“I’m being offered $200 to narrate a 120-thousand word audio book. Do you think that’s a fair rate?”
“A client wants me to record a movie trailer for $150. Should I do it?”
Not a day goes by without someone asking these types of questions on Facebook, LinkedIn and Google+.
Sometimes I stick my neck out and I respond to these questions, especially when I get sentimental and remember the early days of my career.
I was young and unafraid and incredibly ignorant. Back then there was no Internet. Picking brains became my specialty.
On other days I’m not so sappy, as I remember the kind words of my business coach:
“If you’re a Pro, you know what you’re worth. If you’re not, go do your own homework! You won’t learn a thing if I hand you everything on a silver platter.”
He was right.
These days, getting info has never been easier. Search Google for voiceover rates. You’ll get about 5,600,000 results in 0.52 seconds. How’s that for starters?
Bringing up rates usually spells trouble. Talent likes them to go up. Clients love paying less. Where to begin?
The Freemarketeers will tell you to leave everything up to the unregulated forces of supply and demand. After all, it worked well for subprime mortgages, didn’t it? The Interventionists fear a free fall for all. They want rates to be regulated.
Unfortunately, it’s not that black-and-white. Voice-Over rates reflect many variables, and unless you belong to a union or you have an agent, it can be tough to put a price on your pipes.
Enter a parade of Pay-to-Plays. You pay for the privilege of being offered the opportunity to audition and bid for projects, together with thousands of other privileged colleagues. Here’s the catch.
As a member, you often have to subject yourself to an agreed price range per project deemed reasonable by that site. Whether or not you choose to accept that range depends on your personal Price Floor.
A Price Floor is a point below which a product or service should not be sold, or else you’d incur a loss. I bet you anything that most people reading these words right now, have no clue what their price floor actually is.
Be honest. Do you?
A EUROPEAN PERSPECTIVE
If you’ve read my work before, you know that I have written about U.S.-based voice casting sites and their perceived influence on dwindling voice-over rates.
On January 8th, 2008, a new player entered the market: Bodalgo. Based in Germany, Bodalgo is the brain child of a man who once had a very boring job as the deputy editor of Penthouse: Armin Hierstetter.
Armin’s no dummy.
He studied the existing P2P’s carefully, as he set out to take the good and improve the bad to create something beautiful. Unlike similar sites, Bodalgo is available in German, Spanish, Italian and English (American and British).
Now, if you think that you can buy your way into Bodalgo, you are wrong. No matter the credit limit on your Visa Card, if you sound like crap, you can’t join the club.
Bodalgo caters to clients from all over the world, but because it’s based in Bavaria, it’s a gateway to the European voice-over market. This brings me back to rates. How does Bodalgo compare to its American counterparts?
I (PS) decided to check in with the boss: Armin Hierstetter (AH). Here’s a transcript of the interview.
PS I just saw a project posted on your site in the 100-250 USD range. It made me think: Is Bodalgo going in the direction of its American counterparts, or did I miss something? Has $100 always been the minimum?
AH In USD the minimum range starts at 100 dollars (the Euro has a 50 to 150 minimum range as – for example – a local radio spot in Germany is usually 50 to 55 Euro).
If jobs are posted that are budgeted too low (intentionally or not), Bodalgo contacts the voice-seeker suggesting what we believe is a fair rate. Sometimes the voice-seeker sees our point and is willing to raise the budget, sometimes not. If the voice-seeker does not agree on increasing the budget, the job simply does not get posted. Period.
Of course, we hear many times:
“What? You want me to pay 250 USD for a job that is done in five minutes? You must be insane, you [censored]”
Well, depending on my mood, I sometimes try to explain why voiceovers cost what they cost (knowing that with these types of folks it really does not help at all in most cases), or I simply press the delete button and go on with whatever I am doing.
PS Bodalgo’s been in business for a few years now. What’s your overall take on how voice-over rates are established and where they are going?
AH There are many factors when it comes to rates. Here are few of them (this is by no means meant to be a complete list):
- Uniqueness (most important if you ask me)
- Recording skills
I see a link between equipment becoming more powerful yet more affordable, and declining voice-over rates. Let me share three trends with you:
1. The costs for your own studio are coming down, so you can make this beneficial for your clients as well;
2. Because many talents build their own studios, there is much more competition which also leads to lower prices. That’s how the market works.
PS Sorry to interrupt, but clients are saving money due to the increase in home studios. They no longer need to pay for studio time, an audio engineer/editor and a director.
It is my impression that these savings are simply pocketed and not passed on to the voice talent. In the end, we end up doing more for less. Shouldn’t this give us some leverage to raise our rates?
AH I fully understand that voice-seekers already save a lot of money because they’re used to getting the finished audio from the talent without paying for a studio.
I want to be honest with you. I really think that’s one of the biggest mistakes talents have made for a very long time: They did not charge properly for the studio work, only for the rate as a talent. It will be VERY difficult to change this to an approach where talent charges their normal rate plus editing costs;
3. More and more people of the type “My friends all tell me I should host a radio show,” buy a Shure SM58 microphone and think that their laptop recording is God’s gift to the audio world. Untrained amateurs seem to flood the market.
What’s worse, there are many voice-seekers out there that listen to crap demos thinking they are actually good, because they don’t have a proper recording at hand to compare.
But one thing is for sure: Bodalgo will never start to accept amateurs. Yes, there are a few talents with Bodalgo that have just slipped through the net that might not have passed if I had been pickier the day I activated their accounts. Still, the level of Bodalgo’s talent is much, much, much higher than with any other Pay2Play site that we’ve come across.
PS What’s your advice on how to best play the game? Everybody loves to win an audition, but not at any rate. Do you expect voice-over rates to go up any time soon?
AH If you ask me, the reasons why rates should go up are purely to be seen in costs of living. If those prices would be stable, I’d say it’s fair to assume that our rates would stay stable as well.
With financial markets facing the issues they face at the moment, including all the effects like higher inflation, increased costs for energy, food, rent etcetera, I think that we’ll see rates rising over the next years to cover the rising living expenses.
PS Inflation correction keeps rates at the same level. Talent won’t be making more just because the number on a check is higher. If we wish to increase the amount of money coming in, we need to compensate for the rise in the cost of living, and add e.g. 10% to whatever we’re charging.
AH Well, U.S.-based talent benefits from the weak dollar when paid in Euros by Euro-Zone clients. The opposite is true for Euro-Zone-Talent paid in USD. U.S. clients will not accept higher USD prices just because of exchange rates. It’s really just bad luck for us Euro-Talents.
So, to cut a long story short: Yes, I see higher rates over the next years. But this is only because everything else will go up in price as well.
PS So, how can we best prepare for the tough years that are ahead of us?
AH 1. If you have not done so already, invest in your own studio.
2. Buy the good stuff (like Neumann or Brauner for mics, for example) as it will serve you well many, many years. Personally, I would no longer waste money on analog equipment. I would solely buy digital stuff (like the TLM 103 D from Neumann).
PS Quality equipment is essential, but owning a state of the art camera does not make one a top-notch photographer.
AH I do appreciate that a cool mic does not make a great voice talent, but this is not where I am coming from at all. I am just a firm believer that successful talent simply needs both: A well-trained voice and great equipment to deliver high-quality audio. There are too many Samsung USB mics out there in my opinion.
I know, of course, that those top shelf brands are pricey. But when you look at what you (and your client) get for the money – it turns out to be an excellent investment.
3. LEARN HOW TO RECORD PROPERLY!!! It’s really, really, really (I mean it) horrible to hear how bad, bad, bad many of the auditions are recorded (hiss, bad miking, bad levelling, bad everything). Use proper headphones to proof-listen your recordings and be super critical about the work you deliver. [Armin insisted this should be printed in bold]
PS Can Bodalgo keep both voice-seekers and voice talent equally happy, or is that impossible?
AH That’s easy: Our main goal is to attract more and more voice-seekers that post sanely budgeted jobs. We want to provide them with the easiest solution available to find high-quality talent without paying any commission. That way, both sides will win.
PS Herzlichen Dank, Armin.
Paul Strikwerda ©nethervoice