Everything About Book Royalties

When authors decide on the best self-publishing company for their masterpiece, one critical area is sometimes overlooked: author royalties. It can be a confusing topic because many publishers use different definitions to define what “royalties” means and different formulas to determine how author royalties are calculated.

In the simplest terms of definition, “royalties” means the amount of money that is paid to the author for books that are sold.

How are Author Royalties Calculated? The formula used to calculate the author royalties often varies from publisher to publisher and that can make comparing Publishers X, Y, and Z challenging.

For instance, some publishers will pay a percentage directly off the Sales Retail Price of the book, regardless of how much the book costs to produce, or how much the trade discount is. In these instances, it is not uncommon for the percentage to be fairly low (in the 5%-10% range).

This formula sometimes works to the author’s detriment, however, since book printing and trade discounting play such an enormous role in the book’s overall profit and the author has no say in what the Suggested Retail Price is. Without any say in the matter, authors are often left at the publisher’s mercy.

On the other end of the spectrum are publishers that pay a percentage of the book’s profit, which is the amount left over after the printing costs and trade discounts have already been accounted for. In these instances, you will more often see percentages in the 50%-100% range.

Yes, there are some self-publishing companies, such as Outskirts Press, that pay the author 100% of the net profit of the book when it is sold through wholesale channels, such as Amazon and Barnes & Noble.

That royalty formula looks like this:

Suggested Retail Price – Trade Discount – Printing Cost = Book Profit

What is the Suggested Retail Price (SRP) of a Book? It’s just what it sounds like – the cover price as suggested by either the publisher or the author. While nearly all traditional publishers and almost all self-publishers set the SRP for the author there are a select few self-publishing companies that allow the author to set their own Suggested Retail Price. Outskirts Press is one of them; the only requirement is that the price being set by the author is above the sum of the trade discount and the printing cost. In other words, the Suggested Retail Price cannot be below what it costs to produce and sell the book. Makes sense, right?

Of course, the reason this is called the suggested retail price and not the final sales price is because retailers have the discretion to decrease the price (in the form of a sale) or increase the price (to improve their bottom line) if they choose to. But doing so has no affect on the amount the author ultimately receives, which is always set on the SRP.

What is the Trade Discount? This is the percentage of the book’s SRP that the retailer, wholesaler (if any), and distributor take to “handle” a book. It’s how they make money in the book industry. Every book that is for sale with a retailer has given a cut of its retail price to all the parties involved in the form of a trade discount.

What is the Printing Cost? In simplest terms, the “printing cost” is the per-unit cost of producing one book. The reason there is such a discrepancy between offset printing and print-on-demand, one-at-a-time printing is due to “economies of scale”. While that topic is beyond the scope of this article, we have a whole blog posting about the role economies of scale play with your printing costs, and you can read all about that here.

The benefits to choosing Outskirts Press don’t end with 100% author royalties, as important as that is. You also retain 100% of your book’s rights, and receive unlimited wholesale and retail availability thru channels including Amazon & Ingram. Our flexibility and adaptability to your needs, coupled with our phenomenal services and staff, is just one of many reasons Outskirts Press is the only A+ rated and #1 rated self-publishing company according to the Better Business Bureau and Top Consumer Reviews, respectively.

You can schedule a no-obligation consultation with one of our consultants at https://outskirtspress.com/consultation.html or you can select your package to start publishing right now at https://outskirtspress.com/self-publishing.html

Get started today. People are waiting for your bestseller!

Promoting Your Outskirts Press Audiobook

One of the best ways to promote an audiobook is, not surprisingly, via audio (sound). Fortunately, when you publish your audiobook with Outskirts Press, a 5-minute retail sample is created for you and uploaded to sales partners like Amazon, Audible, and iTunes on your behalf. Your audio clips are also shared with you throughout the audiobook creation process. Be sure to keep them; you’ll need them for marketing.

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Having your sample on Amazon and iTunes will carry the majority of your marketing weight, but there are other outlets you can pursue. Among them: YouTube, Facebook, and SoundCloud.

YouTube

The best way to use your audio sample clip on YouTube is to incorporate it with a book video. If you already have a book video, and some basic editing software, you’re 90% done. And if your book video doesn’t have any sound, you’re 95% done. If it does have sound, use your editing software to separate the audio track from the video track and then lay your audiobook track down onto the video instead. Rarely will the length of the audiobook track and the video match, so you’ll need to be creative to bring them in sync. Once you’re happy with your new audiobook video, upload it to your YouTube channel and other various video platforms.

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If you do not have a book video, the easiest solution is to get one by clicking here. Or you can create a “video” by simply using a still image of your book as a static image for the video-length of your audiobook sample. Alternatively, and preferably, you could use your smartphone and a small tripod, and record yourself reading your book. Now that’s an audiobook sample that any YouTuber can enjoy!

In either case, don’t forget to take full advantage of the description field when uploading your video by making sure to include links to your author webpage and your product sales page on Amazon so they can buy your audiobook (or your hard copy alternatives if they prefer).

FaceBook

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Since Facebook makes it easy to post videos, the easiest way to promote your audiobook on Facebook is to use the same video you just created for YouTube and upload it to your Facebook page. Again, don’t forget to include the necessary purchase links in the “Write a post” box so your friends, family, and followers can easily find your audiobook and buy it.

SoundCloud

One of the newest ways to market audiobooks is via SoundCloud. Create an account at soundcloud.com and click “Upload” to upload your audiobook retail sample. You can also upload an image. Obviously, we suggest the cover of your book. Then complete the rest of the form, which includes the book’s title, the author’s name, and the narrator’s name. Just as with YouTube and Facebook, use the “Description” field to include links to your author webpage and Amazon product sales page.


Are you ready to publish your masterpiece with the A+ and #1-rated self-publishing company according to the Better Business Bureau and Top Consumer Reviews, respectively? If so, click here to experience full-service, custom self-publishing the way it should be, at Outskirts Press.

Author Poll: Kim Black Wants Your Help With Choosing A Cover

Kim Black is self-publishing a book with Outskirts Press, and she wants your help deciding her upcoming book cover.

Book Summary:

The hilarious, real-life antidote to holier-than-thou parenting philosophies!

Raising Wildflowers is for anyone who is currently raising kids and wondering if they’re doing it all wrong. It’s for those who wake up before dawn to make sure their kids get a healthy breakfast before school. It’s for the parent who struggles to help their child overcome unique challenges and cries in the bathroom while the bathwater is running to mask the sound. It’s for the one who sits up late at night, worried about whether their child will make it to college. It’s for those who work all day and come home at night to make a meal, do the laundry, and hand-sew that DANG sheep costume for the school play. And it’s for those who wonder if their kids have brushed their teeth this week or are wearing clean underwear.

This book is also for those second-guessing bringing children into this mixed-up, overpopulated world, those afraid to take that great big step: to create a human being and be dedicated to their care and feeding for—well, forever!

Kim Black shares how she and her husband survived child-rearing and even managed to hold on to their sanity—and that finish-line moment when they knew they had molded amazing little individuals into people they could be proud of. Kim hopes that by sharing her story, others will realize that they are not alone in this fantastic, crazy, terrifying journey that is parenthood.

About the Author:

Kim Black is the mom of three rock-star kids who survived their childhood, have full-time jobs, and pay most of their bills. She’s the wife to a goofball golf enthusiast whose greatest possession is his grill. Kim loves wine and art and greatly dislikes cleaning bathrooms and yard work. She lives in Texas with the goofball, her youngest daughter, her mother-in-law (yes, in the same house), and her two rescue dogs.

Please take a look at the two possible covers below and then vote on the choice you recommend.

Click on the thumbnail below to enlarge each cover.

Cover A

Cover B

 

What Does Self-Publishing Have to do with Economies of Scale?

Many writers enter the self-publishing industry with an expectation about what their published book’s retail price will be once it reaches bookshelves. This expectation is based upon their life-long experiences of buying books from authors like Stephen King and J.K. Rowling.

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They are often surprised and confused when they discover that their 300-page self-published print-on-demand paperback cannot have the same retail price as a paperback of comparable length that is published by Random House. “Why?” they ask.

The answer is because the retail price must be higher than the sum of the trade discount (typically 50-55%) and the production/printing cost of the book.  Why are POD printing costs so much higher? The answer is: “economy of scale.”

Wikipedia has a fairly extensive article on economies of scale that can be found here:

https://en.wikipedia.org/wiki/Economies_of_scale

Most important among that information, as it pertains to self-publishing authors, is the following paragraph:

“The simple meaning of economies of scale is doing things more efficiently with increasing size.[4] Common sources of economies of scale are purchasing (bulk buying of materials through long-term contracts), managerial (increasing the specialization of managers), financial (obtaining lower-interest charges when borrowing from banks and having access to a greater range of financial instruments), marketing (spreading the cost of advertising over a greater range of output in media markets), and technological (taking advantage of returns to scale in the production function). Each of these factors reduces the long run average costs (LRAC) of production by shifting the short-run average total cost (SRATC) curve down and to the right.”

Basically, the more books that are printed at one time, the less expensive each individual book is to produce, which thereby allows the retail price to be lower. This is why a Harry Potter paperback is “inexpensive”, even at 600 pages, compared with a POD book of similar length. The publisher of Harry Potter printed 10 million copies all at once, thereby bringing the per-unit cost down to pennies. Of course, the publisher also made that sizable, risky, investment up-front – an investment that equaled millions of dollars.  Granted, that’s not much of a risk when you’re printing a Harry Potter book, but for 99% of the writers out there (even the ones who have traditionally published in the past), it is a risk few traditional publishers are willing to take nowadays and an investment even fewer writers are capable of.

Enter print-on-demand (POD) self-publishing. A book that is published POD operates on the exact opposite pricing model. Each book’s printing cost is based upon printing only one book at time, which protects the authors from making a sizable, risky investment up front.  Of course, that means the printing cost for each book costs dollars instead of pennies. And since the retail price must exceed the trade discount AND the printing cost, the retail price is naturally going to be higher.

The good news for Outskirts Press authors is that, when combined with EDI distribution through platforms like Amazon and Ingram, self-publishing writers never incur out-of-pocket printing costs for books sold wholesale, because the book is only printed after it is sold to the consumer. The printing cost is extracted from the retail price, along with the distributor/retailer’s portion, and the printing cost itself. Whatever is left is the “profit” from the book. The amount of “profit” that the author receives depends upon the self-publisher you’ve chosen, and varies from 20% – 100%. Outskirts Press is one of the few self-publishers that pays 100% of the profit to the author.

To publish your masterpiece with the A+ rated and #1-rated self-publishing company according to the Better Business Bureau and Top Consumer Reviews, respectively, visit Outskirts Press today.

Amazon Kindle e-Book Publication Now Included With All The Best Packages At Outskirts Press

Self-publishing with Outskirts Press  just got even better. Now when you publish with any of our best, most popular full-service a la carte or One-Click publishing packages, an Amazon Kindle e-book edition of your book will be published & distributed on your behalf for free!

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The non-fiction, fiction, Christian, and spiritual One-Click packages have always included the Kindle e-book edition (and some of them include the Barnes & Noble NOOK, as well).  Now joining them with an included Amazon e-Book edition are the One-Click packages for Children, Cookbooks, and Memoirs.  You can browse and compare all eight of the available One-Click, all-inclusive publishing suites by clicking here.

What makes this announcement so exciting is the inclusion of the Amazon e-Book edition to our most popular package, the Ultimate Black and White, which already includes a bevy of options and add-ons; and now adds the most popular e-book publishing service, as well. Even the Basic Black and White package now includes free Kindle e-book publication & distribution! The Full-Color publishing package follows suit, which is a particular boon for longer color books where the paperback or hardback retail price might be fairly high, but the e-book price can typically fall under $10, regardless of length.

So are you ready to publish your masterpiece (and your free e-book) with the A+ rated and #1-rated self-publishing company according to the Better Business Bureau and Top Consumer Reviews, respectively?

• Call 1-888-672-6657.
• Live chat at OutskirtsPress.com.
• Schedule a free consultation with a Publishing Consultant.
• Or start immediately by browsing all our available publishing services by clicking here.

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“My first book and the experience was great. My Author Representative was right there with any answers that I needed. A big tip of the hand to my line editor who was a huge help. Would I do it again? I already am, with plans for my next release. I will absolutely use Outskirts Press again, and hope I get the same team. Again, thanks.”Bob Kyle, author of The Hogger

Reach the whole world – all at once – with Outskirts Press distribution

If you could go anywhere in the world right now, where would you go? What if you could simply travel anywhere you wanted? Imagine the sights and sounds, the incredible locations and cuisine!

Now imagine you could send your book all over the world. All those amazing places you’ve just imagined—and now your book is there! With Outskirts Press, worldwide distribution of your book is no longer a dream, but a reality!

Outskirts Press boasts the most extensive distribution in the industry! You’ll enjoy the luxury of a worldwide market AND circulation of your book with celebrated names, such as: Barnes & Noble, Amazon, Baker & Taylor, Ingram, Bertram and more!

Once you choose to self-publish with Outskirts Press, you can count on us to handle all the thorny details of book distribution, like setting up with each distributor, foreign taxes and more. And the best part is that no matter where in the world customers buy your book, you’ll enjoy 100% of your royalties — no small print, and no strings attached!

Need help getting started? Connect with Outskirts Press now in whatever manner is easiest for you:

 

Self-Publishing on a Budget? We’re Here For That

If you’re watching your wallet as you dive into self-publishing for the first time and are feeling a little self-conscious over that fact, don’t worry! You’re definitely not alone. In fact, many authors pursuing publication today are constrained by tight finances, or balancing a variety of different concerns. That’s why, at Outskirts Press, we work hard to make sure all of our publishing packages and services are accessible to everyone, including you.

Looking for flexibility? We allow payments through PayPal and by credit card, allowing you to take advantage of the financing options these resources create. Check out PayPal’s 0% interest options with flexible terms, or inquire if the credit card companies you’re already using offer extra points when paying for a publishing service. (Many do.)

Or, if you’re looking for something even more tailored to your situation, we offer our own 0% financing payment plans! Simply get on the line with your dedicated Publishing Consultant, and together you’ll develop a monthly payment plan that balances your financial situation with your desire to publish. This option is particularly useful for first-time authors looking to break into the world of indie publishing!

And last but not least, we offer bundled services, such as our One-Click Publishing Packages, special discounts and promotions to assist you in finding and affording the absolute best in publishing and marketing services. After all, just “getting by” isn’t good enough when we’re talking about your masterpiece. Getting it “just right,” with professional editing and an eye-catching cover design, is an important part of making sure your book becomes a success!

For more information on financing options or Outskirts Press self-publishing promotions, call us at 1-888-672-6657 to speak with a Publishing Consultant. You can also visit our website at www.outskirtspress.com and chat with a Publishing Consultant via the live chat option.

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