When working with a voice over, there is often talk of a buyout. This is frequently the subject of discussion. Why does it exist? What do you actually pay for? And why is there sometimes a buyout and sometimes not?
What is a buyout anyway?
A voice over buyout is the fee you pay for using someone’s voice. You have the recording fee for amount X and in addition you buy the usage of the voice for amount Y.
The better known the voice you work with, the more often you will encounter this type of agreement.
When is a buyout involved?
You do not always have to deal with a separate item for the buyout. In the case of a web video, the cost of using a voice is often already included in the fee. This means that the voice records the text for you and you can use this recording in perpetuity. At that point, the buyout is already included in the recording fee.
But what if that web video is also used as a pre-roll on YouTube or as an ad on Instagram? Then, the use of the web video changes to a commercial. Take into account the buyout costs.
What is normal?
As a benchmark, you can keep in mind that the duration of a commercial buyout for a voice over is usually 12 months. After that, the video can remain on your own channels; so on your website, your social media channels and your Youtube channel. The only condition is that the video is not pushed with an advertising budget.
Of course, you can always extend the buyout period. But, is buying out forever really necessary? Almost nobody uses a perpetual buyout period, as the costs can be quite high. Also bear in mind that not all voice overs are willing to commit to such a long period. So consult with the client and find out what their preferences really are. Maybe a five-year buyout is enough.
Then there are differences in what you pay for. That depends very much on the country where it is broadcasted. In many countries, you agree on an amount for a certain use, but with larger productions in the United States, for example, you pay per time that the commercial is aired. So it is not at all strange that broadcast schedules are shared in these talks.
What is a reasonable buyout fee?
Well, what is a reasonable fee? That is a tricky one. In some countries, there are no rules and it is up to the voice over or their agent to determine what is a fair amount. In countries such as the US, UK and Germany, many buyouts have set Union prices, which are often used as a guideline.
The cost depends on several things:
- How long is the work visible or audible? One month? One year? Perpetually?
- And where will you distribute the work? On TV or radio? Nationally or regionally? Or, is it an online video? Or, will it only be shown within an organisation?
All these things above influence the amount of the buyout. Quick tip: save this checklist and go over it before you book a voice over. The voice over artist will be thankful for having the answers ready.
Another factor to consider is the reputation of the voice in question. For example, if you ask an unknown voice over to quote for a TV commercial AND to record a voicemail for the company in question, the voice over will probably charge a small amount, 150 euros at the most, for the voicemail. He might even say ‘hey, I’ll record that voicemail for you for no extra charge’.
But, if it’s a well-known Dutch TV personality, then you can almost predict that you will be paying a four-figure sum for that commercial. This is logical because the TV personality will say that you want to use their fame as a spokesperson for your company.
Yes, but what is reasonable?
It can happen that one voice over charges little or nothing for his work, while another charges sky-high fees. Sometimes even per channel it is being aired on! If you use commercial in cinemas, Ching-ching, cash register. Also on Instagram? Ching-ching. On Facebook? Ching-ching, cash register. Of course, the costs quickly mount up. But fortunately it is becoming more common that pre-roll and paid social media are seen as 1 buyout. Now I hear you thinking, what is reasonable? Or, to what extent is paying an extra buyout reasonable?
The more special or famous the voice, the more you will have to deal with these kind of package rates. Especially when you’re dealing with an agent, things can get rough and that can sometimes feel uncomfortable.
On the other hand, every voice over knows a voice over who once recorded a commercial that was heard so often that it started to work against him. In other words, because they can be heard too often for one advertiser, other advertisers do not want to use their voice anymore.
Or that they couldn’t take on a mega lucrative job because they recorded something small for an associate in the industry. If, as a voice over, you sold your voice for too little money at a time like this, you will have a hard time dealing with it.
When narrating online videos, voice over artists are often less brand loyal. Because it is less visible and the earnings per video are much lower. Being brand loyal is almost impossible to do there.
Or suppose a mortgage lender asks for a TV personality for its commercials. And it just so happens that this person is presenting a lifestyle TV program. At such a time, it is no longer about the voice, nor even about his or her fame, but the mortgage provider hopes to sell more mortgages by using an authority in the field of housing. That is smart thinking. And logically, it does come with a greater price tag than if you were just looking for ‘a voice’.
In other words, fairness. In the end, it’s all about how reasonable you are. The amount you agree on together must match the nature of the job. So that, in the end, you can do business together with a smile.
