- A royalty is the author's share of each sale.
- It is a percentage of either net receipts or list price.
- Rates vary by format (ebook, print, audio) and channel.
- Self-publishing pays much higher royalty percentages than traditional.
- Royalties are paid on a schedule, often after an advance earns out.
A royalty is the portion of a book's sales paid to the author, expressed as a percentage of either net receipts (what the publisher actually collects) or list price. Rates differ by format and channel — traditional print royalties are often around 10-15% of list, while self-published ebooks can pay up to 70% of price. In traditional deals, royalties are paid only after the advance earns out, on a set statement schedule.
Chapter i·Why it matters
Royalties are how authors earn from sales, and the details determine real income: a "15% royalty" on net is very different from 15% of list, and self-publishing's higher percentages explain why many authors choose it. Understanding what a royalty is, how the base is defined, and how rates vary by format and channel is foundational to reading a contract or a royalty statement and to comparing publishing paths.
Chapter ii·What to include
- The author's percentage share of sales.
- The base: net receipts vs list price.
- Rate variation by format and channel.
- The contrast between traditional and self-publishing rates.
- The payment schedule and earn-out relationship.
- How the rate is defined in the contract.
Chapter iii·Example
A traditionally published author earns 10% of list on hardcover and 25% of net on ebook, paid twice a year after her advance earns out. A self-publishing peer earns 70% of her ebook's price per sale. Same word "royalty," very different economics — driven by the percentage, the base, and the path.
Chapter iv·Related questions
WriteLoom keeps your royalty rates and sales together, so you always know what each book is earning.
See WriteLoom