Author-Driven Pricing Coming to VideoHive

Very well put, Sir.

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I can’t? :wink:

I get your point, but my goal wasn’t to compare this to that, I simply analyzed the effects of this new “author-driven pricing” on the market as a whole (by looking at the sections where it is in use) and citing one category in my post.

I think it’s better to analyze the present than the past. With the numbers at hand, at least.

I see authors selling at 39$ and others at 59$ who make a similar amount of money at the end of the month (because they move different numbers of items). The firsts don’t necessarily steal the profits from the seconds or vice-versa, they simply attract different buyers.

I’m not ready to shout “Yay!” at this new pricing scheme yet, but I’ll try to get the most out of it. Profit still seem possible, but it will probably demand more strategic efforts to find the right sweet spot.

I believe there is already minimum price threshold which is 1 usd. So whats all this mess about…!@$%

Current pricing - lower limit. If authors consider their goods unfairly evaluated should have the opportunity to raise prices.

No! Stop it! It’s not even possible! :wink:

To get serious again. Yes of course you’re absolutely right to argue with the actual data and also with your conclusion that it wasn’t the end of themeforest, but making the assumption that this would be applicable to all other marketplaces including AJ is wrong in my opinion.

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What’s sure, is that we’ll all find what it’s about soon, 'cause that thing might arrive in a year… maybe less! :crazy_face:

What will you choose, to get almost free (or even free) thing, or to pay money for the thing you need?

Every industry is almost the same in it’s basic structure. Don’t tell me that music is something special. No, it’s not. Every industry has big studios (companies) where they create great products for very high price. Or music industry special in this case? NO. Every industry has smaller studios, where they create also good things for high price. Also every industry has professional individuals (freelancers), they make things for much lower price. Also there are persons who create bad things for cheap price. And of course, we have free things laying everywhere, just take it.
So each of this “degrees” have their own audience. People who pay thousands of dollars to create video, music, site, photo and etc. never go to Envato for cheap items. People who have no money, don’t purchase your super cool thing even for 1$.There is gradation, each audience need different approach.

With ADP we can reach different audiences. It works everywhere in entire world. Even in (so special) music world, there are different prices, there are free songs, there are projects that cost 10 000 dollars and more. It’s like, we lived in Soviet Union, and now we get freedom to do what we want.
So you don’t need to ask yourself - “Will authors lower their prices?”. You need to ask: “Who am I? For whom do I make a product? And what audience do I want to reach?”

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Can’t disagree more. Music has one factor which is undeniably setting it apart: Popularity, ideological worth. Authors are already submitting their works to the Free File Programm, in masses. Which of course leads to competition, which in the end pushes them to submit their best works. The big problem here is that many Authors on Audiojungle, don’t see “degrees”, only shiny badges and some extra money. It’s pulling production music down, down to the bottom.

And in regards to that soviet analogy… I think we all here agree that fixed prices are nonsense, but letting someone sell his items for 5$ just to get to the top authors list too. It’s damaging the whole marketplace and how digital goods are perceived. A lower price limit is needed.

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Popularity? Really? :smiley:
Video industry has no such thing as Popularity? Or may be website templates has no Popularity? Or photo industry? Seriously?
Please, just google, there are millions free videos, free photos and free site templates. But some crazy guys still visit Envato and buy something from here!
And if many authors don’t see “degrees”… so what? Most people on the world are poor. But it’s not mean that there is no rich people. The best you can do is to stand out from the crowd, be better than 80% of others. That is the point. Focus on yourself, not on the crowd.

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Do not check popular files, check new files, for example, last 40 files.

I’m sorry I can’t explain it properly to you. While there are similarities, it’s not the same. And btw, I’ve been talking Envato only. You’ll see next year.

You are talking about the crowd. Most do approximately the same thing. And in this point of view, there is a big competition among authors. So 80% of authors may reduce their prices (or keep it the same), because they do what almost everyone can do.
I’m talking about standing out from the crowd. Do something different, or something more quality, or promote your product in unique way. And the crowd will not be your competitor. And in this case you may increase your prices. And people will buy your items, because you don’t do the same thing as others.

Hi, I have done what you suggested a few hours ago. Here are the numbers. The first column represent the price, the second, the number of sales and the last, the total cash.

19$ x 0 = 0$
25$ x 9 = 225$
29$ x 36 = 1044$
35$ x 7 = 245$
39$ x 57 = 2223$
44$ x 2 = 88$
49$ x 22 = 1078$
57$ x 2 = 114$
59$ x 73 = 4037$

Those selling at 59$ make the most among the recent sales, while those going for 19$ make a big 0$.

  • The low slice from 19$ to 29$ is reaping: 1269$
  • The middle one from 35$ to 44$ get: 2556$
  • And the last from 49$ to 59$ make: 5229$.

Nothing in this makes me think “Fatal race to the bottom!”

I’m not even sure we can equate the low price slices as losses, because someone buying a theme at 29$ might have passed at 59$, etc.

I see different authors using different strategies in a market who give them the tools to run their business as they see fit. (If I return in a year and most files are at 19$, that would be another story, but I don’t think it will happen).

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Sorry, but analyzing by the earnings is a bit misleading in my eyes.
We are talking about price dumping. Number of items with a certain price is the point, so:

19 - 6
25 - 2
29 - 11
35 - 3
39 - 14
44 - 1
49 - 12
57 - 1
59 - 10
69 - 2


So only 13 items are on 59 or above mark and 12 on 49 mark. Let’s say these two prices represent the old system. One was with woocomerce and other without.

So…

37 items in the first two pages of WP sections are below 44, but since only one item is 44 we can say 39 and down.

So 70% of authors decided to go with a lower price from that number more then half went 29 or lower.

I my book this is a race to the bottom, well maybe not a race but a trend is showing.
Luckily in this window, good quality items can stand out at higher prices however it is way harder to compete.

The tools that would be needed to counter ADP and utilize marketing efforts are missing, sadly.
And a total lack of oversight is just making me sad. For example the money back guarantees… I have seen authors with it and I have seen them remove it (I guess they were warned) and are on it again and aren’t even hiding it and are promoting it through comments heavily.

And do not get me started on discounts and sales, it is wild west out there. And what does Envato do? “We rely on authors to report violations”

Why? The fees we pay should cover that, shouldn’t it?

So I am reaaaaly against ADP at least until all these mechanisms are in place, currently it’s a system that enables price dumping for the purpose of bringing in more sales and with the fixed fee more ching ching to Envato.

Cheers

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No it’s not the point at all. In the end you don’t care how much sales you get, you care how much money you earn.

Do you know about the 80/20 Rule? 20% of authors will earn the same amount as other 80%.

What we really see in this small statistic, that there is no matter how many authors will lower their prices. People who increase prices, or leave them the same still have the clients, and earn even more than those who decrease prices. So as I said above: You don’t need to follow the crowd, you need to focus on yourself.

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It’s not the point earning more than rest but more than in the past for the similar amount of effort which depends on your growth and healthy competition not on competition that evaluates the worth of the products in question.

For example, if the author was earning XXXXX in the past with YYYYYY effort and since ADP was implemented author earns less with the same effort or even more effort, that’s an effect.

We are talking about price dumping, meaning how many people eat away a chunk of the pie with lowering their price to compete.

80/20 rule is not relevant to this debate.

I’m against Soviet Union, where all people have almost the same.

Do you want to talk about healthy competition? OK.
Now, without ADP, authors create copies of copies, do the same thing with a little difference. Why? Because if you want to create something original, you will have a big risk. Your original work may not have so many sales as if you copy other popular item. So many authors choose easy way to earn money, they copy popular work. Is it fair? I think NO. And it’s not healthy market at all to have only copies.
With ADP. Author may create original work, or put more effort to his item. And he will not have the risk of low sales, because he can increase the price, and make more money.

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I really do not know what market you live in, however, in capitalism (far from SSSR) the only rule that governs is supply and demand. And the idea of certain ideology can be badly represented, but politics are not for these forums as your parallel to this case is totally off.

Oversaturation is huge deal on Envato markets. Now I do not know the Videhive situation and I did reply to TF example.

The good quality and high volume of sales do not go together all the time. There are quite a few items overlooked that may have the potential.

As I sad ADP to be utilized as it should there are far to many marketing features missing. As it is its sole purpose is to attract buyers with low prices! In the “free” market world you have additional freedoms and on Envato market freedom is just in the form what makes Envatos life easier, so in a sense, it is a very restricted market.

A market that has free pricing and with it sales and discounts. But has no engine to control the false marketing, deliberate breaking of the rules, no access to clients emails, no insight to detail analytics and much more… is just not ready for ADP that is why I say what I say and am so oppose to ADP.

Again from Videohives perspective, it’s a bit different, I guess.

Agree. You are right in many cases.
But I think ADP is a powerful tool. You are against of it because you don’t get the whole set of tools. One hundred years ago there was no such tools, people didn’t know many profitable marketing strategies. But the world market lived fine.

I don’t care, Envato make this ADP to reduce the prices. I don’t care, what other authors will do with it. I see new tool that I may use.

UPD: To get all set of tools, you need to leave Envato, and other markets too (I mean any group of traders). Because any market create borders and rules. So you live with it or leave. But when you leave you need to find somewhere the audience.

I think you look at the stats from the least telling angle. The number of items at 19$ are not very important if they don’t sell much. Isn’t it more conclusive to look at it by the cash the items bring at the end of the month (whatever their price points are)?

Also, there was a reason why I had chosen the “popular files” tab in my first example (a couple of posts ago). Because looking at the numbers from “new files” is a bit misleading (they change constantly, even by the minute, sometimes).

ADP (not a perfect system, but I don’t know any perfect one) has at least the merit to segment the market. Then, the trick is to find how to approach each segment buyer’s base. Your business may have slowed because it was originally tailored mostly to one client’s base, but now, there’s the possibility to attract different buyers with different amount of money in their pocket.

Now, to be honest, my little analysis was done from an outsider point of view: at the moment, on Envato, I’m just a small fish at Audiojungle (this new pricing system will happen there too, so I try to wrap my head around it), but I used to sell my paintings and sculptures in galleries and art salons. I had a range of stuff from “affordable for a kid” up to “giant canvases” that very few people could afford. Often, the artists next to me only had “one size at one price point”. They were missing many buyers from other market segments. This comparison is shaky at best, but it’s just to illustrate that market segmentation also has it’s positive sides.

Any new system demands a substantial adaptation time to understand the ins and outs, but I see some opportunities worth a try with this one.

…and if you succeeded in reaching paw 11 (great achievement!), there is good chances that you’ll find how to adapt to this new (imperfect) system at some point. Wish you well! :slight_smile:

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