ESTIMATING YOUR ROYALTY
Here is where we answer your most critical question - What's in it for me (besides fame and glory)? Please realize that we use average values based on real life service costs and sales. Promotion drives sales, so we also include it. Your actual income, whether from direct sales or royalties, will depend on a number of factors. They have to do with the nature and quality of your work, its appeal, delivery media, distribution channels and even the state of the economy. Accordingly, please use these projections below as a guideline only, and remember that YOUR ROYALTY IS 50% OF NET INCOME - the fairest deal around that we know of.
AVERAGE COST, AS % OF SELLING PRICE
|
Book, (Print-on-Demand) |
CD / DVD |
eBook, Download, Subscription |
Web, Web/iTV |
|
|
Content creation |
5% |
5% |
5% |
5% |
|
Content preparation for multiple media delivery |
10% |
25% |
10% |
15% |
|
Production |
25% |
5% |
5% |
25% |
|
Promotion |
10% |
15% |
25% |
20% |
|
Distribution |
25% |
25% |
15% |
10% |
|
TOTAL COSTS (% of selling price) |
75% |
75% |
60% |
75% |
REVENUES FOR:
40 page illustrated, narrated book in print, electronic and web formats
|
Book 5,000 units |
CD/DVD 5,000 units |
E-book & Down- loads 25,000 units |
Web & Web/iTV 150,000 units |
|
|
Price/unit |
$ 30 |
$ 15 |
$ 5 |
$ 2 |
|
Sales |
$ 150,000 |
$ 75,000 |
$ 125,000 |
$ 300,000 |
|
NET INCOME (Sales - Total Costs |
$ 7,500 |
$ 7,500 |
$ 43,750 |
$ 45,000 |
REVENUES FOR:
400 page book, manual or study in print, electronic and web formats
|
Book 5,000 units |
CD/DVD 5,000 units |
E-book & Down- loads 25,000 units |
Web & Web/iTV 150,000 units |
|
|
Price/unit |
$ 50 |
$ 30 |
$ 10 |
$ 4 |
|
Sales |
$ 250,000 |
$ 150,000 |
$ 250,000 |
$ 600,000 |
|
NET INCOME (Sales - Total Costs) |
$ 12,500 |
$ 15,000 |
$ 87,500 |
$ 90,000 |
REVENUES FOR:
Productivity, learning, entertainment or game software
|
CD-ROM 5,000 units |
Downloads 25,000 units |
Web, WebTV, iTV 150,000 units |
|
|
Price/unit |
$ 40 |
$ 15 |
$ 3 |
|
Sales |
$ 200,000 |
$ 375,000 |
$ 450,000 |
|
NET INCOME (Sales - Total Costs) |
$ 20,000 |
$ 131,250 |
$ 67,500 |
To reiterate, these projections are average values based on true service costs and anticipated sales at certain promotion levels. We can provide, as part of our creative and production services, a detailed income projection for you.
