scrobbleme saidI’ll try to be objective here. I guess what they meant by :
Btw., buyers should really ask, what they get for this 20% fee. From here:
Buyer Fee: When you ‘buy’ an item you’re also paying a price for the services you get from Envato like 24/7 buyer support, fraud protection, item quality control and other related buyer services.
- buyer support: What exactly is this? Support seems to be mostly item related. The author should get this.
- item quality control: Sure? A lot of outdated items which still rank high, a lot of authors bringing new items instead of improving existing ones, and not to forget the overall review process
- other related buyer services: What exactly is this?
- buyer support: Probably it’s those ‘This item does not work!’, ‘Missing style.css for my WordPress theme!’ etc. kind of questions. However, the 24/7 buyer support is not 24/7 live chat / immediate response, but one which takes days to get a reply.
- item quality control: “A buyer complained through our 24/7 support about a button in the template which is misaligned on mobile browser? Ok, we’ll soft-disable the item until the author fixes it.” (ok, I may be a bit exaggerated but not too far from reality in certain cases)
- other related buyer services: Maybe things like the comment and email systems to contact the author.
Back to topic, I’m glad Collis tried to explain the business model used here but I find it quite vague. It’s more like a platform vs reseller model for general business purpose but what I (and probably many other authors) wish to know is, how is the platform model better than reseller model for Envato Market, in terms of pros / cons for authors, buyers and Envato? Something like Creattive mentioned in the previous page.
I dont understand anything now. I have sold a item that costs $8. My statement is showing: Price $6.40 and Author Fee for sale XXXXXXX $1.76 $-1.76. So which amount I need to declare now? I pay my local VAT (Germany) for $6.40? And what I do with the $-1.76?
If you have checked the blog post, you’ll find that we won’t need to handle VAT as Envato is doing that for authors. $6.40 is considered as the amount you charged the buyer (since they are calling authors ‘sellers’ when they operate as a ‘platform’) and $1.76 is the amount you are paying Envato as a ‘platform fee’ (author fee). So your net income is still $4.64.
We are not getting ‘commission’ from them now. Instead, we are ‘paying’ them author fees with money which will never reach our hands (they deduct it automatically from our account for each sales we’ve made).
Hello Syamil, i have some question of SMOF
When i activate the SMOF on my custom wordpress theme, why i see this message :
“Warning: Invalid argument supplied for foreach() in C:\xampp\htdocs\smof\wp-content\themes\twentyfifteen\admin\functions\functions.filters.php on line 23”
And when I replace it with my own Options Panel, SMOF not work properly.Please Reply This Message. Thanks a lot.
Hi, you might want to switch to Redux Framework since the development on SMOF has ceased after it’s joined with Redux.
I have an item that sells for $18…. customer bought and the invoice says $14.40. $18 is what the customer paid but it’s not listed anywhere on the invoice. What??! How would you even think that is ok? You’re author fee buyer fee structure is ridiculous. What’s next, a “browsing fee”!!!
As they explained in their blog post, the $18 the customer paid is actually to 2 parties. 20% of that ($3.60) goes to Envato for ‘buyer fees’, the remaining $14.40 goes to you for ‘selling’ your item to the customer (so actually you’re charging your buyer $14.40 according to Envato’s accounting method). Then, from there, you pay your ‘author fees’ to Envato which ranges from 10% to 30% of the listed price ($18).
The final amount we receive is still the same as previously, but using this method, they can claim that we are ‘sellers’ and they are the ‘platform operator’. Last time our only concern was the percentage of commission from the listed price (which ranges from 50% to 70% for exclusive authors) and the percentage we’re receiving now is still the same, just that they make it look like we’re the actual sellers. I guess nobody saw this coming when they started introducing ‘author fee’ and ‘buyer fee’ instead of calling it ‘commission’.
For transparency, is there anything that can be shared with regards to what the differences are between being a “reseller” and a “platform”? For example, does the legal liability shift dramatically to the authors when the author is the seller? Or is the difference primarily based on tax considerations?
+1. Since you have had a lot of discussion and debate internally regarding this issue, perhaps you can, at least, give a few points to let us know how you’ve reached the conclusion that it’s best to operate as a ‘platform’ instead of being a ‘reseller’? I think many people would like to know the pros / cons between these two business models from authors’, buyers’ and Envato’s perspectives which ultimately led to such decision.
As an author, I can’t see any benefits to me in this business model which you claimed to have ‘historically operated on’, especially when I need to deal with a lot more paperwork while not having any autonomy to my items’ TOS / price etc.
This is slightly off-topic, but I’m just wondering how do you guys handle the tickets using a forum? I mean, if we use email / ticketing system, we’ll be prompted immediately when there’s a new support request. Will you be checking out the forum at certain intervals or there’s an option to get an email for a new support request?
Is there any forum software you can recommend which can be made to support Envato tickets with minimal effort? I’m aware of bbPress + Envato purchase code verifier, but the features for ticket management are quite limited. I like dxc’s idea in his post though.
Mammothology saidEnvato has always been charging authors USD35 for each withdrawal via SWIFT (and that excludes any other transaction fees which might be incurred by your bank). You can withdraw via PayPal since Envato doesn’t charge for that.
I just read the articles and I’m confused about one thing. You mention that Envato will take a SWIFT payment monthly for all of the author fees, who is paying this $35 SWIFT fee? It BETTER NOT be the authors who already pay 50% commission!! If it is, this is just another money grab by Envato.
Michikawa saidThey will handle VAT for us but also issue us an invoice for each of our item’s sales (so if your item has been sold to 100 buyers, you’ll have 100 invoices). Anyway, I’m not totally sure about how your country handles VAT (i.e. the supporting documents you need to keep etc.), so I guess it’s best to confirm with your accountant if you have one.
Can somebody clarify how all this affects a single person entity (not a company) that’s selling tunes on AudioDraft and uses PayPal as the means to transfer money from AudioDraft to myself. Do I have to handle VAT somehow from now on or not?
I’m looking at quite a number of UI issues here. Blue arrows are spacing problems (compare arrows of same shades of blue).
- Aside from blocking the icon, it’s not user-friendly to ‘drag’ it from the top when we’re using keyboard + mouse. Making it open on hover or change it to a click toggle would have been better.
- For the chat on the right side, the vertical scroll should be hidden. You can take a look at how to make it work like FB’s chat here in this snippet : http://jsfiddle.net/PVZB8/139/
- The comments field should have placeholder text.
Thecodingdude saidUnfortunately, no. Envato handles everything although authors are claimed as ‘sellers’ in their current business model, and that includes licensing as well.
Hi – I don’t want to interrupt the thread but instead of making a whole new one I’ll ask my question here. I don’t really trust envato, they have been hacked once before and as such I will not be providing my address (as a buyer), is it allowed/will authors support the ability to handle payments outside of Envato? Such as giving the author of an item a quick email asking for their paypal info and they can send the item that way? To be honest, I can certainly see this becoming more commonplace if it isn’t already…
The exception is, if that author has his/her items sold in another marketplace or by him/herself if he/she is not an exclusive author here, then you can purchase it from another marketplace / directly from the author.