How often will I get paid?
We pay royalties around the 21st of every month, clearing out what we received during the course of the prior month.
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 $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. We will then credit it to your IndieMosh account in March and pay you around 20 April, along with any other royalties we received on your behalf during March.
How are royalties calculated?
We receive payments in Australian dollars, US dollars, pounds sterling and Euro. Some payments are subject to a wiring fee of around AU$20-25, some aren’t, and yet other payments come via our PayPal account.
Royalties are calculated as 85% of the net amount we receive in Australian dollars in our bank account, less GST. (If you’re registered for GST, then you will need to let us know so that we can pass on the appropriate GST when we pay your royalties.)
The final net amount in AUD$ that ends up in our bank account is apportioned back to our authors in the same ratio as the currency 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% of net royalties received to cover our administrative costs of accounting for the funds and then paying them out again.
Can I track my earnings?
Absolutely! Sign in to your IndieMosh 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 data lines detailing when we received the funds, who they were from, when the item was sold, the title, ISBN, format and geographical location of the sale, as well as the net funds received and payable to you and whether GST is attached to that line or not.
How much will I receive for each ebook I sell?
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 ebook.
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 still 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.
Under what circumstances can I earn more than 85% net royalties?
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.
Can I cancel my contract?
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.
Can I unpublish just one book without cancelling my account?
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.