Understanding Gallery Contracts and Commission Rates

Galleries

Aug 2

10

Why the Contract Matters as Much as the Art

You have spent months preparing a body of work. The gallery has seen your portfolio, loved it, and wants to represent you. It is an exciting moment, and it is easy to say yes on the spot. But the document they send over is not a formality. It sets out who controls your work, who gets paid, and what happens if something goes wrong. Reading it carefully, and knowing which clauses are standard and which are negotiable, is one of the most valuable habits you can build as an artist.

This guide walks through the terms you are most likely to encounter in a UK gallery agreement, from commission rates to insurance, so you can approach the conversation with confidence rather than anxiety.

Consignment: The Default Model

Most gallery relationships in the UK operate on consignment, sometimes called sale or return. This means you retain ownership of the work until it sells. The gallery holds it, displays it, and acts as your agent. Ownership only passes to the buyer at the point of sale.

This is good news for you. It means unsold work comes back to you, and the gallery cannot simply keep pieces indefinitely without consequence. A well-drafted consignment clause should specify:

  • A full inventory list with titles, dimensions, medium, and your retail prices
  • The consignment period, typically six to twelve months, and what happens at the end
  • Whether the gallery may move work between locations or lend it to art fairs
  • The conditions under which you can recall work early
  • Who is responsible for framing, hanging, and presentation costs

If an inventory list is not attached, ask for one. Verbal agreements about which pieces are on display quickly become murky when a piece sells or goes missing.

Commission Rates: What Is Normal?

The gallery commission is the percentage it keeps from each sale. In the UK, the standard range sits between 30 and 50 per cent of the retail price, with 40 per cent being a common midpoint for emerging and mid-career artists. Established galleries representing blue-chip work may take 50 per cent or more, while some younger spaces take 25 to 30 per cent.

A few practical points sit beneath that headline number:

  • Commission on the retail price, not the net. Make sure the split is calculated on the full sale price, not on a figure after deductions.
  • VAT. If the gallery is VAT-registered, commission will usually be subject to VAT. Ask whether the quoted percentage is inclusive or exclusive.
  • Framing and production. Some galleries absorb these costs; others deduct them before splitting. Clarify which.
  • Discounts. If the gallery offers a buyer a discount, does it come out of your share or theirs? The fair answer is that discount should reduce the gallery's commission proportionally, or be split evenly. Get this in writing.
  • Tiered rates. Some agreements reduce commission on higher-value sales. It is worth asking, particularly if your prices are rising.

Do not be shy about negotiating. A gallery that respects your work will expect a professional conversation, not a silent signature.

Payment Terms and Transparency

Knowing when you get paid matters as much as how much. Standard practice is payment within 30 days of the end of the month in which the sale occurred, though some galleries pay within 14 days and others stretch to 60. Push for the shorter end where you can.

Insist on the right to see records. A good clause gives you the ability to request a sales statement, and in some cases to inspect the gallery's books relating to your work, on reasonable notice. This is not distrust; it is basic financial hygiene, and reputable galleries agree to it without fuss.

Also confirm how payments are made, whether by bank transfer, and who bears any transfer fees. If you are based outside the UK, clarify the currency and exchange rate mechanism.

Insurance, Loss, and Damage

While your work is in the gallery's possession, who insures it? The answer should be the gallery, and the cover should be at full retail value, not at your cost of materials. Look for a clause stating that the gallery insures works against fire, theft, and accidental damage from the moment they arrive until they are returned or sold.

If work is lent to an art fair or an external exhibition, the same cover should follow it. Ask for the name of the insurer and the policy limits if you want reassurance. If the gallery cannot confirm insurance, consider whether you want the work there at all. Shipping is a separate question: clarify who arranges and pays for delivery and return, and who carries the risk in transit.

Exclusivity and Other Clauses to Watch

Exclusivity is where contracts can quietly become restrictive. Some galleries ask for the right to represent all your work, or all work of a certain type, within a geographic area. Others want first refusal on new pieces.

  • Scope. Is exclusivity limited to the UK, to a city, or to a particular medium? Narrower is generally better for you.
  • Duration and notice. A rolling twelve-month term with 30 to 90 days' written notice to end is reasonable. Perpetual or auto-renewing multi-year terms are not.
  • Post-termination commission. Some galleries claim commission on sales to buyers they introduced, for a set period after you leave. A short window, often three to six months, is defensible; an open-ended claim is not.
  • Image rights. The gallery needs permission to reproduce images for promotion. That licence should be non-exclusive, limited in scope, and should not extend to merchandising without separate agreement.
  • Moral rights and alteration. You should retain the right to be identified as the author and to object to derogatory treatment of your work.

Before signing, read every clause twice, mark anything unclear, and ask questions in writing so you have a record of the answers. If a term feels unfair, propose an alternative rather than walking away immediately; negotiation is normal and often welcomed. A contract should feel like a partnership document, not a trap. When both sides understand the terms, the relationship has room to grow, and your attention can return to where it belongs: making the work.

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Daniel Okonkwo Author

Writing an artist statement that curators understand means being clear, specific, and reflective about your materials, ideas, and working process.

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