Gallery Agreements for Artists: Part 1

HELLO CALLAWAY ARTIST COLLEAGUES!

Those of you who are in or entering into gallery representation, the following is the first of two messages related to the core of gallery agreements. "We agree on this", "We agree on that."

Gallery agreements are generally referred to by artists as "contracts." This is not a contract. [Google the definition of both for clarification on any of these terms.]

Most of the time, it's the gallery who gives YOU an agreement to sign. It's rare, but necessary for YOU to have an agreement prepared for yourself for THEM to sign. The point is, that an agreement is not a one-sided document, but for the benefit of both parties. This is not target practice but a business. Both should agree and be on the same side so everyone benefits.

I am NOT an attorney. You should secure one when you are faced with an agreement. However, I have gone through this process many times and know some of the things that are important, even critical to both parties. Most importantly, which ones artists generally overlook, that give deference to the gallery rather than equality for both.

Sideline: I continually advocate artists pay for one hour of an attorney's time (one who works with creatives) to hammer-out some of these issues. It will pay you dividends in the end to do this. Worth every penny they charge and will carry you through several agreements.

FIRST
You are both businesses. The gallery is a business, and you are a professional business person (see Definitions: Professional vs. Advanced Artist - for complete definitions). Both gallery and artist are on the same level. Both want to make a profit. Both are on the same plain. One is not higher nor lower than the other...you are a business TEAM – on par with each other. Whether you are a seasoned professional dealing with galleries and venues for years, or a first-time entrant, the playing-field is the same. Prices and some negotiations may differ, but it’s a TEAM game. Don’t forget this fact.

INSIDE THE AGREEMENT
Let's take a close look at just a few elements contained in a standard gallery agreement. One of the first things to do is to establish the expectations of both yourself and the gallery. Speaking about these things verbally with the gallery owner then getting into writing will settle many of the things stated in any agreement.

"Let's Do Lunch"
You will see or hear me repeat this several times: take your gallery owner to lunch! Why? Because it’s better than trying to talk on-the-fly or making an office appointment. Lunch offers a level playing field. And when you are paying, it reiterates that YOU are a business-owner too.

Let's address some of the general features here:

Advertising
Discuss the gallery's policy on advertising. That is, will the gallery pay for all of the ads (brochures, postcards, newspaper, TV and radio spots) that are associated with marketing your art? Or, will you be responsible for paying some of the marketing and advertising (called "co-opting")?

The answer to this question can directly impact the gallery to artist commission split. The more the gallery pays for, the lower your commission is likely to be. If you will be splitting some of the costs, your commission may be higher. Either way, look closely at the numbers. You want an actual split - not for you to carry the whole weight of advertising. Remember, the gallery sells the work of many artists and derive income from all (not to neglect their staff, lighting, rent or other related to carrying a business.) You only have YOUR work to sell. And mostly originals at that. Therefore, look for equity and balance. If you are having a solo show with a gallery, you and they can split the difference unless they are a totally wonderful gallery and carry all that expense (which used to be the norm.) However, you should not be expected to lower your commission to carry all of the gallery’s artists and marketing expenses. Can you discern the difference?

It's important to address this up-front so there is no doubt who will be paying for what. Be careful of this: if the gallery says they don't pay for advertising, yet require a high commission from you: buyer beware. This does not happen often, but become knowledgeable of all the numbers compared to what you both will do in terms of ad dollars to be spent.

Sideline: Many artists leave the money/charges up to galleries, then take gas when the gallery asks for a higher commission or for you to pitch in cash to defray advertising costs.

You cannot afford to do this. You are a sole-proprietor business-person. As such, you have less (generally speaking) capital to devote to any promotion but your own work...yes, the gallery may. You are in business to promote YOUR work, not the gallery itself. Nevertheless, it behooves you to always include your gallery reps in your advertising to reach the widest market. The thing you need to be cautious of is that any gallery does not use you to promote them alone. This is particularly true if you are a high-end artist. However, again, there are trade-offs. You both need each other and both need to market each other equally for each to succeed financially.

What are the targeted sales revenues for your work? Does the gallery require that you sell "x" number of pieces per year or expect/anticipate a dollar amount of sales be met? They may not have a set goal for your work, but it's a good idea to ask about and discuss this facet of the business. If you don't there could be mis-communications down the road. Keep everything up-front!!! Sometimes this is difficult, but very necessary to maintaining a good business relationship.

Shows
How many solo and group show events does the gallery offer or expect of you per year? There should be at least one solo, and one or more group shows you'll be a part of each year. This is not necessarily true today, but should be. Don't be vague on this issue. Both the gallery and you NEED to nail-down dates in tandem with the agreement for the first year. After that (second year) you’ll both have a data-point to work from for the second agreement. (Second agreement?...Yes, agreements in general should be for one or two years, which means each year you can negotiate on this and other points.)

If you can only handle one solo show every two years or can offering grand sales for two years, let the gallery know. Either way, the number of solo shows per year should decided upon and clearly stated in the agreement.

Marketing Materials
Will you or the gallery pay for collateral material? This can be anything from postcards to formal invitations to your solo shows, general brochures, magazine ads, biographies and the like. Find out what the gallery will cover and what costs you will be expected to pay.

Clientele
Ask the gallery about the size of their corporate and collector list. This information cannot guarantee sales of your work, but can offer you an idea of the size/scope of their clientele they have already built for potential sales. If their scope of collectors for the type of work you do is not great enough, you may consider working with another representative based on this factor alone.

Absorb this bit of info which is enough on your plate for now. Next time, I will address even more essential aspects of the gallery/artist agreement.

Great Painting,
L. Diane Johnson