Hi I'm wondering how others go about pricing for something like merchandise work as apposed to a single fee job.

I was asked if one of my illustrations could be licensed for use in an album cover which is the kind of work I'm used to, so I set a price for that and all seemed well. But last night they messaged me to say they want to use the art for making T-shirts now instead. (No art or money has been exchanged yet).

My problem is that the price I set was for cover art, but now they want to make merch, which they could make far more on with passive income than what I would be paid for. So now I'm not sure how to respond.

Have you ever made an agreement where you take a cut of each item sold on top of your design/license fee? And if so, how has this been perceived by your clients?
Maybe you have a different way of pricing this kind of job.

Thanks in advance!

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