So I have this item shown as 30 dollars, but on my statement page and on invoice it shows it has been sold for 24 dollars (before tax). Same for 15 dollar items being sold for 12 dollars. Why so? After tax and author fee it’s even lower (so it’s not about tax/author fee I presume).
Ok thanks but I’m a bit confused, if I understand correctly, buyer pays 20% to entovo to be able to pay 80% to author, which eventually gives 50% of this 80% back to entovo as author fee (40% in this case. So newbie exclusive author makes 40 percent of the listing price if W8-9 form is filled and no tax deducted?
Ignore 50%, people still use that calculation as that’s how it was worked out prior to 2014, and in a lot of cases you do end up getting 50% of the total price… but it’s not calculated by just giving you 50% of the price.
There’s the buyers fee, the authors fee, and your net payment prior to any taxes is what’s left. The buyers fee is fixed for items subject to author driven pricing… for all other items, including AudioJungle, it’s 20% of the total price. So the list price might be $10, then the buyers fee would be $2, and the item price would be $8. It’s the $8 that shows up on your statement page. From that $8, Envato subtract the author’s fee, which is 37.5% for new exclusive authors. So that would be $3 which leaves you with $5. So in that example, you do end up getting 50% of the total list price.
Currently, all items on AudioJungle have a percentage-based buyers fee, so as long as you’re exclusive, you’ll never get less than 50% of the list price in pre-tax profits.
Thank you for your detailed explanation. Very helpful indeed. I finally understand how this system works, thanks!