PB383 Lecture Notes - Lecture 2: List Price
10 Mar 2020
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Document Summary
Two systems to calculate royalties- one old and traditional and now rapidly going out of use; the other new and rapidly becoming nearly universal. System one: royalty based on the list price. Publishers, agents, and authors say royalties based on the list . System two: royalty based on net receipts per copy (or net revenue per copy) Publishers, agents, and authors say royalties based on the net . Royalty rates used today developed over a period of about 100 years. There are industry standards or patterns, but no rules. Paid twice yearly, reflecting accounting for two periods of six months. A royalty record or projection may take into account the longevity of the book, possibly many years. With popular trade books, there may be a royalty spike shortly after publication, then a leveling off. With consistently selling textbooks or reference books or older children"s books, royalty costs/earnings may be fairly steady, for a long time.
