Royalty rules and royalty terms determine the amount of royalties earned. You can have royalty rules for sales activities, licensing activities and permissions activities. Each activity type can have multiple royalty rules.
In our royalty software the rules have two components: applies to and royalty rates.
The applies to component determines which rule applies to a sales record. The applies to conditions can be based on:
- Below Cost Sales
- Product Format – such as ebook, paperback or hardcover
- Sales Type – such as direct mail, special sale or export
- Title classification – such as Pulitzer Prize or New York Times Review
- Edition Classification
- Territory – such as Canada, France, UK or United States
- Edition type – such as any, standalone (non-set), or a bundle (set) of products.
The royalties component of the rule determines drives the royalty calculation. Royalties can be based on the list price, retail price, net receipts, gross profit or net profit. Escalators can be based on quantity sold, net receipts, royalty earned, unit net price or unit retail price. Royalties can be a percentage of the basis or a per unit (copy) fee. You can pay a flat rate bonus at specified sales levels.