How often will I get paid?
How are royalties calculated?
Can I track my earnings?
How much will I receive for each ebook I sell?
Under what circumstances can I earn more than 85% net royalties?
Can I cancel my contract?
Can I unpublish just one book without cancelling my account?
If your royalty balance is greater than AUD$10 at the end of a calendar month, you will be paid by the end of the next month. If your balance is less than AUD$10, then you won’t be paid until it reaches AUD$10.
However, for at least the first three months after publication, you probably won’t receive anything at all, due to the delay in us receiving royalties from the retailers.
For example, Amazon pays royalties 60 days after the end of the month. So if you earn more than AUD$10 in, say, December, we won’t receive that until 60 days after the end of December, so it should arrive in our account sometime in March, via cheque in USD$. It will then be credited to your account in March, on the assumption we receive it in time to bank it before the end of the month, and then we will pay you during April.
Royalties are calculated as 85% of the net amount we receive in Australian dollars in our bank account, less GST. (If you’re registered for GST, then you will need to let us know so that we can pay you the appropriate GST when we pay your royalties.)
Different retailers pay us differently. CreateSpace (Amazon's PoD arm) pays us in a cheque in USD$, and so there is then a cheque exchange fee of AUD$10.50 charged by the bank to convert the cheque. Amazon’s ebook arm, KDP, pays us direct to our bank account in Australian dollars, less a wiring fee of around AUD$20-25. Smashwords pays us direct to our PayPal account in USD$.
The final net amount in AUD$ that ends up in our bank account is then apportioned back to our authors in the same ratio as the USD$ they were credited with so the people who earn the most pay a larger amount in fees, but in direct proportion to the amount they received compared with the total amount received.
We retain a maximum 15% commission to cover our administrative costs of accounting for the funds and then paying them out again.
Absolutely! Go to your Dashboard and click 'My Royalties'. If there's nothing there, you may not have sold any copies yet, or perhaps we’ve not received any payments on your behalf as yet.
If we have received payments for you, you will find spreadsheets detailing the sales and payments in your folder. The file names will indicate who the funds were received from (e.g. KDP = Kindle ebook sales, CS = Amazon’s CreateSpace print on demand, SM = Smashwords and etailers that Smashwords distributes to etc), month we received the funds and the Purchase Order we raised in our accounting system to reflect our debt to you.
The spreadsheets themselves will provide more detail from the etailer in question.
How long is a piece of string?
If you sell your ebook on Amazon at less than USD$2.99, they will only pay 35% commission. So, if you’re selling at USD$0.99, you will earn about USD$0.34 gross. This is then converted to AUD$, so perhaps $0.31 (picking a rough conversion of US$ to AUS$). We then deduct GST, say $0.03, leaving $0.28. We then retain 15%, or about $0.04, so you will receive about $0.24 per book.
However, if you sell your ebook on Amazon at between USD$2.99 and $9.99, they will generally pay a 70% royalty (unless sold in India and some other places, where the royalty is only 35%, regardless of price). So if you’re selling your book at USD$9.99, you might be credited with a USD$7 royalty, which, by the time we receive it in AUD could be worth about AUD$6.60, less GST which takes it down to AUD$6. We then retain 15%, or $0.90, so you would receive maybe $5.10, probably a little bit less as there is likely to be an exchange fee when the money is wired to us.
Our accounting and admin fee is generally 15% of net royalties received by us after GST. This is calculated to cover our collection, calculation, accounting and distribution costs. This means that you receive 85% of the net amount which ends up in our bank account after GST.
However, if your aggregated net royalties are between AUD$1,000 and $4,999.99 in any one month, we will reduce our 15% admin and accounting fee for that particular month to 10%, meaning you will receive 90% of that net income.
Furthermore, if your aggregated net royalties are between AUD$5,000 and $9,999.99 in any one month, we will reduce our 15% admin and accounting fee for that particular month to 7.5%, meaning you will receive 92.5% of that net income.
And if your aggregated net royalties are above AUD$10,000 in any one month, we will reduce our 15% admin and accounting fee for that particular month to 5%, meaning you will receive 95% of that net income.
Yes - you may cancel your contract at any time, no questions asked. Just send us an email or a letter, and we will set the process in motion to remove your books from the various online stores where they are listed. Please note, though, that due to the distribution chain, it can take a couple of weeks before all your books are removed from all stores.
You will then need to wait about four months while any remaining royalties come in, then we can close your account if you wish to do that.
Absolutely. Again, please advise us in writing (via email or letter) which book you need unpublished and we will withdraw it from sale.
However, if you require it to be republished at some stage in the future, it may count as a new book and will require new ISBNs and legal deposit unless we are publishing the exact same files again.
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Or ask us personally.