Author-Driven Pricing Coming to VideoHive

Not necessarily, items still have to go through a review process.

You do have some cause for concearn however, depending on how Envato manages the issue and the participants in the market. Without a price floor, the market could easily become more competitive in the short term. Anyone who lowers their price while providing the same quality will inevitably attract more sales, but this also means other authors must lower their price, or, increase their quality to keep up with the market leaders which, if the quality route is taken, is highly beneficial to consumers.

What happens in paper is always different than what happens realistically however, you cannot expect everyone to do this; many authors would simply leave due to either a lack of incentive or being priced out of the market from maintaining marginal costs but lowering their marginal revenue compared to the larger authors who had already grown to a large enough scale to produce fast enough to overcome the lower price.

So, in the long run, Envato would end up lowing the diversity and volume of its author base, which in turn causes Envato to grow much more slowly than when it had a rapid influx of authors and also creates a oligopoly for the fewer large authors, which means at that point means those oligopoly authors have an incentive to provide lower quality items that are cheaper for production and Envato would have to accept and lower its item quality standards in order to keep competitive growth rates. Along with this, Envato also lowers its item diversity, which means it will be less likely to stand out in the market and therefore gains less benefit from the new items of the few authors.

Your instinct is right that ultimately an unregulated market with no price floor would likely do more harm than good, but only to the extent that it doesn’t harm Envato through authors charging so much that it is no longer competitive with other platforms.

It is also possible however that the market as a whole lacks the capacity for these top producers to use predatory undercutting against enough competing authors, and this will depend on Envato as well as the health of the overall economy that permits consumers to spend more money on assets. This is very analogous to the level of available nutrients in ecosystems that may permit the growth of only small organisms such as bacteria and amoebas or insects as opposed to the formerly lush ecosystems that support 50-ton dinosaurs.

The current state of Envato is in between both of those extremes, which is a good thing because it gives the market versatility. It lets successful items set a higher standard but still gives opportunity for growth to both new and old authors. A majority of sales do go to fewer authors, but not to the extent that anyone has a monopoly, so the future could take Envato either way. Lacking a price floor is one factor that would lead to predatory undercutting, but there are other factors beyond that which could compensate for maintaining the health of the market. Pond5 has a system where authors can set their own higher prices which has attracted a lot of very good producers, but not below a certain price floor. Their price floor in my opinion is too high, and I notice Pond5 authors almost always have less sales on Pond5 than on Envato, but despite that they’ve often reported higher growth than Envato and have a much larger reputation. There have been many times where I wanted to say Envato had a larger market share than pond5, but assuming there’s no fraud, when I looked at their numbers Pond5 always came out ahead.

For this task you may filter the search by price, and see how many items are in search result.
Basically it’s forbidden to recommend and discuss what price an author should set. It’s absolutely up to you.

It’s not just forbidden on Envato, it’s illegal for two or more independently owned businesses to collectively decide on a price to set for a market for their mutual benefit because that leads to a market failure through the elimination of competition, and that’s called collusion. This sort of law is at least partly why Envato tends not to discuss its inner workings with people on its platform.

However, it wouldn’t be illegal for someone or Envato to quantitatively propose or assess the market to decide what price floors and ceilings would be rational for its health to formalize as a policy for all authors on its platform, since the platform itself is a service being provided to authors and customers. I am fairly certain the laws are much less strict on this when the discussion takes place openly and for the benefit of the market as a whole to include consumers, but maybe Envato itself should comment on whether or not we can have that discussion. I doubt this thread would ever be considered illegal since it is public, but if anyone wants to go into more detail to verify their arguments for or against particular policies and what prices are rational or irrational, Envato should make sure it’s okay before proceeding.

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Can anyone answer me please: is there any difference with cuts, if I’ll be exclusive or non-exlusive author? Because my item is listed for 16$ and after sale I’ve got $6.25
Thanks

Non-exclusive authors get 45% of the item price. Item price being the list price ($16), minus the buyers fee. The buyer’s fee depends on what category your item is in. Exclusive authors get 62.5% of the item price to start, increasing every time they sell $3,750 worth of content… up to 87.5%. Subtract any applicable taxes and that’s what you’re left with.

That is incorrect. Since the buyer fee is fixed, the final royalty percentage will vary depending on price.

Read it again… it’s 100% correct!

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You are correct. :grinning:

Item price shall not be confused with list price.

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But you’re correct as well… we both are!

Well, this turned into a wonderful day! :grinning:

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So I should add 6$ buyer fee and it’ll go back to normal)) my items price is now 22 )) thank you!

So you’ll now get $10 per sale, unless I’m mistaken. If the list price is $22, that is, so the item price is $16.

That’s absolutely right ) Envato became really expensive)))

In regards to the ADP subject being discussed here and the topic of discussion around pricing - myself and @SoundStormLabs are discussing this in a support ticket but wanted to share for the benefit of this thread and wider-community here our policy on ADP and any discussions around pricing which is strictly forbidden

See “Setting Prices Responsibly” section https://help.market.envato.com/hc/en-us/articles/204651020

And “Price Fixing” section https://help.market.envato.com/hc/en-us/articles/204429024-Setting-Prices-Responsibly

If anyone had any questions, happy to help via support ticket due to the nature of this. :sunglasses:

Only David Copperfield can understand envato’s sales statement. I tried to understand it, but gave up. Some time ago, it was 100% clear. Price $30. You get 70% = $21.

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It’s probably more complicated than it needs to be, but it’s still pretty simple. You get 87.5% of the item price. And as you chose the item price and/or have the ability to view and alter the item price… then it’s all pretty straightforward.

Item price: $100. You get 87.5% = $87.50

That is absolutely inaccurate. My last sale, I got $24 and the item price is $33. That’s about 72%

And no, it wasn’t from united states.

It’s simple. Here is the formula:
(price - 6$) * 0.875
After that you should round the number.

UPD: In your case 33 - 6 = 27. Then 27 * 0.875 = 23.625. Round it. We get 24. Bingo!

So yeah, you got 87.5% of the item price. No inaccuracy there.

Forget about the old «Author fee» chart, where your author fee was 30% (as an elite author)
Here’s the new «Author fee» chart:
https://help.market.envato.com/hc/en-us/article_attachments/207089606/Screen_Shot_2016-09-13_at_4.56.22_PM.png