How does Trafford Publishing calculate royalty payments?

Your royalty rate calculations are based on the date you signed your author agreement.

Author agreements signed on or after July 17, 2014

Royalties are based on the net payments we actually receive from the sale of printed or electronic (e-book) copies of your book, minus any shipping and handling charges or sales and use taxes. Since retail and wholesale customers purchase on a discount, the royalty amount you receive depends on what type of customer bought your book, the channel through which they purchased, and any discount they received. Royalty percentages for printed, electronic (e-book), or audio copies are as follows:

• 25 percent of the retail price for sales of printed copies or audiobook copies directly through the Trafford Publishing website bookstore.
• 10 percent of the retail price for sales of printed copies or audiobook copies through one of our distribution channels, such as Amazon.*
• 50 percent of digital net received for each e-book copy sold.

Here is an example of a common sales transaction of a printed book:

• The retail price (list price) for your softcover book is $15.95.
• Your Trafford Publishing royalty rate for retail transactions is 10 percent.
• A retailer, such as Barnes & Noble, 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:

Web Sale Example:

Another scenario occurs when a consumer comes to the Trafford Publishing bookstore and purchases your book directly. Your royalty on this sale of the same book is calculated as follows:

Please be aware that the largest retailers, including Barnes & Noble, place orders for print copies of Trafford Publishing titles through Ingram, so those orders will appear as wholesale sales on your royalty statement.

Minimum Threshold for Payments

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

* Please note: The 25 percent royalty rate only applies to consumer orders placed with Trafford Publishing. A retail order placed with Trafford Publishing qualifies for the 10 percent royalty.

Author agreements signed prior to July 17, 2014

Royalties are based on the net payments we actually receive from the sale of printed or electronic (e-book) copies of your book, minus any shipping and handling charges or sales and use taxes. Since retail and wholesale customers purchase at a discount, the royalty amount you receive depends on what types of customer bought your book, the channel through which they purchased, and any discount they received.

Here's an example of a common sales transaction:

The cover price (list price) for your book is $17.95. Your Trafford Publishing royalty rate is 50 percent.

Wholesale Example:

A retailer places an order for your book through Ingram Book Company, a wholesaler. Ingram, in turn, purchases your book from Trafford Publishing at a discount. Your royalty on this sale is calculated as follows:

$17.95 (SRP "Suggested Retail Price")
- $9.87 (55% Retail Discount)
= $8.08 (Net Retail Discount)
- $4.97 (COGS "Cost of Goods Sold")
= $3.11 (Net COGS)
x 50% (Royalty Rate)
= $1.56 (Royalty Earned from a retail sale)

Web Sale Example:

$17.95 (SRP "Suggested Retail Price")
- $4.97 (COGS "Cost of Goods Sold")
= $12.98 (Net COGS)
x 50% (Royalty Rate)
= $6.49 (Royalty Earned from a web sale)

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