How to Add a Photo or Image to a Salesforce Contact Record

1. Create a public folder to hold your image files.
2. Upload your image file to your Documents storage area.
3. Get the URLs or links to each of the pictures you uploaded.

1. Click the View File link next to the name of the file you are going to use.
2. A new browser window or tab will open. Go to the address bar, highlight, and copy the URL.

4. Create a new formula field with the resulting data type text (it must be of type text or it won't work). Make sure Advanced Formula is selected.

CASE (FirstName & LastName,'Darius' & 'Caravana', IMAGE('/servlet/servlet.FileDownload?file=01590000002E31g',
'DariusPicture', 100, 100), 'Vincent' & 'Sullivan', IMAGE ('/servlet/servlet.FileDownload?file=01590000002E33m', 'VincentPicture', 100, 100), 'Florent' & 'Dean', IMAGE('/servlet/servlet.FileDownload?file=01590000002E33h',
'FlorentPicture', 100, 100), NULL)

Note: Formula fields can’t exceed 4,000 bytes when saved. The save size is different from the number of characters if you use multibyte characters in your formula. It means that you can only use it for a limited number of Contact records.

There is a free AppExchange application called Photo Uploader which might be helpful as well. This isn't a supported application by Salesforce.com Support.

Alternatively, you can also create a rich text area field in the Contact object. Once that field exists, edit it and click the image icon on the rich text editor. Click choose file and select the image on your computer. Click insert then save the record.

Please note there is an active IdeaExchange idea which admins can vote for asking for a picture-specific field to be added to Contacts. You can view and vote for that idea from the link below:

Contact.Photo