eBook First Royalty Rates

Royalty rates for book publishers are changing. Recently we had the opportunity to hear two romance book publishers discuss their royalty policies.

Both publishers are paying royalties of 30% of list on direct eBook sales and 15% of list on indirect royalty rates. That means that if a customer purchases the eBook from Amazon the author recieves 15% of list, and if the order comes from the publishers own web-site the royalty is 30%.

Futhermore these publishers pay royalties monthly; as their are no returns on eBooks. The authors really appreciate this, as both publishers do not pay advances.

These publishers also offer time limited contracts, i.e. the contract is for a set period – say 5 or 7 years. After this period the author has the right to take his book elsewhere. One publisher has a clause that allows this at the end of the period if sales are less than a specified number of copies a year.

 The other publisher does not place a limit on this, feeling that if an author is not happy he should have the right to change publishers.