How can you secure flexible licensing deals with digital distributors?

1 Know your options

When it comes to digital licensing deals, there are various options to consider, such as wholesale, agency, subscription, and perpetual. In the wholesale model, you sell your content to the distributor at a fixed price and they set the retail price. In the agency model, you set the retail price and the distributor takes a commission for each sale. For subscription deals, you grant the distributor the right to include your content in their subscription service and get paid based on reads or downloads. And with perpetual deals, you grant the distributor the right to sell or distribute your content indefinitely and receive a one-time fee. Each option has its own advantages and disadvantages; therefore, it is important to carefully evaluate your needs and expectations before making a decision.

2 Do your research

Before you approach a digital distributor, it's essential to do your homework and collect as much information as you can about them. This includes their market share and reach, target audience and demographics, pricing and royalty policies, technical and quality requirements, reputation and reviews, and competitors and alternatives. Gathering this data will help you understand their value proposition, recognize their strengths and weaknesses, and anticipate their expectations from you. It also allows you to prepare your pitch and negotiate more effectively.

3 Be flexible and creative

Securing flexible licensing deals with digital distributors requires being flexible and creative. You can try to negotiate different aspects of the deal, such as the duration and exclusivity of the license, the scope and territory of the license, the royalty rate and payment schedule, the pricing and discount strategy, the marketing and promotion support, and data and analytics access. Additionally, you can propose alternative or hybrid models such as bundling, cross-promotion, or revenue sharing. Having more options gives you more leverage in negotiations.

4 Protect your rights

It is essential to be flexible and creative, while also ensuring your rights as a digital publisher. To avoid signing a deal that limits your creative freedom, exposes you to legal risks, or prevents you from pursuing other opportunities, pay attention to the ownership and control of your content, warranties and indemnities, termination and renewal clauses, dispute resolution and arbitration procedures, and confidentiality and non-disclosure agreements. Thoroughly read the fine print before signing any contract, and don't hesitate to consult a lawyer if necessary. Lastly, keep copies of all documents and correspondence related to the deal.

5 Build relationships

Securing flexible licensing deals with digital distributors is an ongoing relationship that requires maintaining a good rapport with your partners. You can build trust and mutual respect by delivering high-quality and consistent content, following their guidelines and standards, providing feedback and suggestions, resolving issues promptly, recognizing their achievements, and seeking new opportunities. Doing so increases the chances of getting more favorable and flexible deals in the future.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?