I’ve increased my prices by 15% following the new payout rate change

Discussion started by creatiflux

After the drop from 80% to 70% royalties, this adjustment was necessary, even if it affects my sales. If the platform continues to reduce creator earnings, I’ll keep adjusting prices accordingly until it’s no longer viable, at which point I’ll remove my models entirely.

I encourage others to consider doing the same.

Answers

Posted about 8 hours ago
0

Let me get this straight, CGT took 15% of your sales, so you raise your price by 15% which means now CGT make 30% more from each sale you make? You not only then disrupt the market price for that item (potentially if people took your advice), the only person who makes a larger profit is CGT. This is counter intuitive from my perspective. Im no math magician but I could be wrong... Instead of taking your finger to take your hand, you offer them your other hand?

3DCargo wrote
3DCargo
Actually its more, example: if you sold a product for $100 for 80% then you get $80, cgt $20. Now when you sell at $115, you get $80.5 and cgt $34.5. You just gave them a 50% increase. I figure they probably already thought about this and would hope you do that. Told you my math isnt great but correct me if im wrong, from CGT its 20/100 = 20%, 34.5/115 = 30%. While the increase of profit appears to be 10%, the relative increase is: 30/20 = 10, 10/20 = 0.5, 0.5*100 = 50%.
creatiflux wrote
creatiflux
Yes you are correct, I am not making more profit but that is the only way to preserve my earning per sale, the point of my adjustment isn't to punish the platform. imagine you increased your price by 15% (from $100 to $115) because the platform's royalty rate dropped from 80% to 70%. This means your earnings per sale stay roughly the same, preserving your profit margin. Old scenario: At $100, you earned $80 (80% royalty), and the platform took $20. New scenario (before adjustment): At $100 with 70% royalty, you’d earn $70, and the platform takes $30—a $10 loss for you. After 15% price increase: At $115, you earn $80.50 (70% of $115), and the platform takes $34.50. Your earnings are almost the same as before ($80 vs. $80.50), while the platform's cut increases.
3DCargo wrote
3DCargo
Yes, I understand you are trying to keep your earnings the same (and you dont care about CGT's increased profit) but remember you are also inflating the market value for that item. So while that sounds good in practice that item is not worth that much in reality. So people will go to marketplace A,B,C and check for that item and buy something similar there for 15% less. So while you lose half of your potential sales, you also give money to CGT who are not doing us any favors here for your other 50%. My point is - by advising other people to do the same INSTEAD of taking your products off CGT then you give CGT the win and they can scrape what they can before the collapse. Im personally giving CGT 1 month to change their mind and if it remains the same (which it probably will) then I will not participate in this change - and leave CGT completely (in terms of selling, I might hang around for the conversation though =D ). This is the only way to show what they are doing is not the way forward, if they have less artists selling they have less income overall, and this 10-15% cash grab will be a huge loss to them - since we spoke previously its not just a 10-15% increase, its strategic move to gain as much money as possible before they have to switch gears. A good company can do that, and Im sure they are planning their next move, but you are feeding the machine in the meantime. (except with this move they probably dont care since their top 10% of artists make 90% of their money, so you are screwed regardless)
3DCargo wrote
3DCargo
We all worked hard on presentation, descriptions, tags, 3d quality, pricing/fairness (those who don't undercut obviously), we worked hard to build our skills/products/royalty, I'm not playing some numbers game because this year I'm at % and next year I'm at %, that's not why I came here. I agree with Lemonade that it should be a long term goal to get your royalty rate, but this is far from fair since we all have life changes which affect things/timelines - we are not machines that pump out products daily. I believed CGT were trying to be different, and that's why I'm still here. I take care in every product I make when I have time to complete something - I double, triple check it, I make sure its damn good, and I'm sure many others do that too. But I'm not a fool, when I see I'm being played then its time to move on, I wont have a bad night sleep after that decision. It is what is is.

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