Monday, February 11, 2008

Frequently Asked Questions

This is a growing list of frequently asked questions. If you would like your question(s) answered, please email us: contact (at) gumgum (dot) com.

What is the pay-per-use licensing model?
What is the ad-supported licensing model?
How does GumGum make money?
How does GumGum pay content owners?
What happens when a publisher’s funds reach zero?
Can publishers license content via GumGum for offline use?
What type of content sells best on GumGum?
Does GumGum support IPTC?
What does it take to become an FTP partner?
Does GumGum have an editorial process?

What is the pay-per-use licensing model?
Pay-per-use licensing is one of two usage models offered by GumGum, the other being ad-supported. Pay-per-use allows publishers to license content on a CPM basis. For example:
  1. Content owner sets a CPM of $1 for a photograph of Britney Spears.
  2. Publisher licenses the photograph.
  3. GumGum tracks the license and reports 10k views.
  4. Publisher pays content owner $10.
What is the ad-supported licensing model?
Ad-supported licensing is one of two usage models offered by GumGum, the other being pay-per-use. Ad-supported allows publishers to license content for FREE. In exchange, an advertising unit is displayed alongside the licensed content. The advertising revenue subsidizes the licensing costs.

How does GumGum make money?
GumGum supports two licensing models, pay-per-use and ad-supported.

Pay-per-use: Content owners set their own CPM for each piece of content they upload to GumGum. Content owners keep 100% of the licensing revenue. GumGum charges an additional “shipping & handling” fee on top of the CPM. The fee is paid by the publisher and is not in any way related to the CPM set by the content owner. For example:
  1. Content owner sets a CPM of $0.50 for a spy photo of the new BMW.
  2. Publisher licenses a medium version of the spy photo, paying a CPM of $0.51.
  3. Publisher’s license of the spy photo receives 2k views.
  4. Publisher pays GumGum $1.02.
  5. Content owner will receive $1.
  6. GumGum will retain $0.02 as the shipping & handling fee.
Content owners tell GumGum how much they want to earn and GumGum gives it to them, novel!

Ad-supported: There are no CPM guarantees for ad-supported licenses. Neither the content owner nor GumGum can set the advertising rates. Therefore, GumGum makes no revenue guarantees, but does guarantee to pay the content owner all of the ad revenue minus the shipping & handling fee. The shipping & handling fee for each piece of content will be the same regardless of the license being pay-per-use or ad-supported.

How does GumGum pay content owners?
Content owners can contact GumGum and request payment via PayPal or check. Please send requests to: contact (at) gumgum (dot) com. In the near future we will launch a feature on the website to automate the withdrawal process.

What happens when a publisher’s funds reach zero?
This question only applies to the pay-per-use model. If a publisher’s funds reach zero, GumGum’s distribution technology allows for the license to be dynamically changed to ad-supported without work on the content owner or publisher’s end. The advertising revenues will subsidize the licensing costs until the publisher deposits additional funds.

Can publishers license content via GumGum for offline use?
No. Content owners and publishers have plenty of alternatives for licensing for offline use. Online use is a very complicated problem to solve, one which requires our full attention.

What type of content sells best on GumGum?
We have created an open marketplace that enables publishers to easily find and license high-quality content. Over time, the marketplace will generate more and more walk-through traffic and licensing. We encourage content-owners to refer publishers that wish to license their work to their GumGum profile!

Does GumGum support IPTC?
Yes and no. Content uploaded to GumGum via the web application does not have IPTC support, at the moment (this is coming soon!). However, we do have IPTC support for our FTP partners.

What does it take to become an FTP partner?
FTP integration require custom work on our end, therefore we require the content owner to have in the tens of thousands of pieces of content. If you would like to become an FTP partner please email us: contact (at) gumgum (dot) com.

Does GumGum have an editorial process?
No. We believe every piece of content has a potential end use. We will only remove content from our index if it violates GumGum’s Terms of Service.