If you’re interested, at the bottom of this article is a FREE Template agreement approved by a gallery owner.
At Dot Red, we’re dedicated to empowering artists at all stages of their careers. A crucial part of that empowerment is understanding the business side of art, especially when it comes to consignment agreements. These documents might seem tedious, but they are fundamental to your success as an artist. We recently had the pleasure of hosting Eva Chimiento, a gallery professional and art sales expert with extensive experience in managing artist relationships, to share her insights on navigating consignment agreements effectively.
Understanding the Importance of Consignment Agreements
Consignment agreements are more than just paperwork; they are the backbone of your professional relationship with galleries. As Eva pointed out, these documents are essential for ensuring that all parties are clear on the terms of the sale, the handling of artwork, and the responsibilities involved. Artists need to approach these agreements with the mindset that they are running a business. Here’s why:
- Professionalism: Having a solid consignment agreement in place not only protects your interests but also elevates your professionalism in the eyes of galleries and collectors.
- Clarity: A well-drafted agreement ensures that both parties are on the same page regarding terms of sale, insurance, and other critical aspects.
- Security: Consignment agreements offer a safety net, providing clear guidelines on what happens if things don’t go as planned, such as during shipping or in the event of damage.
Do’s for Artists Entering Consignment Agreements
- Treat Your Art as a Business: As Eva emphasized, artists must understand that they are their own business. This means ensuring that you have your own consignment agreement, which you can present to galleries. It’s crucial that this document reflects your terms, especially regarding sales percentages and responsibilities like shipping.
- Insist on Proper Insurance: One of the most critical points Eva made was the importance of “nail to nail, wall to wall” insurance. Always ensure that your work is fully insured from the moment it leaves your hands until it is returned. This should be a non-negotiable part of your agreement.
- Maintain Clear Documentation: Every piece of art consigned to a gallery should be documented meticulously. This includes keeping a personal inventory and ensuring the gallery records are up-to-date. Miscommunication can lead to significant issues, so having a clear paper trail is essential.
- Open Communication: Consistent communication with the gallery is key. Whether it’s about the terms of the agreement or the status of your work, staying in regular contact helps prevent misunderstandings and fosters a better working relationship.
Don’ts for Artists in Consignment Agreements
- Don’t Ignore the Fine Print: It’s easy to overlook the details in a consignment agreement, especially if you’re eager to get your work out there. However, every clause matters. Take the time to go through the agreement line by line, preferably with the gallery, to ensure everything is clear.
- Don’t Rely on Verbal Agreements: As Eva highlighted, always get everything in writing. Verbal agreements can lead to disputes, especially in situations where discounts are given or terms are altered unexpectedly. Written documentation is your best defense.
- Don’t Assume All Galleries Have Adequate Insurance: While many artists believe galleries automatically provide insurance, this is not always the case. Always request a copy of the gallery’s insurance document to verify that your work is covered.
- Don’t Overlook the Importance of a Dual Agreement: Even if the gallery provides their consignment agreement, it’s beneficial to have your own. This dual agreement ensures that both parties are fully aligned and reduces the risk of discrepancies.
Building a Strong Relationship with Galleries
As Eva shared, the relationship between an artist and a gallery should be based on mutual respect and transparency. Regularly reviewing and renegotiating consignment agreements, staying informed about your artwork’s status, and ensuring clear communication are all vital components of a successful partnership. Remember, galleries are not just sales outlets but partners in your artistic journey.
At Dot Red, we’re committed to helping artists navigate these complex relationships with confidence. By following these do’s and don’ts, you’ll be better equipped to protect your work, build lasting relationships, and ultimately, succeed in the art world.
Are you interested in downloading a FREE consignment agreement? Fill out the information below!
