How much royalties will I receive? - Powered by Kayako SupportSuite Help Desk Software

01 Aug 2010

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	How much royalties will I receive?

Solution So you're ready to talk dollars and cents (and sense). Since we opened our doors (er, web site) in March 2000, we have always offered 50% of net receipts.

Some folks are confused by this and would rather us say something like 30% of the retail price. But then this paints you into a corner, since it will raise the retail price (to cover the discounts given to bookstores and distributors). And the additional price of hardcovers can make the retail price almost out of reach to consumers.

So let's take a look at some of the other POD publishers. The highest-paying competitor says they give 35% of retail for books sold through their site and 15% of retail when sold through external channels. This means for a 120-page book that retails for $12.95, you will receive approximately $4.53. When that same book is sold through a distributor or to a bookstore, you receive $1.94.

Using our royalty and pricing models, you would receive approximately $5.07 for the same 120-page book example sold through our site (some authors are receiving 40% of retail on books sold through our site using our system) and approximately $3.18 for books sold through outside sources with a 30% discount (the competitor used for the example offers distributors and bookstores a flat 25% discount). Now that's a big difference!

Here's what "net receipts" boils down to:

RETAIL PRICE - DISCOUNTS - PRINTING = NET RECEIPTS.

Then we divide that number in half to find your "take."

As you see, our 50% of net receipts may sound confusing at first, but definitely leads to more money in your pocket!

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29 Sep 2007 02:28 AM