= licence, in short, is an agreement between the illustrator and their client. Within the agreement, they define how both parties can use specific illustrations. It’s kind of like renting a piece of artwork for specific usage. The artist can usually keep their copyright and the client only pays for the actual usage and not full copyright!
NOTE: you usually dont’t need a licence for private commissions such as gift.
THINGS TO CONSIDER IN A LICENCE
USAGE How is the artwork used? ( brocheries for marketing, printed product to sell,…. )
DURATION How long does the artwork need to be used for? ( short marketing campaign, a year long print run,…?)
CLIENT Size of the market / geography? ( small local company, big international company,…? )
EXLUSIVITY do you want to be the only one who has the rights to the illustrations, or can the illustrator re-sell their work immediately / after a duration?
Prices for a licence can vary a lot depending on the client and their needs. For marketing usage, I usually start from 20 % of the work fee. For commercial use, I usually start from 50 % of the work fee.