How Much Does It Really Cost to License Artwork for a Product?

If you’ve landed on this page, you’ve most likely asked yourself (and maybe even Google), “how much does it cost to license artwork?” 

Whether you’re a small business owner or an art director trying to find artwork for your products, you’ll find that this question is not really addressed often. All you want to do is make your products stand out and be marketable, and you understand that pattern and design are the things that connect with your potential customers. So why is it so hard to know what it takes to buy or license artwork? Why don’t more artists just publish their pricing?

It’s not because we as artists don’t know our value and it certainly isn’t because we don’t want to work with you. It’s because it’s a question that has a lot of variables, and we want to get you the right quote. 

So let’s break down some of the real-world licensing costs so you can budget with confidence and have a starting point when you approach an artist you’d like to work with.

Why Artwork Licensing Costs Vary

Let’s start by looking at some of the variables that drive licensing prices. The more you understand up front, the better prepared and more confident you’ll feel approaching an artist.

These variables include:

• Type of license (exclusive vs. non-exclusive)

• Usage rights (product categories, territories, and durations for artwork rental)

• Artist reputation and demand

• Volume (single prints vs. collections)

  
  

All of these factors play into the cost. For example, a non-exclusive license for wallpaper in the United States for 1 year may start at $250 flat fee while an exclusive license for home decor (which is a much broader category) for 3 years may be $1500+.

There is also the option to pay a royalty rate of 5-15% of gross sales for the agreed upon time frame. So you can see why it’s tricky to find accurate pricing from a website. But that doesn’t mean you can’t figure out a good range to get started with.

Typical Price Ranges

• Non-exclusive licenses: $250–$1,000 or royalties (3–6%)

• Exclusive licenses: $400–$1,500 (with a limited timeframe and category/territory specific limitations) or royalties (5–15%)

• Full Buy-out purchase: starts around $1,000+ (one-time, no royalties) depending on the artist

So let’s talk about when each option makes sense. 

Non-exclusive license: You’re a small t-shirt shop, you may be looking for cool graphics for a shirt. You’d like to choose something that’s cost-effective and has a quick turnaround. You don’t mind if others are able to buy the same design from the artist. In this case, a non-exclusive license would be perfect. It’s a quick way to rent the artwork for a smaller fee, and you don’t have to worry about artwork creation because it’s already done. You’re able to quickly get your t-shirts to market for your upcoming launch.

Exclusive license: You’re an art director of a competitive textiles company looking for several prints for bolt fabric. You want to know that you’ll be the only fabric manufacturer with these prints, but you don’t mind if the prints are available in other industries like home decor. An exclusive license would make the most sense in this situation. You’ll be able to negotiate the industry and territory limitations which makes it so you’re the only fabric manufacturer with these prints for the specified time. This gives you a competitive advantage over other fabric companies and brings customers looking for these designs to your door. 

Full Buyout: You’re a national home decor brand, and you want to make sure your high-end products remain exclusive to you and only you regardless of the industry. You also want to be able to own the copyright and use the designs on any product you create in any format you want. This type of freedom comes with a buy-out of a design that’s either custom created for you or not previously licensed to anyone else. It comes with a higher price tag, as well as more flexibility and customization. And you’ll know you’re the only company who can use that design for as long as you own it.

Hidden Costs to Watch Out For

Before you jump into a licensing or buyout contract, make sure you’re accounting for the following possible costs:

• Will you need to pay to reprint or renew the license when it expires or you’re out of products? This information should be in the contract.

• Are there fees for modifications or customizations? If you need color or size changes, clarify with the artist whether these are included in the price or whether there’s a fee for additional changes. 

• Are there additional royalties? Royalties are a percentage of a sale that comes back to the artist. Some contracts specify a royalty on top of a flat fee and others are strictly royalty based. Be sure you know what payment options you’re agreeing to and that they’re clearly spelled out in the contract.

A clear contract protects both you and the artist, so make sure all details are included and you’re confident in what you’re agreeing to.

How to Choose the Right Option for your Product

With all these options, there’s no “best” way to work with an artist. It’s going to depend on your business, your goals, and your current needs. Let’s compare your options so you can choose which is the best for your business and product. 

License Type	Pros	Cons
Non-Exclusive	Quick Least expensive option	Others can use the same artwork even in your industry Artist retains copyright May need to renew for additional costs if you want to continue using the artwork
Exclusive	Quick Balances cost with exclusivity	Other industries can use the same artwork Artist retains copyright May need to renew for additional costs if you want to continue using the artwork
Full Buy-out	Quick turnaround with premade options Brand uniqueness Commissioned work that’s brand specific Full copyright is yours	Slower if you commission custom designs Higher cost but greater freedom

How to Budget for Artwork Licensing

So now that you know what type of licensing will be right for you and your circumstances, let’s make sure artwork is in your budget. The general rule of thumb is that artwork should account for somewhere between 1-5% of your product launch costs.

If you’re a small business, starting with non-exclusive licenses or hiring the artist as a freelancer can be a great way to source artwork without incurring too much overhead. For more established brands, art directors may want to budget for exclusivity and uniqueness to help their products stand out.

If you’re exploring artwork options for your next product, I’d love to be of help. You can work with me in three ways: licensing, freelance support, or custom commissions. Each is designed to fit your goals and budget. Learn more about these options and let’s get started.