after reading through all of this, I consulted my tax advisor and a lawyer, both specializing in international taxation laws and the selling of (digital) products on marketplaces, such as envato. The consensus was that this business model obviously is and always has been a commission based model. We never interact directly with the buyers (we don’t even know who buys our items, which I would have to know for VAT taxation purposes, if I really were the seller, creating a HUGE mess), we don’t receive the money directly and never pay a “fee” to envato, instead we get a COMMISSION at the end of the month, which is paid out 15 days later. This commission is the taxable income coming from envato, not the buyers.
I urge you to go back to your simple and transparent commission system, which correctly displays what is actually taking place.
Got pretty much the same information from my tax advisor. According to him my only business partner is Envato. Envato sets the price, collects the payment from its own customers for the license and then pays me a monthly commission. And I have declared my taxes based on this since the beginning of themeforest. It worked out well and its sooo much easier to manage than anything Envato is currently proposing.
According to any professional I have asked, neither your old nor your new system reflect the reality, which I have attached to your image ;D
So my question: why not set the financial system up in a way that actually reflects reality and is understandable.
PS: I live in the EU so this maybe wont affect me right now, but I guess Envato has similar plans for all countries? To say that I am very concerned about this development would be an understatement…
Actually Enfold does already support WordPress 4.0. We have released a updated version a few days prior to the 4.0 release. all you need to do is update your theme and you should be fine
If that does not help feel free opening up a thread in our support forum:http://www.kriesi.at/support/
Is this a good time to bring back this very first post from Kriesi? http://themeforest.net/forums/thread/how-long-do-items-sell/7257#59549
I guess your doubts / worries have been cleared by now, and reading this will give you a good trip back memory lane..
I literally JUST found out that you could see an author’s history of posts by hovering on their avatar and clicking on “recent posts” – this is awesome as you can really see how some people have had their life completely changed over a small stretch of time!
Well in Kriesi’s case it’s 8 years of hard work, so it definitely did not happen overnight – but finding this feature just gave me a chance to read my posts from only 1 year ago where i am about to give up, struggling with repeat hard rejections..Have a read at some of your old own posts – it’s a pretty cool trip!
Haha, nice one! Cant believe I have already been 6 years on themeforest. Time flies so fast if you do something you like ;D
Thanks a lot everyone! Great to come back from vacation and have such a nice surprise waiting
The original concept of selling microstock on Envato is being distorted now. How it did and should work is authors are creating the stock – it is our work, Envato provides the platform to sell on, and Envato takes commission per sale. We don’t work for Envato, we don’t work for the customers – we are creating ready-to-use templates, that are reviewed as working / completed items with all the necessary support documentation at relatively cheap (microstock) prices. Customers get what they paid for. We don’t make profit on a single sale, we only make profit after multiple sales over time.
Individual customer support is only something done at authors discretion – as long as a small percentage of customers ask for support, then it’s still worth while to provide support. But as long as support is not mandatory, authors do not owe customers anything after purchase – they already have got their monies worth. Authors are always protected because support is not part of the purchase, and will prevent any sales reversals based on lack of support.If support is mandatory, authors now owe customers their time, because it appears they have now paid for it. Customers now have more leverage to make demands if their support requirements have not been met. With the addition of support packs, – customers can now buy more of the authors time, and Envato takes 30% commission. Authors are now legally locked into an agreement with Envato and customers and we now work for them – and there will be penalties if this agreement is not met. We will no longer be selling microstock, we will be working as contractors, and our own work is being used as collateral.
Never thought this day would come but for once I totally agree with DS ;D +1
I can pretty much guarantee that a lot of authors (myself included) will simply not charge for requests after the 6 month period. Why? Because no request that is made after the theme running fine for 6 months will take me more than a few minutes to answer. Most of the time its a simple: “Please update Wordpress/Plugin/Theme to the latest version”.
I would feel silly and greedy to ask anyone to pay for that. In addition (and I have no data on that, just a feeling) I don’t think that it happens that often.
There will be authors that feel the same as I do, there will be others that don’t charge out of fear of bad ratings or because of the competitive disadvantage, there will be a few that feel its necessary but already got their own systems in place.
In short: I am not sure how much money there is to be made for Envato with this, and if its really worth the effort.
If they really want to improve the experience: Instead of trying to force this, I would suggest to make it easier for authors to support their items. I am not talking about a full fledged support solution on the marketplace, I actually prefer my own support forums where I can add features as I see fit, but an oAuth login for example is long overdue.
This was the most brutal one I’ve seen so far… Collis, you should be a rock star
Scott Wills and Kriesi ?We are still waiting
Nice one Collis ;D
I decided to take the easy way out and just donated. At least for now.
My vacation starts next week and if I tell my friends that I have been nominated I probably end up with a tub of ice water in my face anyways. If that happens I will post it here of course…
I can’t speak for the other authors but I assume what I am going to tell you for my Enfold Theme also holds true for the other multi purpose themes that got more than a few thousand sales:
Since people keep buying those themes we are able to spend more time on improving them, compared to our slower selling ones. These improvements often include performance optimizations.
In addition to that authors often use these themes for their own homepages. I am using Enfold for my own website as well ( http://www.kriesi.at ), therefore I need it to run fast I got a few hundred thousand visitors each month and the site is running smoothly on both frontend and backend site.
Thanks to caching plugins like wp-supercache about any well coded theme should load fast on the frontend and if you got a server that has a PHP memory limit of 96mb or more (which is quite common nowadays) you should be able to use any theme you want no matter the built in features
Speaking of blindness:
A full thread of reasons why we think the cut envato takes is justified and this comment is your favorite? Well done ;D
FRESHFACE saidwhen I started in July 2009 it was 40 – 60 (author – envato) as an exclusive author
By the way, what was the split initially when Envato started back in the day? I can’t remember now.
I think it was even worse at the end of 2008. 30 : 70 (author – envato). We have come a long way
Earning statistics was pretty grim back then, even for wordpress themes: