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Insights Buyout

The term “buyout” is particularly important in the area of ​​modeling and advertising. “Buyout” is a general term and usually refers to a one-off payment to settle claims on something. In connection with a model booking, the buyout is the compensation for the usage rights of the media production to the model. In this respect, the total compensation is divided into model fee and buyout.

The buyout is derived from copyright and specifically refers to the personal rights of the respective model and the right to their own image. By paying for buyouts at the latest, the model agrees that her person may be used, for example, to market a product. Since the distribution of images and videos can vary in intensity depending on the type of use and the client, the buyout payments are usually adjusted to the respective contractual purpose.

When concretizing the buyout, we work with three dimensions: The spatial one - in which region is the advertising being carried out? The timing – how long does the advertising last? The factual aspect – through which media channels does the distribution take place?

Example of a buyout clause:

Model fee: €1.000,00 plus buyout: 350%

Area: Germany Media: TV, cinema and online (paid & unpaid media) incl. social media Duration: 3 months for TV and cinema, online and social media unlimited in time

In this example, the model receives a fee of €1.000,00 plus a buyout of €3.500,00 and thus a total compensation of €4.500,00. This amount is negotiated by the rate Agency commission diminished.

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