Why Art Licensing Might Not Be Right for You

Art licensing provides artists and illustrators the opportunity to earn passive income by agreeing to let their images be used on a wide range of products. Everything from stationery, linens, wallpaper, party supplies, and more. Contracts get you royalties or licensing fees in exchange for granting those rights. For some artists, it can create a new source of passive income. Passive means someone else markets the work, but that doesn’t imply your participation is passive.

I’m writing this to give you a clear perspective to help you decide whether it’s a business you want to pursue. As with many aspects related to creating new income streams from your art, licensing may sound appealing but still not be right for you.

When I entered the art business in 1988, the open-edition print market was booming. Licensing existed, but it wasn’t in the business model of print publishers and self-published artists who used my magazine and shows to get to market. Their marketing included producing print catalogs with thousands of artworks that they sold to new retailers and sent to top buyers like those operating volume framing businesses. And they targeted thousands of retail art galleries, picture frame shops, and mall art stores.

It was fascinating to watch publishers realize licensing’s value as a new revenue stream. It went from incidental to increasingly important as the industry went through wrenching changes. Then the internet made its mark on the industry and licensing’s role changed again. Printed catalogs disappeared. Mall art stores faded away. The publishers that survived reinvented themselves around licensing, print-on-demand, hospitality, healthcare, commercial interiors, and digital production.

The opportunity didn’t disappear. It evolved, and like in the jungle, only the fittest survived. That evolution is why I think artists should begin with a different question than they might have asked twenty-five years ago. Instead of asking, How do I get into licensing? I’d suggest asking, Why do I want to get into licensing in the first place?

For most artists, the appeal is making more money from existing images. That’s a good decision, but it requires more understanding. First, licensing only pays off with multiple contracts, and it can take a couple of years of steady work supplying images before the income is close to desirable. Second, you need to know that you don’t have much control over things. For example, your work may be cropped, or you might get requests to change colors.

Success as a licensed artist requires you to create in a consistent style, be willing to adapt your images for specific products, and create companion pieces, sometimes on spec.

I’ve known artists who built remarkable licensing businesses. In the 1990s to 2000s, coastal artist Paul Brent built a phenomenal print and licensing business. Mary Engelbreit used her whimsical illustrations to create one of the strongest licensing brands of her generation. Bob Timberlake’s limited edition wildlife and rural scenery formed a business model that included extensive home furnishing licenses.

You can find contemporary artists doing the same thing today, although their path looks different than the legacy icons mentioned above. Today’s artists often follow current marketing trends by building their brand before anything else. Licensing then becomes a single aspect of a larger business that may also feature books, public speaking, direct sales, social media, illustration, teaching, and additional revenue streams.

My experience is that artists who succeed in licensing work at it diligently. In other words, it’s not something you can do casually and expect it to be worthwhile. I suggest studying current artists doing well in the licensing business. Spend time learning about licensing agents and how they operate, how they are alike and how they differ. Some are large shops while others are boutiques. Figure out if you are ready for the licensing market and how you think you will fit into it.

If, on the other hand, what you love most is spending your days making the kind of art you like to make without demands on time, consistency, or vision, there’s nothing wrong with that either. Most of the artists I’ve known over the years wanted their time in the studio, not in meetings about product lines, marketing plans, licensing agreements, or brand development. There is no wrong path here; it comes down to being clear on what you want, what you are capable of doing, what you are willing to do, and if your circumstances are favorable to your plans.

Every opportunity comes with an opportunity cost.

If an artist were to ask me today how to invest the next year in building a career, licensing likely wouldn’t top my list of recommendations. Not because there is anything wrong with licensing, but more because it’s a long-tail proposition that should be a third or fourth income source rather than primary or secondary. Get those streams working first, then come back to review if licensing makes sense.
I don’t want to dissuade anyone with genuine interest from pursuing licensing. My aim is simply to ensure you appreciate the level of commitment before you dive in.

After spending nearly four decades around artists, I’ve come to believe that the biggest source of career contentment comes from self-awareness, self-assessment, and self-determination. Don’t pursue things just because you think you can. You may have all it takes, but you may also know that’s not the right choice for you. Chase the opportunities that fit the kind of artist you really want to become.

Evidence proves that licensing works. But does it work for you? That is the question you need to answer.

See you next week.

— Barney