Archives for February 2009

Royalties Payable Management

Not monitoring your royalties payable can place a publisher in a cash flow predicament when it comes time to pay royalties.

When I as the CFO of Brunner/Mazel Inc. (a professional of medical texts) I set up an interest earning bank account for royalties payable. Each month we would deposit the amount required to cover the prior month’s royalty expense.  In March when it was time to pay royalties for the prior year  the money was available, and the authors were paid on-time. In fact, we paid the authors early.

Romance Book Royalty Rates

A survey of the royalty rates and earn-outs of 40+ romance publisher imprints [Read more…]

Royalty Software Selection Part 1

How do you select the right royalty software for your business? This guide will walk you through the process of selecting the right software for your business. [Read more…]

Llyod Jassin on Electronic Publishing Rights

Attorney Lloyd J. Jassin summarizes the contractual issues that publishers need to consider when writing a royalty contract. You can read the article; “Electronic Publishing Rights,”reprinted from Managing Publishing Rights, at

Why You Should Save Contracts as PDFs

Scanning a royalty contract to a PDF file can save everyone a lot of grief. The contracts will not be lost, misplaced or stained by a split cup of coffee or soda. [Read more…]

Royalty Management Best Practices

The royalty management best practices for users of EasyRoyalties are summarized below. [Read more…]

Quickbooks Sales Imports 01

Do you want to import Quickbooks sales information into EasyRoyalties? Its easy. To do this you will need to export a Sales by Item Detail report to Excel. In Excel we sort the report by the date column and delete [Read more…]

Walden Media Co-publishing Agreement

Publishers Weekly reported: “Walden Media inked a five year deal with HarperCollins that gives each a “first look” or “first crack” at fresh material, says Flaherty (publisher of Walden Pond Press and executive v-p of Walden Media.). [Read more…]

Royalty Base Options

Easy Royalties allows royalties to be calculated on one of five base figures (in additon to a flat rate per book sold);

  1. Retail (list price of the book)
  2. Gross (also known as net receipts before withholdings).
  3. Receipts (after withholdings)
  4. Margin (after with-holdings and production costs)
  5. Net (after withholdings, production costs and overhead)

The most common methods are Retail; usually used for trade books, and Receipts, also known in the industry as Net Receipts.

Lets use as an example a $20.00 trade paperback, with a unit cost of $4.00 that is sold at an average discount of 50% in foreign markets via an overseas distributor who charge a 30% distribution fee and assume that the royalty rate is a flat 10%. The company’s marketing expense is about 10% of sales.

Retail: $20.00 list = $20.00

Gross: $20.00 list x 50% discount = $10.00

Receipts:  Gross of $10.00 less distributor’s withholding of 30% = $7.00

Margin: Receipts of $7.00 less unit cost of $4.00 = $3.00

Net (Net Profit): Margin of $3.00 less the overhead  charge of $1.00 (10% x $10 in gross sales) = $2.00

Backup Plan

While large companies religiously backup their data files every night, many small publishers don’t.

Backing up your royalty software data files is critical. Hard drives go bad, computers get infected by viruses that wipe data, power surges can fry electronic equipment, and broken water pipes can flood your office.  [Read more…]