As use cases for fonts have grown and changed, traditional licensing methods have become increasingly complex, requiring customers to navigate various metrics like page views or user counts. In response, some foundries, including us, are adopting employee-based licensing.
When licensing a typeface, customers typically select from different use types, like desktop or web licenses, depending on how they plan to use the font files. Within each use type, there are also pricing tiers designed to ensure that larger customers who have the potential to gain more value from the fonts pay more, while smaller customers with lower potential value pay less. Traditional licensing methods rely on usage data, or “metrics,” such as the number of users installing the fonts or the number of monthly visitors a website receives to calculate the potential value. Employee-based licensing uses just one metric to determine cost, the number of employees at the company, business, or organization.
Typeface licensing has increased in complexity with every new use case for fonts—from websites to apps and ePubs—different license types were introduced to capture the added value. Each use type has different metrics used to calculate the value, which adds another layer of complexity to the font purchasing process.
For example, when licensing fonts for a website, the customer first needs to choose the amount of styles. Then they need to anticipate monthly visitors, and consider what happens if the site’s popularity grows beyond initial expectations, which could result in unexpected expenses down the line. They also need to make they understand if they are paying these licensing fees once, or every year. These complications can make licensing both costly and confusing, leading to frustration and licensing infractions for many customers.
In an effort to simplify things and remove confusion and friction for customers, some foundries have decided to use one metric for all font use types to estimate the value—company size or number of employees. This is based on the idea that the larger a company is, the more value they can extract from a typeface.
There is some debate in the industry about whether the usage-based method, or employee-based method is more accurate for calculating the value, but the truth is that neither of these methods are perfect—each approach has its benefits and challenges.
For example, in usage-based models, a large company with a relatively small design department can buy a license for a couple users and produce a national campaign that brings in a lot of revenue, while a small company might pay the same amount without seeing similar value.
On the other hand, in employee-based licensing models a large non-profit with many employees might end up paying more than a small tech company with fewer employees but a higher potential value from the typeface. Not every licensing model will work perfectly for every business.
Around here, the decision to use employee-based licensing was made with customer experience in mind, aiming to create fair and accessible pricing and limit complexity during the purchase process. The way we price our fonts aims to be accessible for individuals and small businesses (because everyone deserves high-quality fonts!) and appropriately scale for larger businesses who will see a greater return on their investment. To address concerns like those faced by non-profits with many employees, we offer discounts to qualifying organizations and encourage customers with unique needs to reach out for custom licenses. More about this on our FAQ page.
The trend we have seen with many employee-based licenses at other foundries is to only offer it as all-inclusive (for all use types). Our foundry retains some flexibility in licensing choices by keeping separate use types as options, recognizing that customers may not need all-inclusive licensing. This approach provides flexibility, ensuring customers only pay for what they truly need.
As the type industry evolves, employee-based licensing is one method we can use toward simplifying the customer experience. Though there is no one-size-fits-all solution, this model opens up new possibilities for accessible and appropriate pricing. At Alanna Munro Type Foundry, we value fair pricing and transparency, and we’re always open to creating solutions that work for every customer, big or small.
Have feedback about our pricing structure? Let us know!