Hi to all Envato Authors and Team!
The last few days we have seen topic after topic of authors complaining about how little they receive after the buyer fee, author fee and new tax withholding. So we are making this topic to make a petition to Envato, which is to update the author fees.
We think that on top of the already low prices for things like E-Commerce Themes or WP Templates, this new tax is really hurting a big part of Envato authors, not to mention the ones that want to start or have just started. For example, let’s take a newcomer exclusive author that isn’t in a country with a tax treaty. For an HTML template with 6 months support included he is only earning (for US sale)
$17- Buyer Fee ($3.4) = $13.6
$13.6 - US Tax ($4.08) = $8.8
$8.8 - Author Fee ($3.3) = $5.5
So in the end they are earning $5.5 per item for a fully functioning responsive HTML template with 6 months support. And sometimes even less given that we know that lots of authors work in partnerships and have to split their earnings, it really is a huge blow having that minus the 30% for US sales.
To make it simpler, we are going to talk with the 50% to 70% cut that we all know instead of the new author/buyer fees percentages. Having this in mind, we are asking Envato to raise the author cut from 50-70% to just 70% for all Exclusive Authors, and make it 70% to 75%/80% for elite authors to super Elite Authors, to keep an incentive to reach higher sales.Keep in mind that there are other big marketplaces who are offering 70% without exclusivity, we think this will really help people keep their items in this marketplace, and help the ones that have no tax treaty to cover their tax withholding.
Envato, just a week ago you celebrated with us that one of the authors had reached the incredible milestone of 10 Million dollars, so please don’t forget that authors are a really big and important part of the marketplaces.
To all authors, what do you think? Do you agree? Do you disagree? Do you have another proposal? Let’s discuss!