Royalty FAQ


How is the price of my book determined?
We shall provide a proposed retail price for the sales of your work in the distribution channel. However, if you purchase the option to set your own price, if offered, or if we otherwise permit you to set your own price, the retail price we suggest will be a proposed price for your work, and you will be responsible for accepting our suggested retail price or setting a different retail price for each format of the work, as long as the final retail price is within the limitation that we have set.

How does AuthorHouse calculate royalty payments?
AuthorHouse gives authors a royalty rate of 10% through our distribution channels for print and audio formats. Royalties are based on the payments we actually receive from the sale of printed or audio copies of your book, less any shipping and handling charges or sales and use taxes. Also, we offer discounts to retail and wholesale customers, so the royalty amount you receive depends on what type of customer bought your book and any discount they received. For each royalty-qualifying sale in a print or audio format through our website bookstores, you will receive 25% of the retail price.

You should be aware that the largest retailers, including Barnes & Noble, Amazon and most Borders stores, place orders for AuthorHouse titles through Ingram; those orders will appear as wholesale sales on your royalty statement.

Here's an example of a common sales transaction of a printed book:

  • The retail price (list price) for your paperback book is $15.95.
  • Your AuthorHouse royalty rate for retail transactions is 10 percent.
  • A retailer, such as Amazon, places an order for your book through Ingram Book Company, a wholesaler.
  • Ingram then resells the book to the retailer.

Your royalty on this retail sale is calculated as follows:

Source
Amazon.com

Paperback list price
$15.95

Royalty %
10%

Royalty Earned
$1.60

If your book is sold directly through the AuthorHouse online bookstore, you receive a higher royalty amount twenty-five percent (25%). Your royalty on this sale directly through the AuthorHouse online bookstore is calculated as follows:

Source
AuthorHouse website

Paperback list price
$15.95

Royalty %
25%

Royalty Earned
$3.99

For each royalty-qualifying sale of your work in digital format (e-book), you will receive 50% of the digital net, less any returns. The digital net equals the retail price less promotional discounts, distribution discounts, and sales taxes.

Can I change the price of my book later?
After the Retail Price is set, we reserve the exclusive right to modify the retail price of the work, should production costs change or market conditions warrant. You must approve such retail price change prior to it taking effect. If you do not approve the retail price change or we cannot contact you to obtain approval for the retail price change, all or certain formats of the work will be removed from distribution.

How am I paid for my royalties?
Royalties are calculated each calendar quarter, and payments are processed per the following schedule: first quarter (for sales January through March) payment by May 31, second quarter (for sales April through June) payment by August 31, third quarter (for sales July through September) payment by November 30, and fourth quarter (for sales October through December) payment by February 28 of the subsequent year. The timing of actual receipt of the payment by the author may occur after these issuance dates, due to a variety of factors including, but not limited to, transit time in the mail.

If your quarterly determination of royalties in any calendar year exceeds seventy-five ($75) dollars, the payment shall be issued according to the schedule above. 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 (cumulative author royalties). Until the 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.

Will AuthorHouse send me a 1099 to report additional income from royalty payments?
If you earned $10.00 or more in royalties within a fiscal year, we will automatically send you a 1099 statement. The 1099 reports your additional income in royalties during the first, second and third quarter of the current year and the fourth quarter of the previous year. It is the form you need to use to report taxes showing additional earning or contractual work. (If you are not a U.S. citizen, you will receive a 1042, very similar to the 1099.)

If you have questions regarding reporting taxes, please contact your tax professional.

How often do you send out royalty payments?

The Quarterly Schedule is as follows:

1st Quarter
Sales Period: January 1 through March 31
Quarterly mailed to author late May/Early June

2nd Quarter
Sales Period: April 1 through June 30
Quarterly mailed to author late August/Early September

3rd Quarter
Sales Period: July 1 through September 30
Quarterly mailed to author late November/Early December

4th Quarter
Sales Period: October 1 through Dec. 31
Quarterly mailed to author late February/Early March

There is a reason for the gap between when the quarter ends and when the checks are mailed out. This is due to the delay in retail sales being reported to us by the distributors. They send this information to us 4 to 6 weeks after the close of each quarter. We then compile those sales with the AuthorHouse sales for the quarter and audit the report 3 times before creating and mailing the check to you. To have an idea of how your book is selling during a quarter, you can always log on to your Author Center account to view sales through AuthorHouse. However, sales placed directly through the distributor will not be listed on the AuthorHouse page, as they are only reported to us quarterly.

How much do I make from the sale of each copy?
You can review your royalty amounts using the Reports section of the Author Center. Just click on the title of your book and a .pdf document displaying the prices and royalty amounts for all ISBNs of that title will be generated.

Will I be able to see who ordered my book?
Unfortunately, due to privacy reasons, we cannot share this information. On your royalty statement, you will see how many of your books were sold through the retail channel and how many were sold through AuthorHouse.

What should I do if I do not receive my royalty statement?
If you do not receive your royalty statement, you will first want to log on to your Author Center and view the statement online. Remember: if no royalty is earned in a given quarter, we email the royalty statement instead of mailing it. If you did earn a royalty but did not receive your statement in the mail, please contact our Author Assistance Team at authorsupport@authorhouse.com. We will have to wait 90 days from the issue date of the check and then can reissue the check. Please allow 10-15 days for the mail for delivery of your check.

What do I do if there is an error on my check?
When reviewing your quarterly statement, please keep in mind the royalty schedule. If an order was placed in July, you will not see that sale on your 2nd quarter report. If you know of a sale placed in a given quarter that you were not paid for, please contact our Author Assistance Team at authorsupport@authorhouse.com. We will investigate the claim and have a result within 7-10 business days.

Why does it take so long for AuthorHouse to post sales from Ingram or other retail bookstores?
All companies have a month-end close process to collect and validate financial information, and AuthorHouse is no exception. At the close of each month, AuthorHouse must collect sales and printing information from each of our business partners. We reconcile book orders and book sales with printing information to ensure that every single copy that is printed is accounted for. Then, we consolidate sales from many different sources into a single monthly statement for each author.
The process of collecting, consolidating, closing and posting sales information from our partners can take more than four weeks. It is important to remember that the sales statements are not final, however, because information posts to them as it is received. This process may take time, but we think it is essential to provide you with information that is 100 percent accurate and to account for each and every sale.
Although we strive to post sales statements as quickly as possible, four times per year it takes us six weeks to post statements due to our royalty payout schedule. During these quarterly payment periods, our staff is busy preparing quarterly statements and arranging individual royalty payments.

A bookstore ordered copies of my book at the end of last month, but those sales aren't appearing on my monthly statement. Why?
There are two reasons this might occur. First, like many publishers, AuthorHouse records a sale and pays royalties only after books are physically shipped. We may have an order in process at the end of a month, but if the books haven't shipped that month, then the sale will not be recorded until the following month.
What's more likely, however, is that the bookstore ordered either through the largest wholesaler, Ingram Book Company, or directly through its printing arm, Lightning Source, Inc. (LSI). Ingram and LSI are on a 4/4/5 accounting cycle. This means that they operate on a four-week, four-week, five-week financial calendar rather than a monthly calendar. The financial month-end close always occurs on a Friday and therefore is not always at the calendar end of the month. LSI reports monthly sales to AuthorHouse according to the Ingram financial calendar, and AuthorHouse in turn reports those sales to authors in the sales statement. Any sales in a calendar month that occur after the financial month end will not appear on your statement until the following calendar month.

How long does it take for a sale to be listed in my online “Sales Activity Report”?
The information in the “Sales Report” is updated throughout the quarter to give you an idea of how and where your book is selling. We deliver sales information to you as soon as we can, however this data cannot be updated in real time and may not reflect finalized information.

The time it takes a sale to be listed in your sales report is determined by the type of sale:

Sale type

Time until listed

AuthorHouse Bookstore

72 hours

Consumer sales (i.e., call-in purchases through AuthorHouse)

72 hours

Retail sales (e.g., Amazon.com)

Four weeks or more

Please note: External retailers — Apple, Amazon, Barnes and Noble, etc. — operate under their own schedules, and AuthorHouse cannot control the frequency with which they report sales information.