|
|
       |
  |
|
Royalties |
|
|
There are several questions that are frequently asked about royalties. Here are the essentials. Royalties are based on paid sales. For every dollar that McFarland takes in, an author gets the royalty percentage specified in the contract. For example, if the contract calls for a 10 percent royalty and a book sells for $35, the author receives $3.50. Some copies are sold at a discount, however, and the author's royalty is based on the actual selling price. For example, a bookseller may order the same $35 book at a wholesale discount of 20%, and may also be entitled to order on an open account with payment terms of 30 days. Although McFarland may ship the book on December 15, it won't become a paid sale until the bookseller pays off the $28 invoice on January 15. A 10% author's royalty in this case would be $2.80. The regular royalty period runs from January 1 to December 31. Accounting work is usually completed a few weeks after the end of the period, and statements and checks mail in February. In recent years, McFarland has on its own initiative calculated royalties also at the midyear. In those instances, the midyear royalty statements and checks are based on the period running from January 1 to June 30. Again, accounting work is usually completed a few weeks later, and those statements and checks have been mailed in August. Questions about royalties can be directed to: Lois Grubb |
|