PublishingRoom DIY Self-Publishing FAQs - Pricing and Royalty Payments Home / FAQs Center / Pricing and Royalty Payments  

How is the price of my book determined?

The price of your book is determined by a fixed cost for the cover and page count, plus the distribution cost and royalty amount. The cover cost and page count determine the minimum base price for the production of your book. Then the distribution and royalty amounts are displayed after you choose the total selling price.

Back to top

What is "distribution cost" in self-publishing?

The distribution cost is calculated by the costs involved to offer your book for purchase through various channels. These costs include maintaining your book on a Web site, keeping information current, order fulfillment, customer support and any other processes to ensure that your book is available to others.

Who decides my royalty amount?

While their is a minimum sales price to cover the cost of printing and distributing your book, you have ultimate control of the royalty amount (how much you make per book sold). Based on the total selling cost, you can choose to make the minimum royalty, or raise the selling price to make as much as you wish for your book.

Back to top

When do I choose my price?

During the process of DIY self-publication, you will be prompted to choose your price after the manuscript and cover are approved (because we need to know the final page count and book size).

Can I change the price of my book later?

Unfortunately, you cannot change the price of your book once you approve and finalize it for publication. Make sure that whatever price and royalty amount you choose is an amount you are comfortable with for the entire life of the book.

Back to top

I did not purchase and ISBN and Retail Channel Distribution; do I still need to enter a retail sale price?

Yes, even if you did not purchase retail Channel Distribution, for technical reasons, the retail sales price and royalty will still be calculated in the wizard. The retail and PublishingRoom price are required to remain the same and the minimum retail printing and distribution cost must be met.

What is the best price for my book? How do I decide?

The best price of your DIY book depends on a variety of factors, but overall, the choice is up to you. There are a few items to consider when choosing your price. First, you may want to look around at different bookstores and online to get a general feel for the price of books for different lengths and genres. Next, consider your market. Who is your target audience and how much do those people typically spend on a book? If you are included in the targeted audience, ask yourself how much you would pay for a book of your type and length.

You need to find a comfortable balance between how much you earn per copy and how much the book costs, since these two amounts are related.

Back to top

How am I paid for my book sales?

We pay the royalties for your book sales on a quarterly basis in check form. When your royalty earnings for a book reaches $20.00, we will pay out your royalties. We will continue to hold your royalties until the balance due to you is $20.00 or more. 

Can I split the payment with another co-author?

No, we currently do not offer the option to split the royalty payment between individuals. This is due to tax restrictions. You can, of course, do whatever you wish with the royalty payments once you receive them, but it will be up to you to split any payments with co-authors.

Back to top

Can I arrange for someone else to receive my royalty payments?

Yes you can, but only if you transfer the entire rights of your agreement with PublishingRoom to that person. They will also hold the copyright for the book, but not the content of the book or your manuscript. If you would like to arrange this, please contact our customer support team.

What is the difference between a channel or retail sale and a PublishingRoom sale?

If you purchased distribution, there are two different kinds of sales (if you have the standard PublishingRoom only distribution, then retail sales do not apply to you.) When a book is sold through our Web site or directly through our book sales assistants, it is considered a PublishingRoom sale. A retail, or channel sale, is when the book is sold through any retailer other than PublishingRoom (like amazon.com or Borders). The type of sale makes a difference in the royalty earning. The selling price must be the same for both PublishingRoom and retail sales, but you will earn a much greater royalty when your book is purchased through PublishingRoom.

Back to top

Am I paid royalty on books I purchase?

It depends on how you place the order. If you place an order through your Author Control Panel and receive the author discount, then no, you will not receive a royalty payment because you receive the royalty discount up front. If you order directly through our Web site, then yes, you will receive a royalty payment because you will pay full price at the time of purchase.

What are the payment periods? When do quarters start and end?

1st Quarter: January 1st to March 31st

2nd Quarter: April 1st to June 30th

3rd Quarter: July 1st to September 30th

4th Quarter: October 1st to December 31st

For each quarter, you are paid for the books sold and shipped in the given time frame. If a book was purchased online on March 30th, but the book was not actually printed and shipped until April 2nd, then you would be paid in the 2nd quarter, not the 1st, since the book didn't ship until the 2nd quarter.

You will only be paid once for the original book sale. For instance, if a book is resold in any kind of second-hand store, you will not earn a royalty on the purchase, since we have no way to track that kind of sale. Also, you earn a royalty when a retailer purchases your book for their store (when the book is printed), but not when the consumer actually purchases the book off the shelf.

Back to top

How long does it take to receive payment?

It takes about 2 months after the quarter closes until the royalty payments are sent to you. 1st Quarter checks are mailed in late May, 2nd Quarter checks are mailed in late August, 3rd Quarter checks are mailed in late November, and 4th Quarter checks are mailed in late February.

We do not receive the information reporting sales through distribution until 30 days after the close of the quarter. Then, we need additional time to verify, compile and send out the information to you.

I've noticed my book being sold as "used" on Web sites but I have not received payment; why haven't I been paid?

Often, retailers list books on their Web sites and advertise that they have "new and used" copies of books. Retailers use this as a marketing tool to entice the consumer by frequently offering a small discount on the used version. This does not necessarily mean that they have an actual copy of your book on hand, which is most likely the case if you have not been paid a royalty for the book sale. If any books are sold to a retailer, you will earn the retail royalty amount which was agreed upon.

If a retailer or third party actually is selling a used copy of the book, you would have already been paid in the past for the original sale.

Back to top

Why is my book listed at a different price on certain sites?

When you purchase channel distribution, your book is circulated to various retail channels through Ingram, our distributor. Retailers can list the selling price of your book at whatever price they wish, although most follow the suggested retail price which you select. However, some retailers may choose to list the book higher or lower than the suggested retail price, which is completely within their rights. Regardless of what a retailer sells your book for, you will always receive the retail royalty amount agreed to during the production of your book.

How do I know that I am being paid fairly for my book sales?

You will be able to view your book sales through in your quarterly reports accompanying royalty payment details. The statements are compiled and cross-examined by multiple parties to ensure an accurate record of royalty payments.

Both our printer and distributor employ independent auditing firms to verify the book sales data. Additionally, a globally recognized accounting firm conducts yearly audits of our finances to ensure accuracy.

If you feel there has been an error in your royalty payment report, you can contact our customer support team to look in the matter more thoroughly.

Back to top

Why does PublishingRoom need my social security number?

We require your social security number to comply with the government’s tax regulations. Since you have the opportunity to earn additional income from book sales, the government requires that you pay taxes on the total earnings. The W-9 form allows you to provide a Taxpayer Identification Number, or TIN. If you are publishing your book under your own name or a pen name, your TIN is your Social Security number. If you are publishing under a business name, or you want your royalty check to be addressed to a business, you can enter your employer identification number instead of your personal Social Security number.

If you do not supply your taxpayer ID number, we are required to withhold taxes at the rate of 28% of total earnings.

If you supply us with your taxpayer ID at a later date, we cannot return the withheld tax money because we do not retain it – it is passed on to the government by law. You can speak to a tax professional about how to report this at the end of the tax year in order to receive a tax return for any additional amount that you are due.

Back to top

Will PublishingRoom send me a 1099 to report additional income from royalty payments?

If you earned $20 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 1st, 2nd and 3rd quarter of the current year and the 4th quarter of the previous year. It is the form you need to use to report taxes showing additional earning or contractual work. If the total earned is less than $20, then the IRS does not require you to report it, so we will not send you a 1099 form.

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

Back to top

Back to FAQs Center