Rate Schedule/What does NET mean?

First pagePrevious pageof 4
Displaying 61 to 68 of 68 matches.
georgeclerk
Member is a Diamond contributor and has 25,000 - 199,999 Photo downloadsMember is a Bronze contributor and has 125 - 1,249 Audio downloadsExclusiveExclusive iStockphoto Audio ArtistMember has won a contestMember has had a File Of The Week.
Posted Sat Jan 12, 2013 4:36AM
Absolutely they are, as a quick look at the current facts shows.

If you go to 'Buy iStock Credits', you can get 60 credits for $94.99 (USD).

Or in different currencies:
EUR 82.75
CNY 690.00
GBP 67.75
AUD 105.25

And here's what those different amounts are actually worth in USD.  This conversion is from Bloomberg (www.bloomberg.com/markets/currencies/currency-converter).

iStockContinuingFXRipOff




So in these examples, iStock are taking between $109.29 and $111.01.  But when they calculate artist payments, they subsitute the amount they are actually receiving with $94.99.

Certainly not ethically or legally acceptable, but a tidy and lucrative little scam while it lasts.
PaulCowan
Member is a Diamond contributor and has 25,000 - 199,999 Photo downloadsMember is a contributor and has less than 250 Flash downloadsMember is a contributor and has less than 250 Illustration downloads
Posted Sat Jan 12, 2013 7:50AM
OK, so my commission rate is actually 14.5% on non-US sales, not 17$.
luismmolina
Member is a Diamond contributor and has 25,000 - 199,999 Photo downloadsMember is a contributor and has less than 250 Video downloadsExclusiveExclusive iStockphoto Videographer
Posted Wed Jan 16, 2013 1:15AM
Waiting here too. 
clearviewstock
Member is a Diamond contributor and has 25,000 - 199,999 Photo downloads
Posted Wed Jan 16, 2013 1:51AM

2. Can we have a definition of NET?

The kinds of items that we net from the payment include taxes or other withholdings, refunds, bad debts and currency hedging. We can certainly look creating a specific definition of net the next time that revisions are made to the ASAs. It takes about 4 weeks of development work for a team to complete changes to the ASA, including translations, uploading new copy, making the notice pop up, disabling uploads until new agreement is approved and creating the email notifications. That is development time that we would rather spend on addressing the other issues that you are raising and further product development until there are enough ASA changes to merit blocking out this development time.


 


Why cant you just list these expenses? to me net is after all costs? - so are you taking staff wages, servers, advertising etc ? Your response seems like simple dodge the answer and avoid saying what the real royalty rates are. Might explain the $0.07 and $0.08 sales better???


 
Leontura
Member is a Gold contributor and has 10,000 - 24,999 Photo downloadsMember is a Bronze contributor and has 250 - 1,249 Video downloadsMember is a Bronze contributor and has 125 - 1,249 Audio downloadsMember is a Silver contributor and has 2,500 - 9,999 Flash downloadsMember is a Diamond contributor and has 25,000 - 199,999 Illustration downloadsExclusiveExclusive iStockphoto IllustratorExclusive iStockphoto Flash ArtistExclusive iStockphoto VideographerExclusive iStockphoto Audio ArtistMember has had a File Of The WeekAwarded to fabulous photographers with more than 100,000 downloads
Posted Sun Jan 27, 2013 4:37PM
Posted By clearviewstock:

2. Can we have a definition of NET?

The kinds of items that we net from the payment include taxes or other withholdings, refunds, bad debts and currency hedging. We can certainly look creating a specific definition of net the next time that revisions are made to the ASAs. It takes about 4 weeks of development work for a team to complete changes to the ASA, including translations, uploading new copy, making the notice pop up, disabling uploads until new agreement is approved and creating the email notifications. That is development time that we would rather spend on addressing the other issues that you are raising and further product development until there are enough ASA changes to merit blocking out this development time.

Why cant you just list these expenses? to me net is after all costs? - so are you taking staff wages, servers, advertising etc ? Your response seems like simple dodge the answer and avoid saying what the real royalty rates are. Might explain the $0.07 and $0.08 sales better???

Yes, I'd like a list too.
Lobo
This user has the power to wield the BanHammer, a weapon forged in the fires of hell for that get-off-my-planet quality you can't get anywhere else. You betta reckonize.Forum Moderator
Posted Sun Jan 27, 2013 8:36PM

Posted By Leontura:
Posted By clearviewstock:

2. Can we have a definition of NET?

The kinds of items that we net from the payment include taxes or other withholdings, refunds, bad debts and currency hedging. We can certainly look creating a specific definition of net the next time that revisions are made to the ASAs. It takes about 4 weeks of development work for a team to complete changes to the ASA, including translations, uploading new copy, making the notice pop up, disabling uploads until new agreement is approved and creating the email notifications. That is development time that we would rather spend on addressing the other issues that you are raising and further product development until there are enough ASA changes to merit blocking out this development time.

Why cant you just list these expenses? to me net is after all costs? - so are you taking staff wages, servers, advertising etc ? Your response seems like simple dodge the answer and avoid saying what the real royalty rates are. Might explain the $0.07 and $0.08 sales better???

Yes, I'd like a list too.

I read you, but we aren't likely to get this list you are asking for. So you can keep asking but I'm pretty sure it's not coming.

(Edited on 2013-01-31 20:34:33 by Lobo)
georgeclerk
Member is a Diamond contributor and has 25,000 - 199,999 Photo downloadsMember is a Bronze contributor and has 125 - 1,249 Audio downloadsExclusiveExclusive iStockphoto Audio ArtistMember has won a contestMember has had a File Of The Week.
Posted Thu Jan 31, 2013 8:16PM

So now the price for 60 credits in Europe is still 82.75 Euros.  But at the current rate that's $112.39 USD.


Could someone at iStock please confirm that contributors are being paid a percentage of just $94.99, despite the fact that iStock is receiving a much higher amount.


And please let us know where this extra money is going.
Lobo
This user has the power to wield the BanHammer, a weapon forged in the fires of hell for that get-off-my-planet quality you can't get anywhere else. You betta reckonize.Forum Moderator
Posted Thu Mar 7, 2013 7:53AM

Posted By iStockLawyer:
There have been a few questions surrounding the addition of language to the Rate Schedule when we launched cash sales. Let me see if I can address them.

1. Was there a change to the ASA without notice to you?

No. The manner in which we calculate royalties for credit and subscription sales is the same as for cash sales. Since 2008, we have always calculated on the net value of the sale price. There was no change to the way that we calculate royalties for which you were not given advance warning. There was a clarification to confirm that the royalties will be calculated in the same way that they always have been.
Cash sales launched on September 4.

Prior to September 4, the Rate Schedule said, “In the case of a file licensed using credits, the contributor's royalty is based on the net price of iStock credits used to license a file.”

On September 4, the Rate Schedule was amended for cash sales to state, “For files licensed using our standard pricing, the royalty rate is based on the total amount paid to download your image. In the case of a file licensed using credits, the contributor's royalty is based on the net price of iStock credits used to license a file.”
In the contributor newsletter sent to all contributors on September 7 we let you know the following:
We made changes at launch to the language on the rate schedule page. However, we don't think it clearly enough describes how royalties are calculated. Royalties for our new standard pricing downloads are calculated using the same logic as credit downloads: we apply your royalty percentage to the net US dollar value of the file. We are going to change that language on the rate schedule to be more accurate.
And the Rate schedule was changed to “For files licensed using our standard pricing, the royalty rate is based on the net amount paid to download your image. In the case of a file licensed using credits, the contributor's royalty is based on the net price of iStock credits used to license a file.”

2. Can we have a definition of NET?

The kinds of items that we net from the payment include taxes or other withholdings, refunds, bad debts and currency hedging. We can certainly look creating a specific definition of net the next time that revisions are made to the ASAs. It takes about 4 weeks of development work for a team to complete changes to the ASA, including translations, uploading new copy, making the notice pop up, disabling uploads until new agreement is approved and creating the email notifications. That is development time that we would rather spend on addressing the other issues that you are raising and further product development until there are enough ASA changes to merit blocking out this development time.

3. How does the currency hedging work?

• Our system is built on a price book which sets all credit and cash prices in USD. When we offer credits for sale outside of the US, we convert the USD credit or cash price to the country’s local currency. For the conversion, we use an exchange rate that is set at the beginning of the month and designed to accommodate fluctuations in rates that can arise over the course of the month in addition to covering the cost of converting foreign currencies into USD

• The exchange rate is set every month, it is different for every currency and it is based on local market conditions.

• Our system calculates royalties based on the USD price per credit or USD cash price charged to the customer, then pays royalties in USD on this amount

• Because of this, your royalties are only impacted by the USD price per credit or USD cash price

• This is the process we have followed since 2008, when we announced how we would set non-US currency prices http://www.istockphoto.com/forum_messages.php?threadid=80935&page=1, and this process not changed with the introduction of cash sales.


In order to prevent the inevitable continuation of this discussion via repeated complaints about the Definition of NET and Currency Hedging I'm going to lock this thread up. It's clear that some people aren't pleased with these arrangements but it's what we have to communicate to the contributor base at this time so I hope you understand there isn't much more that will be said. Rather than leave the thread open so people can bump the thread up every few months( I might add it's the same people doing the bumping) I'll allow people to reflect on the post made by iStockLawyer.

This will be a thread that will be linked to by Contributor Relations going forward. If there are any changes to this information we will make sure to open a new thread.

(Edited on 2013-03-07 07:59:13 by Lobo)
This thread has been locked.
First pagePrevious pageof 4
Displaying 61 to 68 of 68 matches.
Not a member?Join