Posts by StevenGliebe

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says

From what I understand, updates are also linked with item support. Buyers who don’t have an active support will not be able to access the update.

Could Envato please clarify this?

If I understood this correctly than this is a good news for everyone as I believe this will only increase item quality. In case of a major item update, authors wouldn’t need to consider adding the item as a new item. This would mean focusing more on item quality and updates.

Ditto. I’d like some confirmation.


But what if update is very important, such as security update as it was with prettyPhoto?

The possibility of a security update is a good reason users should keep their license current. At the same time, there should also be a public patch with instructions for those who don’t want to pay for the resources they use. That way everybody is covered, no matter what.

Or, if lifetime updates is more practical then the themes should start at $100 in order to cover undetermined years of future development. One problem with this (other than difficulty knowing actual costs) is that authors will be less motivated to continue development since they’ve already been paid.

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says


Envato chooses to disallow authors from setting prices because it benefits them. There’s no law that says a business cannot set a price in a marketplace. That’s insane. Envato is working the puppet strings for themselves.
Yup!

Thanks, I had forgotten. I actually asked this last year and we had a nice discussion: http://themeforest.net/forums/thread/authors-deciding-prices-why-not/141075

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says

5. Wondering why don’t you let authors decide about support pricing?

I’d like to know too. I believe there are some laws in Australia that prevent Envato from letting us set our own product prices. I assume it’s the same with support pricing.

It would be ideal if we could set our own support pricing, if not product pricing. Support is an hourly thing and we all have different rates for different reasons. If you earn $50/hour and somebody offers you work at $15/hour, you say no. It’d be a shame if an author feels they cannot offer support at the price that is set for them. Different places have different costs of living, you know?

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says

Will users have access to updates without an active support plan?

I’m not sure the pricing will make sense if they do, mainly because most users will renew only if they will consume support. That’s different than the initial purchase in which only a portion of users consume support. Those who don’t use support basically cover the cost of supporting those who need more support than typical. That’s good because it keeps the single price reasonable.

Including access to updates with renewals means more renewals. Everybody should update, but not everybody needs support. This is how I and many others handle things selling themes on our own sites and it works. The price would have to go up for a support-only renewal (maybe even as much as the initial purchase, which wouldn’t make sense to the user). It also encourages authors to keep their items up to date.

In any case, Im glad to see this. I get support requests from customers who purchased 2 or 3 years ago and haven’t bothered to setup my own renewal system to cover the continuing costs associated with their requests. I’m glad I won’t need to do that now. This is definitely a move in the right direction, but I hope ongoing updates are limited to ongoing customers too, so that authors are not unnecessarily burdened.

Lifetime support is as unsustainable as lifetime updates. They both have ongoing costs on the end of the developer and therefore should be paid for in one way or another.

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says

I was just wondering how to do this myself. Is there a way?

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says

Collis, thank you for responding to my third question. Please answer my second question too. Thank you.


While Envato is an Australian company… there are ways in which other countries and laws impact on us and our responsibilities.

2. I still need proof that an Australian company is required to file 1099’s with the IRS. Is there an Australian law requiring such compliance? My concern is the same as a dentist unnecessarily storing social security numbers. Plus, Envato may not need to report 1099-MISC depending on what they find out about 1099-K.

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says

I have three thoughts:

we are working to understand better the options and obligations around areas such as duplicated 1099 reporting.

1. Thank you, this has been my primary concern as an American. I’m not comfortable handing over my tax information until it is proven this will be handled properly.

While Envato is an Australian company… there are ways in which other countries and laws impact on us and our responsibilities.

2. I still need proof that an Australian company is required to file 1099’s with the IRS. Is there an Australian law requiring such compliance? My concern is the same as a dentist unnecessarily storing social security numbers. Plus, Envato may not need to report 1099-MISC depending on what they find out about 1099-K.

our terms and licenses have expressed Envato Market as a platform with direct transactions between buyer and author

3. If it is true that authors are the sellers then that means authors in many (but not all) U.S. states are required to collect sales tax from customers who reside in their state.

- Has Envato looked into whether or not each of the 50 states will see it the same way as Envato does? I wonder if they see Envato as the seller, since Envato is collecting the payment or if they see the author as the seller simply because Envato says so.

- If any of the states agree with Envato, what are Envato’s plans for dealing with this? Authors are currently not able to collect sales tax.

- Lastly, if it proves true that authors are sellers, will authors be given full access to order/customer information and be able to process refunds at their discretion? If responsibility is going to be put on authors as sellers then authors need to be treated as true sellers. It should be an equal trade-off.

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says


What I’m curious about and so far have not been able to get an answer on is how the law of one country can bind a business in a foreign country. Specifically, how and why is an Australian company is required to comply with U.S. law?
Foreign Account Tax Compliance Act
Perhaps Envato sees itself now as a financial institution :)

We shall receive interest then. More tax complications. ;-)

Seriously though, I assume there is something like what you referenced but that would apply to Envato’s business. I still hope to see an answer.

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says

I know a few people have asked about 1099’s from PayPal. Most online payment providers issue these, I believe Skrill does as well for example. As always it’s a good idea to talk to your tax advisor about how your online income is attributed.

My tax advisor wants to know if you will be filing 1099-MISC forms for authors who have been paid exclusively by PayPal (who files 1099-K forms on the same income). Please refer again to this if necessary: http://themeforest.net/forums/thread/important-information-for-us-authors/144314?page=21#1133310

A lot of us have effectively paid tens and hundreds of thousands of dollars to Envato. I don’t expect everyone to like the answers so long as they’re accurate but every question does need to be fully answered. This is difficult to handle in a forum thread.

Thank you.

118 posts
  • Had an item that was trending
  • Had an item that became a weekly top seller
  • Elite Author: Sold more than $75,000 on Envato Market
  • Has sold $250,000+ on Envato Market
+6 more
StevenGliebe
says



Nonetheless US federal tax law requires us to report to the IRS on income paid to US persons. Even though we’re an Australia-based company, this law still applies.
Please cite a source. I need to understand this.

This is definitely true. In the US, any money you make has to be reported so you should be doing this anyway, if you are not then it will come back to haunt you for certain. It’s called tax evasion and unfortunately is a federal crime in the States.

Envato reporting the earnings for US authors is simply a way of the US Government to verify and check up on any US author who is receiving money. As stated, the federal law requires any business to report earning to the IRS for any US persons.

For example, lets say “Joe” is an author here on TF who makes $5000 a month, but is not reporting it to the IRS. Envato will now be sending the earnings reports for all US authors so it will show that “Joe” has made $5000 a month from Envato. It is 100% Joe’s responsibility to be reporting those earnings to the IRS and paying his taxes, so everything should match up from Envato’s report to Joe’s report.

If you think about it, I’m honestly surprised that Envato has not done this in the past. I guess it is just the natural evolution of a marketplace that hosts over 4 million members, it had to be done at some point.

Cheers! Luke

This is good information but not an answer to my particular question. I’ve been paying taxes as a self-employed person for 12 years now and I’m aware of my responsibilities.

What I’m curious about and so far have not been able to get an answer on is how the law of one country can bind a business in a foreign country. Specifically, how and why is an Australian company is required to comply with U.S. law? For example, is there an Australian law that requires compliance? I only want Envato (or anybody) to cite a source because I have never seen this before and it seems as odd to me as a Japanese business being forced to deal with an Egyptian taxing agency (or every business in every country being under the law of every other country).

If there is a basis for this and my other questions are answered, I will gladly comply. If there is no actual requirement then I prefer not to unnecessarily have sensitive information on file (as with dentists, doctors, etc. who ask for more than they need) or risk having Envato double report 1099-MISC with 1099-K like so many other business do and for which I have not been able to get a clear answer on either.

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