Lower the commission 99designs takes from designers
The case is, 99Designs takes a HUGE commission from designers. For example, designers may get only $300 out of $495 fee that CH pays (in most simple case out of $295 fee the designer will get only $200). That's a 40% commission. Contest Holders should be informed about this also, at least.
GinaJoy Gadores commented
I guess lowering the commission isn't just for designer's gain, but as well as for respect. Designs are ideas, sold or not, they do them because they thought prices displayed are enough to refund the effort and thinking they do. Cutting down the expected gain into almost a half gives so much difference and such a total inequality. well, just imho.
I think that 40% of commission its too much. Suppose a designer receives a $150 of prize, -40% of the total, anything more would receive a total of $90, very low cost for the development of a design
Valih Jamal well said.There are other company's too.They do not take that much.You can't take that much amount from us.We work really hard to win a competition and after win you took 40% of our amount.its that you call a business.Lower your commission and then see the result.I am sure your company will get more response.
Dude they have 90 staff, try running a company with 90 staff in three countries and see if you think thats going ot be possible with 5% comms or something. If you run a company you know the cost to find a customer is about 50% of the order profit. Try setting up a Google adwords campaign if you don't believe me at £3-10 a click, with an 8-20% conversion rate for a lead. Then having to employ a sales guy to close those leads etc etc. It's a simple way for designers to see if they are commercially viable, build a port folio, and if they have the 'minerals' then they will see value in what they do and hopfully end up with their own design agency. I don't work for them, and have just set up out first competition. But have a lot of experience in trying to set up business with nothing. It's tough, and platforms like this, ebay, amazon let you test the water with zero start up capital or risk. I think it's fair.
Valih Jamal commented
Two years have passed and nothing is changing. People should really quit or boycott 99 for a brief time. The 40% commission is as bad as having a pimp. You a half, me a half, but you do all the job. I mean, come on. The excuse of servers and maintaining website for that high commission; you could really have a better one. Just lower it down and be grateful that those designers exist, respect them for god sake. Don't be greedy and evil, 99stuff.
its shocking, on a gold design wihch costs the holder $790 the designer gets $450 and 99 gets $340, what work do they do for this?
99designs: Every designer has a different payout based on their rating/level...would it not be possible for the website to calculate and display the actual prize that will be awarded to a designer. this information could be displayed right next to the total contest prize including your fee..
Such a shame. I recently quit 99 cause it hit me. I'm spending sooo much time to compete with all these copy-cats and to win 1 in 20-30 is insanely demotivating. Last contest was the 300$ and the CH needed logo, whole packaging design, labels, price tags, posters... etc. And I just thought to myself that my work is worth more than 300$ (especially if it doesn't pay out) and on the other hand I don't like CH investing 500$ and getting a design done for only 300$, cause as I've seen here from admins, it's an alright commission as they have to pay adsense, office and other; which is BS cause you can do all that with extremely lower commissions than these and you can be a lot transparent with your customers. I mean, it's already bad that you're giving 100% money back guarantee for work other people do. Protect the designers, for God's sake! And so I left 99, found a great design studio which i joined, so those silly 600$ I made a month on 99 are even sillier cause I have less work now and 100% bigger earnings monthly. The horrible thing is that 99designs contest I won or the designs I've got to sell here weren't even in a portfolio I've showed to a design firm I work right now. They even laughed at my extra .pdf portfolio I've sent. So, the moral of the story is: 99designs should be extra less greedy and good designers should simply lay of design contests. Kind Regards, Ilij
Everyone commenting that 35% commission is too much should start their own competing company because clearly all the designers would use this new, fantastic company.
I believe they should just be more transparent about this issue. I paid money, expecting a large portion of the money to go to the designers. If I knew about the real amount up-front, it would be much less of an issue.
Justin York commented
At least state up front how much the designer is going to get. $799 and the designer only gets $450!?!
This fee should be SPELLED OUT when creating a contest, that way the contest creator knows how motivated designers will be BASED ON THEIR CUT.
nice said Ashish!
I know you are just doing a back of the envelope calculation, but keep in mind that finding hundreds of thousands of clients and convincing them to use 99designs has some significant marketing cost. Not to mention running offices, servers, etc. The mention of "overhead" is greatly understated in your calculations.
For some time now when we get a note with the monthly payouts... I automatically do the math... I just looked at 99 designs website, it says:
$1.8 mill paid out last month
@ 35% commission that's $630,000 profit.
With 100 employees that equates to $6300.00 per employee per month or about $75,600 per year (less overhead of course)
I'm beginning to think I'm on the wrong side of this occupation...
Where can I get an application?
I agree the fees are too high. On 99designs.nl, you enter a 399 euro contest ($545!), and the winner only gets $300. It would be somewhat more fair to pay out the Dutch designer in Euro's, for example 300 USD. Lets not forget there are usually 800 logo contests running, where the majority of the contests get a winner chosen. This is booming business!
Thanks for your comments and feedback on this. I wanted to shed some light into why we take commission, and the amount of work that goes on behind the scenes to not only get you the clients and projects you deserve, but to keep things running smoothly. Our fees vary depending on which package is chosen because of the level of support we provide. For example, Platinum contests each come with their own Account Manager who assist the customer at every stage of their contest (launching the brief, helping with feedback, etc.). However, the fees also cover general support, the legal copyright agreement, the facilitation of promoting and running the contests, and not to mention other services like 1-to-1 Projects, Readymade store, etc.
We have a dedicated team of almost 100 employees all over the world (United States, Australia, Germany, Brazil, France, London, etc.), and we work around the clock to ensure we're providing the best service for both customers and designers. We know things are not perfect, but we are constantly taking your feedback to our internal teams so we can continue to improve and make your onsite experience the best possible. With this type of innovation and service, we have to make sure we can continue running efficiently to keep our platform running for you.
I'd also like to mention that we do, in fact, explain this to customers when we discuss packaging and pricing.
If anyone would like to discuss this, or any other topic, please feel free to contact me personally at email@example.com.
Shame on 99. They are like slave masters... Jeesh!!! Commission is really HIGH!
when you buy a bread are you informed about how much of the price will wheat producer get?
It's a shame no one from 99designs looked into this. More than a year and a half have passed and no answer. They still take HUGE commission and Contest holders are not being informed about it. By the look of votes this is fourth most voted suggestion and the 99 stuff have already worked and commented on those that have only around 20-30. So they're clearly sending a message there. Please contact them with this problem if you can over twitter, facebook or direct mail to them...