on renting versus selling visual artworks

In a nutshell, RENTERs can earn more than SELLERs with less artwork and a lot more with the same amount of artwork. In fact, comparing renting versus selling visual artworks indicates that most people benefit when renting visual artworks is the economic interface:
• Net incomes of RENTERs are higher and more stable than SELLERs.
• For the same money, clients can rent almost four times as many artworks as they can buy.
• Renting involves more client contact, hence has more marketing opportunities.
• Governments receive more tax revenue.

By inference the renting interface suggests:
• Renting would lead to sound business practices among most visual artists.
• Clients may be more adventurous with their choices.
• Rentals would be best handled by third-party services (also with likely higher, more stable incomes).

a comparison of economic interfaces

Anyone who draws, paints, etches, sculpts, carves, etc, knows that the medium used influences the outcome. Some things can be done with some media but not with others. The same can be said about economic interfaces.

In answering the question in the title of his book Why Are Artists Poor?,+Why Are Artists Poor?: The Exceptional Economy of the Arts; Hans Abbing; 2004.
Or download PDF from HERE. Hans Abbing says the main reason is there are too many artists. It’s hard to argue with that assessment. Today, everyone’s an artist, especially in the visual arts. Perhaps, though, there is another reason why low incomes are the norm for most visual artists. For more than 200 years western society has been using an economic interface that diverts money away from artists. The question is whether another economic interface would yield a better result?

To ascertain the differences, numbers were generated in spreadsheets set up to do financial projections of income and expenses. This is common practice in business. It’s how new ventures are assessed as to their economic viability.

In the spreadsheets a range of income variants and funding models were explored. And, as can be seen (in the full document), the numbers show that renting original visual artworks instead of selling them is worth serious consideration.

the numbers don’t show everything

Obviously, there is more to this than the money. One item is client contact. There is more of it with renting. But, it’s not that much more, especially when current technologies make collecting monthly payments easier. As well, when the number of RENTAL contracts gets to where it might be problematic for an individual, the artist has sufficient cash on hand to hire an assistant. Besides which, more client contact means more marketing opportunities.

Clients benefit, too. For the same cost as purchasing, say, three pieces clients can spend time with up to eleven artworks over 10 years.

... feedback prior to publishing

While the sample group is small, I have spoken with a number of people about renting instead of selling visual art. Aside from an occasional look saying, “What’s an artist doing crunching numbers?” I’ve heard:
• One artist, who managed an artists’ cooperative some years back, told me renting pieces had worked out well for everyone. Another had heard the same.
• A couple of artists liked that, along with better money, others would likely stop displaying work for free.
• A few artists think it’s worth considering; especially by way of artist-run centres/galleries or third-party services.
• Some artists objected. They tried it. But too much time was required and/or pieces had come back damaged.
• One artist/historian/investor said, “It’ll never fly. Artists will never agree. It’d be like trying to herd cats.” (And, apparently, speculators flock to the “art market”, especially when stock markets wane.)
Interestingly, though, with one exception—a person who said, “I like to own things.”—clients generally liked the idea.
And, a couple of clients embraced the notion of spending time with a “disturbing” piece so as to determine why it’s disturbing to them. Something deemed not an option with purchases because of a “commitment” aspect to buying.

DOWNLOAD DOCUMENT

NOTE: This document is too large for small screens.
If printed it would be 17" X 11" (not folded).
The "research" is presented in two sections:
Short form (20 pages) is the results.
Long form (50 pages) is for examining the method and numbers.