Publishers have been successfully sued for selling their own books to foreign subsidiaries at drastically reduced prices in order to
reduce author royalties.
Not exact matches
Pointing out that «
authors remain the only essential part of the creation of a book and it is in everyone's interests to ensure they can make a living», it tells publishers that «unfair contract terms, including
reduced royalty rates, are a major part of the problem».
Authors should pay special attention to deep discount clauses, which allow publishers to sharply
reduce, even halve
author royalties, if the sale price falls below a set percentage of the cover.
These
royalties will be at a
reduced rate, and the
author should try to negotiate that the reduction be based on the extent of the revisions.
It's in the interest of the
author to limit special pricing as much as possible, since the
royalty will be greatly
reduced while the special sales may cannibalize the
author's domestic sales.
As with other Kindle books, the
author sets the list price and then can choose from two
royalty schemes: 35 % of the list price on every book sold or 70 % of the actual sale price of the book in certain territories (including the U.S.) The catch with the 70 %
royalty is that Amazon can
reduce the selling price to match a competitor's price for an e-book or print book, or to match their own price for a print book.
Since Amazon is rolling delivery costs over to the
author and takes it our of their part of the
royalty,
reducing the size of the delivery package does absolutely nothing for their margins.
As large publishers continue to decrease the amount of advances paid, hold the line on e-book
royalties, overprice their e-books, block features, and
reduce marketing services, my question to best - selling
authors in 2011 is: why give 90 % + of the profits to a large publisher, when you can hire someone to do your covers and formatting for you, and keep 70 % for yourself?
Not only does the amount of
royalties paid to
author fall with a whistling sound, but at certain price levels the loss is compounded by a
reduced royalty rate as well; different vendors may have different scales of
royalty rates.
But it does cost less, and that
reduced cost needs to be reflected in either the
royalty to the
author or the cover price — or both.
Some ghosts will give
authors a
reduced rate in exchange for a higher percentage of the
author's
royalties.
MetaComet helps publishers
reduce the effort of managing
royalties by up to 90 %, while enhancing
author relations and improving rights income.