Top 6 Photography Business “Rookie” Mistakes

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As something of a quick experiment, I asked my Twitter followers to answer the question, “What are the top business mistakes by ‘rookie’ photographers?” Within just a few minutes I had several great responses, and thought they would make a great Monday post for the blog.

It’s one thing to be a good photographer, but quite another to be the owner of a successful photography business. In fact, I’ve seen many technically talented photographers suffer through tough times in their business, while observing others who seem less deserving sail right on by.

Thought for the day...

The difference in these two scenarios lies in the photographer’s understanding of the importance of business skills.

You’re A Photography Business Owner – Not A Photographer

Read "How To Avoid The Top 7 Mistakes To Avoid In The Photography Business"As I’ve said on many previous occasions, it’s not the best photographer who wins, but the best marketer and business-minded photographer.

So, what are the top 6 mistakes, at least according to my Twitter followers?

Here they are, in no particular order:

#1: @sachablue

Undercharging, and not valuing their time, or learning the real costs of running a legitimate business…

This is a big mistake that many newcomers make, usually because they first enter the industry as a serious amateur who’s discovered the potential to earn some money doing what they already like to do. Not that there is anything wrong with amateurs turning professional – far from it.

The problem is, most of them fail to realize that the second they charge for their work, in any capacity, they’ve crossed the line from amateur to professional. That shift also requires a change in thinking, especially when it comes to how they view the value of what they’re providing.

If photographers would just stop at this point to take stock, and fully understand the implications of being a professional, I believe the industry would have a lot less problems than it does right now.

All it needs is a simple shift in perspective – from amateur photographer to serious business owner.

As a business owner, one of the first responsibilities is to fully understand what it costs to keep the business open, and how much it costs just to pick up the camera for a session.

With these factors in mind, plus a realistic valuation of the photographer’s time, combined with the actual cost of sales of material products sold, the photographer can come up with healthy prices that correctly value their work and time.

#2: @shuvarahim

Assuming that paid advertising will bring in business…

This is an interesting one, and not one I would have necessarily thought of right off the bat, but it is nonetheless true.

I made this very same mistake myself when I started out, much to my disappointment (and an empty wallet)! The advertising in question was the good old “Yellow Pages“, and I think I watched about $3,600 disappear into thin air on that little exercise. At the time, I didn’t know any better, and assumed that I needed to be in the Yellow Pages just because that’s what was expected of a business. Besides, there were plenty of other photographers in there, so it must be the correct thing to do, right?

Wrong.

Other mistakes I made with paid advertising included certain web directories and other paid listings, none of which did anything to provide leads, let alone clients. Some of those listings were, and still are, big names.

If you are a new photographer, and you’re considering paid advertising, it pays to really consider the target market of the advertising, how effective the reach is, the experiences of others who have taken part in it etc. If in any doubt, don’t do it!

One of the most powerful forms of marketing is simple word of mouth, if done correctly (see my business book on WOMM here).

#3: @AllenHyslip

Setting price without knowing their COGS…

This was alluded to in #1, but it’s worth reiterating it again here. Knowing your COGS (cost of goods sold) is absolutely critical to calculating a price list that will sustain a healthy business. The COGS should include all the direct costs involved in making a sale, but not fixed costs such as rent, telephone, internet etc.

The one thing a lot of photographers fail to include in their COGS is their time, which is a huge mistake. Your time is your second most valuable asset (your attitude being the first), and you need to charge for it, even if it’s only a nominal hourly rate.

Having determined the COGS for a given product, it’s good practice to mark that up at least 3 times to arrive at a final retail price.

This is where too many photographers get scared, and fall into the vicious cycle of constantly second-guessing and tinkering with their price list – especially if they’re having a hard time at sales.

Trust the numbers, and work on your sales skills.

#4: @KPepPhotography

IMO, in the beginning rookie photographers don’t spend the time to create a “business plan” and then work the plan.

Okay, do YOU have a photography business plan? An actual written plan that gives a frame of reference for your business, outlines your goals, and acts as a roadmap for success?

I willing to bet that the vast majority of photographers don’t have such a document. Usually, this is because they don’t like the task, don’t know how to write one, are too busy to write one, or don’t have clearly defined ideas about their business or their goals.

Whatever the reason, if your business was an airplane, it would not have much chance of reaching its destination without a flight plan, would it?

A business plan does not even need to be complicated! It’s only for you, to keep you on track, so it doesn’t have to be written as though you are a major corporation.

In my opinion, the simpler it is, the clearer it will be, and the more likely you are to stick to it!

#5: @BenRichesphoto

Putting a lot of time and effort to shoot for ‘average’ designers who then end up using and abusing new photographers…

This is an interesting one indeed, and covers a subject I see quite often in the various photography groups – the idea of shooting for free (or almost free) in the hopes of gaining exposure.

You can’t be in the photography business for very long without someone asking you to photograph something (usually an event of some kind) for free (or a very low rate) on the promise that it will give you great exposure or the prospect of further, higher-paid, work down the line.

This type of practice is an insult to the photographer, and does a lot of damage to the industry as a whole. The promised “exposure” always turns out to be non-existent, and further work usually involves poor compensation at best.

Take into consideration the ideas presented in items #1 and #3 when making your decision about such jobs, and you can’t go too far wrong.

My advice to new photographers is do not fall into the trap of thinking that just because you’re new to the business that you can’t charge what you and your photography are worth.

#6: @kineyas

Thinking it’s easy…

I’m sure that most photographers working today will probably admit that they thought it was going to be easier than it turned out to be! Myself included!

The truth is, running a professional photography business is not easy. Running any business is hard, I don’t care what it is. There certainly are no “get rich quick” business plans for photographers!

Perhaps the “easy” thought comes more from the photography side of things. After all, that part is fun, and we can get technically very good at it – it’s what we came here to do, right?

Unfortunately, the clicking of the camera only takes up 20% of our business efforts, and that’s being generous! The other 80% is occupied by marketing, selling, social media, accounting, planning, studying, marketing (so much fun it’s worth mentioning twice!)… and so on.

Those business-related things are probably the things we became photographers in order to avoid, but avoid them we can’t. They are all essential and critical to our success, so we may as well get used to them.

Further Reading

Read more on this topic in my short ebook “How To Avoid The Top Seven Mistakes In Professional Photography“.

What Would Be Your #7 Top Mistake?

Thank you to the Twitter users who contributed to this exercise, and I do plan to try this experiment again in the future.

This is only 6 of the mistakes that many of us make, and I’m quite sure there are plenty more!

What other mistakes would you add to the list? What would be your #7 mistake to warn new photographers about? Let us know by submitting a comment below.

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  • Learn the TRUTH about online marketing for photographers...
  • See how email marketing can transform your business...
  • How to use social media the RIGHT way...
About Nigel Merrick

I'm a professional photographer, photography mentor and photography business coach, dedicated to helping professional photographers succeed with trusted photography marketing and SEO strategies that work and save valuable time... I love networking with other photographers, so let's get connected! Add me to your Google+ circles, like the Zenologue Facebook page, join the Photography Business Marketing group on LinkedIn, and follow @ZenologueBlog on Twitter.

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Comments

  1. My No 7 mistake would be… white elephants, or buying equipment just because it’s assumed it’s needed when running a photography business, then watching it lie in the corner of the office/studio/wherever completely unused. This is linked to the point made in the original 6 mistakes about having a business plan and sticking to it. Know your market and only spend money of things that you will actually use in that market – not things that you assume you’ll need.

    • James – thank you, and you win today’s “best comment” award! I was wondering how long it would take for someone to bring this one up! You are absolutely right about this – and it’s all part of the “bright shiny object” syndrome that can be the downfall of so many.

  2. Excellent article. I’m constantly being told that I’m underpricing my services and I’ve been gradually raising the price I pass on to my clients.

    While I understand the 7th mistake that was pointed out by James, I can’t shake the feeling that I need a few more pieces of gear to make me feel more confident in charging what I feel I’m worth. Nothing too extravagant, just a new lens and a small lighting kit.

    I’ve had parts of my business plan in my mind for ages now, I just haven’t gotten off my behind and written it yet. I will soon though.

    • Thank you, Emanuel, and I appreciate you taking the time to leave a comment.

      I can certainly understand your feelings around the need for more gear, and sometimes we do. The key is to know what we need, versus what we want. Put your CEO hat on for a moment and ask yourself the question: “Does this piece of equipment have a role to play in adding to my bottom line?” For example, a second camera is essential for shooting a wedding, as a backup, and might be nice to have, but is not so necessary for a family portrait photographer. Is the new lens you want really necessary? Can you take the same photos with the lenses you currently have? A lighting kit sounds like a good thing to have, if it’s going to be essential for the tasks you need it for.

      The one thing we really need to avoid is being distracted by the constant parade of new and so-called “better” cameras. Believe it or not, I still use my old Nikon D200 for most jobs, and it does fine. Would I like a D3? Sure, but it’s not essential right now.

      Hope that helps, and I wish you continued peace in your business!

  3. All excellent posts! I would add a bit to James’ and Emanuel’s points. I’ve learned 2 things about buying equipment:

    1. Buy what you need the FIRST time – not a cheap alternative. You will quickly learn that the cheaper gear won’t work or last, and you end up having to buy the quality stuff eventually anyways – meaning you’ve ended up spending more and lost a lot of time.

    2. Think of the gear that you actually use, and tie any additions to specific job needs. I’ve now gotten down to a core group of items that I use on *every* job. If I shop for anything else it will be for a specific use adding additional (billable) capability for a booked job, and not just in the *hopes* of landing a new job. In other words, don’t go out and buy a new item just because you hope it will help you land a new job – equipment can’t and won’t do that. Buy it IF you already landed the job and will need it, and you can’t rent it just for that day.

    Regards,
    Wm

  4. On your point about pricing . . .
    the problem there is today’s economy . . .
    Normal pricing an 8×10(print) would retail for $15.
    But in this money crunch, your client will shop for
    as ‘cheap’ as possible. . . so you have to strip away
    your ‘value’ pricing or not get the sale!

    • Hi Leon, and thanks for the comment. I understand where you’re coming from, but your argument is only correct for some clients. Of course, some will shop around for the cheapest but (if you want to run a healthy and profitable business) they are not our client, and i’t okay to send them elsewhere. Stripping away the true value of what we do for the sake of a sale is unacceptable to me under any circumstances. Having said that, there is no reason why you can’t sell 8 x 10′s as add-on prints to a wall portrait, for example, as a bonus sale at a cheaper rate.

      Unfortunately, if we’re selling 8 x 10s for $15 then we’re going to be out of business pretty soon.

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