Why must Envato take so much?

Also Envato did actually used to take more of a % about a year ago. But because they were doing well and their expenses were covered they upped the percentages for all authors… to the current 40-70%. So I am sure that in future if they are making even more $$$ they will adjust the percentages again. That’s just simply good business – the better deal they have for authors the higher quality authors they attract.

60% is fair enough, and they give you all the exposure you don’t have on your Website.

We all love the websites that envato provide, and I’m not surprised to hear people immediately jumping to their defence as usual.

Having said that, I think 40% is far too low.

Things that people have stated so far…

‘envato PAY to advertise your product’. True. What is also true is that envato MAKE (according to the cost on buysellads) anything up to $10,000 per month in advertising on some of their tuts sites. That advertising revenue occurs only because you visit their site, so all of the love, attention and freebies aren’t just out of the kindness of their hearts. It’s a business.

‘eBay get this everytime they up their prices but where else can you get the amount of sales ?’. eBay don’t take SIXTY percent of the revenue from YOUR product. They take a very small percentage for serving up an environment where people can buy and sell goods. This is why the model works and attracts such a large number of suppliers.

I’ve personally considered creating templates for TF on numerous occasions, but I can’t justify the time required vs. the probable revenue. Even if your $10 template sells 100 times, you still only make about £250. People will harp on about the various authors who do very well from TF and have made $xx,xxx’s, but these are the minority. Don’t forget, for each 1 of them, there are 100’s/1,000’s who have spent a lot of time on a design, without ever even meeting the cost of the time required to produce it.

Perhaps as an incentive, the author could make a higher percentage from initial sales, that gradually reduced as it sold in more considerable volume (at least aiding in covering development costs).

I genuinely believe that if TF increased the authors rate to 60%/70% – for goodness sake, at least HALF the money for their own product/design – then far more authors would come to TF, buyers would have far more choice, and TF would potentially make far more revenue in the long-term via economies of scale.

Just my 2 cents

Dan

Having said that, I think 40% is far too low.

+1

I have never understood how a business that’s only expense is a few people and server space could justify taking as much as 75% of the sale of someone else’s work. and the fact that most authors defend this? pure genius on envato’s part! before anyone starts listing all of envato’s expenses try listing your own expenses alongside them and then explain how come yours are worth less consideration.

Anything less that 50% is an insult to any author. I can’t believe I started here on 25%! The only way this site works is because sales are good enough to make up for the low author share. 40% of a lot of sales is better than 100% of barely nothing.

Envato`s costs do not justify the percentages, they are set as what they think they can get away with. If you remember the % was put up after a lot of threads like this and they cut the referral program to “pay” for it.

Sites like logo tournament who have very similar bandwidth requirements only take 15% – you the author get 85% from day 1, so it can be done.

The bottom line is Flashden is the best out there, you won’t make the same money anywhere else, regardless of the % share.

Of course: You probably make less money on themeforest than with a client project. But what if you don’t have a client?!

Envato can give you a descent passive income stream without you worrying about clients. Yes, it’s true – they make a lot of money with ads on the tut network, but they also give you 150 Bugs for every of your tutorials they publish. And when you browse trough design blogs, you’ll notice that they advertise on freakin expensive sites like smashingmagazine.com!

If you take into account, that envato is creating a way to make income you wouldn’t make without them, 40 Percent for starters is pretty good….

And all those people with files that don’t sell well….they remain on the servers and actually never earn the money, that it costs envato to host…

People will harp on about the various authors who do very well from TF and have made $xx,xxx’s, but these are the minority. Don’t forget, for each 1 of them, there are 100’s/1,000’s who have spent a lot of time on a design, without ever even meeting the cost of the time required to produce it.

omg, what a negative view…

you could be this minority would be a much better mindset…

Ive picked up some very well paying clients with repeat work from here and I only have one file, sure I dont get much a month from here but its pays my hosting (and lunch :P) and gives good exposure…

If I had more time I would upload more but right now I dont. Find a niche and upload and even if you dont make much, you’ll make money off it for the rest of your life... surely the more passive income you can get the better?

Envato can give you a descent passive income stream without you worrying about clients…

surely thats the best bit, passive income. For Life.

People will harp on about the various authors who do very well from TF and have made $xx,xxx’s, but these are the minority. Don’t forget, for each 1 of them, there are 100’s/1,000’s who have spent a lot of time on a design, without ever even meeting the cost of the time required to produce it.

omg, what a negative view…

you could be this minority would be a much better mindset…

Ive picked up some very well paying clients with repeat work from here and I only have one file, sure I dont get much a month from here but its pays my hosting (and lunch :P) and gives good exposure…

If I had more time I would upload more but right now I dont. Find a niche and upload and even if you dont make much, you’ll make money off it for the rest of your life... surely the more passive income you can get the better?

If I had more time I would upload more but right now…..?.

If you translate all your post here in to time I see 2-3 template`s… you can made (:

“omg, what a negative view…

you could be this minority would be a much better mindset…”

Not at all, I’m just a realist.

Without wishing to be picky, passive income is indeed wonderful, but your designs won’t have appeal for longer than a couple of years. Styles will change & websites come and go, you will not be receiving passive income for life.

If you take into account, that envato is creating a way to make income you wouldn’t make without them, 40 Percent for starters is pretty good…

Don’t forget, envato wouldn’t be making an income without YOU .

Just to confirm, I have a lot of time and respect for the folks that provide these sites, I just disagree on the issue of %age .

Dan