Why are galleries demanding longer payment terms and higher commissions from artists?

Galleries are facing a survival crisis. They need cash flow desperately to keep their businesses afloat—to pay rent and cover expenses. When they extend payment terms to 90, 120, or even 240 days, they’re using the artist’s portion of sales to support their own cash flow needs. When they increase their commission percentage, it’s not just greed—they literally can’t survive without taking more of your money because there’s less demand and less foot traffic. The demand has permanently shifted online, which means physical galleries are working with a much smaller piece of the pie. This is why you can’t rely on galleries as your primary distribution channel.

---

Asked by artist concerned about gallery payment changes · Answered by Patrick Shanahan · art-marketing-podcast · 2020-06-27