When artists consign their work to a gallery, they enter into a partnership where the artist provides the work, and the gallery facilitates its sale. At the core of this relationship is the commission split, the percentage of the sale price that each party receives. While the commission structure is standard practice, it is critical that the terms are clearly outlined in the contract to ensure transparency and fairness. Moreover, galleries must acknowledge that their existence depends on artists, and their role is to actively support and promote the artist’s career—not just facilitate transactions.
This article outlines the key elements of a fair commission agreement, including standard splits, direct sales policies, deductions, hidden costs, and payment timelines, as well as what artists should expect from galleries in return for their commission.
The Role of the Gallery in Supporting Artists
Before delving into the specifics of commission splits, it is essential to understand what galleries provide in return for their share of sales. A professional gallery's responsibilities extend far beyond displaying artwork; they should actively promote the artist, cultivate relationships with collectors, and invest in marketing efforts to enhance visibility.
What Galleries Should Provide:
Exhibition Space:
A professional, well-maintained space to showcase the artist’s work, designed to attract collectors and the public.
Marketing and Promotion:
Galleries should promote exhibitions and individual works through email campaigns, social media, press releases, and advertising.
Client Relationships:
Cultivating and maintaining relationships with collectors, curators, and other buyers to expand the artist’s market.
Sales Facilitation:
Handling all aspects of the sale, including negotiations, invoicing, and collecting payment.
Reputation Building:
Elevating the artist’s profile by including their work in group or solo exhibitions, catalogs, and collaborations with institutions.
When a gallery fulfills these roles effectively, their commission is a justified return for the value they bring to the artist’s career. Conversely, galleries that fail to provide these services raise significant red flags.
Key Components of Commission Agreements
1. Standard Commission Splits
The commission split determines how the proceeds from the sale of artwork are divided between the gallery and the artist. The most common split is 50/50, though this may vary depending on the gallery’s location, reputation, and level of involvement.
Professional Indicator:
A clearly defined clause in the contract specifying the exact split, such as:
“The Gallery will retain a 50% commission on the sale price of all consigned artwork, and the Artist will retain 50%.”
Red Flag:
Ambiguous language about commission percentages or agreements to "negotiate" the split later. Ensure this is explicitly outlined before signing.
2. Direct Sales by the Artist
Some galleries attempt to claim a commission on sales made directly by the artist, even if the gallery did not facilitate the transaction. This is especially common for sales made within a specific timeframe (e.g., six months after an exhibition) or within the gallery's geographic region.
Professional Indicator:
If the gallery expects commissions on direct sales, the contract must specify the conditions under which this applies. For example:
“The Gallery will retain a 20% commission on any sales made directly by the Artist to collectors introduced by the Gallery within six months of the exhibition’s conclusion.”
Red Flag:
Broad, vague clauses claiming commissions on all direct sales, even those unrelated to the gallery. Artists should push back against overly restrictive terms.
3. Deductions
Galleries may deduct expenses such as framing, shipping, or marketing from the artist’s share of the sale. These expenses must be itemized and agreed upon in advance.
Professional Indicator:
The contract should explicitly outline allowable deductions and require the gallery to provide receipts or documentation. For example:
“Any deductions for framing, shipping, or marketing will be itemized and documented, with costs pre-approved by the Artist in writing.”
Red Flag:
Galleries attempting to deduct unspecified or retroactive expenses from the artist’s share without prior consent.
4. Hidden Costs
Some galleries attempt to deduct operational or marketing expenses from the artist’s share without explicitly stating this in the contract.
Professional Indicator:
A clause ensuring that operational costs (e.g., rent, utilities) are covered by the gallery’s share of the commission, not the artist’s. For example:
“Operational expenses, including rent, utilities, and staff salaries, will not be deducted from the Artist’s share of the sale.”
Red Flag:
Vague terms allowing the gallery to withhold additional funds for “miscellaneous” or “administrative” expenses.
5. Payment Timeline
The contract must specify when the artist will receive their payment after a sale. The industry standard is payment within 30 days.
Professional Indicator:
A clause such as:
“The Artist will receive payment within 30 days of the sale, accompanied by a detailed sales record, including the buyer’s information upon request.”
Red Flag:
No mention of payment timelines, which can lead to significant delays or nonpayment.
What Artists Should Expect in Return for Commission Splits
The commission is not simply a fee—it is an investment in the artist’s career. For a standard 50/50 or 60/40 split, galleries should provide the following:
Effective Marketing:
Galleries must actively promote the artist and their work, including creating promotional materials, running ad campaigns, and engaging with media outlets.
Professional Representation:
Artists should expect galleries to represent them professionally in all dealings with collectors, curators, and institutions.
Strategic Opportunities:
Galleries should offer opportunities to participate in exhibitions, art fairs, and collaborations that align with the artist’s goals.
Timely Payments:
Artists should receive prompt payment for their work, along with transparent documentation of sales.
Example Clause for Commission Terms
Here is an example of a comprehensive commission clause that artists can look for in gallery contracts:
"The Gallery will retain a 50% commission on the sale price of all consigned artwork. The Artist will receive payment within 30 days of the sale, accompanied by a detailed sales record, including the buyer’s information upon request. Any additional expenses, such as framing or shipping, must be pre-approved by the Artist in writing and itemized in the sales report. The Gallery will not deduct operational costs, such as rent or staff salaries, from the Artist’s share."
Best Practices for Artists
Negotiate Commission Splits:
If the gallery requests a higher-than-standard split (e.g., 60/40), ask for justification based on additional services or opportunities they provide.
Clarify Direct Sales Terms:
Ensure that any terms related to direct sales are specific and reasonable.
Request Transparency on Deductions:
Insist on pre-approval and documentation for any expenses deducted from your share.
Set Payment Deadlines:
Avoid contracts that lack specific payment timelines, as these leave room for delays.
Consult Legal Advice:
If unsure about the terms, consult an attorney with experience in art law.
The commission split is a cornerstone of the artist-gallery relationship, but it must be accompanied by transparency, fairness, and mutual accountability. A professional gallery recognizes that its success depends on the artists it represents and invests in their growth through marketing, client development, and strategic opportunities. As Charles Carey notes in Art Law: A Concise Guide for Artists, Curators, and Collectors, “Fair commission agreements are not just about money—they reflect a shared commitment to the artist’s success.” By understanding and negotiating commission terms, artists can protect their interests and build lasting, equitable partnerships with galleries.
Works Cited
Carey, Charles. Art Law: A Concise Guide for Artists, Curators, and Collectors. Rowman & Littlefield, 2015.
Grayson, Sandra. Contracts for Artists: What You Need to Know. Routledge, 2016.
Nochlin, Linda. Women, Art, and Power and Other Essays. Harper & Row, 1988.
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