How do I structure a fair small-press royalty split?
- Splits should reflect who funds production and does the work.
- Define clearly whether royalties are on net receipts or list price.
- Format and channel often carry different rates.
- Transparency and clear accounting matter as much as the percentage.
- Terms vary widely; a contract and professional review are essential.
Structure a royalty split around contribution: a press that funds editing, design, and marketing typically takes a larger share than one offering only distribution. Define the base explicitly — royalties on net receipts versus list price change the real payout substantially — and set rates per format and channel. Above all, put every term in writing with clear, regular accounting. Specific percentages vary across the industry, so treat this as general guidance and have any contract reviewed professionally.
Chapter i·Why it matters
Royalty disputes are among the most common and relationship-damaging conflicts between presses and authors, and almost all of them trace to vague or unwritten terms — especially confusion over net versus list. A split that clearly reflects who contributed what, defined precisely and accounted for transparently, prevents those disputes. Because the numbers and norms vary and the stakes are financial and legal, the actual agreement belongs in a reviewed contract, not a handshake.
Chapter ii·What to include
- A split that reflects funding and labor contributed.
- A clear base: net receipts vs list price.
- Rates defined per format and sales channel.
- Transparent, scheduled royalty accounting.
- Every term captured in a written contract.
- Professional review of the agreement.
Chapter iii·Example
A small press funding full production offers an author a higher house share on net receipts, with a better rate on direct sales than on retail, and a different rate for audio. They write it all into the contract, specify quarterly statements, and have a lawyer review it. Because net-vs-list and per-channel rates are spelled out, there is nothing left to dispute later.
Chapter iv·Related questions
WriteLoom keeps each author's terms and sales in one place, so royalty accounting matches the split you agreed to.
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