If someone could answer the following question I’d be very grateful:
Envato’s official policy is:
One account, one “owner” of that account. And any partnerships/collaborations are then handled/organized outside the Envato system.
The “50andJack” collaboration I’m a part of has always been a 50/50 split. “Jack” is in the US, and “50” (50_tons) lives in Romania.
In this scenario, it would be insane if Envato reported 100% or the earnings as income “Jack” earned. As “Jack” would then have to pretend “50%” of the earnings were a “business expense”. I was never paid 100%, and I never personally paid “50_tons” 50% either.
In this scenario, can we just say “50_tons” is the “owner” of the account, and that the “owner” is not a US resident? I really need to know the answer to this, because I don’t want to have any problems for not following the rules.
I’ve accepted the fact that I’m going to probably have to claim 82.5% of total sales from my personal CodingJack account. Because claiming “12.5%” as a mysterious “business expense” is only going trigger the risk of an audit. However, I’d really prefer not to have to pretend that I was actually paid 100% of my “50andJack” collaboration, because that’s just simply not true.
Going forward, the following changes seem necessary:
- Make “one account, one owner” much more clear with regards to tax responsibilities.
- Eliminate split withdrawals, because with the new system, it’s a huge mess.
- Only one withdrawal should be able to be made, and then the “account owner” will be responsible for claiming 100% of the earnings for their personal taxes.
- The “owner” of the account would then be responsible for paying out the people they “collaborated” with.
- The “owner” of the account would then be responsible for claiming any payments they made to others outside the Envato system as a “business expense”.
Thanks for your reply Jordan
“or the providers engagement with the site not high enough to justify keeping them on-board.”
That was probably it, as I didn’t frequent the site very often. I’m pretty sure the service was good, but I think maybe I was just competing with other freelancers who were willing to offer lower prices.
I’m currently just referring people to the site when I’m not able to take on a personal freelance job, so not that much traffic. But I was already doing this before being accepted as an affiliate, as I’m always happy to keep things “in the family”.
And thanks for the consideration for reinstatement. If that happens, I’ll try and create a better service and give it another go. Either way, I appreciate the effort, and wish everyone at Envato Studio the best
^ don’t you think that’s a little rash? I’m not a tax expert, but have certainly been asked to provide tax information on several occasions for freelance projects. I’m not positive how it works (whether the company is required to report it when the money is over a certain amount, whether they need it for their own taxes, or both), but it’s definitely not unusual.
I agree that giving out your social security number is risky, but like others have suggested, if this is a deal breaker, you can get an EIN number and use that instead.
This is still just a first cut of integration with Studio. There’s a lot more we’d like to do .
Sounds good. And the “First Dibs” initiative is definitely a great start
As a bonus, join our affiliate program and earn 10% on new customers that purchase your Studio customisation service.
I’ve joined. No conversions yet but still happy to try and support the ecosystem
In the meantime, if you’re not crash hot on offering an Express Service for customization, you can always offer your own regular Studio service (with your own terms – price, turnaround etc) then link to it from your profile and item pages.
This is a great idea, and I never thought of doing it for one of my own items. Only thing is, I was kicked out of Envato Studio this week I had a service that was up for about a year. I thought it was a good service (no longer public, but screenshot here), but it only ever generated 1 job. I did get about 7-8 inquiries, but turned them down because the customers usually wanted additional features or functionality, which wasn’t really the service I was offering (I think maybe one time I turned someone down for not being available during a very busy time).
The email I got said “after review one or more services didn’t meet out new quality standards”, but I wasn’t exactly sure what that meant. I always knew the screenshots weren’t very flashy, so maybe that was it. And I also had an average response time of 16 hours, so maybe that was the unsuitable “quality” being referred to. Or maybe it was the fact that I just didn’t generate any money for the site, in which case I totally understand. But for the one job I did complete, the guy left a glowing review, and I was always very polite when replying to inquiries.
Anyhow, it’s not really a big deal. I guess I just wish I would have been given the opportunity to improve the “quality” of the service before having my entire service provider status revoked. Or at least be given a better explanation as to why I was given the boot
don’t know. we sell items and the buyer can chose freely who they want to customize those items. the moment the item is sold the only thing we care is the license to be respected.
Yeah I guess that’s true. And I definitely appreciate the effort Envato is making to allow authors to have “First Dibs” on their own work. I just wish authors were paid a royalty on the additional work. 5% seems like it would be fair (Envato could even charge a 30% fee for the royalty, making the actual royalty percentage 3.5%). Affiliates make much more than that, and directing traffic from our item sales is sort of the same thing.
I’m curious. Only a small part of my income this past year has been from my personal account here. A much larger part is from an author team where the owner of the account is in Europe. But the owner of that account just makes a manual withdrawal to my Paypal at the end of each month. So the actual amount of money being sent to my Paypal account directly from Envato is way more than what would get reported from my personal “CodingJack” account (the one where I entered my tax information).
It seems easiest solution would probably be to allow authors to instantly transfer a portion of their marketplace balance to another author directly, as opposed to the current “split withdrawal” system. That way everything I “earn” from Envato can be represented in my W9.
If the author never uploaded and successfully sold the item, there wouldn’t be an opportunity for other people to make money from it. So why doesn’t the original author get at least 5% of additional revenue generated from the sale?
I get that we can participate in the “First Dibs” thing, but before Envato Studio:
- Customers contacted me directly
- I earned 100%
- I set my own terms
I understand Envato wants a piece of the pie and that’s fine. But the expectation of responding within 12 hours with a 24 hour turnaround doesn’t work for me at all. So basically, I’m effectively cut out completely.
When a musician writes a song, and someone else remixes it and turns it into something else for profit, permission must be granted, and then if so, the original musician is compensated. Why is this different for the creative work sold here?
On the bright side, I have more than 95 items and the only problem was this.
So 1 issue out of 95 and that’s why you prefer not to buy from Envato? It’s easy for smaller webshops to control quality, but for a place like this where there’s hundreds of thousands of authors and millions of items for sale, 1.05% margin or error is pretty good if you ask me.
The ability to instantly refund customers is going to be a great thing for authors. And the easiest way to prevent abuse will be to automatically limit the amount of refunds a customer is allowed to receive.