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Osetin says


As mentioned previously this fee will likely be removed in the future, which will increase the overall sales for all authors (buyers are scared of fees)

if the fee will get removed then will be great. still why is not removed now? if not possible to remove it now, why removing the author benefit?

It may look as small percentage for one author but at marketplace level this is a nice amount of money.

we know envato have a lot expenses, staff to pay, office rent, amazon servers and what not, but we have our issues too.

I may be ok with losing that percentage of my earnings if those money will be utilized for better future projects of the marketplace, but lately the directions is not something that I like. I’m not saying is bad, is not this the point, is just that I don’t like the “72 hours”, I hate the new homepage (just released an item and probably no one saw it as it have no sales – the same with previous projects I’ve made in the last months), even the badges change.

I Agree completely.

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ikonome says

Envato +1 Author -1

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urbazon says

I doubt you want to have a person who complaints about $2 transaction fee as your customer, such people most of the time are really hard to work with and satisfy, and will probably give you a 1 star rating out of nothing.

It is very debatable. On one hand, I totally agree with you, as $2 compared to few dozens of dollars for template is minor difference. However, you have to look at two other aspects of it:
(1) people also bought a lot of sound effects with direct purchase, meaning they pay $1 for SFX and $2 for handling fee, which makes it 3 times higher price than listed! and
(2) since it was an additional fee, buyers may feel like they’ve been cheated/tricked with 2 dollar lower prices which were listed in big bold font, and you must admit – nobody likes to be cheated, especially in business which should be fair.

Although I was receiving a huge percentage of my earnings thanks to the share of handling fee, I will be totally happy to see it completely gone (I hope Envato keeps their promises and fast!), which will hopefully bring more happy buyers.

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phpdude says

I got all worked up and couldn’t understand what the buyers fee was and where it came from, it took me 30 minutes to figure out that the buyers fee is 20%

I think it’s quite confusing the labels that are being used here, as it’s difficult to understand how this will actually affect me as an author, it’s not so simple to compare the before and after

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UKFilmFestivals says

As both an author and buyer (I just use any money made to purchase, as well as adding to these funds myself), it is good to see this.

I would like to know if anything can be done to improve the problem of spending a lot of money on items that are then no longer available. I worked out recently, that I have spent hundreds of dollars on items that i know longer have access to, so money wasted.

There is also the problem of the 50 download limit which may sound high, but once you start downloading updates and using several computers to work on, can quickly diminish.

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Creattive says
In another thread, some serious questions arised and to keep things organized I take the freedom to quote the most important ones here in this post. Who wants to take a look at the original thread and the discussion going on there, here is the link: http://videohive.net/forums/thread/375-of-the-item-price-is-the-author-fee-were-currently-charging-you-/140982

How I understand it, Envato is now pretending they never got the money from the purchase, but only the buyer fee. and from us they get only the author fee.

So basically, before they had a turnover of 100% of the sales volumes, but then losses as high as the author’s percentage. so their income is only 30% (with elite authors)

Now, they say all they get is the commission, so in case of an elite author they pretend that their turnover is only 30% paid by buyer and author and not the whole 100%. The income remains the same, of course.

If you scale this up, this can make dramatic differences with tax laws. Instead of 100 million dollars turnover, they now pretend to only have a 30 million dollar turnover. That can give you much more benefits when it comes to paying taxes.

Problem I see is – this is surely a legal grey area. If we are honest, they get the money and pay us, not we get the money and pay them, although they let it look like that. They can earn interest with money in their accounts they pretend to never had, because the buyers are paying us and not envato.

As others already pointed out, to make this seem more legit, we need to have control over OUR money, as you say now. No wait time for withdraws, whenever we want, like it is my own bank account.

But as we are still bound to envato paying us our money, and even have to wait up to 45 days to get that money, you cannot really say that we have the money to begin with.

This is how I understand these changes. Basically, it smells like they try to get a whole lot of money around taxes. Bank account in Switzerland, anyone?

If anyone wants to clarify the need for this change without any incomprehensible corporate talk like “this way we can focus on buyers more, as they are paying a fee now”, that don’t make any sense to me as the money you get is the same (so there is no difference what you can do in your services, unless you pay less taxes and get to keep more of the money).

Maybe I just don’t get it :)


Tax is paid on income, not revenue. So this likely has nothing to do with taxes.

The total turnover defines what taxation rules will apply to you, at least in some countries. Don’t know how it looks like in Australia, though.

Also, many taxes apply to everything you sell, so yes, some taxes are on turnover and not on income.

Edit/ did a bit of google search. In Australia, the tax is called “goods and services tax” (GST), and is applied to all deliveries and services. it is 10%. This tax applies to everything they sell, so if they pretend to only sell 30% of what they actually do, then they win millions.

Now i have a really important question which can impact on every author here that lives in a country that has similar laws as our (which I think most of eu has)

If we how Creattive explains now sell directly to buyers, how does this effect on or laws? Meaning we have to issue an invoice to every buyer, because if we can issue refunds how can this be achieved?

If that is the case we for example can shut down our services cos we have to charge each and every customer differently, depending on were they are from, since we are obligated by VAT.

Something very scary and smelly is brewing up hear? It looks like envato wants to re-leave themselves from any responsibility towards buyers and eventually put everything into our hands?

Please can somebody elaborate on this? It is really disturbing me.
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pixel-industry says

So, when you already locked the thread where we have concerns about taxes – VAT, can you respond here?? As other authors, we too really think that we need official response ASAP.

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kh2838 says

\\
Too much calculation, too much confusion
Conclusion:
Things are clear, Envato vs author: Envato +1 Author -1
The $2 surcharge is now going completely to envato and is not getting split up between the author and envato, like in the past.
Personally, with a single calculation, I will lose about $ 4,200 / year. with this new “Envato More Balanced Market”. Envato strangulate more the authors by this inequitable system.

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doru says

So, when you already locked the thread where we have concerns about taxes – VAT, can you respond here?? As other authors, we too really think that we need official response ASAP.

you will probably need to wait till Collis show up but he kinda answered something similar here



This split up in author fee and buyer fee has mainly tax and law reasons, right Collis?
Good question, definitely things like taxes and invoice follow the transaction flow, so you are right that there are some implications there. We’re actually working on improving our invoices and documents as they have some issues.
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pixel-industry says


So, when you already locked the thread where we have concerns about taxes – VAT, can you respond here?? As other authors, we too really think that we need official response ASAP.

you will probably need to wait till Collis show up but he kinda answered something similar here



This split up in author fee and buyer fee has mainly tax and law reasons, right Collis?
Good question, definitely things like taxes and invoice follow the transaction flow, so you are right that there are some implications there. We’re actually working on improving our invoices and documents as they have some issues.

Yeah, I know, but I want to hear official answer.

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