(Petition to Envato) Update Author Fees


#22

Me too think to quit CodeCanyon


#23

Why am I charged with -$1.79 US Backup Withholding Tax while buyer is located in Tokio, Japan???

That seems a mistake or did I missed something?


#24

I believe they were very clear in their statement. You play by their rules or you are welcome to leave. only time will tell how authors will react to these changes and, if envato start to actually lose bigger authors to other marketplaces, then they will come up with a new plan.


#25

You do not submit the W-8 form, now your are a US Author without any tax information = 28% tax on all sales.
Details: https://help.market.envato.com/hc/en-us/articles/205658994-Tax-Information-Form-W-8-Requirements-for-non-US-Authors#backup


#26

Looks like you have not submitted your W8. In which case, you’re considered as a US author and get 28% withholding, as @Sealord mentioned.

Also, Germany has a tax treaty with the US, so you’ll want to fill the W8 with a valid FTIN, and forget about taxes withholding altogether! No reason to pay unnecessary taxes to the US if you can avoid it :wink:


#27

Yes, got it, thx


#28

I will no longer support envato. I decided to stop creating themes on this marketplace.

Bye bye envato


#29

That’s entirely your decision, but keep in mind that Poland has a tax treaty with the US… so although you’ll have 10% withheld after filling out a W8 with valid tax ID, you can offset the money you’ve paid to the IRS against taxes you need to pay in Poland.


#30

@SpaceStockFootage

Yes you are right…

i just wanted to know one thing…

Developer (I Author) sit create an idea and develop a script / plugin. and we send it to envato for selling it only

but Envato just checks for checks and approve it then. it dose nothing… Envato takes 85% of the price from a sales. but we just get 15%…

envato should remove author fee / buyer fee.

why author should pay for buyer fee ?? envato earns from selling item then why buyer fee ?


#31

They should really update their cut to 50/50% for non-exclusives like every other market place.

Even before taxes, their cut was too big considering their ridiculously low prices.

I’m an audiojungle author and non-exclusive, I now get 2-3$ per sale which is insulting to say the least. On other marketplaces I sell I get at least 20$+ per sale. That’s TEN TIMES MORE than here.

I came here because I knew they had lots of traffic and sales volume which was partially true, but now I actually have more sales on sites like Pond5 and I am free to make my own prices there, so if something doesn’t change here fast I believe I’ll be leaving this marketplace.


#32

I feel your pain, but sincerely, I think you are wasting your breath, like others before you, like so many others after you will. No petition will ever change Envato, only a crisis.


#33

Only the buyer pays the buyer fee. The buyer fee goes directly to Envato and we’re not taxed on it. We are taxed on the author fee though, which goes directly to Envato. Why we’re taxed on the author fee, I’m not really sure.

As for Envato doing nothing, it may seem that way, but they spend millions every year to maintain and promote the site. I’d happily bypass Envato if I was able to generate 200 sales a month from my own website, but that’s not going to happen. As a result, I’m happy for Envato take a cut of my money. After all, 50% of something is better than 100% of nothing!

Not sure where you’re getting the 15% from. As an exclusive author, the minimum you’ll get is 50%. Even if you factor in the taxes, you’re from a non-treaty country, and all your sales are to the US… the minimum you’ll get is 26%. Sure, that’s not much, but it’s a lot more than 15%.

As an author from India, you should be paying 10% withholding, which would result in you getting 42% of the price rather than 26%. And as US sales probably make up around a half, then you’re really getting around 46%… and you should be able to offset that 4% against taxes in India, then you’re not really losing anything in the long run.


#34

Small issue here. Sorry but, on your own you’d have to generate only 100 sales out of which you’d get 100% income. 100 sales is only HALF the 200 you’re so frightened of. How long did it take you to reach the 100 sales/month on Envato? Did you ever consider that if you’d have invested the same time in building a better - visible - image for yourself, you could have reached those 100 customers on your own?

I’m not saying this is what everyone should do, or that it’s the best way. Hell, some people are meant to freelance, some can’t see themselves outside of a corporate job, but for the love of God, have some faith in yourselves people.


#36

Good point on the 100. I couldn’t get anywhere near that either though! Sure, I could put a hell of a load of effort into it, maybe I’d get there one day, but Envato have teams of people doing this day in, day out so that I don’t have to. It’s not that I don’t have faith in myself, it’s just that I have more faith in Envato to sell my stuff, because they’ve been doing this for how ever many years. Little old me with a comparatively non-existent time/financial budget for advertising, branding, marketing, promotion is not going to get anywhere near.

I’d say ‘doing it yourself’ is a good idea for increasing sales, but not replacing stock marketplaces in their entirety. Probably a bit different if you’re Power Elite, you’ve got a big following already and you can invest the time and the money.


#37

Envato has a team for ALL authors, and out of ALL the authors, the high-rollers, big seller get the bigger marketing cut. Trust me, you yourself would be able to invest in yourself much more time and perhaps money than Envato actually invests in YOUR products. Their team invests mostly in the visibility of the market and a few selected products. In this huge market your own products - no disrespect here - are mostly “background noise”.


#38

I am also PRO, FOR this Petition!!!


#39

Envato is a corporation and corporations don’t care when the little guys are being hurt by their decisions. One thing I can’t understand is why are they calling it a “US Royalty Withholding Tax” and then they are not calculating the taxes from the actual royaly sum, i.e.:

$33 item
51% royalty rate > $16.83 in royalties
tax is calculated from $26.4 which is not the mother#*^@# royalty

That is just theft as far as I’m concerned.


#40

If the tax is from the money we make, then should be taxed from the $16.83. Simple as that.

Once again, we’re being ignored. Now we have flyers selling for $2 (lol). And being taxed on money we don’t get. Keep going guys!


#41

Don’t kid yourself, Envato us a company, not a corporation, despite a lot of times copying a corporation’s most negative attributes. With less than 300 employees, out of which quite a few don’t even work from the headquarters, no VC investments, no stock exchange listing you can hardly call it a corporation. :wink:


#42

This is theft!
I just sold a $29 dollar logo. That’s the listing price. Excluding VAT.
You wanna’ know how much I got? 8 f#cking bucks!
Envato, if you don’t get your sh!t together, you’ll lose a lot of money.
I don’t want to sell my work for cr@p. Please add an option to not sell to Americans!