Artists Earning Over $100,000

I recently received an inquiry from an artist who apparently found ArtistsWhoTHRIVE.com by searching online for “artists earning $100,000.”

This week I also consulted with another artist who asked me, “How did you sell over $100,000 in art in your first year as a full time artist?”

Apparently this is a magical number equaling success for many artists.

I found these inquiries serendipitous and a bit amusing so I knew that I must answer the question this week.

How did I sell over $100,000 of art in my first year as a full time business?

I tell you how I did it.  And I’ll share how other artists that I have coached have done it or who are going to sell over $100,000 of art.

First let me say, obviously how I sell my art will certainly be different from how you sell yours.

But after coaching and consulting artists from across the globe I have noticed that there is a basic formula for success.

1. Successful artists have a very clear and specific goal, a SMART goal.

My goal was to sell over $100,000 of art in my first year in business full time.

Notice the specificity of this statement.  Also note, I did not “earn” over $100,000, I sold or grossed over $100,000 of my art.  In fact, I exceeded this goal by 25%.

2. Successful artists are disciplined and focused.

I got up every day knowing what my goal was and I built and maintained an action plan to keep me focused.

Building an action plan was pretty easy for me as a former project management consultant.  But if this is not your natural skill set you’ll need to get some help.

3. Successful artists have a positive attitude.

This is huge.  It’s very difficult to remain focused without a positive attitude.  And making and selling art can clearly be a daunting task when you’re starting out.  A few pearls of wisdom to ponder.

Thoughts are things.

As you think so shall you become.

Stand guard at the gate to your mind.

If you don’t know where to start, I recommend starting first by:

A. Developing and maintaining a positive attitude.

B. Then define a SMART goal.

C. Take focused action on it every day until you reach it.

When a potential patron asks if you will offer them a discount you should say “no” or some form of “no.”

I can hear it now. “Well they are a good friend.” or “They are a repeat collector.” Yes. That’s nice. Shoot yourself in the foot, if you like.

“Good friends” don’t ask for discounts.

And if they are a repeat customer and you want to acknowledge your appreciation, fine. But do it in some other value added way, like complimentary shipping, framing, or installation.

Why do I put such a fine point on this? Because it is costing you money.

And collectors are already confused about what amount they are paying for art and why. Your lack of confidence can undermine theirs and that can compromise or squash the sale.

So have a price sheet of your art at the ready. A written price is not as easy to negotiate as the one you speak.

Art is a luxury good. Don’t forget it. During the recent economic downturn a number of luxury brands threw themselves under the bus when they desperately discounted to stay a float.

The Hermès Group, founded in 1837, didn’t dare. They took the long view. What happened to them? They’ve maintained the luxury market’s respect and they’ve gained significant market share.

An art consultant I know, who has dealt with hundreds of artists over the years, confirmed that those artists that allowed her to discount their art sold significantly less work than those who maintained a policy to never discount.

Take the long view. Build your brand. Don’t discount your art. In the end, it will be worth it because you’ll sell more art.

Recently I have noticed ads from the San Francisco Art Academy promoting the tag line “Art as Career.”

Throughout art school I was constantly handed references to ones “artistic career.”

When you look at most fine artists’ websites, what do they present?  They proudly display their resume or their CV.  Are they applying for a job?  I don’t think so.

The only time you have a career is when you work for someone else, when you receive a paycheck, a W2.

Fine artists are in business for themselves.  They are entrepreneurs and they embrace that reality or they reject it and struggle. It’s simply a choice.

If you are a fine artist I’m not sure where you can go to pick up a paycheck for your talent.  And if you do you will most likely be changing gigs often.

Unless you trade your talent for its commercial application, like any small business, you’ll need to define your unique value proposition and reach your target market, even if your market is solely galleries and art consultants.

Why do I put such a fine point on artists having a business and not a career? Because until an artist embraces this fundamental reality they will be trapped by an illusive idea of success that they will never get their heads wrapped around.

I understand that this is a fundamental paradigm shift for most artists and our culture.  My own graphic designer gave me crap about putting my title “Artist & CEO” on my company’s business card.  He said, “CEO? That’s too corporate.”  I replied, “Well, I do own a corporation and I am the CEO. This is my legal title.”

I can hear it now.  But I don’t want to “sell out.” What does that really mean? Does anyone really know? The good news is that much more creative and financial freedom can be found through business savvy.

So if you accept this economic reality what do you do?  Start reading books on marketing, educate yourself about finance, taxes, legal issues, and sales.  Learn whereever and whenever you can.  And consider the fact that Steve Jobs of Apple has always considered himself an artist.

If you live near a major city you can start or continue your business education at a Small Business Development Center. They offer free and low cost services.

Sorry they didn’t clue you in art school but they don’t tell doctors or lawyers how to run a practice either.

Licensing images is typically what an illustrator does, a fine artist, like myself, not so much.

There’s no right or wrong here, these are just two very different business models.

An illustrator is hired to execute someone else’s vision of a subject.  A fine artist is commissioned to execute their vision.

Fine art is a luxury product.  A luxury product is diluted as it becomes more common and less exclusive.

I have chosen not to license my intellectual property for four main reasons.

1.   It would interfere with communicating exclusivity, a requirement for a luxury brand

2.   I have found it to be too much work to explain licensing to inexperienced licensees

3.   It doesn’t pay all that well and I believe in going for the “low hanging fruit”

4.   The three times I did license my images, it was an enormous pain in the *#<!

The last licensee, a small winery, helped themselves to my image and illegally applied it to their poorly designed website and sign walk sign.  Although these applications were specifically prohibited in the contract.

I sued them twice and I won twice.  But this is not the highest or best use of my time and the financial settlement certainly didn’t make up for all the trouble.

If you are thinking of licensing to gain “exposure”, think carefully. Exposure is often over sold to eager artists.

“Exposure” can be translated into the artist giving a lot for a little to nothing in return.

My first of three wine labels sold a lot of wine and it was prominently featured in wine shops on the end caps.

But I did not profit from the winery’s profit.

I realized quickly that if I was going to license my images for wine labels that they should be the labels on my wine, not someone else’s.

My income has come primarily from the sale of my original oil paintings and the Giclée prints that my company manufactures and sells directly.

Licensing can be profitable, but if you are just starting out, tip toe very cautiously into this realm.  And make darn sure that it supports your long term strategic objectives.

“Doing business without a contract is like building a house without a blue print.” Mark Monlux.

It is naïve to think that you don’t need a contract if you are a creative.  If money is changing hands, you’re in business. Therefore, you need a written contract.

Without a written contract the terms are open for interpretation, and too often it’s misinterpretation when it comes to selling art.

“What if I’m doing business with a friend or family member?” Then you need a contract even more to preserve that important relationship if and when an issue arises.

The single most horrific transaction I’ve had in over five years in business was with a “friend.” She turned Psycho as she absurdly ignored terms of the contract she signed.

She actually accepted the commissioned painting, kept it for three months, and then announced that she wanted to return it and have me paint another one, and yet she had damaged it.

It get’s worse but I’ll spare you the details.  I’m not kidding.  You can’t make this stuff up.  Ironically, this crazed “friend/patron” was a frustrated artist who now represents artists.

Without the contract I’m certain that the situation would have deteriorated even further.  With the contract in place my losses were limited to the extend that I had defined them in the agreement.

Make it clear to friends and family that the rules are the same for them.  If they show any resistance don’t do business with them.  It’s not worth the risk.

“Why are artists adverse to contracts?” I think it is simply a lack of confidence because they don’t yet believe they are successful enough to ask for what they want.

This is stinking thinking. If you want others to respect you and your terms you must have a contract.  It’s business 101.

If the other party is reluctant to sign a clear and fair contract then that’s a big red flag waving, “Don’t go down this road!”

Make sure that you discuss each aspect of your agreement before you present the written contract so that there are no big surprises. Communication is a key to success.

One of the best pieces of advice I’ve heard about writing a contract is to outline it as if you are getting married and as if will be getting a divorce.

Some things to spell out include:

1. When will the work be complete?
2. Who owns the intellectual property?
3. What it will cost?
4. When the money is due?
5. What form of payment will you accept?
6. What if payments are late?
7. What’s the sales tax?
8. What’s the scope of the work, what’s included and what’s not?
9. What if the patron doesn’t like it?
10. What happens if you want to end the contract?  How and when can you?
11. What if there is a conflict that you can’t resolve?

The Graphic Design Guild’s Annual Pricing and Ethical Guidelines is a great place to start.  But you really need an attorney, who is licensed in your state, to review your contracts.

I use Pre-Paid Legal for this.  I’ve found this service to be so cost effective that I distribute it to artists.

Using contacts is not a sign of mistrust, it’s a sign of good faith and professionalism.  Contracts help preserve relationships by providing a tool to prevent misunderstanding and mitigate conflict.

You have currency sitting around your studio. In a sense, you may have stacks of money or you can even manufacture it.  How?  What?

Is there a particular good or service that you need, or just want, but you just can’t afford right now?  Maybe it’s graphic design, massage, editing, consulting services, a haircut, or even medical treatment? You get the picture.

Try bartering.  This is an ancient system of exchange that many creative folks still use today.

“Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money.”

When I created my initial business offering for wineries I needed a credible brochure. So I gave painting lessons to the CEO of one of the very top graphic design firms in the US.  He was so happy that he took his lead graphic designer off of a deadline to design my brochure.  The result, I had graphic communications that made my new enterprise look like I’d been a success for years.

My recommendation.  Put this agreement in writing and have each party sign it.  So that there is no room for misunderstanding, spell out:

1. specifically what you are trading
2. when it will be delivered
3. and for what dollar amount

I suggest keeping it simple, for every dollar of good or service you’ll trade a dollar’s worth of your art.

Make sure that you state that each party will treat this transaction with the same level of importance as any other.

What do you need?  Think of one or two things. Then start asking around  your network. Asking is free.

Artist, CEO | Ann Rea, Inc. & Founder of ArtistsWhoTHRIVE

Click here to listen to Ann Rea on KZSC radio’s “Artists on Art“.

Artist, CEO | Ann Rea, Inc. & Founder of the Artists Who THRIVE website was on KZSC 88.1 FM, 3/29/11 AT 8 pm. Ann is a San Francisco based painter and marketing expert. During the show, we talked her art and her upcoming workshop with CCSCC entitled “Art of Marketing.”

Ann will be teaching for Cultural Council of Santa Cruz County the “Art of Marketing” seminar at the Cabrillo College Visual Arts Lecture Hall in Aptos on Saturday, April 16, 2011 10:00 AM – 12:00 PM. To register for this seminar, call (831-475-9600 x 16 or click here. Location: Visual Arts Lecture Hall #1001 6500 Soquel Drive Aptos, CA. Cost: $25.

Ann will help you learn to:

• Define your unique value proposition
• Define your market
• Create an action plan for success
• Learn a non-traditional approach to successfully marketing art and how you can generate sales even without a gallery

Up to three students will be selected for a mini marketing makeover in class ($500 value).

Other upcoming Seminars  from Cultural Council of Santa Cruz County (go to www.ccscc.org for full description and location):

Ways to Register: Call (831) 475-9600 x 16 to pay by credit card. Stop by the CCSCC office to make a payment by cash, check or credit card. Visit our website to register online.

Noooooo.  What? Did she just say, “Artistic talent is overrated!?”  Ohhh, yes I did.

I’m partnering with the founder of John F. Kennedy University’s Institute for Entrepreneurial Leadership to develop a college accredited Artists Who THRIVE course.

Yesterday I was working with an accounting consultant to develop the financial module for this course. I asked her to help because she has a number of clients and friends who are artists so she is very familiar with the financial issues and opportunities facing most artists.

She mentioned, “Many artists believe that success will come if their primary focus is to continually improve their craft.”  My reply, “If you’re not concerned with selling your art, then that is absolutely true.  And who says that you have to sell your art.  You don’t. But if you want to get paid, artistic talent alone will not lead you to financial success. It’s overrated.”

I say “Pay attention to your craft and your commerce.  Continually tend to and balance both sides and they will feed each other.”

And I remind artists all the time, “No one is coming to save you.  No one is going to discover you. Your talent alone is not enough.”

This begs the question “What is enough?”  Given the sea of creative talent, talent is essential, no question. However, providing unique value to a target market is they key to business success.

I would venture to say that every noted artist in history provided unique value to a target market and generally they arrived at their value proposition by going against current conventions.

Replace the words “unique value” with “innovation” and “target market” with “tribe/current culture of a society.” Now think about Andy Warhol, Michelangelo, and even Thomas Kinkade.  Who was their tribe? How did they celebrate the tribe’s culture?

Who is your tribe? How do you serve your tribe? And how could add more value?

How do I price a work of art? This is a question that too many experienced and beginning professional artists pain over.

Here are three steps to help you establish you pricing your fine art.

1.  Make a list of all of your fine art offerings and the prices.

Start with where we are now.  Make a list of each type of item you offer and the current price.

Make another list of your entire sales history and determine the current average price of you art.

Now ask yourself, “Could I expand or modify my offerings so that I create more value for a bigger price tag?”

When I started my business 5 years ago, I limited my original oil paintings to plein air studies of four sizes.  Two years ago I expanded and offered large scale commissioned oil paintings. The result?  The average sale for a commissioned painting leaped to $22,000 versus the $3000 I had limited my market to before.  True story.

I let the market decide and they decided that they were willing to spend 7.3 times more than what I was offering initially.

So think big.  Keep it simple.  And create options for collectors with added value and a bigger price tag.

2.  Complete an appraisal of your art.

Knowledge is power.  Just like appraising a house you have to look at homes with comparable value.

• One place to start is to ask a number of gallerists or art consultants for an appraisal of your work.

• Do some research yourself.  If you add more unique value then account for that. When you know the value of your work then you can convey that with confidence to your collectors.

• Note.  The problem is usually that artists price their work too low, not too high.  And the price of their art is tied to their self confidence, not the market value.

3. Maintain the price of your art. Do not discount your art.

If you don’t maintain your price, don’t expect anyone else too. Have your options and prices clearly stated in writing, just like any sound business.  If you don’t want to talk about the price of your fine art  then just hand your prospects the price list.

A common problem with galleries is that they often discount.  I think this is an incredibly stupid thing to do.  I know. Tell me what you really think.

Choose numbers that are rounded.  Not $999.  Just call it as it is, $1000.  You’re not fooling anyone.

And remember, art is a luxury. It’s not supposed to be cheap or go “on sale.”

Walking down Haight Street this last sunny Saturday I happened upon a Lynn Gentry whose handmade sign read, “Pick a Subject, a price, Get a Poem.”

There were spontaneous patrons of the arts lined up down the street and others watching. I watched him type a poem on his manual typewriter, proof it, and hand it to a young woman in exchange for two dollars.  Profitable?  Maybe with some refined marketing it could be.

The tag line on his business card reads  “It’s about music, not money.” These words are printed on a green background, the color of money, and several hundred dollar bills are pictured on the right side of the card.

“It’s not about money?”  Please. It’s very much about money, and why not? Because if no money was exchanged I doubt he would be focusing on this particular endeavor on a sunny San Francisco Saturday afternoon.

Several months back I attended a packed poetry and wine pairing, a blue ocean strategy. I was introduced to one of the poets by my friend, the Sommelier of the event.

She said to me “There’s no money in poetry.”  I thought.  “Is she joking?  Look around.”

The room was packed with enthusiastic people who paid $55 a head to attend this event and they vowed to return to the next event.  There’s no reason that the poets couldn’t coordinate this for themselves.

Humanity always has, and always will, find value in poetry. And these two quick examples demonstrate that there IS money in poetry. And why shouldn’t there be? Because with money there’s more, time, energy, and focus to make “music.”