Good idea mate.
They randomly let me know a few days before. It honestly did not affect traffic or sales in any way sadly though.
Actually, the simple explanation is less tax-related. They two get to send out two invoices, twice more accounting to do, and they deal with a massively bigger volume of invoices/sales than authors individually. The explanation of not sending a fee invoice only to buyers, but authors too is based on the earning levels 50-70%. In order to support those levels, they also need to charge different fees to show that each user gets more or less out of the market.
Also, you can’t bill only the buyer, and also a dynamic percentage, without providing something for it, legally. You’d be billing buyers their static fee plus the author’s dynamic fee, but providing the same level of service to all buyers, no matter what they pay you in fees. There’s no legal support for that and they could probably be sued, or god know some financial control will consider it fraud or whatever. Anyways you get my point.I know it would be easier for all authors, everyone loved the old system but if they push with this platform mumbo-jumbo, what you suggest is most likely impossible.
So, what you’re saying is that the buyer fee has to remain the same percentage for all transactions, for legal reasons? If that’s the case, Envato needs to just remove the tiered system and just allow all authors to take 70% of the sale.The author fee business just seems entirely unnecessary, especially since it’s going to complicate things during tax season, which is the last thing anyone needs.
Exactly! Plus, adding it on the statement pages is rather confusing. If anything, they should just have an expenses section below it. Having a mass mixup of different sales types/fees etc is super annoying – especially when sales look just like the fees do.
Pirenko saidWorse than 100 sites in one. I doubt it tbh but then again maybe so. I sell on another marketplace that has no review and no price setting – it ‘suggests’ a price range only but it’s your choice. I haven’t seen anyone go silly over there and people respect the prices people charge. The range of prices is extreme from $30 – $175 per theme and all sell.
jonathan01 saidMakes sense what you are saying, but allowing people to set their own prices will only make it worse.
Although I agree that allowing people to set their own prices is a scary thing, you have to surely see that allowing the massive 100 demo / website products up for sale is the exact same as price dumping unfortunately.
It’s just a way of getting around selling a WP theme for $4 when you include 10 (or more) complete sites for a little over $40 – therefore Envato handling the pricing does not secure you from price dumping – it’s basically the exact same sanctioned by the powers that be and they have already stated clearly they will not stop this happening.
In fact it’s actually perfect for Envato as they can allow this and still earn a good profit rather than allowing $4 items and having to sell multiple times – it’s the perfect plan. Again everything is set up for Envato’s benefit, not authors.Jonathan
I have to agree with Jonathan here. Sure some people will mark their themes for sale for a few dollars, but they’ll either realize it’s really not profitable.
Even if you had 100 sales at $3 each, just try and justify supporting those 100 buyers with only ~$300 in income (before subtracting buyer/seller/author/etc fees). There’s no way any business/freelancer/agency will keep that going for very long, as they’ll realize it’s not worth the invested time for the theme and for the support hours. There’s literally no scenario that works in this case (unless you do not run support – which will drop your sales and more importantly your rep).
Really the best case scenario for us authors is to find a balance where we’re selling to a lower number of buyers, at a higher cost (as to lower support hours), but also to obtain enough new buyers so that our brands continue to grow. It’s essentially the same exact model Envato is aiming at (and why they’re not changing their stance on pricing theme bundles). Why would they want to change the fact that a huge % of money coming in is from a very select number of themes? That’s honestly far more sustainable than relying on the “community” of authors as a whole.
Another thing to note is that many buyers on alternate marketplaces have the opportunity to make purchases based on the quality of goods – in which a higher purchase price helps to trigger (even if the item is not higher quality than others). By not having this purchase decider on ThemeForest, it eliminates a key buying facet, where crap themes that have been “reviewed & approved” are competing at the same exact price point of themes that are built by arguably some of the best WordPress developers around. It makes next to zero sense really.
I’d raise my theme prices to at least $58 – maybe higher.
Thanks everyone – means a lot!
Wasn’t expecting this one – sure wasn’t on my radar! Thanks guys!
I honestly don’t see this happening for year(s) – which is unfortunate.
ThemeVillage saidFrom my experience on the forums, I wouldn’t expect to hear anything new on the subject.
A quick question – is Envato going to further participate in the discussion, or was that blog post the final word we’re going to hear about this topic ?
Or at least it’ll be 60-90 days before we hear anything (if at all).
I’m going to state the obvious here.
Envato is a business and as such it will not price some of the products so they will not sell, neither will they stop this practice. It’s just business and that I can understand (to a point).
It’s a simple fact that an individuals goals are not the same as Envato’s.
Envato can sell 1,000 items from 1,000 authors, or 1,000 items from 1 author – they earn the same folks.
The real take-away from this is that everything stated in the response points right back at you the author to basically stop bitchin’ and do the same if you want to compete, after all it’s a marketplace.
They will allow whatever sells and boy do those MP bundled themes sell (right now). The long term effect on the industry, individuals sales figures and even the impression of ThemeForest and the products sold does not factor here as today is about $$ and tomorrow, yup you guessed it will be about $$.
If as time marches on this starts to reverse, sales go down, traffic slows because of too many people burnt with issues etc. then they will ‘adapt’ via a knee jerk reaction no doubt and then you will get some resolve. Until that day, it’s a dog eat dog world people.Jonathan
+10000000 You hit the nail right on the head Jonathan. Just wasted a few minutes reading that post.