Posts by MVPThemes

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

I really like how Envato is saying that all current descriptions usings images are going to be a total mess in 4 weeks and how they are not providing any solution to authors in order to set a custom description that would depend on the visitor screen size. So yes, images won’t be readable, therefore, what Envato is going to do about this for authors?

I think that’s where the opt-out feature comes in, which is what I plan to use unless they provide a separate mobile description field.

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

Hi!

Would not be possible to allow two different description versions field?! One field used to desktop and an extra optional field to be used by mobile devices?!

This way we can keep the current presentation at desktops and easily add a light version of the description for mobiles.

Kind Regards!

Gonna +1 this one. I don’t personally see how it would be possible to serve images that look good on both desktops and mobile devices. Providing the opt-out is a good idea, but providing a separate mobile description area would be perfect.

I’d be interested to know how many visitors to item pages are from mobile devices though. Seems to me that theme shopping is something you’d need to do on a desktop first, but there may be more people doing this than I’m imagining.

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

Well maybe it is for real and maybe it is not. If it is not he/she will surely not be the first one to do it. Three different accounts and no rule bending since from envato point those are three different people. One thing is sure and that it is not impossible like we see it. :D

There actually is a rule against purchasing your own theme. Whether you do it from the same account or different accounts, it’s all the same thing. And the odds of your first 3 buyers immediately giving you 5 star ratings is slim to none.

I also make suggestions to rate my themes after I give support, but that’s separate from actually making the ratings yourself.

In the long run, this isn’t a big concern of mine, but I just thought this particular case was pretty brazen and obvious.

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

I mean….really?

I realize that people are going to bend the rules around here, but to be that obvious about it…

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

I finally got a chance to chat with Collis and was pleased with the answers I got with regard to how all of these changes would affect me personally.

Specifically, for US authors, it looks like Envato is in the process of trying to have PayPal refrain from reporting any income from Envato to the IRS, so that Envato would be the sole entity reporting our income to the IRS, preventing the two different figures from being reported.

That was my main concern, and even though I’m obviously not a fan of the extra step of deducting expenses, it looks like some help might be on the way that will make it fairly easy to do so.

Thanks again for making yourself availabe to myself and countless others, Collis.

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

I’ll stop debating in this endless discussion. I just wanted to point out that all of these changes don’t affect authors absolutely at all. With anything – i still do business as i’ve done it in the last 5 years.

They may not affect you in whatever country you’re in, but there are quite a few authors that have already said that the changes have already started to affect them with regard to taxes.

And for US authors, if Envato plans on reporting a bloated figure to the IRS (our earnings PLUS the author fee), then that will most certainly affect authors, especially if PayPal is reporting a different figure. And even if they don’t report different figures, authors are now affected by needing to deduct these unnecessary “expenses” during tax time.

IOW, there are plenty of authors that are and will be affected by these changes.

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

Yep I completely agree with you…
1) Basically we will be making the same amount but having to pay more taxes(making less).
2) Now that it is a market platform model it seems UNETHICAL to still have to be exclusive/non-exclusive to envato.

Just to be clear, I’m not sure about other countries, but in the US, we won’t be taxed more, since you can deduct the expenses. But it’s just a completely unnecessary step that we’re going to have to make to prove that we are not actually making the bloated amount of money Envato will claim that we earned from them (or, as they are claiming, from our buyers).

It’s just looking like we’re jumping through all of these hoops and wasting endless amounts of time on all of this for no clear, justifiable reason.

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

I agree with Digitalscience should be a very simple thing. If you decide its a platform than use those rules and if you decide its commission based market place than use those rules.

I mean i do not understand the big deal of this whole thing. Why are people pissed off? I pay my own taxes under my company after my income so i do not understand why people are pissed off about paying taxes on their sales, here in canada it is normal to pay income tax for any income you make.

Like i said i am not a 100% sure if i understand this whole thing but it should be simple. Lets say i make 20k a year from envato then i would have to pay taxes on that income. Which here is a normal thing if i do not pay taxes then i have the government on my back.

envato also has to pay taxes on their income for the cut they take from us so it’s only fair that we pay taxes on or own incomes as well. Same thing goes with ebay you have to charge the hst in canda on anything you sell which is 13% if you do not charge it then it would come out of your own pocket. I am anti government because they screw and lie to the people but we have an obligation to pay our taxes so we do not end up in jail.

Cheers

Lester

I wouldn’t say I’m “pissed off”, but I’m definitely concerned about what’s gone on lately.

I pay taxes on my earnings as well, and have ever since I started making money here. That’s not the issue. The issue is that, at least as far as US authors go, Envato has added an “author fee”, which will greatly change our gross income in addition to forcing us to calculate and deduct these “author fees” in order to arrive at our taxable income. It’s an added step that is completely unnecessary.

On top of that, Envato will be reporting this exaggerated income figure (your earnings plus the author fees) to the IRS, which conflicts with the figure (the more accurate figure of what you actually take home) that PayPal will report to the IRS, which will very likely cause issues for US authors.

Now, Envato said they are working with PayPal in order to resolve that issue, but in the meantime, I’m trying to wrap my mind around why we even have this “platform” model in the first place that would precipitate the use of an “author fee” that would cause all of these issues. It all seems incredibly unnecessary, and we have yet to hear an actual answer as to why it actually is necessary.

It seems like this “portal” model is more of a preference for Envato instead of a necessity. And at that point, when the preference by nearly every author is to go with the commission model, that’s exactly why so many authors are not happy with this decision since Envato’s preference is trumping ours.

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

Good question! :) The main reason is that we’re a two-sided market that provides platform services to both sides. Businesses focus on where their revenue comes from and our two-sided fee structure helps us balance author and buyer interests and ensure we remain focused on delivering value to both groups.

Also, as QBKL pointed out, the buyer fee is flat whereas author fees are dependent on whether you sell exclusively and your all-time sales to date. I imagine our buyers appreciate the consistency and also think we’d have a hard time justifying a variable fee with no added value. On the author side, our variable author fee is an important incentive for authors and a big part of their Envato Market identity.

That said, in the future I do want to review our fee structure to see if we can streamline or simplify it. Number one on my personal hit list is the handling fee which we’ve been reducing over time, and could probably use another go around soon.

So, there are no legal/tax reasons for splitting the fee, other than not being able to justify a variable fee to buyers? In other words, are you saying the only reason why I now have an added step in figuring my taxes is because of the variable author fee?

If that’s the case, we have to get rid of the variable fee. It’s not an incentive to anyone. Becoming an Elite author (hitting the sales threshold) is incentive enough, but forcing authors to deduct the author fee during tax time isn’t worth it.

Collis, can you clarify that I read that right and that you’re saying there are no legal reasons for separating the author/buyer fee.

255 posts
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $500,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+7 more
MVPThemes
says

What would EU tax authorities do if Envato doesn’t follow the law? Will they fly to Australia and beg for some taxes?

I don’t know about the EU, but the US can and will block your site from being accessed in their country if you are found to be in violation of their laws they have for foreign businesses.

Envato isn’t complying with the US and EU out of the kindness of their heart. They’re doing it because they have no other choice but to do so if they want to continue to stay in business.

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