RE: Royalty Rates

Indie press is usually higher than that. I consider 30% of net rock bottom,
and the publisher better be proven a high seller for me to even consider
that low. I won't accept a contract less than that, personally. Ever. Most
publishers I work with give 40-60% of net...40% or 50%, most often. One of
mine gives as high as 75% of net for the bigger fish authors. Another takes
40% of net on publisher site sales (factoring in extra costs we incur on the
home site) but 50% of distribution channel sales (to make up for some of the
price we lose to the distribution channel). This isn't unheard of. 

 

Net is usually calculated as full sale price on the publisher site of the
title or the amount a distribution channel returns to you on a sale.
Examples... Amazon sells a $5.99 ebook (and takes off the 7 or so cents for
wireless from publisher end) then gives 70% of the difference, remitting
$3.70 to the publisher. The publisher has a 50% of net contract with the
author, so the author gets half of that or $1.85 for the sale. Amazon sells
the same title overseas and returns a flat 35% of the cover price to the
publisher ($2.10 or so); on a 50% contract, the author makes $1.05 on that
sale. OR... The publisher site sells the title for $5.99 and has a 50%
contract with the author, so the author gets $3 of that sale. Only one of my
publishers takes anything else off of net (the cart costs on publisher site
sales), but that publisher also gives 60% of net, so I more than make that
up, compared to a 40% contract at another publisher. 

 

You can see why authors and publishers push to make as many sales on the
publisher site as possible. You will never make as much per unit giving
distribution channels as cut as you will at the home site.

 

Brenna

 

From: [email protected]
[mailto:[email protected]] On Behalf Of Hollyridgepress
Sent: Tuesday, May 15, 2012 3:16 PM
To: [email protected]
Subject: [ebook-community] Royalty Rates

 

  

What are you using for your for e-book royalty rate?

We're being asked for 15% of list or 25% of net. (Not even sure how you
calculate net.)

If the DOJ suit prevails and the agency model goes way, what then in terms
of a "standard royalty" rate?

Richard Williams



[Non-text portions of this message have been removed]



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