Posts by jhunger

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
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jhunger says




I have not heard from anybody, but sales have been pretty dismal today, so it’s nice to have something to blame that on :)
Dismal? So, how much? 59 ? ;)

Ha! Yes, dismal is relative. Underwhelming rather? I’ll just say it’s about 15% of yesterday.

I wish I had 59 sales in a day :P Of course, all I can think about is the amount of Authors Fee that would be reported to the IRS in that case…
Everything is relative :) Actually a big difference. But anyway, I would like to have your 15% :) I’m happy because today I sold also licensed ”... Mass Reproduction” :)

You’ve got me beat, then – your single exclusive Mass Reproduction sale trumps my handful of non-exclusive standard sales :) :) :)

But I think we’ve co-opted Dmitry’s thread.

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says


I have not heard from anybody, but sales have been pretty dismal today, so it’s nice to have something to blame that on :)
Dismal? So, how much? 59 ? ;)

Ha! Yes, dismal is relative. Underwhelming rather? I’ll just say it’s about 15% of yesterday.

I wish I had 59 sales in a day :P Of course, all I can think about is the amount of Authors Fee that would be reported to the IRS in that case…

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

I have not heard from anybody, but sales have been pretty dismal today, so it’s nice to have something to blame that on :)

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

Blue is having a pretty good promo through December:

  • Any of the enCORE series mics are buy one get one free
  • Get a free B6 capsule when you buy a Bottle Rocket Stage 1
  • Get a free Robbie preamp when you buy a Kiwi

I’ve never used the enCORE series so I don’t know how they compare, say, to an SM58, but grabbing two decent stage mics for $100 seems like a good deal.

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

I’m not very good at marketeering either, and I have a lot of trouble coming up with tags.

One thing that’s helped me is looking up stuff to purchase on other marketplaces. Obviously musical tags are a different beast than those you’d use when looking up a theme or a graphic, but you start getting the idea of how people are searching for stuff. The advantage (at least for me, a complete idiot in the visual arts) is that I can get an idea of how somebody with no idea of what they really want can narrow the search down.

Or maybe even go through the exercise of testing out the spiffy new search capabilities on AudioJungle. Imagine you’re making a car commercial, or a crafty webisode, or some corporate presentation of a new release of something, etc. How would you look things up if you were in charge of the music, and what kind of result do you get from your search terms?

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

Just amazing! Nice going, PZ :).

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

Great example! Even more so if you insert the New Coke hiccup starting in 1985. People hands down preferred New Coke in blind taste tests, but ultimately rejected the New Coke product because in America at least the original Coke brand was so emotionally ingrained.

Anyway, I changed my logo because I wanted to have something consistent on all sites where I post and because I was tired of looking at my old one. I don’t think it made a difference either way in the amount of sales or revenue. Monophobia, for whatever it’s worth I’ve always liked your avatar and I think your profile page looks clean and professional. But if you want to change, I’d say go for it.

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says


Also, I’d encourage any AudioJungle author to read the W9 announcement carefully and understand what is being reported, especially if you haven’t reported in the past or are planning on reporting your earnings as hobby income.

As it stands, the 1099 you’ll get in 2016 for 2015 earnings will include not only the dollars you are paid via PayPal, but also the new Author’s fee, which is anywhere from 10-30% of the total sale for exclusive authors and 44% of the total sale for non-exclusive authors. Envato’s stance currently is that they’ll make detailed documents available to you that will back up deducting the Author’s Fee amount when you do your taxes starting in 2016, but for some situations, hobby income reporting in particular, you may have to end up paying taxes not only on what you get paid, but some or all of the Author Fee as well.

At least, this is my understanding of the matter and I would love to be proved wrong :).
Gotta love taxes. Ugh….

It’s not the taxes I’m worried about (we have to pay taxes anyway whether Envato reports them or not), or that Envato will now be reporting income (which is actually welcome news). What I am worried about is how Envato is planning on reporting. Normally a 1099 will match the amount that was paid to you as a contractor or author, but in this case they’ll be reporting not only what they paid to you but the Authors Fee on top of that.

It’s like if you made $10.00 per hour at your day job, but your employer reports to the government that you make $22.00 per hour, so if in a year you worked 2000 hours, you would have made $20,000 but the IRS would be told by your employer that you owe taxes on $44,000. Sounds crazy, but these are roughly the commission to Author’s Fee ratios that non-exclusive authors face.

Now, using the example above, your employer tells you that it won’t be a problem because they’ll give you detailed documentation explaining that the extra $12.00 per hour they’re reporting to the government is the fee they charge you for the privilege of working at their establishment, and that you can write that off on your taxes, so that even if you have to report $44,000 as your gross pay you’ll only have to pay taxes on $20,000.

Well, fine – except (moving away from my analogy and back to our impending situation as US authors for Envato):

1. It means that you will have to file your Envato income as small business income in order to write off 100% of the Author Fee, potentially complicating your taxes if you’re not already doing this, and also possibly not something many people would want to do as hobbyist musicians who may not fit into the IRS guidelines for reporting small business income.

2. Suddenly you have a very large deduction that you didn’t have before. Other authors (strikingly few AudioJungle authors, though) have voiced concerns on the official thread that this could raise flags at the IRS.

3. You don’t have a receipt, or a 1099 that you have sent for money paid to another party, to back up the deduction. Envato has promised that there will be detailed statements made available, but whether these will fly in an audit I don’t know.

Again, I’m not a tax expert and I may be wrong about some or all of this information (I really hope I am, actually). I’m only interpreting it as I read it, and am waiting for a more official statement that Collis has promised later this month that will hopefully answer some questions and add some clarity. Understandably, there is not a lot of response from Envato at the moment because I’m sure that they want to be accurate on such an important matter.

That said, I’m quite surprised to see very few comments from US AudioJungle authors on this issue, because the Authors Fee reporting on 1099’s IMO has far more implications than many issues that have ignited passions across the board (badge sizes, for instance).

Anyway, I really need to stop going on about this update. But again, I encourage US authors to pay close attention or there may be a nasty surprise when it comes time to do taxes in 2016.

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

Also, I’d encourage any AudioJungle author to read the W9 announcement carefully and understand what is being reported, especially if you haven’t reported in the past or are planning on reporting your earnings as hobby income.

As it stands, the 1099 you’ll get in 2016 for 2015 earnings will include not only the dollars you are paid via PayPal, but also the new Author’s fee, which is anywhere from 10-30% of the total sale for exclusive authors and 44% of the total sale for non-exclusive authors. Envato’s stance currently is that they’ll make detailed documents available to you that will back up deducting the Author’s Fee amount when you do your taxes starting in 2016, but for some situations, hobby income reporting in particular, you may have to end up paying taxes not only on what you get paid, but some or all of the Author Fee as well.

At least, this is my understanding of the matter and I would love to be proved wrong :).

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

Okay, I’ll start off by saying that for myself I’m going to sign the W9 and, when April 2016 rolls around, I’ll deduct the Authors Fee and take my chances with the IRS. I was going to start going with a tax service anyway this year, so I guess they’ll have some good advice on what to do.

I don’t know if this falls into the US Author information that Collis mentioned was still applicable in this thread, but at some point, here or somewhere else, I would really like to hear the issue of Hobby income addressed. Hobby income is a definite possibility for many US authors who want to report their income but aren’t comfortable reporting as a small business, where there are certain requirements such as showing a profit in 3 out of 5 years. I suspect at least on AudioJungle there are many hobbyist musicians, because of the passive, make-your-own-schedule nature of stock music.

In light of that, can someone please tell me that I’m wrong about this 2015 tax reporting scenario (based on my home state of Oregon residency and 2014 rates)? Let’s say an exclusive hobbyist musician sells $200 worth of tracks every month, and after 401(k) and whatever else, his or her day job makes $50,000 per year:

  • Day Job Adjusted Gross Income (AGI) – 50,000
  • Federal Tax Rate 25%
  • Oregon Tax Rate 9%
  • Envato Total Annual Sales: 2400
  • Author Commission (50%): 1200
  • Author Fee (30%): 720
  • Buyer Fee (20%): 480
  • 1099 Amount (Author Commission + Author Fee): 1920
  • Total Reported AGI = 51,920
  • 2% floor for hobby income deductions based on AGI: 1038.40

Since 720 < 1038, you can’t deduct any of the Author Fee. In real numbers, this means:

  • Feds (25%) will take $180
  • Oregon (9%) will take $64.80
  • FICA (6.2%) will come to $44.64
  • Medicare (1.45%) will come to $10.44

So, the author ends up paying $299.88 in taxes for money that was never received from Envato.

Since the author already paid $499.80 in taxes for the $1200 he or she did receive from Envato, this leaves $400.40 left over, or just shy of 17% of the total sale amount.

The numbers just look worse the higher the AGI gets, and/or if the musician is non-exclusive.

Sorry for my second post of the day around hobby income with a bunch of numbers, but I believe it will be an issue for people either using this method now or people who heretofore haven’t been reporting Envato income because it wasn’t a big part of their income, and will be wondering how on earth to do their taxes come April 2016. Again, I hope I’m completely wrong on this matter, and that somebody from Envato can tell me so.

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