Those of you who have already read Collis’ 2016 roadmap will know that one of the big focus areas for Envato is our customers. For some time now, we’ve been working to better understand the needs of different segments of our customers, both those who are currently active in our community and those we are yet to reach.
Today we’re launching a project on the back of those learnings. That project is Envato Elements.
What is Envato Elements?
Envato Elements is a new subscription model service for digital assets. The platform will be launching with graphic design assets, but quickly look to expand the offering into other categories as we grow.
It’s completely new site and we’ve built it to deliver a specialised user experience for agencies, designers, marketers and other creative professionals who have a consistent need for content. Many of these groups will be completely new to the Envato ecosystem.
At it’s core, Envato Elements is an offering that we’ve built to accomplish three things:
Introduce a new type of customer to Envato’s system of sites.
Help us to build a stronger relationship with a subset of our existing customers.
Create recurring revenue for our community members.
So how does it work?
Elements showcases and curates a beautiful and constantly evolving library of content. Users pay a monthly subscription fee which gives them complete and unlimited access to the full extent of the library’s items. All downloaded items are licensed under the one agreement: the Envato Elements license.
How have the items and Authors on Envato Elements been chosen?
The current group of contributors were invited by the Envato Elements review team. We reviewed thousands of portfolios against our selection criteria. We sourced from GraphicRiver as well as other leading graphic design marketplaces.
One big difference between Envato Elements and Envato Market is that Envato Elements reviews contributors and not items. Whilst our review team regularly undertakes quality spot-checks on items and provides feedback and coaching when needed, once an author has been accepted, item uploads are published immediately and made available to subscribers without the need for review.
As Elements begins to take off, we’ll look at inviting more people to join the party
So in a subscription model, how are the contributors paid?
Contributors to Envato Elements share in 50% of the net revenue from subscribers. The subscriptions will be consistently priced at $49 per month, however we’re allowing early subscribers within our community to access the platform at a much lower cost of $19 per month, for as long as they choose to keep their subscription.
Of the revenue taken from a subscription, we allocate the revenue to our contributors as fairly as possible, using a method called “subscriber share”. The key idea here is that a subscriber’s money goes to the contributors they actually use and value. We look at each subscriber in turn, and assign 50% of their net revenue to contributors whose items they used that month, based on how important each contributor’s items were to them.
What will an Elements contributor get for the 50% of earnings that are allocated to Envato?
In addition to maintaining the platform that manages and showcases the items, the biggest thing that Envato brings to the table for Elements contributors is an enormous amount of exposure through marketing. We provide a powerful distribution channel to business-class customers who need digital assets regularly.
The subscription business model also means:
We’ll place huge focus on retaining customers over time and increasing their lifetime value.
Envato is able to allocate a lot more resources towards attracting new customers. So don’t be surprised when you start seeing elements commercials in your web travels!
Let us know if you have any questions below, and we’ll be happy to answer them