What is licensing ?
Selling reproduction rights for a specific image, on a specific product(s), for a set period and for sale within a given territory. Royalty payments are calculated based on the total (gross) revenues generated by the licensee (manufacturer) for your products.
The methods of payment for art licensing are:
1 – ROYALTY: This is where the manufacturer pays the artist a royalty percentage of their gross sales.
2 – ROYALTY WITH ADVANCE UP FRONT – Sometimes there will be an advance payable up front,
which is later deducted from future royalties.
3 – FLAT FEE – A one-time fee is paid instead of royalties.