Royalty Software thats Affordable
Every product in our royalty software requires a product code. Book publishers call this code an ISBN (International Standard Book Number).
Book publishers can configure the royalty software to accept only valid ISBN’s. This is done from the Options, settings & lists > Personal options > General tab.
Select Validate ISBN numbers on data entry to accept only valid ISBNs. Leave this box unchecked to turn validation off.
Many publishers exclude foreign sales from the royalty rate escalator quantity.
This means that if a book sold 5,000 copies in the USA and 20,000 copies overseas the royalty rate would be based on the domestic sales of 5,000, not the 25,000 copies sold worldwide.
Why? A book that sells for $24 in the USA might sell for only $4 in India. The publisher often engages a distributor to market the title in foreign markets. The distributor will ask for a discount of 55% or more off the list price and expect the publisher to pay the shipping expense.
EasyRoyalties software can exclude foreign sales from the royalty rate escalator royalty. You do do this by stating that the escalator is based on a specific sales type.
Easy Royalties allows royalties to be calculated on one of five base figures (in additon to a flat rate per book sold);
The most common methods are Retail; usually used for trade books, and Receipts, also known in the industry as Net Receipts.
Lets use as an example a $20.00 trade paperback, with a unit cost of $4.00 that is sold at an average discount of 50% in foreign markets via an overseas distributor who charge a 30% distribution fee and assume that the royalty rate is a flat 10%. The company’s marketing expense is about 10% of sales.
Retail: $20.00 list = $20.00
Gross: $20.00 list x 50% discount = $10.00
Receipts: Gross of $10.00 less distributor’s withholding of 30% = $7.00
Margin: Receipts of $7.00 less unit cost of $4.00 = $3.00
Net (Net Profit): Margin of $3.00 less the overhead charge of $1.00 (10% x $10 in gross sales) = $2.00
