Important changes at Alamy
Permalink24 September 2008 at 10:39 by James West - CEO
Posted under News, Rambling CEO
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If you can't see the video above, here's a quick summary:
This is to give you advance notice that our royalty percentage will be increasing by 5% in early 2009 for direct and distributor sales. The change applies to all images from all our contributors, regardless of which commission structure you are on. We're making this change to fund a shift in strategy for the company which, I believe, will lead to a significant increase in gross payments to our contributors. We're starting by opening a dedicated sales office in the USA.
The US market currently makes up 30% of our global revenues. With a dedicated US sales office, we expect to significantly improve our performance in this market. It's difficult to provide precise numbers at this early stage, but we're forecasting that US sales will jump from our current 15% annual growth rate to around 30% to 40%. This will increase gross payments made to contributors from $72m to between $74m and $78m over 3 years.
Recruiting starts this month and we expect staff to start joining us around January. The new royalty split won't come into effect until the team has been recruited.
New terms will be:
- Alamy's percentage for direct sales and for distributor sales will rise by 5%
- An end to bank transfer fees
- No more cheque fees
- No charges on foreign exchange fees for payments
We will issue a formal notification of a change to the contract in due course but we wanted to make you aware of our plans.
This is an important step in Alamy's future and I will be moving to New York in March to oversee the first six months of operation and to get a better understanding of the market.