Yes, there are people making a living selling WP themes. I sold over $200k in licenses to a plugin/theme combo in 18 months a few years back before selling rights to the product on Flippa. That paid off the last of my student loans, a new car, and was the downpayment on a house.
Didn't you used to post on the SitePoint forums a few years ago? I remember someone showing off a review plugin for WordPress on there. Was that you by any chance?
There sure are people making enough money to live of selling themes and templates. I myself created a couple of WP themes almost two years ago and can still live from the revenue. I am however enrolled in university so my costs are significantly lower than they would be as a regular freelancer. The costs of living are always relative as to where you are in your life, your lifestyle and of course where you live. Someone living in a country where the dollar is much stronger than the local currency has a big advantage. What is also often forgotten about are taxes and insurance. You always have to have a little something saved up if a problem should arise.
If you have a solid code base, a few creative ideas and good graphic skills you can still make quite a bit of money. Of course it is always important to find a niche in the market that is not as over-saturated as others. But that basically applies to any other business.
No, I am selling through a very well known marketplace which will get a cut for each sale. In my opinion it is much easier to start with due to the high reach of potential customers you will get. As soon as you built a customer base you could probably consider selling the themes on your own site.
Well, it's Themeforest. I agree that their rejection reasons often seem generic and somewhat random but with the amount of submissions they receive it is understandable. As I said, if the quality is right and you somehow stand out from the crowd chances are pretty high it'll get accepted.
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If you have a solid code base, a few creative ideas and good graphic skills you can still make quite a bit of money. Of course it is always important to find a niche in the market that is not as over-saturated as others. But that basically applies to any other business.