1623 posts
  • Has been part of the Envato Community for over 8 years
  • Has referred 10+ members
  • Located in Australia
  • Has sold $40,000+ on Envato Market
+10 more
collis Envato team says

Hey @collis,
So all this stuff is intricate way to say “we’re taking that $1.50 from you”? :D

8) Perhaps I should have led with that line!

But seriously, on reflection maybe I should have placed that higher in the post, I was surprised there wasn’t more questions about it at first.

It’s certainly not the most important thing in the changes, but I understand it’s got the most immediate impact!

1623 posts
  • Has been part of the Envato Community for over 8 years
  • Has referred 10+ members
  • Located in Australia
  • Has sold $40,000+ on Envato Market
+10 more
collis Envato team says

@doru ^^ here it’s the page updated http://themeforest.net/make_money/become_an_author and well explained :)

Edit: or here http://d2mdw063ttlqtq.cloudfront.net/resources/rates/envato_author_fee_schedule_(sept_2014).pdf

I actually wondered why we were getting the share from purchase fee, because we authors weren’t handling anything. It was good while it lasted what can i say, but now things are getting more clear and fair i think.

:-) Good links!

Yes the Handling Fee is actually a relic of a long time ago. When we made it, we didn’t have the time/infrastructure to build it properly, so we just reused the main pricing code which split with the author.

The reality is buyers (and authors and Envato) dislike the whole concept of an extra fee that you only see after you want to buy. To improve the purchase experience we have to move away from it!

277 posts
  • Sells items exclusively on Envato Market
  • Has sold $10,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Has collected 1+ items on Envato Market
+3 more
EuphoriaAudio says


The handling fee is a change to author earnings, because previously it was split with the author in the same way that the item’s sale was. So let’s say you were a 50-50 author, and you sold a $10 item, but with a $2 handling fee – you would have received $5 + $1. That second part will no longer happen.

a good percentage of files purchased from me were made using the direct purchase (even when it would had made sense to just deposit the money like 20$ item)

this means I will receive less money from sales if I will not receive a share of that 2$ part.

Well it was good while it lasted.

The article you’ve published is very confusing and I have a doubt this was made on purpose.

Maybe a bit more clear would had been great. At this rate I will become a lawyer specialized in corporate language. While I thank you for the training :) maybe I should use my time creating items.

For example simplified what I’ve understood till now for what authors are concerned (correct me if I’m wrong)

    exclusive accounts rate stay the same
    not exclusive start from a lower tier
    direct purchase for items under 10$ cost 1$ more not 2$
    direct purchase of items above $75 have no additional cost
    author will not receive a part form the 1$ and 2$ surcharge
    change had been made in author dashboard to confuse everyone
    99% sure the rate change had been made for tax purposes but I don’t understand what convoluted laws this need to make happy (but probably those exist, we know laws are not made by intelligent people)
    if the above is not true then let say 80% probability that article had been wrote confused to cover the loss of revenue for author that derives from the fact that you can’t get a share of the 2$ price difference

for an elite author 2$ cut is 1.40$

I will take avada item as example.

last week sales 1020

taken my own experience I say 40% of sales are direct purchase

that means 40% of 1020 is 408.

408 multiplied by 1.40$ equals 571$ lost by that particular elite author on this popular item.

Thanks for sharing. I absolutely agree with you.

1623 posts
  • Has been part of the Envato Community for over 8 years
  • Has referred 10+ members
  • Located in Australia
  • Has sold $40,000+ on Envato Market
+10 more
collis Envato team says

I have mixed feelings first of all something that was super simple now is complex. Also I am not sure how this price breakdown will help a buyer in anyway? :O Lastly the only change for us that we are short a $1.40 per ~50% of our sales which for me is around $550 per month.

:(

P.S My stomach starts to hurt when I visit the forums, each week new “great” changes…

Hey mpc,

I think the way to see it is that the fee structure is part of a long term move towards servicing buyers. This will happen in many and disparate ways. A lot of it probably seems a bit subtle and unrelated, but I can’t overemphasize that in a business the revenue source and the focus really go together.

I’d considered at one point doing the price changes, rate and fee structure changes and handling fee on the same day so that the overall revenue impact for authors was reduced, but in the end opted to make pricing changes separately so we could model impact. Sorry it feels like it’s just gone to the bottom line.

Finally, sorry to be hurting your stomach! I take Tums before I read the forums :-D But seriously, I think the pace of change is a big step up from what it used to be. I’ll know I’ve pushed it too far and fast when the forums ask for the good ol “It’s in the pipeline” days again!

:-D

954 posts
  • Has referred 1+ members
  • Has sold $1,000+ on Envato Market
  • Has been a beta tester for an Envato feature
  • Won a Most Wanted contest
+3 more
aleluja says

So, no commission from the surcharge and authors are from now on 20% slower in getting to the next author fee tier. I have no problem with the surcharge (it has to be that way, it is for the best really) but authors getting slower to next fee tier is just greedy – not nice.

272 posts
  • Has sold $10,000+ on Envato Market
  • Won a Most Wanted contest
  • Made it to the Authors' Hall of Fame
  • Has referred 10+ members
+5 more
GDragoN says


On the Earnings page, Your Total Sales is now just confusing. Until yesterday, it displayed my percentage earnings (57%) and it was easy to understand what you earn. Now, it says that Envato charges me 28.75%, and right now there, by looking at this, you have no chance to calculate how much you are actually earning from each sale. I understand the changes you made, but Earnings page needs to include full information on what author earns, and right now that is not clear.
Good call GDragoN, I’ll have a think with the team on how we can make this page clearer :-( I’m not sure we did the best job there.

Thanks for reply Collis. I am fine with showing how parts of the author earnings, but include full info, currently most users will be confused to see very low percentage number replacing good old earnings percents. It is important to see exact percentage author earns, and you can include bellow breakdown according to new calculation method.

8117 posts
  • Has been part of the Envato Community for over 5 years
  • Has sold $40,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Has referred 10+ members
+4 more
doru says

@doru ^^ here it’s the page updated http://themeforest.net/make_money/become_an_author and well explained :)

Edit: or here http://d2mdw063ttlqtq.cloudfront.net/resources/rates/envato_author_fee_schedule_(sept_2014).pdf

I actually wondered why we were getting the share from purchase fee, because we authors weren’t handling anything. It was good while it lasted what can i say, but now things are getting more clear and fair i think.

don’t know why you got those money before. maybe because envato loved you and now you’ve been a bad boy being negative about the support changes and what not, so now no more love for you (aka we’ve cut your weekly allowance now go to your room) :)

I was talking about the article but the page you’ve linked is more confused than before.

envato gets a share from me and from the buyer and now I can see what that share is. I just want to see how much money I get from my items. the rest is unnecessary information for me except if scenario bellow is true

before:

I bring an item to envato, they like it and they put it on sale. I get a percentage of the money envato get from the client.

now

I bring an item to envato, they sell it. I get more money from the buyer than before then I need to give a part of those money back to envato.

before (50% rate)

pay taxes on 50% earnings

now (50% rate)

you’ve earned 80%, you need to justify 30% given to envato in some way, then pay taxes for the rest of 50%

if this is true then you need some sort of invoice for the money I get from the buyer and then I pay to envato. But I can’t see client information, how can i justify that I get 80% of money from the client if I don’t know who it is?

I think the statement page should now have something like this

item name, item id, item price, date of purchase, 80%rate amount, envato fee purchase, client info for tax purpose, envato info for tax purpose.

277 posts
  • Sells items exclusively on Envato Market
  • Has sold $10,000+ on Envato Market
  • Made it to the Authors' Hall of Fame
  • Has collected 1+ items on Envato Market
+3 more
EuphoriaAudio says


Importantly for authors, as of today this fee (handling fee) will be purely from Envato to the buyer (so authors will derive no revenue from it). It’s very disappointing :(

Hey Euphoria,

Totally understand, and we did a lot of modelling to understand the impact to author earnings, then balanced it out with the improvement to conversions from reduced handling fees, the improvement to non-exclusive rates and the recent substantial price changes across the Market.

Long term, I think moving away from the handling fee entirely will be better for the Market, more pleasant for buyers, and will pave the way for the shopping cart. You can expect to see us continuing to reduce it in the future, and as I mentioned in the post, switching where it goes makes this a lot easier to experiment on, without the need for extensive author earnings modelling and announcements each time.

Hope that makes sense!

Thanks, Collis. I hope these changes will be really helpful for Envato Market! Time will tell.

8117 posts
  • Has been part of the Envato Community for over 5 years
  • Has sold $40,000+ on Envato Market
  • Sells items exclusively on Envato Market
  • Has referred 10+ members
+4 more
doru says

Hey Doru, Sorry I worked on that post for ages, really thought I’d done a good job of making it clear – next time will do better!!

I was suspicious about this since you are writing books, you know how to write clear :)


I’m sorry if it came across like it was trying to cover the author revenue loss – not my intention at all. You are correct that when a $2 fee applied, this is a change in author earnings, however the conversion rate of buyers will improve (buyers drop off from seeing the fees) as we reduce and remove it more and more, additionally the price increase which affects to both prepaid and buy now purchases also impacted author earnings, and finally we’ve adjusted non-exclusive rates. Long run, the entire handling fee will be gone, and you can expect to see more experiments and reductions over the coming months. Thanks Doru!

if those 1$ – 2$ fees will go away then is all for the best.

1672 posts
  • Has sold $10,000+ on Envato Market
  • Had an item featured in an Envato Bundle
  • Made it to the Authors' Hall of Fame
  • Sells items exclusively on Envato Market
+5 more
LumenMedia says

I read with all my attention all provided artciles, and could someone explain – will my earnings lower after this changed, same or higher? On provided slides by Collis, it looks like authors earning will be the same. But this example was implemented for Elite Author. What will happen in my case? My current author rate with old system was 54%, now I see on my Earning page that my author fee is 33,75%, so my final rate becoming higher – 66,25%, but now Envato fee excluded from my earnings. Total mess. Help me please.

Helpful Information

  • Please read our community guidelines. Self promotion and discussion of piracy is not allowed.
  • Open a support ticket if you would like specific help with your account, deposits or purchases.
  • Item Support by authors is optional and may vary. Please see the Support tab on each item page.

Most of all, enjoy your time here. Thank you for being a valued Envato community member.

Post Reply

Format your entry with some basic HTML. Read the Full Details, or here is a refresher:

<strong></strong> to make things bold
<em></em> to emphasize
<ul><li> or <ol><li> to make lists
<h3> or <h4> to make headings
<pre></pre> for code blocks
<code></code> for a few words of code
<a></a> for links
<img> to paste in an image (it'll need to be hosted somewhere else though)
<blockquote></blockquote> to quote somebody

:grin: :shocked: :cry: Complete List of Smiley Codes

by
by
by
by
by
by