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Mr. Gregory White
Mr. Gregory White, Teacher
Category: General
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Experience:  M.A., M.S. Education / Educational Administration
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A publishing company offers an Author Selected Royalty Percentage

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A publishing company offers an Author Selected Royalty Percentage of either 10% or 20%. I don't understand net sales and royalty $ that much. Can someone please explain what it means to have a book costing $12.50 on amazon with a net sale of $6.27, royalty percent of 20% and royalty $ of $1 to $3 ?
Hello, my name is XXXXX XXXXX I am happy to help on this question.

As with any sales, the author would not receive the total amount of the sales of their book. In this case, you would be receiving a royalty on the net sales of each of the books. Here, you are seeing a net sale of each book (the profit to Amazon from each one sold) of $6.27. They are the ones who are producing the books and selling and therefore, they are taking 80% of the net sale price of the book and providing the author with 20% of the net sales of the book.

Therefore, 20% of the $6.27 net sales of the book would be about $1.25 per book (which falls in the $1 to $3 range that you show - the minimum amount you make as an author is $1 and the maximum would be $3.. for example, if later they are selling the book at a reduced rate and only getting a net sales of $4.69 then 20% of the 4.99 would be about $.94 but the author would still receive $1 as that is the minimum in the royalty range).

I hope this helps. If you have any further questions, feel free to reply back.

All the best to you and have a wonderful New Years!

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