Authors will receive a Royalty Statement towards the end of the quarter and it will reflect sales from the previous quarter. For example, in June an author will receive the Royalty Statement for sales made from January to March, and if a check is due, this will also be included. This delay is due to the fact that it can take several months for the printer to send us payment for the books sold. This also means that an authors will not receive his or her first royalty check the first quarter that his or her book is available. He or she will receive a royalty check at the end of the second quarter of the book’s publication.
A royalty check is written once the royalty reaches $10 or at the end of the year. End-of-year royalty checks are sent in March.
Royalties are based on your “net profit” from each book sold. Royalty rates vary from author to author, ranging up to 50%. Here is an example of a book that sells at a retail price of $14.95 with a 50% royalty:
If it is sold through Amazon or Barnes & Noble: The printer sells the book to the distributor/retailer at a 40% discount, reducing the profit to $8.97. The printer charges $4.00 (estimated) to print the book (print charge). Thus, the “net profit” is $4.97. The author receives 50% royalties from this net profit, which comes out to $2.49.
Authors receive up to 50% royalties of the net receipts on any eBook sold. In most cases, online retailers demand a 30% trade discount on eBooks; although, some retailers demand 50%. Authors can choose the retail price of their eBook within the range of $2.99 to $9.99.