Royalty FAQs

Royalty FAQs

Can you explain the royalty process?
 
We pay profits, not royalties, just so we’re all on the same page. Royalties are typically a percentage of the profit or net. We don’t operate that way, instead we take out the cost to print the book to fill the order, any appropriate handling charge and send you the rest.
 
Sales made through an online reseller like Amazon, CBD, or through a distributor to a bookstore are handled like this:
 
Retail Price
Less 55% standard distributor discount
Less author cost per copy
Equals Profit
 
Examples below using price for a 200 page book, and suggesting the retail price of 14.95
 

Example: Print Sale Thru Amazon or Ingram Distributors
         
Retail Price  $     14.95    
         
Less Wholesale Discount of 55%    $       6.73    
         
Minus Author Cost  $       4.29    
         
Equals Author Profit  $       2.44    

 
 
Sales made through the Redemption Press bookstore are handled like this:
 
Retail Price (or lower price as determined by author)
Less $2.50 handling charge or 10% whichever is more
Less author cost per copy
Equals Profit
 

 
Example: Print Sale thru
RP Bookstore  
       
Retail Price  $    14.95    
       
Less Handling Fee  $       2.50    
       
Minus Author Cost  $       4.29    
       
Equals Author Profit  $       8.16    
       
             

 
Sales made of an eBook through Amazon or other reseller are handled like this:
 

eBook Sale Thru Amazon or Ingram Distributors
         
Retail Price  $       9.99    
         
Less Wholesale Discount of 30%    $       3.00    
         
Net Revenue  $       6.99    
         
90% Equals Author Profit  $       6.29    

 
 
Sales made of an eBook through the Redemption Press bookstore are handled like this:
 
 

eBook Sale thru RP Bookstore    
       
Retail Price  $       9.99    
       
Less Handling Fee  $       1.25    
       
       
       
Equals Author Profit  $       8.74    
             

 
 
Why does it take so long to receive my royalties?
 
Unfortunately, Ingram Distributors make sure the discounts, terms, and every other aspect of the sales process is good for THEM first. That means they operate on 150 day terms. That means, when they fill an order for your book, they receive payment immediately, but they don’t pay us for FIVE months! That’s just the way they do. J So that means, until they pay us, we can’t pay you.
 
Is the $2.50 handling fee on the Redemption Press bookstore on the website charged to the author or the customer?
 
This fee is taken out of the profits before the final payment goes to the author, so the author pays for that service. The customer pays for the shipping, but not the handling fee. The handling fee covers the time, administration and merchant fees we pay to take the credit card and process the order. If the order is for multiple copies and exceeds $25, then the handling fee switches to 10%.
 
 
Why does Amazon or a brick and mortar bookstore get a discount on my book?  How much is the wholesale price of my book?
 
All resellers, whether online or brick and mortar stores buy your book at a discount and turn around and sell it for the retail price, and sometimes less. In order for a bookstore of any kind to make a profit and cover their overhead, they buy at wholesale and sell at retail.
 
Distributors come into the mix since most bookstores would rather buy from a distributor who represents hundreds of publishers and titles, rather than going direct to publishers or authors. It just makes sense and is more efficient to work with a distributor. Most distributors take a 55% discount and then turn around and sell to the bookstore for a 40% discount.
 
So, for the most part, the wholesale price of your book is the Retail Price you set less 55%. If your book is $10.00 the wholesale price is $4.50. If your book is set at a $15 retail price, the wholesale price is $6.75. Remember, the cost to print the book that has been ordered must come off of the wholesale price and the rest goes to you.
  
I want a list of everyone who has purchased my book.  Where do I get that information?
 
Ingram and Spring Arbor Distributors, as well as Christian Book Distributors and our eBook distribution company, do not provide us with the customer’s name, so anyone who buys from Amazon, Barnes&Noble, CBD, or any other bookstore or reseller through a distributor will not be tracked and provided. We would love to have that information as well, but it is just not available to us. We can certainly provide the information from any orders that are processed through our online store, but those are all we have to provide.
 
The profits payment schedule is as follows-
 
Book sales for January through March (1st Quarter) are paid in late August
Book sales for April through June (2nd Quarter) are paid in late November
Book sales for July through September (3rd Quarter) are paid in late February
Book sales for October through December (4th Quarter) are paid in late May
 
If your total is not over $5.00 it is held until the next pay period and sent then.
 
 
Why does Amazon discount my book? How does that affect my earnings?
 
Unfortunately when you get as big as Amazon is, you get to call the shots. They choose to offer discounts without consulting the publishers or authors of those books. However, the discount they offer does not affect the price they are paying for the book. They standardly receive the wholesale discount of 55%, so any discount they offer on their end comes out of their profits when the sale is made.
 
How do returns affect my earnings?
 
First let me say that if your book is not marked “returnable” then bookstores will not purchase it. That’s just the way it works. So if you want your book to be available to the trade, you must allow us to mark it returnable and handle it appropriately.
 
If your book is returned, there are 2 options we have available from the distributor to handle the return. The book can either be shipped to the publisher and then returned to the author at their cost plus shipping, or it can be destroyed instead, reducing added cost to the author.
 
In an attempt to keep the return liability as low as possible here’s how we handle it:
 
When a book is returned, the distributor reclaims the profits paid out and the printing cost and deducts it from their monthly payment to us, which we then deduct from your next distribution of profits.
 
Unlike other companies, at this point, we do not charge $800 to $1000 for the privilege of having your book returnable and all the administration that goes into tracking and handling returns. This seems to be the best option for the author, considering our return rate is extremely low.