Author fee and author earnings

Envato Authors Author Hangout
1

Hi,
I know that this issue is discussed several times but I don’t understand how envato calculates net earnings.
Please have a look a following statements:image

image
Statement 1_ CodeCanyon.jpg978×197 21.2 KB

The item price for buyer is $20, support for $6. Envato takes $10 from the item price and additionally $3,50 as fee! Why?
Before envato changes pricing system I got 51% of the item price without paying additional fees.
Can somebody please explain this to me?

2

51% is $10.40… that’s what you were getting ‘before’.

Now, it’s $20 for the list price, and $4 for the buyer’s fee, which leaves the item price of $16. The authors fee is then taken from the item price, which is 36.25% and 36.25% of $16 is $5.60.

Take that from the item price of $16 and you’re left with $10.40, which is still 51% of the list price. The same calculations apply for the support and the item parts of the total price. It’s just reported slightly differently, with the two lines on the invoice. Or four, depending on which way you look at it.

3
  • Codecanyon has a buyer fee rate of 20%
  • Your author fee rate is 35%
  • The list price includes the item price and the buyer fee

List price: $20
Buyer Fee: $20 * 20% = $4
Gross Income: $20 - $4 = $16

The included 6 month support of this sale has a value of $6
Author fees apply to both parts of the gross income.

Author fee item: $10 * 35% = $3.50
Author fee included support: $6 * 35% = $2.10
Author fees sum: $3.50 + $2.10 = $5.60

it’s the same as
$16 * 35% = $5.60
$16 - $5.60 = $10.40

or you can say, you got 52% of $20 = $10.40

4

Okay, thanks. My misunderstanding was the INCLUDED support. It is part of the item price, I have mixed up this with the extended support.