Author Topic: 17% commission (Read 7556 times)

Phil · « **on:** February 14, 2008, 18:28 »

Hi,

after discussion of fotolia currency I thought about this some more

Istock

1 credit = US$1.3
but in AU$ 1 credit = $1.64 and the exchange rate via paypal (by which you may pay) is 1.09
so AU$1.64 = US$1.505

but the photographer gets $1.3 x 20% = US$.26

so on credits bought in Australia the photographer gets 17.2% commission

convert it back to $AU and the photographer gets AU$.28 and they get 17.0% commission of the AU$1.64 credit.

Lee Torrens · « **Reply #1 on:** February 14, 2008, 20:52 »

That's a clever insight, and a lot of maths to work through!

iStock openly charges a premium for buyers using foreign currency (they all have the opportunity to buy in US dollars), so another perspective you may choose to take is that the buyer is paying the extra (US$0.205 per credit in your example) for iStock to manage the currency, and the remainder (US$1.30) is what buys the photo.

In reality it all goes into the pot, and whether 20c per credit is enough for iStock to cover the FX costs or not is up to them. I'm sure they'll adjust the foreign currency prices so that they cover the costs with a bit of a margin to cope with fluctuations in the real exchange rate.

Your example does highlight the size of the premium. Buyers pay an extra 15.7% to use Australian dollars in your example. (1.505 vs 1.30)

jsnover · « **Reply #2 on:** February 14, 2008, 21:09 »

A while back iStock changed commissions so that the contributor gave the discounts on any of the packages of credits or other special deals - previously the credit price for calculating commissions was constant.

Given that, it would seem to me that the contributor should get their percentage of whatever iStock takes in at whatever exchange rate. Why should foreign currency be any different from any other discount?

And as far as expenses, we don't pay a fee for their paperwork costs or light bill or anything else - that comes out of their 80% of the take. I don't see why foreign currency should be any different.

Seems as if they want things both ways - extra's on the foreign currency transaction and no risk by footing the bill on the discount packages.

lathspell · « **Reply #3 on:** February 14, 2008, 22:16 »

Quote from: rustyphil on February 14, 2008, 18:28

but the photographer gets $1.3 x 20% = US$.26

I remember statements that the photographer gets 20% of the actual cost of a credit, not 20% of the costs in US$. That was mentioned during the short "let's screw Brits a bit" phase at the beginning of the year when photog got incredible large royalties from those British and European buyers ...

yingyang0 · « **Reply #4 on:** February 14, 2008, 22:27 »

Quote from: lathspell on February 14, 2008, 22:16

I remember statements that the photographer gets 20% of the actual cost of a credit, not 20% of the costs in US$. That was mentioned during the short "let's screw Brits a bit" phase at the beginning of the year when photog got incredible large royalties from those British and European buyers ...

Yep, the photographer gets their fair share of the premium. Rustyphil is mistaken. The royality percentage stays the same, 20%.

grp_photo · « **Reply #5 on:** February 15, 2008, 02:31 »

Quote from: yingyang0 on February 14, 2008, 22:27

..fair share.... 20%.

Phil · « **Reply #6 on:** February 15, 2008, 15:55 »

Quote from: lathspell on February 14, 2008, 22:16

Quote from: rustyphil on February 14, 2008, 18:28
but the photographer gets $1.3 x 20% = US$.26

I remember statements that the photographer gets 20% of the actual cost of a credit, not 20% of the costs in US$. That was mentioned during the short "let's screw Brits a bit" phase at the beginning of the year when photog got incredible large royalties from those British and European buyers ...

ok, so if someone pays the US$1.505 per credit, I will still get 20% so US$.30

yingyang0 · « **Reply #7 on:** February 15, 2008, 16:43 »

Quote from: rustyphil on February 15, 2008, 15:55

Quote from: lathspell on February 14, 2008, 22:16
Quote from: rustyphil on February 14, 2008, 18:28
but the photographer gets $1.3 x 20% = US$.26

I remember statements that the photographer gets 20% of the actual cost of a credit, not 20% of the costs in US$. That was mentioned during the short "let's screw Brits a bit" phase at the beginning of the year when photog got incredible large royalties from those British and European buyers ...

ok, so if someone pays the US$1.505 per credit, I will still get 20% so US$.30

Yep.