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Saturday, 3 October 2026Fashion, style and modelingLTEN
Money and rights

Buyout

Also called: usage fee

A buyout is a one-off fee with which a client buys in advance the right to use the pictures in set channels, a territory and a period.

How it works

On an advertising job a model is often paid two sums: the day rate for the work and a buyout for the usage, say one year online and in stores in the Baltic states. The more channels and countries, the bigger the buyout.

A total buyout means rights to use without limits or time. It should be paid very well, because the model loses the chance to offer the same "face" to other clients in that sector, especially if exclusivity is asked for too.

A buyout must always be described clearly in writing. A vague "all media" with no term will be read in the client's favour in a dispute.

In practice

An advertising agency offers a model a day rate and a buyout for two years of online, TV and outdoor use across Europe. Her agency calculates that such usage would shut her out of other advertising in that sector, and negotiates a bigger buyout and a shorter, one-year term with a paid option to renew.

What to watch for

  • Ask for the day rate and the buyout to be listed separately.
  • Ask what happens after the term: renewal or end.
  • A total buyout plus exclusivity should cost a lot.

Related terms

Questions and answers

Frequently asked

01How is a buyout different from usage rights?

Usage rights are the permission itself; a buyout is the price paid for it up front.

02Is commission taken on a buyout?

Yes, as on the day rate, if the job goes through the agency.

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