It’s easy to assume that Royalty Free images are free - but they aren’t. To use royalty free images, you need to pay a flat rate for these images, and photographers and agencies are paid for the use of the image.  It is called “Royalty Free” because you don't have to pay extra royalties to the agency or the photographer, other than the license fee. In a Rights Managed license, the stock photo agency negotiates rates based on how long, in what dimension, and how frequently you plan to use the image. For example, you pay a fixed rate if you want to use an image on a single print ad in a specific publication for a year. You’ll have to pay an extra royalty fee if you’re going to continue using the photo for an extended period.  This model gives the artists more control over how their photos are used. This also means you as the user get exclusive usage rights on a particular photo. Extended Licenses are related to royalty free licenses. Suppose you want to use a stock image in a TV commercial, or exhibit it as a framed artwork in a store. You’ll need an extended license wherein you literally extend the audience to which you show the photo (or the distribution/reproduction volume)