Updated May 1, 2026: Illustrators can be paid through a flat fee, licensing fee, royalties, profit share, or a mix of these. The right model depends on how the artwork will be used, who owns the rights, whether the work will be sold repeatedly, and what the contract says.
This guide is for illustrators, publishers, brands, and businesses that commission artwork. It is general guidance, not legal advice. For high-value or complex rights, speak to a qualified intellectual property lawyer.
What royalties mean for illustrators
A royalty is an ongoing payment linked to the use, sale, or licensing of creative work. Instead of receiving only one fee, the illustrator may receive a percentage when the artwork helps generate revenue.
Royalties are common in books, merchandise, publishing, licensing, and some character-based work. They are less common for one-off posters, small social media jobs, simple internal illustrations, or work where the use is limited and clearly defined.
Copyright and ownership basics
The Kenya Copyright Board explains that copyright protection arises once a work is in concrete form, and registration is voluntary. KECOBO also notes that copyright can be transferred through sale, licences, or other legal arrangements, and that work created under employment or commission may depend on contract terms.
That means the contract matters. Before starting illustration work, both sides should agree on who owns the artwork, who can use it, where it can appear, and whether the creator can reuse or display it in a portfolio.
When royalties make sense
Royalties may make sense when the illustration will be used repeatedly to create ongoing commercial value.
- children’s books and publishing
- character design for merchandise
- illustrations used on products for sale
- licensing artwork to multiple clients
- patterns used on fabric, packaging, or stationery
- long-term campaign mascots or brand characters
When a flat fee may be better
A flat fee may be simpler when the project has a fixed scope and limited use. For example, a one-off event poster, website illustration, social media graphic, or internal presentation artwork may not need a royalty structure.
The fee should still reflect the value of the work, the usage rights, revisions, timeline, complexity, and whether the client needs exclusive ownership.
Common payment models
- Flat fee: one agreed payment for a defined scope.
- Usage licence: the client pays to use the work in specific ways.
- Royalty: the artist receives an ongoing percentage tied to sales or use.
- Buyout: the client pays more to own broader rights.
- Hybrid: upfront fee plus royalty or bonus structure.
What clients should clarify
If your business is commissioning illustration, clarify the terms before production starts. This protects both the client and the artist.
- what the illustration will be used for
- where it will appear
- how long it will be used
- whether usage is local, regional, or global
- whether the client needs exclusive rights
- whether the illustrator can show it in a portfolio
- what file formats will be delivered
- how revisions will be handled
What illustrators should protect
Illustrators should avoid vague agreements. A message saying “design an illustration” is not enough for serious work. Define deliverables, usage, payment, credit, ownership, timelines, revisions, and cancellation terms.
For merchandise, packaging, books, and long-running campaigns, the illustrator should pay extra attention to licensing and royalty terms because the artwork may continue generating value.
How Peasner approaches commissioned design work
Peasner Creatives helps clients think through the practical side of artwork use: what the design is for, what formats are needed, how it will be printed or published, and how the visual system should remain consistent.
For related planning, read our brand identity guide and graphic design software decision guide.
Final takeaway
Illustrators should not automatically receive royalties for every project, but royalties can be fair when artwork creates ongoing commercial value. The strongest approach is to define usage and payment clearly before the work begins.
If your business needs illustration, campaign artwork, character design, packaging visuals, or branded merchandise graphics, send Peasner the intended use, timeline, and ownership needs so the right creative scope can be prepared.
