Artists Who THRIVE

Make art and make money, business planning and strategic marketing for artists

Lessons Learned by Mike Michalowicz

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I’m currently listening to Profit First, by Mike Michalowicz, a fellow Creative Live instructor.

For so many artists, for so many people, money is a charged topic.

And it doesn’t help when your culture refers to you disrespectfully as a “starving artist” and or “artsy fartsy” type.

Think about it. Have you ever met an artist who is actually suffering from severe malnourishment and or ongoing flatulence?

Choose your words carefully. Be respectful.

Anyway, when I learned that Mike and I had shared the same Creative Live Producer, Justin Barker, I immediately asked for an introduction so that Mike could teach you the valuable lessons that he’s learned from his three biggest fattest failures.

  1. When I asked Mike about his biggest fattest failure, he said it wasn’t his biggest but one of his more awkward blunders. He arrogantly put job candidates through an overbearing interview process. Mike lost sight of the fact that, just as he was interviewing them, they were interviewing him, and he missed opportunities to hire really qualified candidates.
  2. His second failure was actually loosing his entire fortune. Mike sold his company, became an angel investor, and as he admits, he just didn’t know what the hell he was doing. Instead of stopping and assessing his situation he just kept spending his way into oblivion while hiding mounting financial losses from his family. During Mike’s most painful “moment” he admitted to his family that they where broke and he began sobbing.  His daughter ran into her bedroom. Mike thought she was protecting herself from the tragic news but it was actually to retrieve her piggy bank. She slid it across the kitchen table towards him and said, “Dad. We’re going to be okay.”
  3. Mike’s third failure was working like a maniac for so many years and missing out on much of kids’ childhood, time that he can never restore, unlike his fortune.
  1. All of these painful failures and blunders have shaped his purpose, Mike’s why.
  2. Mike is on a mission to teach entrepreneurs how to build profits, his what.
  3. Mike’s unique value proposition is an innovative and relatable system of accounting that small businesses can implement over time, his how.
  4. Mike helps small business owners, his who.

Mike is now running his third million dollar venture, is a former small business columnist for The Wall Street Journal; is the former MSNBC business make-over expert; is a popular keynote speaker on innovative entrepreneurial topics; and is the author of Profit First, The Pumpkin Plan and The Toilet Paper Entrepreneur, which BusinessWeek deemed “the entrepreneur’s cult classic.”

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

How One Creative Freelancer Like You Almost Didn’t Get Paid

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Justin Barker, my producer at Creative Live, recently completed an instructional product video for a startup company in San Francisco. When this company refused to pay him and the contractors that he had hired, I was highly offended, not least because I know the strength of his work.

Unfortunately, it’s all too common for creatives to get stuck with unpaid invoices and lame excuses from some clients; Justin is not alone. My experience is that this is happening to creative entrepreneurs more frequently than other entrepreneurs.

Why is this? My theory is twofold:

  1. Creatives are not always clear enough with their clients about expectations and boundaries, nor do they define and state all of their business terms up front, with current contracts to back them up.
  2. Clients and patrons don’t appreciate the value of the product or service that they have commissioned or they have unrealistic expectations about the creative process. And sometimes, a project just goes south.

This deal gone bad not only put Justin at risk of losing a significant amount of money, it also cost him about two months of consternation because it actually threatened his future as a producer. Given everything he had to go through, I decided to ask him to join me in conversation so that he could share what he has learned and what he will do differently going forward.

Now you might be saying, “But I’m an illustrator, a graphic designer, or a maker, what does this story have to do with me?” Have you ever poured a significant amount of time, resources, or materials into a creative project and not been paid? Are you concerned that this could happen?

Then stay with me, because Justin’s story is relevant to you.

See Also: Create a Business With Your Art: Q&A with Ann Rea

Lesson #1: Mind the red flags 

Several months ago, one of Justin’s friends approached him about producing a video for the startup where she was working in San Francisco. “Red flags started flying from the very beginning,” says Justin. Justin sent through a detailed professional proposal with the cost of the production. For over a month he didn’t hear back from anyone.

“It was an indication that this company was highly disorganized,” he says. If you are eager to make money, you might end up ignoring red flags that could actuallycost you money.

Justin was reminded of the fact that “the idea of making money and the reality of it are two different things.” Prospects should be professional in their communications. This means being prompt. Qualify your prospects by gauging their level of interest. You could be subjecting yourself to significant financial risk if you enter into business with flakes.

Lesson #2: Accurate, up-to-date contracts are key

From the start of his career as a producer, Justin has used solid contracts. His first ever contract contained a kill fee for $3000. In this instance, he did a significant amount of research as a producer, but then the project was cancelled; if he had not outlined a “kill fee” in his contract, chances are very high that he would never have been paid.

Justin negotiated and lowered his price with this startup company. But he still felt that this was a fair deal, so the contract was signed and everyone was smiling. But Justin was confused about who actually signed the contract; it turned out the person who signed his contract was actually fired two days later. If the person who signed for the authorization of your payment is no longer able to authorize it, it is time to get your contract updated and pause work until then.

Lesson #3: Don’t work for free

Just a few days after the contract was signed, Justin’s client started trying to renegotiate the contract. His client wanted more rounds of edits without incurring any additional fees.

This was a big sign of trouble to come.

Lesson #4: Make sure you have payment information

If Justin had his client’s credit card information and authorization to charge it, he would have had a secondary back-up to recover payment and to easily charge for additional edits.

See Also: 7 Business Lessons from the Golden Gate Bridge

Lesson #5: Be your own (respectful) advocate

Justin remained respectful through out this process, and so was able to keep an ally within this company who advocated for him. Be firm and stand up for yourself but remain professional and respectful. Unfortunately, although Justin got paid, his internal advocate was fired.

Lesson #6: Don’t give up 

“Never throw up your hands and walk away,” says Justin. That negative energy and frustration will break your spirit, and that has a direct impact on your ability to create.

Lesson #7: Have a no-guarantee clause

Justin recommends including a no-guarantee clause in your contract and to talk through what that really means with your client. Justin breaks it down as, “If you don’t like what I create for you it doesn’t mean you don’t have to pay me.” The fact is that the creative process is not always predictable and the results are completely subjective.

Lesson #8: Make FAQs

I’m a big fan of maintaining a frequently asked questions (FAQ). It’s a great place to start the conversation and to set the expectations in a guided, poised, and confident way. An FAQ can lay the foundation for an effective and comprehensive contract.

See Also: How to Spot a Bad Freelance Client

Lesson #9: Get legal council

Invest in legal council; it could pay for itself many times over. Get a client agreement specifically tailored to your services. Make sure that your attorney has the experience and qualifications to address the specific laws relevant to your enterprise within your legal jurisdiction. Ask if they have worked with clients like you, get references, and contact those references.

Lesson #10: The support of friends and colleagues is invaluable 

Get support. Who says business isn’t personal? Not only is it personal, it can be very emotional. It was roller coaster ride for Justin, but he hung in there.

How did Justin’s story pan out?

After being hired, Justin hired the contractors and talent and completed the job.Then, he handed over all the raw footage and the final edited video content before receiving final payment. After all of this, his client told him that they were not going to pay him.

At one point, he and a friend and I were supposed to meet for tea and Justin just wanted to stay in bed. In Justin’s mind, he had no leverage and he was completely overwhelmed.

It wasn’t just that he wasn’t going to get paid—he also wasn’t going to be able to pay his contractors, leaving him feeling completely out of integrity. This situation looked like it could prevent him from working with his “A team” again. His ability to work as a producer was in jeopardy.

I insisted that he get out of bed and allow us to support him. “You’re only allowed to wallow for so long,” I said. I also reminded him that he owned the copyright to the work, and that the client did not. And that if this no-good client used any of the video content that Justin still technically owned, they would not only be in violation of their contract with him, they would be in violation of U.S. and international copyright law. Not a good move for a startup—San Francisco works in a surprisingly small town manner, and word gets around.

Although the client hired him to shoot their products, and use their copy and logo, none of that mattered because Justin owned the exclusive right to publish his video content; they didn’t. Meaning that if the client used any of Justin’s video content before paying him, not only would they be in breach of their contract with him, they would be acting in direct violation of U.S. and international copyright law. Copyright can only be transferred in writing, and this client did not have authorization until they paid him, as stated in his contract.

I suggested that he remind them of this reality, and to immediately register his copyright with the Library of Congress. Justin read the directions, paid $55, and experienced a huge shift in perspective. He realized that he was in control, and he went from feeling overwhelmed to empowered.

When he reminded this client of the copyright clause in their contract, Justin got his money soon after. In the end, Justin got paid, his contractors got paid, and his reputation was saved. You can watch Justin recount his story here.

Have you had a similar experience? How did you handle it?

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

A Fine Art Degree and the Tyranny of Hope

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Shockingly, the graduates featured in this video have far better prospects than many of the over 50,000 hopeful art students who are currently graduating from the very top 42 art schools* in North America each year. They’re currently paying an average of $51,364 in annual tuition.

How many art majors do you think will be discovered?

I learned how to make art in art school but I did not learn, in fact I was shamed for asking about, how to make money from my art.

To be fair, art schools are not business schools and academics are not entrepreneurs.

But if we value education as an investment in an individual’s future, then we need to take a long and honest look at the rate of return on the investment of a formal education in fine art.

So let’s look at the very best art and design schools in North America. Their students are currently paying annual tuition that is about 24% higher than the U.S. national norm of $39,173. ** Meaning that most have to amass significant student loan debt.

P.S. I asked Deborah Obalil, the Executive Director of the Association of Independent Colleges of Art and Design (AICAD) that make up the top 42 art schools in North America, to confirm my estimate of current annual tuition but she did not respond to my request.

Let’s assume for the moment, that art school tuition will not rise, even though we know it will. A fine art undergraduate degree from the “top” schools, very conservatively, is still going to run you about $205,456. ***

What’s the likely scenario after a fine art student graduates? Let’s examine some undeniable facts.

FACT: Only 3,660 Fine Artists, Including Painters, Sculptors, and Illustrators where employed in 2014, earning an annual wage of $43,390, according to the U.S. Bureau of Labor Statistics.****

However, according to the 2001 U.S. census their where over 288,000 “painters, sculptors and craft artists.” *****

Even if we entertain the unrealistic fantasy that all of the 3,660 employed artists quit their jobs leaving open their positions to recent graduates with no experience, a fine art major would still only have only a 1.27 chance in 100 of getting a job making art.

Bottom line. If you major in fine art, you are not going to get a job doing fine art.

Let’s calculate whether or not an art school degree is likely to yield a positive or a negative return on investment (ROI).

Zero ROI = you are no better or no worse from making the investment. All you lost was your time an other opportunities that you could have pursued.

Positive ROI = you gained a profit from your investment.

Negative RIO = no bueno

Let’s pretend that you do get a job paying roughly $40,000 in annual pretax income, making your art or not.

If you’ve borrowed money to pay your tuition of $205,000 you’ll probably have a 15-year loan, with principal and interest payments, at about 6% interest.

You will be enslaved to service this debt on the level of a minimum of $1729 per month for 15 years.

And you haven’t even paid for food, housing, and transportation to and from work or other basic necessities.

You will never escape this debt through bankruptcy in the US or even by fleeing the country with an international job because the US has a repatriation program requiring you pay the host country’s taxes along with what you owe the USA. The IRS will find you even if the Department of Education does not.

Let’s pretend that you are talented, and lucky, enough to get a $40,000 a year job. You’ll only take home $31,783 a year after taxes, which equals to roughly $2648 a month.

After you’ve made your monthly student loan payment of $1729 you will be left with $919 a month, or $230 a week, to pay for food, housing, transportation to and from work or other basic necessities.

If you live in the United States you will be living below the Poverty Line, which is take home pay of $980 or less per month or $245 per week.

In the very optimistic scenario above, you are actually losing 80 cents for every dollar you spend on art school.

You are better off doing nothing which has a zero Return on Investment.

Artists who are making a good living have realized that they will never have an art career. But they could have a business.

And if a business is going to succeed, it must have a current plan to make money.

My one-page plan helped me sell over $100,000 of my art within my first year as a fine artist.

Now I’m on a mission to help other artists secure their creative freedom through business savvy because the world is a better place with art and with artists who thrive.

How do I aim to do this?

By actually offering an interactive online education, that includes eight sequential, foundational, business courses for artists that teach a proven, iterative process of building a profitable creative enterprise while connecting a community of Artists Who THRIVE.

And by demonstrating practical experience, that teaches other artists how to make art and make money, not just theory.

Can I guarantee that my students will make money with their art? Obviously not.

I cannot guarenatee a rate of return on my student’s investment.

But unlike art school, if my students are not satisfied with what I’m teaching, they have 30 days to request a full refund.

And if they like what they are learning, they can stick around and learn more.

Because once they enroll in The MAKING Art Making MONEY Semester, they get to stay.

Unlike art school, when the semester is over, out you go.

Is there a return on this investment? That depends on you.

I can give my students a sound and proven investment strategy to make art and make money, but it’s entirely up to them to mind their assets; their:

  • talent
  • time
  • energy
  • network
  • attention

Note: 50,000 artists educated by the top 42 art schools. This does not take into account all of the fine art majors graduating from liberal arts schools, state schools and universities, and for profit schools.

*https://www.aicad.org/about/

**https://nces.ed.gov/fastfacts/display.asp?id=76

***https://www.campusexplorer.com/

.****https://www.bls.gov/oes/current/oes271013.htm

***** https://www.princeton.edu/culturalpolicy/quickfacts/artists/artistemploy.html

******https://aspe.hhs.gov/poverty/15poverty.cfm

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

Do You Think That Art & Money Are A Lot Alike?

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I was speaking to a new friend last week, Dr. Adrian McIntyre, a smarty pants colleague who I met through a private Face Book group.

We are both studying a certain sliver of online marketing and Adrian generously offered to answer some questions that I had about online learning environments.

We got to talking about what we were marketing and I mentioned The MAKING Art Making MONEY Semester. Then Adrian offered a brilliant insight.

Art and money are a lot a like.

Here are 12 points that support this statement.

  1. The value of both art and money is made up. We just agree to the value.
  2. Art and money are relatively worthless physical objects. Unless we are talking about gold coins, the actual value of the materials that they are made of are negligible.
  3. Art and money are highly prized and sought after because of their scarcity. They are precious because they are limited. Too much money in circulation or too much art, a la Thomas Kindkade, and the value tanks.
  4. The market for art and money ebbs and flows according to their secondary markets or resale value.
  5. Art and money must be consumed or circulated by people or its worthless. Think about it, if an artist makes art and no one ever sees it and purchases it, it doesn’t contain value to anyone but the artist.
  6. Art and money are both manifestations of congealed creative energy and innovation.
  7. Art and money each represent self-expression, a reflection of our values. We buy brands and art that we are morally aligned with, that reflect our lifestyle, ethics, and ideals.
  8. Technology has sped up the markets for art and money. A rising tide of money has elevated the resale value of contemporary art. Artists don’t need to wait until they are dead to make money from the resale of their art.
  9. Just as it is illegal to deface currency, it is illegal to deface, mutilate, or alter it without the artist’s consent, according to the “moral rights” clause in U.S. Copyright law.
  10. Both art and money are capable of triggering deep emotions in people.
  11. The people who make art and the people who “make” money (entrepreneurs, financial traders, etc) often obsess about their craft and work ridiculously long hours.
  12. Art and money inspire ingenious forgery and dramatic heists.

It’s worth noting that during the most recent recession every single category of luxury tanked, including; real estate, designer clothing and accessories, wine, jewelry, automobiles, and hospitality, you name it.

What category of luxury actually went through the roof? The art market.

Why? Because wealthy folks decided to reposition their financial assets into the secondary art market.

We artists obviously don’t create a currency of direct trade. The currency we deal in is the currency of emotion.

Emotions are what we artists are really selling. We don’t sell paint stuck on canvas, musical notes hanging in the air, or footsteps patterned on a stage.

What makes you feel is different than what makes me feel.

That is why are is truly in the eye of the beholder and why the value of art is more subjective and less precise than the value of currency.

An artist’s main job is to put us in touch with our humanity.

If you do this, if you really make someone feel, inspire them, through your artistic medium, it’s priceless.

How do you think art and money are alike or different? I want to know. Please share below.

 

 

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

When do you know you that you are ready to quit your “day job” to become a full-time artist?

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When do you know that you are really ready to quit your “day job” and become a full-time artist?

I jumped in with both feet but I do NOT recommend this.

I do recommend that you first examine the following seven factors.

  1. Do the math. It never lies.
  • What are your monthly living expenses?
  • How much do you need to bring in from your art sales to cover your living expenses, accumulate some savings, and pay your taxes?
  • Do you have a year’s worth of living expenses in the bank in case your art sales tank?
  1. What does your support network look like?
  • Do you have a group of loyal collectors?
  • Mentors?
  • Friends who really believe in you?

Don’t underestimate this factor. We all need encouragement when we are taking a new path in life.

It’s so much easier to take on a big challenge when you have friends and family who really have your back.

  1. Do you have talent that is affirmed by sales?

Do have talent and that it has been recognized by experts other than your friends and family?

Creative talent is very subjective but one reliable measure is your sales history.

  1. What is your motivation?

Do you just want to get away from a job you hate?

Better to get another job that you can deal with and that doesn’t drain you while building your artistic enterprise part-time.

Move towards a clear goal that inspires you rather than run away from your dissatisfaction.

Hint: Having a clear written exit plan makes a dissatisfying day job a means to an end rather than an on-going burden.

  1. Do you have a Making MONEY Plan?

A plan to do business without a plan, is a plan to do no business.

In The MAKING Art Making MONEY Semester students create their Making MONEY Plan. Although it is a simple one-page outline, creating it is not.

So I can’t give you a quick lesson on how to do this in the space of this blog post.

  1. Are you willing to do what it takes?

A day job is easy and breezy compared to a start up.

Why? You receive a consistent paycheck.

That goes away when you start your own business and so you need to be prepared financially and mentally to hustle.

  1. Are you self disciplined?

You’ll be the boss of you and your employee. That employee would be you.

  • How well do each of you perform?
  • Do you have a positive attitude?
  • Do you know how to manage fear and stress?
  • Can you cap your inefficient perfectionist tendencies?
  • Do you set and achieve your goals?
  • Do you always meet your commitments?
  • Do you deliver excellent customer service?

Honestly, I did not have each of these seven factors in place and it worked out.

But I would much rather that you stack as many odds in your favor as possible before you take the plunge into life as a full-time artist.

  1. My art sales record did not justify a full-time venture.
  2. I did not know anyone in San Francisco, my new home and I had no family support, partner, or Sugar Daddy.
  3. I felt that I had talent because my mentors Wayne Thiebaud and Gregory Kondos assured me that I did. But what really mattered is what the market thought. They were not going to pay my bills.
  4. I hated my job; my last boss earned the nickname Snotty Scotty from his colleagues.

If being a “full-time” artist is your goal ask yourself why?

If it’s just to affirm your identity as a serious artist, I’ve got news for you. That is not a good enough reason.

Are you a full-time artist, who is not receiving any financial subsidies?

Are you a part-time artist who wants to become a full-time artist?

Why? I’d LOVE to know. Please leave a comment below.

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

Are You Investing Money as an Artist or Just Spending Money?

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8_Accomplishing

Profiting, 8th sequential realms of building a profitable creative enterprise.

Last week one of the artists who I mentor sent an update on her 2014 expenses.

She reported that she spent about $11,000 less on her business in 2014 then in the year before. Here’s how:

1. “I spent less on my website in 2014. I’m building a new website by myself, and I’m not hiring a designer like I did in 2013.”

She became more confident with technology.

This is very empowering. With fantastic tools, like Square Space and Shopify, artists can build and maintain their own ecommerce sites.

2. “I spent less on print materials, like letterhead and business cards, which I don’t even use.”

She examined unnecessary expenses.

Often artists will spend way too much money on websites and business cards before they have tested their value proposition with their target market.

I’ve seen artists waste thousands of dollars having a website built, only to have to redo them.

3. “I spent less on supplies, because I don’t use expensive canvases any more.”

She used to think that she had to buy the very best materials. And she paid for them.

When she understood her mission and how she served her target market she became a much more confident person.

When she became a more confident person, she became a more confident artist and the quality and ease of her art actually significantly improved.

When she became a more confident artist, she didn’t need to by the very “best” materials to try to prop up her confidence.

She also realized that the other problem with buying expensive canvases is that they make a painting too precious. That causes perfectionism and that kills creativity. With a regular old canvas she feels freer to toss it if the painting is not working out.

Do you think her patrons have ever asked to see the receipt for the materials she’s purchased?

4. “I don’t rent booths at art fairs anymore, so I don’t pay those fees.”

This is a big one. These fees add up quickly and there is no guarantee that they are going to pay off.

Now that she has her own creative enterprise she is not dependent upon the gatekeepers of the art exhibit and she does not have to pay their tariff.

More importantly, she is not surrounded by competition as she’s trying to sell her art. Most of her business comes by way of referral so she doesn’t need to “exhibit” her art. She is the bell of the ball. She is the “go to” for her particular niche.

That is how she saved money. How did she spend money?

She actually “invested” money on my mentorship program, soon to be discontinued, and she “invested” money on building her creative enterprise.

Billionaire, Warren Buffets wise and encouraging words ring true:

The most important investment you can make is in yourself. Very few people get anything like their potential horsepower translated into the actual horsepower of their output in life. Potential exceeds realization for many people…The best asset is your own self. You can become to an enormous degree the person you want to be.

What can you do? Look at what you are spending money on and how are you investing money.

What is the return on your investment? If you are not investing in yourself, why not?

Tell us why below.

 

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

How should I price my art?

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Realm 7 - Profiting. More money in, less money out.

Realm 7 – Profiting. More money in, less money out.

 

Many artists have the same quandaries worthy of addressing here.

Although I wish I had simple pat answers to help bail artists out of their quandaries, sometimes I just don’t.

What I can do is provide is a fresh perspective.

quandary:

Hi Ann,

Would you be willing to describe how you priced your paintings when you just started selling? Or how would you price them if you were starting now?

I assume that since you were offering unique value, a lot more went into it than just looking at similar artwork in art galleries.

Thanks very much for your support in helping us all thrive!

Cristina

the way out:

Dear Cristina and (Artists Who THRIVE),

When I started selling my paintings, I was just selling paintings.

So, I did what artists do.

I looked around in art galleries and consulted with artist representatives to best determine comparable art and pricing. And this is a good place to start.

But those were the days when I was just selling art. Which, I do not recommend that you do.

What? Yes. You read that right!

The art establishment is cutthroat, over-saturated, incestuous, and nearly impossible to navigate.

There are a few rare exceptions but basically, it sucks.

“But Ann. Don’t you help artists increase their sales?”

Yes. I can.

And I can help artists increase their sales by helping them get out of the business of selling art and into the business of creating unique value above and beyond their art and selling that.

Do YOU like selling your art? Let me guess. “Ugh, no!” 

Exactly. Who does?

So. You should stop selling your art, immediately.

Just for fun. I paid to have my paintings appraised by a very reputable certified art appraiser here in San Francisco. He was one of the most unprofessional and rudest consultants I have ever met. His office was in his dirty house. And during the time he was charging me he took a appointment with his damn plumber! I can’t make this stuff up. I have a strong feeling that my reception would have been much warmer if I was a collector rather than an artist, even though I paid him the same amount. But I digress.

He appraised my paintings for almost half of what I sell them for. Which in a strange way, amused and delighted me.

Because I don’t sell my art. I sell unique value above and beyond my art.

That unique value is called meaning. Traditional art appraisals do not, and they can not, measure meaning.

Why do I do this? Because the amount I can charge for my art is no longer tied to the pricing factors baked into the primary art market.

Because I sell unique value above and beyond my art, I can eliminate the competition and charge more. And so can the artists who I have mentored.

Please note. I said unique value.

As soon as you borrow your uniqueness from another artist, you are not unique. You are a just a copycat. Your art is irrelevant, uninteresting, and not so marketable. So, don’t do that.

Unless you are participating in the scarcity and permission based art establishment, you are free to state your price.

Prices, just like paintings, are made up.

And that is why pricing is not the first part of my eight part methodology. It’s way down the line as part of Realm #7, “Profiting.”  You need to master the previous six realms before you get to the seventh.

Word to the wise. It’s better to start with lower prices than be forced to lower your prices. But do not underprice your work.

Test the market.

Just like making art, the skills required for selling art increase over time with experience. Eventually you will learn what the market will bare.

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

Missteps when Artists Operate from Scarcity

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I have an artist client that I have been coaching for quite some time now.  She’s invested in expensive and time consuming coaching.

To best define a lucrative Blue Ocean Strategy that will best serve this artist we have taken significant time and effort to analyze this artist’s:

  • strengths
  • weaknesses
  • values
  • interests

A Blue Ocean Strategy is a business model that offers a target market a unique value proposition therefore eliminating the competition.

Now, when an artist launches a new business, the artist cannot operate from the belief, “build it and they will come.”

Yes, as an artist, you own a business.  Unless you are a commercial artist or teacher with a JOB, you are also an entrepreneur.

An artist/entrepreneur has to build a new business and then let many people know that it even exists and what value it offers, over and over.

Then the target market will size up the business and decide whether or not “they will come.” The market will feel you out and see if they can trust you.

Your job: to be consistent and targeted in your sales and marketing efforts and to be persistent yet observant of results so that you can respond and make adjustments.

As an artist/entrepreneur, referrals will be your most important sales and marketing strategy.

We created a very clean and simple and elegant graphic identity for this client that effectively communicates her unique art education offering for affluent children.

What did my client do?  She tacked the word “HOUSE PORTRAITS” onto the existing logo. Huh?

That’s like sticking an advertisement for Michelin tires on top of an ad for Coke.

Whatever solid impression that logo made to prospects, it’s now been shattered.

Why did she do this?  “I’m trying to survive.”

Even though I’ve cautioned her about spending money on advertising, she did not consult me before she paid good money for a sign.  And because she’s paid for this silly sign she wants to use it.

No matter how much council I offer, how innovative the strategies we devise, or what experience I share, if an artist continues to operate from scarcity they will make missteps that will cost them money and opportunity and undermine their success.

Bottom line. Fear can kill success.  Courage can create opportunities.

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

How do I handle the “can I get a discount on your art” question?

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I’ve covered the “can I get a discount on your art” question before, but it’s apparent that it still haunts too many desperate artists so it’s worth covering again.

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.

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

How do I price a work of art?

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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.”

About Ann Rea

Ann Rea is a San Francisco based Artist and Entrepreneur. Her inspired business approach to selling her paintings have been featured on HGTV and the Good Life Project, in Fortune, and The Wine Enthusiast magazines, profiled in the book Career Renegade. Rea’s artistic talent is commended by American art icon, Wayne Thiebaud, and she has a growing list of collectors across North America and Europe.

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