Enjoyed this, congrats Parallelus!
What’s curious about this new update is that the buyer and author fee could have only been known to Envato – if it didn’t effect us authors it could have remained internal knowledge. But now the idea of an author and buyer fee has been made public and even reflects on our earnings pages so it seems like something that’s going to be important later. It also appears that the author fee is about moving from the concept of Envato sells our work, to we pay Envato to sell our work.. but the whole thing hinges on the authors work, they’re the assets, we only sell here for cheap prices because of the returns the platform provides, and Envato only draws in the buyers because authors agree to it. So it’s interesting to see how this will change the game
We are just speculating why they have done this but it’s possibly for tax reasons and it’s possibly for the cart system which is coming soon
That’s also speculation though, but anything is possible when things change from using words like commission to using words like fees – that’s the point I guess. This way buyers and authors pay Envato a fee to use their service, instead of saying Envato gets commission from selling our items.
Envato are doing it this way so that they pay less tax and gain more money. If they state that the buyer is in-fact paying us 80 and envato 20 this means that they can disregard 80% of income, if they do not do this, it means they have to pay tax on 100% of the money instead of just 20%.
So instead of there turnover being $25mil a year, it now comes down to just $7mil a year, which means they do not pay as much tax.
Hmm but either way when they receive payment, it still reflects the full amount (turnover) on their books – and then they’re paying us authors as commission.. they would only pay tax on the net-profit after author payment.
Your theory would only make sense if authors were holding the money in their bank accounts. I think the idea is a move from the concept that Envato sells our work and we get commission, to we pay Envato to use their service to sell our work, and so do buyers when they make a purchase. But with two different fees, they’ll have more control since changes in fees can always easily be justified but changing the item price and commission rate is more difficult.
Note:The term “trickery” is not meant to imply you’re doing something underhanded. It just seems to fit in this case because you’re moving the money around but it all comes out the same in the end. I can’t think of any other way to describe it. Maybe shenanigans?
Well this way Envato has more control.. author commission has now become author fee. And there is now a secondary fee on the buyers end. So when we move from calling things commission to calling things fees, that means fees can go up or down. And then Envato could increase or decrease the buyer fee if they wanted to. So before we were paying Envato their share as commission, and now it appears buyers and authors pay Envato a fee – subtle difference but has implementations I guess for the future if fees ever change.
Pretty sue this directly connects with giving more freedom for buyers and / or reducing freedom of authors – just with 2 actions. One is writing a new policy. Another is just seeing the 30 percentage’s major part as buyer contribution. May be I am having contrast point of views but inevitable – looking at how desperate Envato recently about changes. May be hiding behind the word “Buyers” because the word “Community” is over used and saturated?
Hmmm I think the idea is to create two separate fees, buyer fees and author fees. Right now authors always take a set commission, like 30%.. but with the introduction of another fee on the buyers end, Envato can increase their buyer fee if the want to without having to adjust the prices. It appears to not affect us now, but later we might see buyer fees increased.
But then again this is just my own theory
While we’re on the topic of fees, something that I’ve noticed and many authors have too, is when we use SWIFT payments we’re being charged $60 in transaction fees instead of $35 as displayed on the withdraw page. I’ve checked my figures and this has been happening for some time – the amount of dollars incoming is always exactly $60 less (this is before my bank and foreign exchange charges)
If the minimum to withdraw is $500 and one issues a $500 withdrawl.. $60 in transaction fees is a fair amount – that’s 12% instead of 7% of our earnings go to fees.
My question’s are
1) Why is an additional $25 being deducted
2) Why is this not mentioned on the withdrawl page
3) Will we be compensated for the missing $25?
Since this is our commission here in question, I hope we can have more clarity on what fees are being deducted going forward. If the SWIFT fees are $60, then you should mention it on the withdrawal page, otherwise it’s misleading.
Just went through the thread.
What scares me: I see same faces writing many words for 18 pages already. Don’t you think that the more words there are – the easier it to overlook brilliant ideas in them? Guys from Envato are not machines (well, except Kailoon, maybe ) I assume it’s getting harder and harder for them to analyze our feedback when there’re more and more empty words?
Don’t you think that It’ll better if we share our suggestions in compact processable form: say, 100 words per 1 author and only once? We can ask for separate sticky thread for that…
no.this is a network of websites with 4,266,868 members. If as staff, you struggle to keep up with all this debate hire more people.
First and foremost I’m not an Envato staff.Second. You can continue wasting time and energy on unproductive verbiage (IMO).
+1 Instead of arguing amongst ourselves, authors need to come up with solutions which the majority can agree on. If we’re all writing long essays and being argumentative, it’s time consuming and difficult for Envato to digest, rather we should list key things as DreamTheme mentioned so Envato can see what’s a common view with most authors and take those views into consideration.
“they’re only making 30% from their top authors”. Just to to Themeforest popular files. Try to calculate the whole earnings in that page and you´ll see that only 30% is a HUGE thing. Much more than all other marketplaces together.
Yes that 30% is huge, but I’m saying since they’re bringing in the buyers, besides making 30% on each sale, they can also make additional income from support / customizations etc… as a business that would make sense, and that’s pretty much what’s happening with the support pack idea.
My main question here: is Envato losing focus? Or are you (Envato) deliberately shifting your focus primarily to ThemeForest (and CodeCanyon) and neglecting other marketplaces? If this is the truth, then please be honest and let us know right now so that we can start migrating elsewhere. Thanks.
In my opinion they’re not losing focus, they’re just focusing on priorities. Their main focus is always growth, once each marketplace was completed, a new one was put into motion. The reason why I think progress has been slow on the marketplaces in terms of requested features and improvements being implemented is because their focus has been on Envato Studio for the last year or so. They basically created a new start-up, and got it to become successful so that takes time and energy to do. But now that’s complete I think Envato has also learnt about a different type of market – hiring out human resources, and they’re wanting to bring some of these services to Envato Market. Which is why I think we’re seeing Envato Studio links on the downloads page, and also this new mandatory support idea with support packs and Envato earning commission. They bring in the buyers, they’re only making 30% from their top authors, so it would make sense as a business to also tap into the huge after market revenue streams. It’s just the way they’re implementing it, isn’t really fair to authors. But it would work if we’re able to choose if we want to offer these services, and also be compensated fairly for it.