Cheap Photo Sites Pit Amateurs vs. Pros

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Backlash

That hasn't dampened the backlash any. Ask Derek Powazek, a designer, photographer, and CEO of Pixish, a San Francisco-based company that lets anyone submit photos or illustrations online in response to open calls for work. Powazek says that within days of the site's launch in February, posters on blogs and forums said Pixish would "destroy the design industry." He has little sympathy for his critics: "If a three-day-old site can destroy the graphic design industry, then it deserves to be destroyed," he says. But to placate them, he posted an extended response on the site and banned logo designs from the permitted assignments.

Powazek argues that the people posting jobs on his site, who generally offer rewards of $100 or less, aren't the same customers that use graphic design shops. Sites like Pixish give talented hobbyists ways to build their portfolios and get exposure, he adds. Professionals scapegoat microstock sites and crowdsourced design services instead of examining why their own businesses are struggling, Powazek contends. "This isn't Flickr's fault. It's yours," he adds.

But what should photographers and graphic designers do? They need to target that part of the market that isn't looking for the lowest price, experts say, because budget Web sites have already won those customers. "Designers as a profession should be moving up the value chain," says the design association's Grefé. "What designers need to do is to explain that inherent in most design is the branding and the essence of the company."

Persistence Required

As the burden shifts to professionals to explain the value of their work, that may put some creative types out of their comfort zones (BusinessWeek.com, 2/06/08), Grefé says. "They have to reposition themselves in their promotional material. They have to get out and talk to small and medium size businesses. They've got to be in front of the Rotary Club and the Kiwanis," he says.

Photographers likewise should develop relationships with clients more interested in quality than price, say industry players on both sides of the debate. One company positioning itself as a photographer-friendly alternative to microstock sites is PhotoShelter.

The New York startup, founded in 2005, won't let photographers list their images for sale for less than $50. "We really want to take a stand against the $1 image," says PhotoShelter CEO Allen Murabayashi.

The company is targeting image buyers like ad agencies, design firms, and publications�the part of the market that belongs to traditional stock agencies rather than microstock sites. It offers photographers 70% of sales, compared with the 20% to 30% Getty offers. But it's not yet clear whether PhotoShelter will become a viable avenue for photographers. San Francisco freelancer Lane Hartwell said she never made a sale on PhotoShelter, nor had any colleagues she knew of.

Ultimately, creative professionals need to communicate the value they create for clients so they can differentiate themselves from commodity-priced images. Dan Heller, an independent photographer in Marin County, Calif., and author of Profitable Photography in Digital Age, says beginning photographers should expect to spend four years creating an online presence, networking, and building their own brands before they turn a profit. It takes persistence and business sense as much as talent, he says. "Selling yourself is not selling your photos," Heller says. "You can't say, 'My images are worth a premium,' but you can say, 'I am worth a premium.' "

Tozzi covers small business for BusinessWeek Online.