A Conversation with an Art Advisor: Shelli Beermann
About Shelli Beermann
Shelli Beermann has held various roles in the art business world, including artist manager, gallery manager, fine art appraiser, and fine art insurance broker. You can learn more about Beermann Art Advisory at beermannartadvisory.com.
Shelli Beermann's first decade in the fine art industry was a busy one. She held various roles, such as artist manager, gallery manager, appraiser, and insurance broker. She then established Beermann Art Advisory, a firm that offers a unique host of services, including appraisals and collection management. Fellow Atlanta appraiser, Courtney Ahlstrom Christy, spoke with Beermann about her experiences in the art world and how it informs her work today. In particular, they discuss Beermann's recent addition of artist management services to assist mid-career artists.
The Conversation
Courtney Ahlstrom Christy (CAC): Thank you for taking the time to speak with me today. Let's begin with what started you on the path of working in the fine art business.
Shelli Beermann (SB): I worked in an art gallery while in high school and on college break, so I fell in love with the idea of being surrounded by art early on. The gallery owner told me about the art business graduate program at Sotheby's Institute of Art in New York City. Studying the art industry in New York sounded like the most exciting thing in the world, and I knew that was exactly what I wanted to do. I had no plan B, which is unusual for me, but luckily, I got into the program and that started me out on this exciting career.
CAC: You've held various positions in the art world over the years. Have you noticed a theme in these roles? And how have these experiences helped you shape your advisory firm?
SB: One of the things that drew me into the art world in the first place was the passion. Whether it's a collector spending their hard-earned money on something to look at every day or an artist pouring their heart and soul onto the canvas, art is something people feel very strongly about. I've worked with nearly every party in an art transaction in different roles throughout my career. As a result, it's given me valuable insight into my current position as an advisor.
For instance, when I worked in insurance, I helped collectors protect their prized possessions beyond merely placing an insurance policy. We came up with plans to prevent the loss from happening in the first place and mitigating a loss if it does occur. When I was at the gallery, I worked as a liaison between the artist and collector. I loved the excitement of placing the right work with a collector. Selling art is really not like selling any other type of product. I thought of it as re-homing a piece. When art finds the right home, everyone is excited. No one is in a bad mood when they buy a piece of art.
Finally, in my role as an artist manager, I work directly with artists. It is such a treat to be surrounded by the creative process. I am not an artist myself in any way, shape, or form. I'm a business person with an analytical mind, so to see how an artist works is one of the favorite parts of my job.
All that being said, while passion is an integral part of the industry, it typically doesn't translate into value. It makes my job as an appraiser difficult at times because people have loved and lived with a piece of art possibly for decades. When they go to have it appraised, they may find it is not as valuable financially as they had thought. I always tell my clients that if an artwork has become a part of your life and your story, then maybe it has served its purpose. It's not always what people want to hear.
CAC: As you say, the acquisition is such a happy occasion. Then on the appraisal side, it sometimes feels like you spend your day breaking hearts.
SB: Exactly. It's really hard, and sometimes it breaks my own heart, having to deliver some bad news to clients.
CAC: Out of all of those professional experiences, are you drawn to any particular role or responsibility?
Teal Ground by Sunny Goode, oil on canvas.
Sunny Goode is a full time Richmond Virginia contemporary artist. She hopes her paintings reflect an emotion and create a feeling that gets deeper each time you look at them. Learn more at sunnygoode.com.
SB: I love helping artists. Many artists just starting out don't realize that they are actually entrepreneurs. Successful artists often identify this early on and run their operations as a business and eventually outsource the tasks that keep them away from creating. Once artists get to the point in their careers where they need help and can afford it, they often hire a studio assistant. Assistants are incredibly valuable, but often artists need help with the day-to-day part of running a business. And that's where I come in.
An artist’s talent is not well suited to sitting at a computer to answer emails and send invoices, even though their business couldn't survive without those things. I've had artists forget to send invoices to clients. If I can give one piece of advice to artists it’s please don’t forget to get paid.
CAC: I know that you have worked both in New York and Atlanta. Are there any regional differences in how the art market operates?
SB: The art market in New York is vast. I think it makes up almost half of the global auction market. So there's a tremendous amount of volume there with different niches of the art market.
In Atlanta, there are a lot of interior designers that often become the tastemakers as they're frequently put in charge of decorating the walls. I found that to be a big difference between New York and Atlanta. And of course, New York is more global while Atlanta is more regional. New York is one of those unique places that is very international and sort of unmatched elsewhere.
CAC: I think that's interesting. It also seems that the art world increasingly intersects with the financial industry, as high-quality works are viewed as a type of asset. Has this trend affected the kind of clients who engage your collection management and appraisal services?
SB: Art as an asset is a topic I researched heavily when writing my master's thesis. My focus was on art as loan collateral, which was becoming popular during the 2008-2009 recession. Now it's a booming industry, particularly within the last few months of the COVID-19 pandemic.
Collectors are hesitant to sell in an uncertain market, such as today in 2020. Many of them are looking to finance their collection to free up liquidity and invest in other markets that might provide a higher rate of return. I have had some wealth managers reach out to me who never dealt with this topic before and didn't know where to start. I'm always happy to be a point of contact for wealth advisors to discuss art financing.
CAC: Do you think treating fine art almost as a kind of stock option detracts from the love of collecting for "art's sake"? Or is it a significant development for the industry, especially in regards to issues of opacity that have always been problematic for the art world?
SB: At the highest level of the art market, including art in your overall investment portfolio is important within reason. IA small percent of Ultra High Net Worth clients' overall portfolio should be invested in alternative assets, such as art. I do think it can be a valuable and useful way to diversify. But for art in the lower tier of the market, it becomes a much riskier gamble. The art industry, as we know, has always struggled with transparency, which makes investing in art even riskier. I do think technology will help that going forward.
CAC: Have you noticed an increase in Millennial collectors for your clientele?
SB: Absolutely, Millennials are becoming prominent collectors in today's market. They buy in different distribution channels than previous generations, such as online. Millennials are very comfortable with the format and it will become an increasingly important method for buying. For instance, Sotheby's had a $73 million bid online for a Francis Bacon triptych. That's currently the highest online bid ever. That piece ultimately sold to a higher telephone bid, but online bidding at this level was unheard of just a few years ago.
However, art is very different from most other products. There are some issues we need to work through to make buying art solely online mainstream. Perhaps there can be some sort of trial period or maybe a return policy. But shipping art back and forth comes with its own level of risk. The majority of art losses in the insurance industry come from art in transit. And I think it could also bring up some interesting provenance concerns. Perhaps VR technology will help.
CAC: I also think about the streaming of art where you can consume without physically owning the piece. I'm curious if that will become a sales tool, where you can have a digital preview before purchase. Of course, nothing's quite like the real deal.
Another service you offer is business consulting for mid-career artists. It seems to be a pioneering side of your business, almost on the front edge of the types of business help artists need today.
SB: Yes, it's a different niche that has yet to be cultivated in the market. Many artists are looking for help with their business, and this service will become critical as more artists realize what kind of professionals they need working on their team.
CAC: It reminds me of agents in the music industry, whose job is to support the best interests of their musician clients. I was curious if you see any parallels? And do you think a type of "agent" system might develop in the art world?
SB: The talent in the music industry typically have a lot of people on their team. It allows musicians to focus on what they're good at. In contrast, a visual artist is largely a one-person band. They do everything themselves from getting art in galleries, promoting themselves, doing all the marketing, keeping their website up to date, and making sure they get paid.
While I do think an agent system would be useful in the art industry —and I hope that's something that develops going forward— the big difference is royalties. Royalties work differently in the art market. In the United States visual artists don’t get royalties, with a few exceptions. So, an artist is paid the first time a work sells, and they don't get a cut any other time that same painting sells, even if the later price is for millions. Of course, a strong secondary market will naturally strengthen an artist's primary market. But an artist doesn't receive direct payment for a secondary market sale. I think that would deter agents from creating a system for visual artists as opposed to how it works in the music industry.
CAC: I know that you are more interested in helping mid-career artists. How do you define a mid-career artist?
SB: There's no one definition for a mid-career artist. For my business, I define it as an artist with over a decade of professionally working full time with typically national or international recognition.
I see many mid-career artists spending too much time on operating the business instead of creating. Often this happens once an artist has been doing all the administration themselves for several years. And then they realize that they really can't keep up anymore. That's where I can come in and get the business organized by putting systems and processes in place and then by maintaining day-to-day tasks.
CAC: Have you observed any challenges that artists face today in trying to make a livelihood that you help alleviate?
SB: A lot of artists lose out on business because they are slow to respond to inquiries, or they feel uncomfortable about pricing. Sometimes, they think a client is going to be too difficult, so they decline commissions. All of these things are lost income.
When I work with an artist, the first few months are almost always focused on clean-up. I’ve found that it’s very normal for artists to feel disorganized. We can tidy everything, including going through backlogs of emails, getting new work on the website, and creating/maintaining an inventory database. After that, it's just maintenance. There is a lot I can do to alleviate some of these burdens for artists.
Botanical Detail by Emily Morgan Brown
Emily Morgan Brown is a contemporary artist working in Birmingham, Alabama. Birthed out of a fascination of ancient technique, Emily's large scale botanical tapestries are a lesson in history and a record of today. Learn more at emilymorganbrown.com.
CAC: When you are helping an artist determine price, are you looking at past sales history and also making parallels to artists similar in medium, region, and stature? And do you also consider the cost of materials to produce the piece?
SB: All those things. One of the hardest things for artists is pricing their work and feeling confident. Their art is like their babies. I can take some of that passion out of the art transaction and quantify the value. My appraisal background helps a lot when I determine pricing.
When pricing, past sales are the best place to start as the foundation. The cost of materials also plays a part, for instance canvas is typically priced higher than paper. If an artist does something very expensive and extravagant, it will all play into the price. However, value is not solely determined by the size of the work and materials. There are other factors to consider, like the time the artist put into the work or the effort to achieve deceptive simplicity. Also, I do look at comparable artists and what they're selling for. In addition, I'm very adamant about charging a premium for commissions. Some artists push back on this, but a serious collector would never expect to get something custom made without paying for that luxury.
CAC: And have you ever dealt with any artist estates? I could see your services being quite useful to help establish a robust foundation for an artist's legacy.
SB: I haven't yet, but that would be a place where I can help. Typically, once an artist passes, there's a lot of sifting through everything that happened, particularly towards the end of the artist's life. That's a side of the business I have not yet explored but I could be incredibly valuable. I can come in and tidy things and help execute as well as assist with the evaluation and eventual dissolution of the art.
CAC: From a business perspective, what are some elements that would help artists thrive in the current market?
SB: For an artist first starting out, don't turn down opportunities. For example, charity events and collaborations are an excellent way to gain exposure in different markets.
Another way for artists to expand is offer products, which can be very lucrative if done right. One example is prints, which can be a significant revenue stream. But if not executed properly, it can gravely dilute the artist's market and ultimately hurt the business. Of course, all of these things come with more work for the artist, and that's where I can help.
One small way to stand out is thoughtful titles. I can’t tell you how much Untitled bugs me. The title is an opportunity to enhance the work. It can sometimes make or break a sale.
CAC: There has been a long tradition for well-established artists to agree to representation by either a single dealer or select few galleries at the exclusion of others. What are the pros and cons of such a relationship between artist and primary seller? Is there perhaps a phase in an artist's career where maybe that's more beneficial?
SB: There used to be so many barriers to entry in the art market. The internet has broken down these walls. But gone are the days when the artist's only job was to create in their studio and send all of their work to one or two galleries and then wait for a check. While this model does still work for some artists, there's usually a lot more to being an artist now.
Having limited representation at the highest level of contemporary art is valuable. A gallery can vet collectors and manage the limited supply of art. They can manage what shows the artist does. And at this level, demand often outweighs supply. This can certainly translate to higher prices, but increases need to happen thoughtfully and methodically. A high-end contemporary gallery can help with that.
In more of the middle market, many artists send a body of work to a gallery for a specific exhibition, whether that be a solo or group show. When the show is over, the gallery can keep the works to sell, but they largely move on to the next event. A gallery usually has to do this to stay relevant and keep people coming through the door.
It's also important to remember that galleries do take a percentage of the sale price of artwork, so an artist needs to decide if the gallery is bringing enough value to warrant that. And if they are not going to use a gallery, how are they going to take the percentage a gallery would have taken and reinvest it back into their business. But I think the limited representation of only one or two galleries doesn't work for a lot of artists these days.
CAC: How important is it for an artist to maintain an active online presence? Would you recommend them to be engaged in some type of social media, even if another individual manages it?
SB: Online presence is crucial, especially social media. In addition to the obvious benefit of exposure, social media is a critical way to engage with other brands and artists. It also helps tell the artist’s story, which is very valuable.
I recommend sharing your inspirations for finished artwork. Something I love about working closely with artists is how they interpret their daily life. My mind is very literal, so let's say I see a boat; in my mind, it will always be a boat. An artist might look at the same boat and see the movement of the water, the compilation of different shapes, or how the colors blend. The way they translate this into their work is mind-blowing to me. I've seen some artists lately showing this on Instagram, where they have an image of the inspiration and then the finished product. I love that.
CAC: For the artist website, do you treat that more as a calling card or anchor point? I'm sure it's essential to have one, but how much time should be invested in its development and management?
SB: After Instagram, your website is the next place just about anyone who will go to find additional information and, more importantly, how to buy a piece of art. A website needs to be very clear about how to inquire about purchases or talk about a commission. It needs to be updated, just like social media. You need to maintain it and show new bodies of work and even sold pieces, so people can see where you've been and where you're going.
CAC: Do you think artists can thrive solely in the digital space? In other words, can they succeed without having their work represented in shows, fairs, and galleries?
SB: Just starting out, I think it would be hard to gain attention solely in the digital space unless the artist gets exposure and acclaim through unconventional means. Some artists have done this successfully through brand collaborations or press features. But most emerging artists do need the exposure and validation from a gallery to build a client base. Most of the artists I work with still have their art in galleries, typically without exclusivity clauses.
I do think it will be possible one day to thrive solely in the digital space though we are not there yet. The issue here is recreating the emotional response people get when they see a piece of art in person. It's very hard to replicate this in a digital format. The best you can do is show collectors what a piece can do in a space. So I always recommend sprinkling in photos of works displayed in physical spaces into any social media campaign or website because it helps clients visualize a painting in their own home.
Graffiti Love by Sunny Goode, oil on paper with deckled edges.
Learn more about the Love series paintings at lovevolve.love.
CAC: From your experience with artists, have you noticed repeat customers or devoted collectors who continue to buy work from the same artist. Do they build upon a single artist?
SB: Absolutely, one of the most important things for an artist is to keep in touch with your current collectors. They're your best chance at a sale. Many will buy the same artist over and over. But you have to be proactive and reach out to them. Keep a list of who liked which pieces and tell them when you new work available.
CAC: Do you think it's important to support fellow artists? It seems that an artist's community can be an ecosystem that helps all to be engaged and thereby encourage business.
SB: Yes, supporting fellow artists is so important these days. Whether that's on Instagram by sharing each other's artwork/accounts or attending one another's shows, it helps your business and can tap into different markets. What works for one artist's collector base might not work for another, but there's a lot of cross-business opportunities. It's a way to support your peers and get out of the siloed nature of your own studio. You cultivate your own career by helping others at the same time.
CAC: In recent years, a lot of peripheral spaces have appeared as alternatives to the "white cube" gallery model. Do you think the industry is heading more in this direction, given the rising costs of brick-and-mortar operations and present economic volatility?
SB: The use of alternative spaces is an interesting concept that can be successful. However, it can also be a bit of a waste of time. When you walk into an art gallery, you expect to see great art, and hopefully, you plan to purchase something or, at the very least, show up to support the artist and the gallery. Some businesses take advantage of offering artists exposure when all they want is free art on their walls with no intention of actually selling.
I can't tell you how often a business asks to hang a painting; they entice the artist with great exposure to new clientele, saying that it will be for sale. But in reality, no one is aware except the business owner about the possible sale. It's not in the other employees' job descriptions. I especially see this happen in restaurants. They'll keep the art on the wall for years, but it never quite works out for the artist.
CAC: From our talk so far, I get the impression that ideally, a professional artist would hire several people to work behind the scenes. Perhaps there would be a studio assistant, a PR person, an accountant, maybe an attorney, etc. And your management services are that glue to make sure everything is communicated. Would you describe yourself as a liaison to all aspects of running the "ship"?
SB: Exactly, I can be the initial contact for all those other business partners. I work with a lot of bookkeepers to make sure the sales tax is getting paid. I can also work with social media managers, lawyers, if they're involved, and web designers. I act as the filter between those business partners and only contact the artist when necessary.
CAC: That's great. I would like that service in my life as well.
SB: I know, I love doing it for creative people but wouldn't mind it for myself either.
CAC: Would you say that most of your artist clients focus on paintings or two-dimensional works? Have you worked with any performance or installation artists?
SB: My clients are all visual two-dimensional or sculptural artists. I haven't yet worked with any performance artists, but hopefully in the future, I could work with all different types of artists. I think that would be a lot of fun. They could equally benefit from my services.
CAC: From your perspective, who is an ideal artist client?
SB: Somebody who understands the importance of outsourcing business operations. They recognize that they just don't have enough time in the day to do it all. Perhaps they've had a family member or assistant doing those tasks for many years, but it has become overwhelming. Or they want someone more established in the industry, like myself, who can take all those tasks off their plate and run with them. I've been in the industry for over a decade now. I know how it works and who the players are. This knowledge allows me to help clients.
CAC: How should artists interested in your services reach out to you? Would you recommend them sending a link to their portfolio?
SB: They can email directly at shelli@beermannartadvisory.com or visit my website.
I will look at your website and Instagram, so please send me those details. If you can tell me specifically what you need help with, that would be a great start. I am always willing to have an initial phone conversation to talk about their needs and budget. We can decide if it makes sense for us to work together. I like to hear what's your least favorite part of running the business. A lot of times, that is something that I can help with.
Many thanks to Shelli Beermann for chatting with Worthwhile Magazine. You can learn more about Beermann Art Advisory at beermannartadvisory.com.
© Worthwhile Magazine 2020