Net Royalties are defined as the total royalty paid by each distribution channel, and are determined by the Suggested Retail Price and Retailer Discount you choose. The print cost of your book will also impact the amount of royalties you will earn, which itself is impacted by the size, page count, interior colour, and binding type of your book. Here's the formula:
- Suggested Retail Price [SRP]* - Retailer Discount - POD Print Cost = Net Royalties
Authors on the Managed 85 distribution model earn 85% net royalties, while authors on Managed 100 will earn 100% net royalties.
Once the page count of your typeset interior draft is set and you have chosen a distribution model, you will be prompted to set the pricing for your book through Octavo, which will calculate your expected net royalties for each edition and market. For more info check out our article How do I choose a price for my book?
For eBooks, as long as you price your book between $2.99 and $9.99 CAD and USD, you will generally earn 60-70% of the list price in royalties, depending on the distributor and retailer involved.
- eBooks do not have a print cost, though Kindle deducts a small "delivery fee" from the royalties based on the file size of your ebook. For eBooks distributed through Smashwords to retailers like Apple Books, you will earn ~60% royalties.
*Note: Effective July 1, 2023, Ingram deducts a 1% “Marked Access Fee” from the royalties of every sale. The 1% is calculated based on the SRP, which means that if the SRP is $20 USD, $0.20 will be deducted from the royalties for each book sold in the US market.