IMPORTANT INFORMATION FOR OUR ARTISTS: ANSWERS TO YOUR QUESTIONS ON OUR NEW TERMS, CONDITIONS, AND COMPENSATION STRUCTURE
As many of you have heard, we’re on the forefront of some super exciting changes regarding our artist terms, conditions, and compensation - all of which go into effect tomorrow! We’re really pumped about these changes: the new terms and conditions return all rights to artists, while our new royalty-based compensation structure should significantly increase printed artists’ financial opportunities. Ultimately, together, these changes give our artists the chance for more exposure, more control over their work, and more money in their pocket!
Since releasing word on the changes, we’ve received many questions and comments, and want to be sure everyone’s concerns are addressed. Below we’ve organized the most frequently asked questions along with our answers in hopes to clear up any confusion. Please check them out, and if any other questions or feedback arise, please post them in the comment section below. We’re making these changes for you guys, and it’s super important to us that you’re as excited about and comfortable with them as we are!
Q: When will artists officially receive rights back?
A: The new Terms & Conditions are effective April 1st, 2014. On this date, artists will receive rights back for all previously printed designs and those submitted and printed going forward. Here is the list of partnered exceptions that will remain on the original contracts.
Q: Since we’ve earned our rights back, can we now print our selected Threadless designs on shirts elsewhere?
A: Yes, you may print your non-exclusive designs elsewhere, but only if the other agreements are also non-exclusive. Of course, we don’t encourage you to dilute the focus away from your Threadless royalty earnings, however, our primary mission is to support and inspire our artist community. If printing your designs elsewhere as well is the best move for you, we’re behind it.
Q: Once I’ve submitted a design to Threadless and it’s been approved, is there a policy or time frame I adhere to before submitting to another site? Or can I submit simultaneously?
A: There’s no policy or waiting period after you’ve submitted designs to Threadless; you are free to submit elsewhere as you wish, on any time frame. However, if you submit your design with Threadless, we do ask that you do not enter into any exclusive agreements elsewhere within that same grace period.
Q: How is this going to change the way I get paid?
A: Our game plan is to streamline the way our artist community gets paid, so that everyone and every design receives the same compensation structure. The baseline is that most designs will receive 20% of net profits, paid on a monthly basis. Please see the next question in regards to additional cash offerings.
Q: Does this mean we will no longer receive the $2,000 check when our design is printed?
A: Correct. However, we will continue to run consistent design challenges with monetary grand prize payments, so there is still the opportunity for extra cash. In the near future, we will also also be offering additional upfront cash incentive offers.
Q: So, we make money purely off of how well our merchandise sells?
A: In a nutshell, this is true. The more popular your design is, the more it will sell, which ultimately leads to more earned royalties and the greater chance of multiple reprints. The benefit of this model is that you have the power to increase your sales and make more money: the more you share your designs and spread the word, the better it will likely perform.
Q: After the new terms, conditions, and compensation structure go into effect on April 1st, will we collect royalties on designs that were submitted before April 1st?
A: You will receive royalties on designs submitted before April 1st if and only if your designs have already been receiving ongoing royalties. Otherwise, you will receive royalties only on new designs or reprints released on or after April 1st.
Q: If I received an upfront $500 check for my last design as part of the old compensation structure, will I now, instead, earn royalties?
A: If existing stock of your design sells after April 1st, you will not receive royalties. However, if your design is reprinted on or after April 1st, then you will receive royalties.
Q: How will partnership royalties work?
A: Any design that is selected for a partnership or wholesale deal that exists outside of Threadless.com sales will be paid on a quarterly basis. You will not be able to see your royalty earnings for these opportunities within your Royalty Tracking feature, however you can always reach out to email@example.com with any specific questions on your earnings or payment timing.
Q: Is the Threadless gift code still part of the package when your design is printed?
A: Yes, upon the launch of your design, you’ll receive a $250 Threadless gift code, and design challenge winners will likely receive $500 gift codes. Exact details will always be provided in your official notification email.