Can somebody explain earnings percentages to me?

tips-and-tricks

#1

Hi,
I made some Muse templates a while ago, I was happy because I kept about 7 dollars for each sell, The price I think was about $14. Now the price of each item is $15 and I earn less than 4 dollars for each sell. I’m not a U.S. resident, I live in Uruguay. I’m not sure if there was a recent change in the percentages of the sells.
I’m an exclusive envato seller.

For example, my last sale in the statement says:
Gross: +$11.00
Taxes: -$3.30
Fees: -$4.13
Net Earnings: $3.57

Now, earning 3 and a half dollars from an item that cost $15 seems too low, also why the gross is $11 and not $15?
Can somebody help me understand this?

Thanks


#2
  • The price you see on the item page is the list price = item price plus buyer fee
  • Muse templates has a fixed buyer fee of $4.00
  • Your gross income of a sale is the list price minus the buyer fee
  • On base of this gross icome you have to pay income taxes and author fee
  • Uruguay has no tax treaty with the USA = 30% US Royalty Witholding Tax on sales to US customers

List price: $15.00
Buyer Fee: $4.00
Gross income: $15.00 - $4.00 = $11.00
US Royalty Withholding Tax: $11.00 * 30.00% = $3.30
Author Fee: $11.00 * 37.50% = $4.13

Earnings: $11.00 - $3.30 - $4.13 = $3.57


#3

Thanks Sealord for the explanation, very clear.
I think there’s too much fee + taxes, it’s not worth it anymore. I have to sell the double amount ot items to earn the same as before.