The VO Strategist’s Guide To Voice Over Usage Fees
- Tom Dheere
- Dec 4, 2018
- 3 min read
Updated: Apr 30
In the voice over industry, Legacy Thinking suggests that you are paid only for your time in the booth.
FALSE.
As a VO CEO, you aren't selling minutes; you are licensing a performance.
With that in mind, let’s break down the mechanics of the voice actor's Usage Fee.
What is a Usage Fee?
A usage fee is when you get paid for a voice over depending on where it’s used and how long. Think of it as a licensing fee.
When you see a picture of Spider-Man on a T-shirt, the company that made the T-shirt had to pay Marvel Comics a fee to use the image of Spider-Man.
In effect, you are licensing your voice.
Doesn’t the session fee already include the usage fee?
Not necessarily.
There is a difference between the session fee (how much you get paid to record the voiceover) and the usage fee (how much you get paid for the recording to be used).
You should always get paid a session fee, but not necessarily always a usage fee. Sort of.
When should you get paid a usage fee?
It depends on whether it’s union or non-union and whether it’s broadcast or non-broadcast. In its most basic terms:
Genre Usage Fee? Why?
Broadcast (TV/Radio) YES High audience reach and potential brand conflicts Digital/Social Media SOMETIMES Depends on Paid Placement (Ads) vs. Organic (Posts)
Non-Broadcast (eLearning/Corporate) NO Usually covered by a higher flat fee
FYI this is a sweeping generalization and there are many exceptions.
How much should the usage fee be?
It depends on the size of the audience, the length of time it will be used, and if there is exclusivity/conflicts.
The bigger the market, the bigger the usage fee. (local cable vs Los Angeles metro area vs national)
The longer it’s used, the bigger the usage fee. (six weeks vs one year vs in perpetuity)
The bigger the conflict, the bigger the usage fee.
For example, if you book a TV spot for Maybelline and you’re not allowed to voice any other makeup brand for two years, you should get compensated for that loss of potential income that you could have gotten from other makeup companies. If you're good enough for Maybelline, you're probably good enough for Revlon.
I’ve noticed that commercial usage fees can be anywhere from 50% to 200% of the session fee and higher, so clearly it can vary wildly.
What’s the difference between a Buyout and a Rebuy?
A buyout is when they pay you a one-time usage fee no matter how long the voiceover is used for a.k.a. in perpetuity.
A rebuy is an agreement to use it for a certain period of time, but if they want to use it after that time has elapsed, you get paid an additional usage fee. Often it’s the same amount as the original usage fee but it can vary.
FYI buyouts are common in non-union voiceover work. To learn more about buyouts, click here.
What are cut-downs?
Cut-downs are when you record, say, a :60 radio commercial and they further edit it so it can also be used as a :30, :15 or maybe even a :05 radio commercial.
If they do cut-downs, you should get paid a usage fee for every version of that spot.
TIP OF THE WEEK
This is a large, complicated subject but it is critical that you understand how usage fees work.
As always: do your research, ask good questions, and don’t get pushed around!
To better understand union usage fees, go to https://www.sagaftra.org/sag-aftra-agreements-101
To better understand non-union usage fees, go to https://globalvoiceacademy.com/gvaa-rate-guide-2
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From my village to yours, this is Tom Dheere, the VO Strategist.
As the VO Strategist, Tom Dheere has provided voice over business & marketing coaching since 2011.
He's also a voice actor with over 30 years of experience who has narrated just about every type of voice over you can think of.
When not voicing or talking about voicing, Tom produces the sci-fi comic book Agent 1.22.
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