E-book Royalty Math

The Authors Guild website has an interesting article about royalty math.

The mathematical analysis in this article highlights that fact that publishers earn more money selling e-books than print books.

“The Help,” by Kathryn Stockett
Author’s Standard Royalty: $3.75 hardcover; $2.28 e-book.
Author’s E-Loss = -39%
Publisher’s Margin: $4.75 hardcover; $6.32 e-book.
Publisher’s E-Gain = +33%

Read the full article to learn how the the publisher’s gain was calculated.

Read the royalty math article