Gallery commission rates and consignment agreements

How the money usually splits

When a commercial gallery sells your work, it keeps a commission and pays you the rest. In Canada, CARFAC Maritimes’ best-practice standards describe a commission of 40% to 50% of the artwork’s price as usual. In the United States an even 50/50 split is the common arrangement in commercial galleries, though some artists and writers have argued for sliding scales tied to what a gallery actually does.

Other venues work differently:

Two rules from the CARFAC Maritimes standards are worth knowing. Commission is calculated on the retail price only, not on GST or PST. And when a gallery offers a buyer a discount, the discount should come out of the gallery’s commission, not your share.

What the gallery does for its share

A commission pays for a business that works to sell your art. The CARFAC Maritimes standards list services a gallery may provide, including:

• regular exhibitions in its space, with invitations, receptions and promotion
• keeping your CV, images and a record of press up to date
• building relationships with collectors and pursuing public and private sales
• helping with submissions and protecting your copyright
• keeping records of consigned, loaned and sold work

Not every gallery offers every service. Ask what yours will do, and make sure the commission matches it. The same standards suggest that galleries cover rising costs by raising prices rather than raising commission.

What a consignment agreement is

On consignment, you keep ownership of the work while the gallery holds and sells it as your agent. You are paid only when a piece sells. A written consignment agreement sets out the terms; without one, every misunderstanding becomes your word against theirs.

Must-haves in a consignment agreement

• Inventory list. Every work by title, year, medium, size and retail price. CARFAC Maritimes recommends two copies, checked against the work, signed by both parties, with one kept by each.
• Condition on arrival. The gallery confirms in writing that the work arrived in good condition.
• Ownership. Consigned work remains your property and is not part of the gallery’s assets if the business is sold or fails.
• Prices. Retail prices agreed by both of you, excluding tax, and a rule for changing them.
• Commission rate. One clear percentage, with any exceptions written out.
• Discounts. Who can approve them, the maximum, and that they come from the gallery’s share.
• Payment terms. When you are paid after a sale. The CARFAC Maritimes standard is within 60 days of the sale or of payment received, whichever is sooner, with a statement of account each time. For instalment sales, it suggests a deposit of at least 25%.
• Insurance and care. What the gallery’s insurance covers, from when to when, and what happens if work is lost, stolen or damaged. If the gallery has no insurance, it should tell you in writing.
• Duration and ending. Either a fixed term or a notice period that either side can use to end the agreement.
• Return of work. When unsold work comes back, in what condition, and who pays for packing and shipping.
• Exclusivity. Whether the gallery has exclusive rights in a territory or channel, and exactly where. If nothing is written, no exclusivity should be assumed.
• Studio sales. Whether you owe commission on sales you make yourself, and to whom.
• Copyright and images. That the gallery may use images to promote your work, and that copyright stays with you.

The law where you live

In Canada, a consignment is mostly governed by your contract and provincial law, so the written agreement carries most of the weight. Saskatchewan’s Arts Professions Act, in force since 1 June 2010, requires a written contract between artists and anyone engaging them, and lists elements it must contain. In Quebec, the status of the artist law rewritten in 2022 requires a contract between a visual artist and a presenter about the artist’s work to be in writing, setting out the work, any licence, the payment terms and how often the presenter reports on sales. RAAV can advise artists there.

A note for US readers: many states have artist consignment statutes. New York’s Arts and Cultural Affairs Law treats consigned art and the proceeds of its sale as trust property held for the artist, and a 2012 amendment added criminal penalties for dealers who ignore it. Check your own state’s statute.

Red flags

• No written agreement, or an agreement handed to you on opening night.
• A fee to show, to be represented or to hang, charged on top of commission. That is a vanity gallery pattern.
• Payment “when the buyer pays in full”, with no time limit.
• Discounts taken from your share without asking.
• Exclusivity over a country or continent from a gallery with one small room.
• Commission claimed on every sale you make anywhere, with no exclusivity in return.
• No insurance, or vague answers about who pays if work is damaged.
• Your work held indefinitely, with no list and no return date.
• Sale proceeds mixed with the gallery’s own money, with no statements.

Where to find templates

• CARFAC Saskatchewan publishes contract templates including a Consignment Agreement, an Artist Agent Agreement and a Sale of Artistic Work Agreement, with an introduction to visual arts contracts.
• CARFAC Maritimes publishes detailed best-practice standards for artists working with commercial galleries, which double as a checklist when you read a contract.
• CARFAC nationally links best-practice codes from Alberta, Saskatchewan, the Maritimes and Quebec, and offers contract advice to members.
• Artquest, in the UK, publishes the text of a short sample consignment agreement. It dates from 1977, so use it as a checklist rather than a finished contract.

Templates are a starting point. For a long-term representation deal or a large sale, a lawyer who works with artists is worth the fee.