When working with a designer on your website or printed materials you may be faced with the decision of purchasing a photo or illustration. But, when the invoice arrives for your “royalty-free” or “rights-managed” artwork, what are you really buying? You should know the difference between the two before you buy.

Rights-managed images are licensed to you on a use-by-use basis. Subsequently, the pricing is based on several factors including print run, size, placement, how long you plan to use it (for that single use), and distribution. What all this means is that if you purchase a rights-managed image for a brochure, you will be asked to provide information on its specific use and you can’t use that same image for any other project; not on your website, not on your business cards, and not on a second print-run of that same brochure — unless you purchase that image again for each specific use.

So why would anyone purchase a rights-managed image? Rights-managed images are typically of higher quality, though that can be a matter of opinion. The main reason to use a rights-managed image, though each licensor works a little differently, is you won’t see the same image used by your competitors, or even by other businesses in the same industry or geographical location. Also, for many rights-managed images you can purchase exclusive and/or lifetime rights to an image — though this comes at a high price.

Your other option is to purchase the rights to use a royalty-free image. Fees for royalty-free images are based on the size of the image, but not on its use. You can use and re-use your royalty-free image (with very few limitations) for multiple projects without incurring additional fees or licenses. The few limitations include pornographic, libelous, defamatory, or otherwise unlawful use.

The only downside to royalty-free is you could find the same image used by another business, even within the same industry and geographical location. There are no restrictions for additional use by anyone else. (Note: When purchasing royalty-free images, if you do plan on using it for multiple uses it's a smart idea to buy the hi-res version so it's adaptable to both print and web applications.)

A third category is editorial. Like rights-managed images, these are licensed on a use-by-use basis. To be classified as “editorial” its use must relate to events that are newsworthy or public interest. These are basically rights-managed, and associated fees will be based on similar criteria: duration of use, placement, etc.

Choosing an image for any of your business communications means balancing aesthetics with good marketing tactics. But the more you know about what you’re buying and how you can use it will help you plan your long-term marketing strategies as well as your budget.