Your Creative Fee is the foundation of your assignment pricing strategy as a professional photographer. It begins with a solid understanding of your Cost of Doing Business (CODB) and layers in the unique creative value you bring to each project. Understanding and setting your creative fee based on your cost of doing business and unique creative value ensures that you’re not just covering expenses, but also earning a sustainable income and recognizing your creative contributions.
Step 1: Know Your Cost of Doing Business (CODB)
Your CODB represents the minimum you must earn to cover your non-reimbursable business expenses and draw a reasonable salary. It’s the baseline for calculating your creative fee.
Here’s a simple formula to calculate it:
Non-reimbursable Expenses + Desired Annual Salary
➗
Number of Billable Days per Year
= CODB (Daily Minimum Rate)
Clarifying Non-Reimbursable Expenses
These are ongoing business costs that cannot be billed to a specific client or project. Common examples include:
- Office rent and utilities
- Equipment purchases and repairs
- Phone and internet services
- Insurance (business, equipment, liability)
- Software, hosting, and tech subscriptions
- Bookkeeping, accounting, and tax services
- Retirement savings and business-related taxes
- Marketing, portfolio development, and administrative costs
Do not include reimbursable expenses (e.g., travel or props billed to a specific client).
Setting a Realistic Salary
Your salary should reflect your current cost of living and business stage. If you’re just starting out, aim for a figure that comfortably covers your needs. If you’re more established, consider a modest increase from the prior year. The goal is sustainability, not overreach.
Estimating Billable Days
Not every workday is billable. Realistically assess how many days per year you can invoice clients:
- Deduct time for holidays, vacations, and personal days
- Factor in pre- and post-production time for each shoot
- Include time for admin tasks, marketing, and client communications
- On average, most photographers can realistically bill 1–3 days per week
Refer to past years’ data or speak with peers to set this number accurately.
Why CODB Matters
Once your CODB is established, it becomes your minimum fee per billable day. Pricing below this amount means you’re losing money. While occasional low-paying gigs (like editorial work or portfolio-building projects) can be strategic, consistently working below your CODB will jeopardize your business.
Step 2: Add Creative Value
Your Creative Fee isn’t just about covering costs. It includes the intangible value you bring — your talent, style, vision, experience and professional expertise. Every assignment is different, and your creative input should reflect that.
Here are factors that can justify a higher Creative Fee:
- Tight or rush deadlines
- Unique artistic style or aesthetic
- Conceptual development and creative solutions
- High-end service expectations
- Logistical challenges (e.g., remote locations or limited access)
- Your professional experience and reputation
- Technical specialization
- Limited time with the subject (e.g., a quick CEO portrait)
- Geographic considerations
If any of these are essential to the success of a job, they should be factored into your final fee.
Creative Fee Formula
Creative Fee = CODB + Creative Value
Your CODB will remain relatively stable, but your creative input varies by project. That’s why your Creative Fee should always be tailored to reflect the unique demands and value of each assignment.
More Business of Photography Resources
For more great information on the business of photography, check out Todd Bigelow’s book: The Freelance Photographers Guide to Success
For more great articles on Negotiation, check out these posts:
Negotiation Tips for Freelance Photographers
Negotiation – Image Uniqueness
Negotiation – Asking the Right Questions
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