What is net receipts? Many publishers assume that this royalty contract term refers to the cash they receive from the sale. Some assume that it refers to cash receipts after the deduction of sales commissions.
Such ambiguity can lead to a legal conflict with the author or their agent.
A good royalty contract defines what net receipts is. It tells you whether it is invoiced price (also known as gross receipts) or the invoiced price less sales commissions.
