In this section:
How often do you pay royalties?
We pay royalties twice a year:
You can see your royalties in the ROYALTIES table on your Financials page.
Here follows an explanation of how we arrive at the figures displayed in the ROYALTIES table on your Financials page.
Please note: The figures on your Financials page are in £ sterling. If you are outside the UK, we normally pay via Barclays.net, meaning your bank converts the money to local currency and the rate is set by them. If we pay via Comerica, our bank in the US, then it's the average rate for the month, as dictated by HMRC. Read Royalty Payments for more information.
The period for which the statement has been compiled (May to October or November to April).
These are taken from the Total sales column from the SALES tables on your Financials page.
This applies to the ebook table also.
NB: Your sales total is a net amount. This means discounts to booksellers have been taken off. Different booksellers have differing discounts. For example, a wholesaler would have a different rate than an independent single bookshop. The total we receive, therefore, depends where the book is bought and which discount was applied. It is entirely possible that the same number of books sold would generate a different amount of income over separate royalty periods.
These are deducted from the trade sales figures, as we do not pay royalties on author sales.
These are manually inputted by us, taken from reports from our North American and UK distributors, and Office Sales.
This column will not apply for ebook sales.
This provision used to be standard on all publishers' contracts (and often still is), to protect from them from large numbers of books coming back from the trade in returns. We dropped it on new titles from October 2012 onwards, but the column remains on the system for historical information. It need not be a concern for you.
This is taken from your contract terms, which you can check at any time by clicking on Contract on the left-hand menu. It should match the current sales level your title is on.
The calculation is trade sales, less author sales, plus/minus returns provision (if applicable), and when we have this figure, we apply your royalty rate. This is how we come to the royalty on trade sales.
Royalty on foreign-rights sales £
This will apply the foreign rights sales % as per your contract terms, to any foreign rights amounts received in the period (see Foreign Rights Sales table in Sales section).
This is not applicable for ebook sales.
These are any adjustments we need to make to your royalty payment.
Additions are signified by A in the Type column.
Deductions are signified by D in the Type column.
The most common are:
This is the royalty payable to you, calculated as follows:
We then apply the author split (as per your contract) if there are multiple authors to give us the amount owed to each author.
If you have an agent, we will automatically pay them this amount.
If it is blank, see Unearned Carry Forward below.
This means that no amount is owed to you for this period, and the figure will be negative.
This is because there were either net returns for the period, more amounts deducted than royalty owed, or a negative amount was brought forward and the royalty still hasn’t earned through (see above for each separate point).
This figure will be shown under deductions in your next statement.
We try to respond to queries quickly, but appreciate your patience in the period just after statements have been issued.
If your title has come to us through an agent, they will be listed on the contracts page, payment will be made to your agent, and they will make a corresponding payment to you, minus their agreed %.
Due to our high volume of authors and payments, unfortunately, we cannot split percentages to anyone other than authors or agents. If you would like to donate a portion of your royalties to a good cause, you will have to make it directly.
If a book has two or three named authors, we will split the royalties equally, unless advised otherwise.
You should then be able to save it to your computer/print it as you wish.
If you have any queries about late payment or wrong payment of your royalties after reading this, please add them to the Royalties section of the Author Forum in Sales & Distribution.
For some authors, in UK and Europe, who are registered for Value Added Tax, we need an invoice from you for the royalty payment, so we can reclaim the tax. Please send the invoice to [email protected].
If you are not registered for this (the vast majority), you do not need to do anything.
As of December 2018, we have stopped charging a conversion cost for ebooks on new titles.