How Royalties Work

1️⃣ Retail Price (RRP)

This is the price your book is listed for sale.

You choose this price (with guidance if needed).

Example:
Your book is listed at $20.00

2️⃣ Wholesale / Distribution Discount

Retailers and bookstores do not buy books at full retail price.
They purchase at a discount.

Common discount ranges:

• 25% (minimum distribution level)

• 40%–55% (standard bookstore level)

If your book has a 40% discount:

$20.00 × 40% = $8.00 goes to the retailer

3️⃣ Print Cost

Every printed book has a manufacturing cost based on:

• Trim size

• Page count

• Black & White or Colour interior

• Paper type

• Binding

Example print cost: $4.50

📌 Example Royalty Calculation

Retail Price: $20.00
Wholesale Discount (40%): -$8.00
Print Cost: -$4.50

Your Royalty = Retail Price – Wholesale Discount – Print Cost 

Your Royalty = $7.50 per copy sold

📈 How Discount Affects Your Royalty

Higher discount = Lower royalty per copy
Lower discount = Higher royalty per copy

However:

Higher discounts may improve bookstore acceptance.

This is a balance decision you make.

🛒 What About Amazon Price Changes?

Retailers may choose to sell your book at a lower promotional price.

Your royalty is based on:

• The official retail price

• The agreed distribution structure

Not on retailer promotions.

📦 Do Author Copies Generate Royalties?

No.

Author copies are purchased at print cost plus shipping and do not generate royalties.

💳 When Are Royalties Paid?

Royalties are:

• Reported based on distributor data

• Paid according to your Royalty Policy schedule

• Issued once minimum payment thresholds are reached

For full payment terms, see “Royalties & Compensation” 

🎯 Important to Remember

Royalty earnings depend on:

• Your retail price

• Your selected distribution discount

• Your book’s print cost

• Actual sales volume

There are no guaranteed sales — only transparent math.