Back to Recommended Best Practices for Artists
Back to Glossaries & Definitions
Back to HR Operations

Markup - Defined

Markup, encompassing both Production and Administration (Admin) Fees, represents an essential component often incorporated into estimates within the commercial photography sector. Markup, as the production fee, compensates for the time and effort, administrative expenses, and liability for a particular project.

This fee addresses several critical financial pressures within the industry. It compensates for the extended payment terms that have become more common, occasionally requiring agencies and their production counterparts to manage outstanding balances for periods extending beyond 60-90+ days. Additionally, markups are intended to offset the rising costs of doing business, increasingly complex industry terms and conditions, inflation, and escalated expenses related to legal and insurance requirements. 

Markups are consistent with Cost-Plus billing as outlined in the AMA National Guidelines – Photo Production Standard. The specific percentage of markup applied can vary, reflecting the distinct operating styles and costs of each individual representation agency and production partner.