License explanation please

Can someone please explain in plain English to me the difference in in theme licensing?

There are a couple paths I want to consider for a new business:

  1. Client wants a website built for then, they purchase a theme and hire a developer to put the site together for them.
  2. Freelancer (Upwork for example) provides a theme as part of their development package.

The license verbiage confuses me.
To me, it sounds like a standard license only allows the owner of the website to buy the theme and build the site themselves… The extended license sounds like a developer buys the theme for the client and charges them the usual fee to put their website together. BOTH licenses say they are good for a SINGLE end product. So that makes me think the extended license is not good for agencies who want to purchase the theme and include it as a free perk for ALL their clients.

Considering an extended license costs about $3000, this makes absolutely no sense. most WP sites are built for MUCH less than that. See why I’m confused? If each license is only good for a SINGLE product (ie: website), then 100% of the people on freelance sites are breaking the rules by offering services for $500-1500 for a basic site.

What am I not understanding?

Thanks

Without being able to comment on any freelancer or provider individually.

  • regular or extended is irrelevant. 1 purchase/license = use on 1 website

  • there are no multi site licenses available

  • extended licenses are about how the site it is used on operated eg are users charged to access the site NOT about how many sites it is used on

  • anyone can buy the license and create a site with it

  • if anyone freelancer or agency want to include a theme from here on a package then they will need to buy a new copy for each site they build using it

  • it’s always better that a client buys the item because a freelancer or agency can transfer the license/right to use it to the client BUT updates and support will only ever be available to the purchase account.

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Thanks.

“extended licenses are about how the site it is used on operated eg are users charged to access the site NOT about how many sites it is used on”

Are you saying that paid membership sites require an extended license?

Possibly - depends on the site but if for example I can’t access it with their paying to be a member then yes it probably would need an extended license

When reading the license terms, keep in mind that the end user isn’t the client you’re building the website for. It’s the ‘are charged for’ bit that ususally confuses people, but that refers to end users… people who visit the website. Not clients.

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Got it. So, where is the line drawn regarding ‘charged for using the website’? There are millions of sites selling courses for example, which require a monthly subscription to unlock those protected potions of the site. Some sites offer paid subscription to read the full version of a blog post, digitalmarketer.com charges several membership levels. Which of these require an extended license? It’s very confusing. i have never seen anyone ever buy anything more than the version of a theme, and many of them sell something. products or access to locked areas.

And why would support cost increase proportionately with the cost of the license? I mean… $800+ for the exact same support someone else is paying $12 for is insane.

Thanks for the replies.

It’s simply because support shouldn;t change much but regular is a one-off earning e.g. 1 client site whereas extended allows the opportunity to earn multiple times over from one site

Can you give a few examples on a Extended license and why and he would want to purchase it?

Thank you