How do royalties work for POD?

Jeff Montgomery -

When you set up a print option for one of your titles, you are shown the current cost to print a single copy of the title. You are then asked to set the margin you want for that title. For example, the print cost on a title might be $4.49, and then you choose to set the margin at $10.50, thereby making the consumer price for that printed title $4.49 + $10.50 = $14.99.

When a printed copy sells, the print cost is removed from the purchase price, and we split the margin with you, per our usual royalty agreement (i.e., using the same royalty percentage you get on download sales, depending on whether you are an exclusive or non-exclusive partner).

Thus, continuing the above example—with a margin of $10.50, and assuming your royalty percentage is 70% as an exclusive publishing partner—you would receive 0.70 x $10.58 = $7.35. This royalty amount is credited to your publisher royalty account in real time, just as when a customer purchases one of your download products.

In order to service customers as inexpensively as possible, we print titles in both the US and the UK, whichever offers better freight terms to the customer. Print costs in the US and UK are different, however, so a different print cost is deducted from different orders for your same printed title depending on where it was printed.

When you set the price of your title, we show you only the higher of the US or UK print cost so you know the worst-case scenario for your margin per sale.

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