The art of business in the new economy/recession.

As the recession looms over the public, jobs are getting more and more scares as magazines, companies, and ad/pr agencies are slowly running out of money due to the credit crunch. Our economy is based on credit as businesses don’t have to maintain major cash reserves as they can borrow the dough they need all the while the lenders make fees off the interest they charge on those loans. In many ways, personal credit cards serve as individual micro-loans for the public. I can’t easily cough up $50k to start up my photo business (lights, lenses, and computers are expensive!) so a bank issued credit card helps lubricate the wheels of commerce. B&H Photo and Apple are happy I have credit, as is MasterCard. For that matter, I am happy cause without credit I couldn’t buy the lens I need to shoot golf, food, or whatever comes my way. Americans are notorious for not saving their money so credit is what makes the US economy run.

Nowadays, as Obama and his team nationalize banks and investment/insurance companies, banks are not issuing credit as they once were. Although you’d never think we were in a major recession\depression, the economy is hurting. Banks are not issuing enough credit to the magazines and their budgets get smaller. It is much more complicated as ad revenue is shrinking, yet, media always needs a steady stream of images flowing onto their pages, websites, and whatnot.

Job creation is happening, for sure. For me, I am getting job offers at lower rates. I had an ad agency based in several major cities around the globe offer me a tiny amount of money to shoot a fairly elaborate photo for a international brochure. I mean a tiny amount that wouldn’t have covered expenses at all. I had enough gumption to say “no” although I struggled with that decision. But I realized I can’t issue credit or make someone else rich at my expense. I have bills to pay.

The photo business is notorious for making photographer float expenses on his own credit for a multimillion-dollar magazine or business in the past and will continue to do so. But like any risk/reward scenario, the rewards outweighed the risks. And when work was a constant stream, I could wait or "issue credit" to clients as I had other jobs waiting soon afterwards. But those days are now gone. Jobs are limited and budgets are smaller. And to make matters worse, big name mags and companies do not/are not pay(ing) on time. They have no problem not processing an invoice 30, 60, 90, or even 120 days after publication or usage of your hard work and sweat. Can you imagine McDonalds allowing you to pay for a big mac six months later? I'd hope my work is at least worth a couple of McNuggets.

I am not in the business of credit issuing and floating a corporation x amount to do their jobs. Yet so many of my peers are willing and able to do so to get those jobs, tear sheets, and bylines. I did a job in November where I shot a very well know musician for a cover of a magazine. I still haven’t been paid. I am also out x amount of money as I had to pay a stylist, assistant, and equipment. I am loosing money as I wait as I’ve had to pay interest on credit cards, etc…

If I had known this magazine was going to take so long to pay, might I have done something differently? Did I ask the wrong questions about getting paid? Might my priorities now be when do I get paid or should I completely change my business model and create a cash on delivery business? Wedding photographer do…so why shouldn’t editorial photographers?

Why should I float x company who could easily have a check sent to me directly to pay for expenses? Why shouldn’t I have the power to ask or do so?

I’ve toyed with websites like www.printroom.com where you upload images and clients pay to get them down. Imagine, I shoot a job for x magazine in which I have no relationship. I shoot, process, then upload to this server where an e-commerce transaction takes place via a credit card. I get paid (minus a small service charge) and the client gets their images. No waiting for months for money that may or may not come. I mean once you give up the goods, the company has no purpose to pay you on time or quickly.

Photographers, we need to rethink our business models, take on the current business situation, and push forward with new strategies in order to make it. I am still out of money from this company but this expensive mistake has taught me loads.