Bad move by turbosquid

If you are selling 3d content online, you are already aware of the fact that turbosquid will be lowering the royalty rate to 40%. The only way to keep your royalty rate above 50% is to sell exclusively through them.
But it doesn’t end here; they came up with a scheme that classifies sellers by the total life time sales.

It goes like this:
0-150 usd –           clear level –         50% royalty
150-500 usd –       bronze level –     51% royalty
500-1500 usd –     silver level –       52% royalty
1500-3000 usd –   gold level –         54% royalty
3000-6000 usd –   emerald level –   56% royalty
6000-10000 usd – ruby level –         58% royalty
10000+ usd –        diamond level –  60% royalty

In my opinion, by trying to force their sellers to become exclusive, turbosquid intended to drive their competition out of business. If they were a little less greedy, they could have had a real chance to succeed.

It is well known that they have the largest market share; therefore people are selling more through them than trough other sites. If they offered a 75% royalty for the exclusivity I am absolutely sure that all their competition would be in real trouble.

In the current situation however, some sellers (including top sellers) are packing their bags, while many others are raising their prices and in the meantime look for other alternatives to sell their stuff. Also, new comers who are clearly disadvantaged by the new classification will most probably go somewhere else.

What are the alternatives?

1)    The3dstudio.com
2)    Fallingpixel.com
3)    3d02.com
4)    3dexport.com
5)    exchange3d.com
6)    Flatpyramid.com
7)    The123d.com
8)    Altairmodels.com
9)    Presto3d.com
10)  Digitalelements.be
11)  The-Blueprints.com

Some of these are too small or too new, but a few of them combined can make more sales than turbosquid alone.

I think that on the long run, buyers will also start looking for new places to shop around and turbosquid will become less and less popular. Already, judging by the alexa rank (a traffic indicator), The3dstudio is dangerously getting close to them.

In conclusion, I strongly believe that turbosquid’s intent to drive their competition out of business will do them a lot more harm that they could have expected.
I’m curious to see how thing will go until the 1st of September when the royalties of non-exclusive members will be dropped to 40%.

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7 Comments
  1. SpectreLad says:

    Why didn’t you make all the other sites live links?

  2. I was just too lazy :)
    But thanks for pointing it out… they are all live links now.

  3. CGUpload says:

    There is a strong alternative. Use CGPublisher to publish all your products in many marketplaces at the same time!

    http://www.cgupload.com

  4. Ann says:

    Well, I can recommend to upload 3D models to http://www.cgtrader.com, it has different approach than those marketplaces, which take comissions, it’s worth to try!

  5. wolf says:

    also big fan of http://www.cgtrader.com

    completely new concept how to manage royalties…fair to the seller.

    I do hope this idea how to handle royalties will bring some fresh air into the stockmarket.
    I am selling there since their beginning and can only encourage everybody to check them out…their publisher is great, the support is really fast and it is a fast growing catalogue.

  6. Stevespeeder says:

    It’s been about three years from your bad prediction and i see Turbosquid only getting bigger and bigger after that move.
    Top sellers are still there, selling stuff..

  7. I admit I was wrong… TS has invested a lot not only in developing their website but in the entire industry overall.

    On the other hand Matt Anderson after having sold his business to 3D Systems simply lost interest or could not be able to keep the pace.

    At that point my opinion was based on how sales were going on the3dstudio compared to TS. Nowadays things are totally different.

    I know many sellers who left TS back than but came back after sales sunk on T3DS. The ones who were smart enough not to sign the MLP program left T3DS for good and went exclusive with Turbosquid.

    Things are going from bad to worse on The3Dstudio.com
    http://www.cgdigest.com/the-3d-studio-com-nightmare/

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