STATUS: It can’t be 2:30 in the afternoon already.
What’s playing on the XM or iPod right now? NEVER, NEVER GONNA GIVE YOU UP by Barry White
One of the issues of writing a blog for so long (since 2006 for me) is that I often forget what topics I’ve covered and what I haven’t. And sure, I could scroll through some of my tags but I’m too lazy. *grin*
April/October is our biggest royalty period. It’s when we receive the most statements. So right now I have quite a pile on my desk so it’s first and foremost in my mind. And for one major publisher, their October statements always come the first week in November.
So after reviewing the umpteenth one today, whether I’ve already discussed this or not, I wanted to highlight the top 3 culprits regarding errors in royalty statements that I’m seeing:
1. Returns at a price point that didn’t exist with the original published edition.
If a book was published for let’s say $13.99, then returns have to be at $13.99. Any other number is a clear error.
2. The wrong percentage recorded for electronic books
This can happen in a variety of ways. Perhaps the royalty is supposed to be on retail price and it’s showing on net or it’s just the wrong percentage altogether.
3. A royalty escalator has kicked in but the statements don’t reflect it.
In deals, there are often royalty escalators at certain break points. For example, for an adult hardcover, a standard is 10% to 5000, 12.5% to 10,000 and 15% thereafter. The royalty statement might have an error putting all copies at 10% but let’s say 6000 copies have sold so 1000 of those copies should be at the 12.5% level.