Book publishers often have royalty rules for books published using print on demand (POD) technology.
POD technology allows online retailers and wholesalers to print books as orders come in. There is no need to print, stock or ship physical books. The downside to POD publishing is that production costs are higher.
To account for higher production costs an author’s royalty contract may specify lower royalty rates on sales of POD products.
- Standard Royalty. The standard paperback royalty rate is 10% of net receipts for the first 5,000 copies sold, 12.5% for the next 5,000 copies sold, and 15% thereafter.
- Royalty Rule 1. The royalty rate for paperback POD books is 5% of net revenue (excluding production costs)
- Royalty Rule 2. The royalty rate for paperback POD books is 10% of the gross margin (revenue less production costs)
In EasyRoyalties a POD edition is usually indicated on the title edition record (product record) by specifying an other classification of “Print on demand” or POD.
The royalty rule for a paperback print on demand title will include an applies to criteria for the specified format (Paperback) and edition classification (Print on demand).