50% Commission Rate for New Shops

It would be wonderful if we could organize some kind of mass strike, I dunno, temporarily removing all of our items from our shops for a day or a week so that they would make no money, but in order to get that going even those shops still making good profits would have to also support the effort, and many people can’t stop their revenue stream without reassurance they will be ok in the long run. I absolutely agree the platform exists because of us, but how do we get other designers on board?

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We can’t know until we try. I mean complaining is obviously not enough, since no one listens to our complaints.

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Hey all! Wanted to address the commission rate change as it’s being discussed here. We appreciate your questions on this, and as always, I’m more than happy to provide clarity and context.

To clarify, our current commission rates are:
Commission rate for existing Shop Owners: 60%
Commission rate for Shop Owners who opened a shop on or after November 5th, 2021: 50%

2021 was a busy, productive, and prosperous year for Creative Market and our shops. Both total sales and shop payouts grew again year on year. Over the course of 2021, we scaled up resources to support an influx of new shops and increase our marketing efforts. In fact, we more than doubled the amount of paid traffic (and our spend) we sent to Creative Market — and the modified commission rate for new shops allows us to continue to make these investments.

Also wanted to note that in the coming days you’ll receive an update which will go into greater detail about our efforts and focus in 2021, and we’ll fill you in on what we’re rolling out for shops in 2022

Looking forward to sharing what we have in store this year :tada:

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How is it fair to have two different commission rates? Shouldn’t all shops be treated equally?

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yeah. all back to 70% :wink:

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Gosh, that really seems unfair, we are working so hard to get these products out!
Maybe it should be by price like tax, the lower the price of the product the less they take from you and then it gets higher, the higher the cost of the product?
For example any product lower than $10 they only take a 20% commission.

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@illus.trate - I agree 50% is a lot, I just know of other marketplaces that do it. My point was that if a marketplace is at least attempting to equally promote sellers across the board, then that helps take the edge off…and helps to bring in more sales for everyone. By focusing on the same sellers over and over, that’s not treating everyone equally.

Your idea seems like a good one actually, not sure why they haven’t implemented that before.

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All things considered, for a company to take HALF of every sale you make, on a product YOU created, YOU tested, and that you’re required to provide customer service for, is absolutely egregious. At this point, CM only provides a platform on which to list items. I no longer receive any type of promotion. I can no longer list all my items ($5 fonts not allowed). Complaints fall on deaf ears. Heck, I haven’t even seen a newsletter in over a year. Do they even still do that? The problem is that shop owners have been far too accommodating to all the changes.

I have yet to speak with anyone who has experienced a financial benefit from the increased commissions. If shop owners are making more money NOW, by only keeping 60% rather than the previous 70% commission, then I’d like to hear from you. I can’t speak for everyone, but I can tell you the commission change (along with the licensing and promotional changes) have been personally devastating on my end.

Is anyone making more money now than they did in 2017, 18, 19, 20, 21? Seriously curious as to how much this has “helped” shop owners?

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I can say that the finances of my shop decreased significantly and what’s even worse: there’s nothing I can change about it. I create new products and try different things but still, it’s only getting worse and worse every next month.

I also see the “trend” that kills most of the one-person shop owners: there are shops that hire additional underpaid help and sell their templates waaay lower than the niche standards. Obviously, it’s getting them on the first pages and CM promoting these shops in like every single newsletter.

I don’t know why such thing still exists and CM does nothing about it, since this underbidding is a way to nowhere. CM cares about money only, and we, as one-person shops, just small details and nobody cares about our comfort.

I think CM is pretty sure that if we do not agree with their rules, there are other shops that will be okay with that, but it’s so sad to see how such a successful platform becoming so obsessed with yourself and not with its own creators (aka money makers for them).

Without being unfounded, there’s only one change for the last 2 years that had a positive effect on shop owners: automating discounts but, again, they didn’t let us decide when to do discounts.

So yeah, I’m disappointed with what this marketplace is becoming.

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As a reminder, Creative Market launched in 2012 to give creatives a better option than other marketplaces that were charging 50% or more. 50% in today’s market is not reasonable and not fair to the creator. Creative Market is not providing 50% of the value for the products that you create. I don’t think anyone could argue that they are.

Once again I urge people to look into Web 3.0 and the changes it is brining. Get involved. Be informed. Here is a list of the fees various Web 3.0 marketplaces charge. Yes, it’s still very very early. But yes, there is very real opportunity.

LookRare - 2% (and 100% of this goes back into their coin that you can buy to have partial ownership of the marketplace’s profits. You also get coins every time you buy or sell.)
OpenSea - 2.5% (two point five)
Rarible - 2.5%
Mintable - 5%
Foundation - 15%
Makersplace - 15%
SuperRare - 15%
Nifty Gateway - 20% (this is a full white glove service, they handle EVERYTHING and do limited drops bringing massive attention)

Oh, btw, if your work is re-sold on secondary you can receive royalties on that IN PERPETUITY. Yes, real sustainable income if your work is desirable and actively traded.

Or… 50% to Creative Market. Hmmm. Hmmm. I know where I’m spending my time. :slight_smile: I got into this space and worked at Creative Market for 3 years because I believed in Creative Market’s mission of helping independent creators succeed. That’s no longer the case in my eyes. Super sad.

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When I joined CM, the commission rate had just gone down from 70-60%, so I never got to experience the 70% commission to compare. My sales have remained steady throughout my entire year and a half here, so I cannot complain and CM remains a viable source of income for me, with potential for growth.

However, its discouraging and disheartening to know that a further commission decrease is coming. No one wants to get paid 10% less for their work. What’s next, 40%? How much lower can it go?

It seems too unfair to keep old shops at the 60% indefinitely, so it does seem as though we will all receive 50% soon. The lack of transparency is probably due to it not being a pleasant announcement to make, and one that will probably upset shop owners.

As costs do rise, its understandable that fees rise. Payment processors raise their fees over time, we raise OUR prices over time. That’s just the way it is. That being said, a 10% profit share cut is steep, and an explanation of it is owed to all shop owners BEFORE they find out like this, on a forum, so they can take that information, and factor it into their business plans when deciding where to put their efforts and time. Honesty and transparency are so important. Changes happen, things happen, CM has to make its business decisions, and so do we.

You cannot even find when opening a shop, or looking at the service terms, what your commission rate will be. It simply isn’t there. It just says commission varies by store. Its the lack of transparency that is troubling. Hoping this feedback is taken into account.

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I don’t think NFTs or pushing NTFs is an adequate solution for the vast percentage of us.

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Matt, can you message me privately and explain these sites to me like I’m five? :joy: I’m interested. I just have no idea how to get started. :grin:

Thanks friend!
Callie

Evidence that CM used to care about making sure we were adequately compensated. Screenshot from Wayback Machine on August 6, 2013. Now the percentage we keep is totally missing from the Sell with us page. Probably so they can keep skimming the number and taking more and more. I wonder how much more CM can take from the proletariat shop owners before we all rebel? It certainly doesn’t feel like “Power to the Creators” anymore around here.

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Hey there!

I actually didn’t mention NFTs, although that given the marketplaces I mentioned are NFT marketplaces it’s totally understandable.

I’m talking about Web 3.0. You can build much more decentralized systems where the money flows to both buyers and sellers. It doesn’t make sense to make design resources an NFT, although you could create one to track licensing which is interesting. Deploy it on MATIC or Arbitrum for basically free while having next to no environmental impact. Anyways! BACK ON TOPIC!

When a company comes in and takes half the money off the top instantly, that means that the shop owner makes dramatically less than they could or should. It also makes that shop owner less likely to support other shops, as they’re going to have to work much harder to pay their own bills now. There is definitely a community of shops here who love to support other shops. Part of what makes this market beautiful. It’s also why it’s (IMO) better for Creative Market to give a bigger cut to shops so that money can then go back into the ecosystem producing more sales, and making it possible for more shops to maintain a living wage. Then they can make cool things full-time. Amazing. Creative Market could actively incentivize this sort of behavior if they wanted to by giving shops large discounts on the prices of other shop’s products, by simply lowering the cut they (Creative Market) take. It’s still a win win for the ecosystem.

Web 3.0 is natively built to foster this sort of behavior. There is no need for a company to swoop in and take a huge cut. The community (both users and people who build out the marketplace itself) are actively incentivized to participate. Using Looks Rare from my previous post as an example, every time you buy or sell on that marketplace you’re rewarded with a coin that has real value. That coin also gives you a fractional percentage of the profits that Looks Rare makes, so sitting on it and doing nothing is sort of like having a stock with dividends. The better the market does, the better you do. I’ll just say that thus far these rewards have been SIGNIFICANT. It’s a very very new marketplace so time will tell how things play out.

People who build out the marketplace are given grants to do that work and are rewarded in essentially the same way. They just typically get much bigger rewards as their efforts are also much greater. Tons of examples of this happening, it’s the foundation of Web 3.0. If you build, if you participate, you are rewarded.

In the case of design resources, the resource itself would be held on a centralized server like AWS and served in just the same way as a Web 2.0 company would. The difference is it’s well beyond possible to make all of this happen with just a 5 to 10% cut taken from the sales price to keep the ecosystem funded. Things would obviously have to scale, but this isn’t a stretch based on examples in the space.

I could write out a full business plan on this if I really felt like it, and I feel confident I could get this built out. Regardless if anyone wants to participate in an ecosystem like this, having successful marketplaces following these patterns will force web 2.0 companies to be competitive or die. That’s just the way things work. I’m deeply passionate about helping creatives live lives that bring them joy and brings others the same. People have been asking for improvements for several years now and it’s just not happening here. Some AMAZING people continue to work at Creative Market who deeply love what they do and love supporting creatives, but at the end of the day, these business decisions are over their head.

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Thank you for taking the time to reply. I was thinking strictly NFTs based on the sites you mentioned, sorry for the misunderstanding.

My personal thoughts and feelings on crypto and NTFs, I’ll just keep those to myself as they’re overall negative, and off topic for this forum post. That being said, I would like to see blockchain tech put to use in a way that protects digital good from being stolen, and reinforces copyrights for artists, for example.

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Hey @mattborchert, I am just starting on OpenSea with some collections (Artworks). I would like you to take a look at them and if you got the time, give me your honest opinion. Message me and I’ll send you the link.

@mattborchert Thanks a lot for all the info you’ve provided in this thread - very useful!

I’ve been thinking about joining the NFT space for the last year or so (selling things) but never managed to gather the motivation to get started, and every time I kept thinking that it was too late anyways and that the main hype had passed. But maybe it’s still time! I think we definitely need to consider alternatives to selling digital products if traffic and revenue continue to decline, and it’s always a good thing to have several revenue streams anyways.

Do you think it’s still possible for someone who doesn’t have an audience, a portfolio, or a social media presence to get sales? I don’t have any of these so I’d be starting from scratch.

I enjoy creating everydays-style 3D renders for fun but lately I’ve seen a lof of NFT collections like the Bored Apes (the ones that are auto-generated from a certain set of attributes - not sure what the correct term is).
Do you think individual artworks/small series of images could still work?

The other option would be to buy, collect, and trade NFT’s, but I haven’t done that yet.

I’m going to do more research on Web 3.0 as well, sounds interesting!

I would say you’re still several years early in regards to mass adoption. We’re actively leaving the innovation stage and moving into the early adopter stage right now with Adidas and Nike moving in with big projects / acquisitions. 1 of 1 works do amazingly well and are some of the most valuable items, BUT, it’s CRITICAL that you’re active in the community. Web 3 rewards people who are active, participate, and support those around them. Might sound silly, but it’s very very true. I spent a significant amount of money last year making buys from people I liked and that I thought were contributing value. The ecosystem at large also does this (obviously not everyone), which is why it’s so thriving even with under a million active people in it.

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Three things stand out from that image you posted:

  1. 70% of each sale - gone
  2. Set your own prices - gone
  3. No product review process - CM implemented a product review process, it didn´t work out

I believe Creative Market should get back to what made it appealing and great for a lot of designers and artists. Perhaps, reflect on what worked back in those days, update it and bring it back again.

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