How much royalty do I earn from e-book sales?

Your royalty rate for sales of your e-book is 50 percent of digital net.

Royalties are based on the net payments we actually receive from the sale of printed or electronic (e-book) copies of your book, minus any shipping and handling charges, distribution costs, or sales and use taxes. Since retail and wholesale customers purchase at a discount, the royalty amount you receive depends on what types of customer bought your book, the applicable channel through which they purchased, and any discount they received.

Here are two examples of common e-book sales transactions.

The list price for your e-book is $3.99, and your LifeRich Publishing royalty rate is 50 percent.

Retailer Example:

A consumer places an order for your e-book through the Amazon Kindle bookstore. Your royalty on this sale is calculated as follows:

$3.99 (SRP "Suggested Retail Price")
- $1.20 (30% Amazon Discount)
= $2.79 (Net after Amazon Discount)
x 50% (Royalty Rate)
= $1.40 (Royalty Earned from a retail sale)

Web Sale Example:

Another scenario occurs when a consumer comes to the LifeRich Publishing bookstore and purchases your e-book directly. Your royalty on this sale of the same e-book is calculated as follows:

$3.99 (SRP "Suggested Retail Price")
x 50% (Royalty Rate)
= $2.00 (Royalty Earned from a web sale)

Minimum Threshold for Payments

If your quarterly determination of royalties in any calendar year exceeds seventy-five ($75) dollars, the payment shall be issued according to the quarterly payment schedule. If the quarterly royalties due are equal to or less than seventy-five ($75) dollars, the quarterly royalty amount will be carried forward and added to the subsequent quarterly royalty amount due. Until cumulative author royalties exceed seventy-five ($75) dollars, each quarterly author royalties will be carried forward and added to the cumulative author royalties. Cumulative author royalties at the end of a calendar year will be issued by February 28.