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Royalty Structure Change

August 29th, 2016


Royalty Structure Change

Hey there, honorable readers, artists and customers! Changes are a-brewin on CGTrader and we have an important announcement to make. It’s about one of the most significant things (after creative freedom and artistic integrity) for our modelers: the royalty structure. We have several reasons why we’re implementing this change, and all of them have to do with improving the future revenues of our wonderful collective.

From September 1st, 2016, we will be implementing these changes:

  • Changing the royalty rate maximum from 90% to 80%;
  • Scaling down the royalty rates for all sellers to conform the new 70% - 80% range.

Here’s a detailed breakdown of the new royalty rates in comparison to the old ones:

Royalty Structure Change 1

The changes will be automatically implemented on September 1, 2016, 12PM GMT, which means that all the orders placed after this time will be accounted for by using these new rates. The same system will apply to the job market as well: all the works ordered and started prior September 1, 2016 will be accounted for using the old system, while all the postings and orders made after the date will be subject to the new royalty rates.

This change is the result of our increased focus on building brand awareness on the client side and expanding the buyer base, all of which will benefit modelers in the mid-to-long term. We know that designers love our commission policy, but current royalty structure prevents us from using some of the most effective marketing activities, which in turn leads to lower growth of revenue for you. Our team is planning to engage in paid marketing activities, get involved in industry events more often as well as strengthen the business development team. This change will help us attract buyers much faster, and we estimate that your payout will become even higher in months to come.

If you need any help with updates to your portfolio, please, contact our support team by email info@cgtrader.com. Also, feel free to express your opinion, observations and insights regarding the change in the dedicated forum discussion.

Comments

Tell us what you think!

intagli wrote
intagli
Turbosquid style? =( ok. then please make payment every month, not only after 200$ solds!!
littlechild wrote
littlechild
Any payments comes every months. What do you mean?
MoravacDesign wrote
Thank you so much for allowing us to comment after you made the decision. What we think? You know what we think. It's bullshit. It's our interest that you take money from us? Wow, very intelligent explanation.
littlechild wrote
littlechild
They wrote that changes finally cause increasing outcome. I think that would be true. I hope I'll not be disappointed eventually.
enotdesign wrote
enotdesign
It is bad news(((
geoffreym wrote
geoffreym
I think if a company want to grow they should take a loan from bank and not money from the users. If you want more money from your users, sell them share of the company. Right now, you just take money from us to put that in your pocket without any chance that we will get richer. Think users are stupid is maybe not the best idea. Might be the time to focus on other website!
lunar-grape wrote
lunar-grape
well , sad and predictable (
Liviuflow wrote
Liviuflow
I don't like it ! , and i think no one who's selling they're work here dose! Bad move.
universe-becoming wrote
universe-becoming
You can delete my account. In the meanwhile, I am removing my products listings. The only reason I signed up was for the 90% royalty rate.
andrej-persolja wrote
andrej-persolja
Obviously no one likes to sell for less, but if the company really invests the additional money smartly and increases the trafic = our sales, then I support the decision. Time will tell whether this additional money will actually bring results, so let's wait and see.
harlyk wrote
harlyk
Don´t see how this should attract buyers. Bad news, I don´t like that either
DUST wrote
DUST
I do not think it's too bad news. Turbosquid as possible will give you only 60% (if you are in a guild) But note here that you get the shade Turbosquid. You have no right to trade on other sites. (yesterday TS lock my account for this reason). You can not communicate with the buyer directly, you can not advertise themselves. It means a lot! I hope my donation will help CG to be better than TS!
DUST wrote
DUST
Those who think that there are sites with the best royalty - badly mistaken. In any case, we should not forget that a successful sale of your models depends on - the level at which Google is in the business marketplace. It is natural that in front of the TS, - go to him - under 60% (and even not immediately, and only the guild) I compared many marketplaces, even exotic. Do not forget that the internal interface and the conditions are extremely uncomfortable. It may seem that I am campaigning for the SG. Nothing like this - go wherever you want :-)
captainmarlowe wrote
captainmarlowe
Yeah, I agree with Dust. While these are not very pleasant news, if it does increase the sales, it is a good move in time. Without being on squid guild, TS is still only 40% of royalty rate, and I don't know any in which you get more than 70% of royalty rate. So right now, only time will tell if it was a good move or not, and we have to be patient with CGTrader to see if paid marketing will help sales.
KurtCV wrote
I think this is good news. Even 70% is much much higher than most competitors, and I do want CGtrader to use more time on marketing. They have an awesome platform for modelers with a fair payback, which is needed in this industry. Just please don't go the route of having to be unique with CGtrader to get higher paybacks. That always makes the artist suffer when they are trying to make a living.
KurtCV wrote
And as Dust mentioned. TS old outdated business model that dosen't care about artists needs to be squeezed out of this industry.
affekta wrote
affekta
Hm, hatodik szinten állok és visszaesek második szintre :( Ez nem hiányzott az életemből! Akkor legalább legyen minden hónapban utalás bankkártyára is!
Kasiopy wrote
Kasiopy
Time will tell if this move will increase customer size in time through marketing. But I have a feeling that this is just a first step, and that further downsize of artist percentage is going to happen in time. Another 10% and another, until it becomes like TS. I hope I am wrong.
LemonadeCG wrote
LemonadeCG
I'm pretty sure cgtrader won't dear to lower royalty rates even lower, unless they become dominant force in 3d stock market. In which case our sales would be so much higher, that even lower royalty rates still would bring more income :]
Marius wrote
Marius
Hi Guys, as a founder of this company with the idea of giving designers the opportunity to make a living from selling 3d models I don't like it either. As a 3D designer I used to sell and buy 3d models. When starting CGTrader I had the same thoughts as geoffreym: there is nothing special in running an online marketplace, they just take our money and put it in their pockets, they really think we are that stupid? So I started one of my own where I can give designers fair terms. It was about 5 years ago. During that time we put hell a lot of efforts and energy in building CGTrader just to see it is not as easy at it seems. At this point we need to do myriad of things like developing our website and making it convenient and bug free. Marketing actions, writing blog and articles, infographics, maintaining social channels, search engine optimisation. Then there is a big domain of the repository and it's quality control, how we can ensure buyers get the best possible content and sellers get help with model upload? Support. We get hundreds of requests and questions per day to assist. We know that if we do not do those things buyers simply won't come back. We often keep hearing that high royalties mean nothing if there are no sales. And we all know that sales is our goal here. To attract customers we need to work on many things that our competitors are already doing. And with 10% of commissions working on marketing activities like paid ads or approaching companies directly is simply impossible. With the new royalty rates we are still bring the best possible terms for designers in the market. Competitors take way more. Do you think they put the money to their pockets? They want to maintain their lucrative position, therefore they invest to defend it. If we want to be ahead of the competition we need to invest in attracting customers as well.
puterich wrote
Still happy with the roalty rate. And if sales increase then we'll all profit. More sales with a little worse roalty rate sounds good to me.
captainmarlowe wrote
captainmarlowe
Hey Marius, thanks for your inputs, much appreciated. Yes, infographics, customer support and seller support has been a great experience in here since I joined CGTrader. Royalties between 70-80% is still very high, and much more fair than some competitors where you have to give exclusivity for getting only 60%. I sure you never impose exclusivity, though. That would be a big no-no. But of course, that's not the question now.
vipmodels wrote
vipmodels
If cgtrader manager will make a huge advertising company for mine 10% - I will be happy, cause sales now on that site is not good! Let's wait - after two or three months we will see what they have done with our 10% Regards!
aniow wrote
aniow
Why change something? If everything was fine. I liked your site for large royalties. This is what I learned many years ago. Now you're doing the opposite. You had a good royalties. Thanks to this feature, the site has become very popular. Also, some of the money from the sale go to the tax model, etc. Bad news. Unfortunately, I have to raise the price of the 3D models. Regards Andrew.
Urecky wrote
Urecky
Scaling down the royalty rates non has no influence on the increase in the number of sales, there are very different mechanisms for Internet marketing. But if the resource administration decided, well, that's their right. But I hope that the royalty rate will be related to sales from September 1 and not all previous sales. I had a considerable sale, but the money I is not deduced. They are on the account cgtrader. Now what they need is reduced? It would not be fair.
tomislavveg wrote
tomislavveg
I expected something like this will happen one day. 90% is not realistic. 80% is still pretty good... But will this in return bring us more sales? Only time will tell. I sure hope so. Good thing is prices of 3D models might go up now, which is good for the artists overall. Good luck to CG Trader and to all of us.
tone-inmotion wrote
Just tried to buy a model ... twice went through until the end then said whoops site gone wrong..tried again with paypal and the same, the site did however take my money from paypal (have no idea about the 2x visa) I don't want the model 3 times! but one would be nice as you have taken my money...first time user not impressed :O(
tone-inmotion wrote
Site wont do well... or artists with the royalty change if no one can buy anything?!
YurkYurk wrote
YurkYurk
Thank You! (It is not sarcasm) I suppose lower royalty will provide more buyers. You should make it more lower if it will help to attract customers
hend-z wrote
hend-z
I think 80% is still pretty reasonable. I do hope that CGTrader won't change the exclusive policy though, that will be a huge let down.
viktor-petrovich wrote
viktor-petrovich
and don't forget deduct 21-25% from UE sales
iterateCGI wrote
iterateCGI
I always had my question marks about the 80% to 90% rate, it was a good attraction strategy, but now that this place has grown so large (including the extra costs it probably implies to manage it) it clearly is time to bring things to the next level. A great community is in place including an impressive repository so it's good time to ask for some more resources and get this thing going full throttle. 70% to 80% royalty is still very competitive/attractive compared to others. If CGtrader has managed to get so far with so little I can't wait to see where it is going to get with more resources. Someone here suggested to get a loan instead of taking it from us, a loan is something one has to pay back with interest you know, so better to get it strait from the crowd that has the charred interest in the investments (we), better not pay a cent to a corrupt banking system and have external forces intervene in the decision making (hoe are solely interested in growing capital and irresponsible spending). I trust CGtrader will make good use of the extra resources to get things going hard. It's already the best place around, so no worry's from my side.
tone-inmotion wrote
OK 10 mins all sorted my faith has been restored :O)
souchenki wrote
souchenki
I have just level up my rank 2 days ago and now ... great! Actually I hope to know this news before 1 month. However, Cg Trader is still a good marketplace. Hope the marketplace invest more ways for marketing pur products.
my1488d wrote
my1488d
LOL GREEDY THIEFS F//K THAT S//T
egh wrote
egh
Y'know, we could sue you. Just letting you know. Have a nice day :)
3DSurvive wrote
3DSurvive
So many rude comments here, i bet you, those who complain about, barely have any sales and already start to rage, like u lost something physical. If they had big sales they wouldn't do this, clearly the sales are going great, either for them or for you. They need more funds into developing more solutions for the site, to make both parties happy.
3DSurvive wrote
3DSurvive
" Clearly the sales are not great" *
3dken wrote
3dken
It all started as being unique and different. Eventually, it will come down to the Turbosquid model for sustainability.
thenujan wrote
Very very bad news
thenujan wrote
cgtrader is going to get low
dimon9206 wrote
dimon9206
Why not getting extra money doing same thing, grate marketing policy. This will not only make traders unhappy, but also will rise prise, wich is not good for potential "new" buyers. I really hope you guys know what you're doing, and hope it's not going to be the first step along many.
Pumper wrote
Pumper
Gotta love all the undercutters complaining about the lower royalty rates. *insert sumbag Steve meme*: - complains about 70-80% royalty rate instead of 80-90% - is selling stolen car models for $5. Hint: I'm talking about thenujan who is selling stolen models, for example: - https://www.cgtrader.com/3d-models/car/racing/lamborgini-lp-670 - from http://tf3dm.com/3d-model/lamborghini-lp670-57463.html
cooldude5757 wrote
cooldude5757
As long as you dont make both the buyers and sellers blind like turbosquid, it is okay for me.
FUNKLE wrote
I would like to see the money go into creating a reliable format conversion service, I cant provide every format for my models, so that would hinder sales on that very fact, plus I cant provide a 24 hour response. This might be a stretch but how about an area dedicated to animation and effects, eg sell quality checked animations from simple character animations to full on render ready scenes, Im sure a lot of media companies would pay for something they can use straight away whilst providing credit and possible royalties to the artist. CG should more than just models right?
FoxCat wrote
FoxCat
Turbosquid ((((
Genkot30 wrote
Genkot30
Let's pay from $ 100 . Thank you.
Genkot30 wrote
Genkot30
Я так давно не получал платежи, способы оплаты изменялись, я теперь даже не в курсе, как проходят платежи. На счету $178, нужно ждать 200?
riccardo12345 wrote
Let's see if this change in royalties will make the difference
Polygonal-Miniatures wrote
Polygonal-Miniatures
90% is way to high. I actually started feeling guilty for CGTrader staff when I was eating. I'm taking this opportunity to adjust my catalog pricing attitude: - Moving away from Psychological pricing (odd pricing). Only round prices now. - Easing the reductions. (from 60% to 40%) - Collections will become cheaper, in an attempt to increase overall sales There's lots of ways to set pricing and I'm experimenting now. I will make a post about this in the forum in 1 month with findings. Stay tuned!
intagli wrote
intagli
на вебмани деньги перекидывают только после достижения продаж в 200$
firechameleon wrote
firechameleon
Hi, CGT, I personally do not want to transfer the effects of lower royalty rate ti my customers.... Most of them are students.... So, sales volume becomes important..... With the demise of the3dstudio, there was a void in the top 2 position; cgt quickly filled.... But maintaining that position requires money.... So efforts by cgt to increase brand awareness and maybe even to challenge top 1 is laudable.... But if sales volume doesnot go up as a result of your efforts, many here will have no choice but to bump up product prices.... Which in turn reduces sales volume further..... I hope increasing sales volume emerges prominantly in cgt's new strategy calculations.... Ps. Some might reduce prices to increase sales volume.... But doing so reduces the value of the product.... I can't do that.... And i don't want to transfer the burden on to my customers either..... So, sales volume increase through brand awareness is crucial..... I hope that happens.... So, in that front Godspeed Cgt...
firechameleon wrote
firechameleon
Also, please no exclusivity clauses... I hope that's not where cgt is headed....
arsdor wrote
C'mon, there was so many Legends, if u cut their income in a such... radical way?
Liviuflow wrote
Liviuflow
Rize your prices with 10% and you will feel no diference.
firechameleon wrote
firechameleon
in dollar term, true.... convert dollars to a customer's national currency and the difference might be significant ; depending on the exchange rate.....
jabalakastudio wrote
jabalakastudio
It's true that CG tr has the highest royalty rates even after the change and in many ways it's still the best market place. But from what I've read so far some sellers if not many will leave the platform which could be a problem. Some of us will increase their prices because as designers we also need to earn something which could decrease our sales. Let's not forget markets such as Unity Asset store which also pays 70 % royalties and unlike CG tr they refund the VAT charge back to the designer. Which means that the designers receive steady 70% every time. It is true that with CG tr we eventually will receive 80% but it will take some time to get there. However if you have EU client we lose another 21% from the royalties and if you are at the level where you get 76% in reality you'll get 56%. My only hope is that the CGtr team will use those 10 % to promote the platform and attract more buyers and not become like the other saturated marketplaces.
coolerinc wrote
coolerinc
Please lower the rate to 50$ instead of 200$
peter112 wrote
peter112
Our team is planning to engage in paid marketing activities ??? We will see what is happens. promises are made fast. we will see where the money goes they say actually...... we use the money for you designers and we don,t put it in our own pocket well time will learn
3dcreative wrote
3dcreative
lets talk about more changes than... 200$ is way too much for payment. Lets reduce it!
perspectx wrote
perspectx
While I am a little disappointed, I understand the change. A percent margin as low as 10% I thought might require adjustment. And preserving the minimum margin at 30% I think is fair to the beginning artists.
webbyeasy wrote
webbyeasy
lets see a bit more SEO done using the new margin cuts.
Urecky wrote
Urecky
Changes in interest rates no problems. Is this normal. Here everything is is normal and let the site is developed for the benefit of themselves and customers. But I fully support those who ask to reduce the initial rate royalty, minimum earnings on site to receive their money. And join their request. I remember my beginning on this site and understand a lot of beginners. Many of them simply never see their money when the start bet is $200 Their money stays in the accounts of the website. I don't think it stimulates them to creative work. Best Regards to All Urecky
nahlabakr wrote
nahlabakr
=D why don't you save your Money?!
gunslingerstudio wrote
gunslingerstudio
Compare this to istockphoto. Rates start at 20% and can go up to 50% after you become an ubergrandmaster. What are you complaining about? :-) If your sales go up, what are you complaining about? :-) If you, after trying this out for a while, realise that your sales stay the same, then you can complain, but not before.
williamgaddis wrote
I support your new rates and compared ts it us still so much better for the artist. I hope you manage to grow and that sales here are comparable to ts in the future.
besteadyjack wrote
When it comes to VAT, on several occasions they have been offset against from my sales by buyers from the EU, but I am not as a salesman in the EU in spite of my office in Spain because I find myself in a special economic zone off out of the EU economy. I trade links with the EU have the same rights as economic China or the US or any third country. Someone tell me where the problem lies, that with me scrape the money for transactions with customers in the EU. Need to raise prices, there is nothing else or get out of models elsewhere, like someone looking for professional models, it still find them in google. At least be able to buy it from me without hungrily high commission.
FUNKLE wrote
maybe Payment processing should be dropped or reduced now that royalties have
3dGirls wrote
3dGirls
"building brand awareness on the client side and expanding the buyer base, all of which will benefit modelers in the mid-to-long term." Like what? Are you serious? Pure bullshit. It will not increase my sales... that's for sure, since I publicize myself elsewhere. It will only make me earn less. I'm totally disappointed!
kilowhat wrote
kilowhat
It would be preferable to get a notice before hand. Just a warning to let us know that you are going to make changes. Not afterwards, informing people that it's done and to be happy with it. It only natural that there is an outrage and suspicion when so many other companies are disregarding their client’s viewpoints.
cgmodeler wrote
cgmodeler
Even if neccesary, please give us tools to batch control the prices of our models or at least an option to increase by percentages the overall prices of our items. So far no improvements have been made on that UI side.
pro3dart wrote
pro3dart
Today your royalties are 80% tomorrow 70% day after tomorrow 60% and so on) Eventually, the royalties will be 40-50% , but rates may be even lower)
climax wrote
climax
This will not provide more buyers because buyers will pay the full amount, this only f**ks over your members that sale on your website. I do not know how these people in the comment try to fuse this situation with a "good" outcome when there really isn't one, it makes no damn sense.
gonzalo-1992 wrote
gonzalo-1992
I can not associate my Paypal account, I'm from Argentina, why? I have 50 models to upload, I just uploaded one, I sold it and I can not charge, I'm interested in uploading and selling more models, but I do not know how to do it and I still can not associate my Paypal account.