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:
Your royalty on this retail sale is calculated as follows:
Paperback list price
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:
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 QuarterSales Period: January 1 through March 31Quarterly mailed to author late May/Early June
2nd QuarterSales Period: April 1 through June 30Quarterly mailed to author late August/Early September
3rd QuarterSales Period: July 1 through September 30Quarterly mailed to author late November/Early December
4th QuarterSales Period: October 1 through Dec. 31Quarterly 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 email@example.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 firstname.lastname@example.org. We will investigate the claim and have a result within 7-10 business days.
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