Not all clients and photos benefit from licensing.
My RV clients for example need all a plethora of usages for a very short term,, usually a year. At the end of the year a new model is produced, new photos get shot and the old ones are toast. Heck here are many times a model will only last 6 months.
My client will not need additional rights, and I have no outlet for additional sales for the lions share of these images.
So we just do the pricing all up front. They get the rights they need, ( I don't release copyright) I get a check and I also get to shoot the images again in a few short months.
Years ago I tried to play the licensing model years back, only to lose every job to the competition...and really the licensing model really did not work in this industry.
So instead we make good money upfront.
Now my target market is difference than many, and what works for me may not work for others. The problem here, I think is the broad brush approach. Clearly for guys like Yelhsa, licensing works and works well. For others, not so much.
Correct me if I'm wrong here, but it doesn't sound like you pricing any differently here, to me or others.
The only real difference, is that you don't clearly state what the Licence fee
is for - but rather rely on the assumption that they will only use your images for: 1 year, in Multiple media, throughout American + on the Internet.
Due to the fact, that to date, that is all they have needed to use your images for.
Which is fine, so long as it continues that way.
I personally just prefer to clearly state what the actual usage is - based on my understanding of what all they will need to use the images for - when I quote a fee - so as to avoid any misunderstanding down the road, should things change... which they sometimes do.
For example, I had a client once, who (like your client) got new images produced, of his new product range, every single year.
And for more than 10 years that's how it worked - so naturally I didn't bother to state what the usage agreement was - I just assumed
it would be for 1 years use in 2 or 3 media, throughout Ireland
- and therefore, changed him a flat rate (for my time & expenses) without stating anything else.
I said 'had a client'
- because it's now been 10 years since he last asked me to produce any new images for him; however, he continues to use my (old) images in his magazine ads every month - as well as, in his brochures, on the side of his vans, in newspaper ads, on his website site, etc, etc.
Lesson learnt - don't assume - put it in writing.
Because yes, I was paid 'good money'
for 1 years use - but for 10 years use... well, that amount doesn't appear to be so good now
So it's not just about counting on sales at the back-end or not making 'good money upfront'
- it's about clearly stating what the fee is for, so as to avoid assumption and possible misunderstandings down the road - because no-one likes to be told afterwards, that they got it wrong or even worst, be conned.
In your case, whether you state the 'use' or not, won't change the amount you are currently charging - it would just mean that should the deal change at some point - for example: they cut back on redesigning their product, so it now only changes every 2 years instead of 1 year
- then you wouldn't totally lose out.