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tigerden says

Hi all

i was considering selling on Envato Marketplace and i did a lit bit of calculation and something interesting and probably Mathematical Genius Calculation has come by i hope some of the experienced Authors and Staff can shed some light

Envato SAYS on this Page http://themeforest.net/make_money/payment_rates

“New authors begin at the 50% level and as sales volume adds up, so does the commission percentage. That means the more you sell, the more you earn!”

Hypothetically Let us consider only the First Slab that up-to $3750 Authors are Entitled to only 50%

50% $0 51% $3,750

so it means <$3,750 Sales Volume Authors are entitled to only 50%

Now the word VOLUME is referred to the total sale or 50% Proceeds of the Sale ?

E.g:

Hypothetically the Template cost is $50

so

75 Sales * $50 Per Template = $3750

but if you include the Payment Slab Part Authors are Entitled to only 50%

3750*50% = $1875

So now the Main Question here is that how does the Payment Slab get calculated …....... on the Total Sale $3,750 or Authors Share /Takeaway $1,875 ???

If the Payment Slab is Based on the Total Sale then it is FAIR and correct

But

If the Payment Slab is Based on the Authors Share then the Total Payment Slab Figures will Need to be Multiplied by 2 for Example

50% $0 51% $3,750 * 2 = $7,500

150 Sales * $50 per Template = $7,500

$7500 * 50% = $3,750 ….. we have reached the First Slab and have been upgraded to 51%

and the Same goes on and on and finally $75,000 turns to be $150,000

Looking at it from another Angle

$3,750 * 50% = 1875 * 2 = $3,750 to Reach 51% Slab Using Author Share Based Calculation …... if this is the calculation used then it is DOUBLE the EFFORT …. A Mathematical Magic.

$3,750 * 50% = $1,875 to Reach 51% Slab Using Total Sale Volume Based Calculation as the total Sale Amount is Calculated and not Authors Share

which is the correct Method used to Calculate the Payment ????

Please Provide Some Transparency and Shed Some Light on this issue as the word Volume is not defined Correctly

Regards Andy

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FinalDestiny says

Oh, lol, how much math for one simple question :P When calculating the rate, it takes the whole price, including the Envato part.

If a theme costs $45, when you sell it, it’s $45 in sales. When you reach $3,750 in sales, you go up 1 percent.

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abstract-labs says

Hey Andy,

Envato uses the total sale volume to calculate the author commission.

Definitely worth selling here! :)

Andrew

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tigerden says

Oh, lol, how much math for one simple question :P When calculating the rate, it takes the whole price, including the Envato part. If a theme costs $45, when you sell it, it’s $45 in sales. When you reach $3,750 in sales, you go up 1 percent.

it was clearly not mentioned on the http://themeforest.net/make_money/payment_rates

so i had a my doubts

thanks for the info FinalDestiny Bro :)

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tigerden says

Hey Andy,

Envato uses the total sale volume to calculate the author commission.

Definitely worth selling here! :)

thanks for the info abstract-labs Bro :) Andrew
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NuclearThemes says

If the payment rates changed based on your sales after commission total then it still wouldn’t be twice the effort ($150,000) to reach 70%.

That would mean that the commission would jump from 50% to 70% at $150,000 instead of going up in stages.

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tigerden says

If the payment rates changed based on your sales after commission total then it still wouldn’t be twice the effort ($150,000) to reach 70%. That would mean that the commission would jump from 50% to 70% at $150,000 instead of going up in stages.

hi Nuke

i agree thank you for pointing it out :)

there will be a 20% jump mistake in my calculation

regards Andy

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cmoreira says
I think it’s something like this: http://jsfiddle.net/cmoreira/Egcua/
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ImanGM says

Hey Andy,

Everything is fair here. Even $2 Paypal Surcharge is shared with authors! :)

Cheers,
Iman

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tigerden says

I think it’s something like this: http://jsfiddle.net/cmoreira/Egcua/

Very Useful Link …. thanks a lot for this :)

regards

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