I turned down a postcard contract

Has anyone any experience with postcard companies? I was recently approached by a company who wanted to use several of my best images. During a meeting I was told that my share would be 5 out of 130 (less than 4%) I know that there are production, distribution and retails costs as well as the profit margin of the postcard company, but it seems like my 3.9% would be the lowest cut of all the involved parties and yet, it would be my art they are selling.

I would like to ask other people who maybe know the industry better if I missed a golden opportunity, or had a lucky escape?

I have no idea. I wonder if you have not sold anything before that sometimes it is worth getting your name known. If you are published then you have more knowledge of profit.
Now, the total volume would also enter the mix. Is the 5 of 130 representative in any way of volume. If you received a commission of 3.9% on 130 postcards that would be less than nothing. If they printed a million cards that would be interesting. So, perhaps a bit more information might help further input.
I run a small business. Volume and markup are always a factor in total business and profit margin.
Awaiting comments from someone with photo publishing experience to see if my superficial thoughts are correct.
Good luck
the fisch

I have a patented item that I license out to a dozen or so companies. In addition to my annual licensing fee, I receive 3% of the net profit on the item. 3% might not sound like much, but one company alone sells around 6 million pieces a year. The total of the two fees is pretty substantial in the end. It's all in the numbers. I usually tie them to a minimum sales amount. If they don't sell that minimum, they still have to pay me a minimum fee.

FWIW, FotoQuote cites an average quote of $750 for a "major front" postcard image in a limited run of 5K up to $2000 for a 1-3M run. Their numbers do vary and they offer a reminder that you should base your quote on "image uniqueness" as well. As Larry said, I think the print run and average sales (if you're only being paid on sales) are very important here.

Max

FotoQuote is quoting a license fee and a limit on print run. Tony was quoting a percentage of the sales. I'm a fan of the license fee model. The accounting and license terms are easier to document for both parties. Sales percentage places a dependency on the client providing an accurate and honest account of sales. License fees eliminate all the risks and hassles with accounting of sales. The client is licensed to print "N" number of cards for a fixed license fee. The client can sell them for as much or as little as they can get for them, and the client assumes all the expense of production, distribution, marketing and sales. Even if they do not sell a single card, the photographer gets paid.

You can always write into the license agreement a schedule that allows for additional print runs at specified rates so the client doesn't feel they have to negotiate all over again each time they run out of cards and want to print more.

Thanks for your help, some good advice here.