them into social media clips, blog posts, summaries, and subtitles. One video can become many pieces of content, each with its own licensing potential.
2. Easier to Find
By creating different types of content, Video Tap helps your videos reach more people on different platforms. More eyes on your content means more potential buyers.
3. Global Reach
Video Tap automatically adds subtitles, making your content accessible to people all over the world. This can boost its value in international markets.
4. New Content, No Extra Work
The platform creates blog posts and summaries from your videos. That's new content you can license without spending more on production.
5. Bite-sized and Appealing
Video Tap breaks down long videos into shorter, shareable clips. This makes your content more attractive to buyers who might want specific parts or themes.
Let's see how this works in real life:
Say you have a 60-minute documentary about sustainable farming. With Video Tap, you could:
Make 10-15 short clips for social media
Create a series of blog posts about different farming topics
Produce a 5-minute summary video
Add subtitles in several languages
Now you're not just selling one piece of content. You have many. A news outlet might buy a short clip for their social media. An educational website could want the full documentary with subtitles. A farming magazine might be interested in your blog posts.
Conclusion
Video licensing can be a game-changer for content creators looking to boost their income and reach. Let's recap the main points:
1. More Money, Less Stress
Licensing your videos creates new income streams. You're not just relying on ads or sponsors anymore. Getty Images is a prime example: they charge $499 for a 30-second 4K video with limited use, and over $7,000 for unlimited commercial use. That's some serious cash potential.
2. Guard Your Work
Good licensing agreements are a must. They protect your stuff while letting others use it on your terms. Alexandria Agresta, a thought leadership pro, puts it well:
3. Reach New Eyeballs
Licensing can get your content in front of fresh audiences. Take Newsday - they've used licensed video content to beef up their subscription offerings and grow their digital subscriber base.
4. Tech is Your Friend
Tools like Video Tap can squeeze more value out of your licensed content. They turn long videos into bite-sized marketing materials, giving you more stuff to license from a single video.
5. Roll with the Punches
The licensing world is always changing. Be ready to switch things up. Dawn M. Deguzman from The Associated Press says:
Want to jump into video licensing? Here's how:
Figure out which of your videos are gold
Find potential licensing partners or platforms
Write clear, thorough licensing agreements
Set up a system to track usage and payments
Keep an eye on your strategy and tweak as needed
FAQs
How much should I charge to license my video?
Pricing video licenses can be tricky. Here's a breakdown to help you figure it out:
Getty Images charges about $499 for limited creative use of a 30-second 4K video. For unlimited commercial use? That jumps to over $7,000.
But what about your own pricing? Here are some approaches:
Production cost method: Charge 10-20% of your total production cost. If your video cost $4,000 to make, you might ask for $400-$800 for the license.
Day rate method: Go for 10-20% of your day rate for a single clip. With a $1,000 day rate, you could charge $100-$200 for a single-use license.
Client and reach: Adjust based on who's buying and how they'll use it. A local shop might pay less than a national brand.
License duration: Longer periods usually cost more. A one-year exclusive license? That'll be pricier than a one-time use.
But remember, these are just starting points. As Todd Terry, Creative Director at Fantastic Plastic Entertainment, Inc., puts it:
The key? Find a sweet spot that pays you fairly while staying competitive in the market.