Skip to main content
BookPublishersNYC.com home
Rights & Royalties Guide

Author Rights and Royalties:
How They Work in Book Publishing

Author rights are the legal permissions that control how a book is copied, sold, adapted and translated. Royalties are the payments an author earns from those sales. Together they decide who controls your book and how much money you keep.

  • Self-publishing: You keep your rights and earn the highest share per sale, but you pay for production.
  • Traditional publishing: The publisher pays an advance and takes certain rights, and you earn a smaller share per sale.
  • Hybrid or assisted publishing: Terms vary widely. Read the contract before you sign.
Note: This page gives general information. It is not legal advice. Consult a publishing attorney before you sign a contract.

What Are Author Rights?

Author rights are a bundle of separate rights. You can keep them, sell them or license them one at a time. A publisher may ask for some and leave others with you.

What Rights Does an Author Hold?

Print rights

Paperback and hardcover editions

Ebook rights

Digital editions for Kindle and other readers

Audio rights

Audiobook recordings and distribution

Translation rights

Editions in other languages

Foreign & territory rights

Sales in specific countries or regions

Film & TV rights

Screen adaptations

Serial rights

Excerpts in magazines, newspapers or online

Merchandising rights

Products based on the book or its characters

Special-format editions

Audio and large-print editions

Each right can earn separate income. This is why the rights you give away matter as much as the royalty rate you accept.

What Are Book Royalties?

A royalty is a percentage of the book’s price paid to the author on each sale. A royalty is calculated on one of two bases:

List Price Royalty

A straightforward percentage of the book’s retail cover price.

Net Receipts Royalty

A percentage of the money the publisher actually receives after deducting discounts given to retailers and distributors.

Crucial Note: Net receipts are always lower than list price. A percentage of net receipts therefore pays less than the same percentage of list price. Always check which base the contract uses.

How Are Royalties Calculated?

Self-Publishing

You receive a share of the list price, minus the printing cost for print books (e.g., standard KDP calculations).

Traditional Publishing

Typically offers a percentage of the list price for print editions, but switches to net receipts for ebooks and sub-licensed formats.

Hybrid Publishing

Often calculated as a share of net receipts. The percentage split varies widely from company to company.

How Much Do Authors Earn in Royalties?

Royalty rates depend on your publishing route. The figures below are typical ranges. Rates change, so verify platform rates before you publish.

Route
Typical Royalty
Who Pays Production
Rights Kept By Author
Self-publishing (Amazon KDP)
Ebook: 35% or 70% depending on price and terms. Print: 60% of list price minus printing cost.
Author
All
Self-publishing (IngramSpark)
List price minus wholesale discount minus printing cost
Author
All
Traditional publishing
Hardcover often about 10% to 15% of list price. Trade paperback often about 7.5%. Ebook often about 25% of net receipts.
Publisher
Fewer. Publisher takes a license.
Hybrid or assisted publishing
Varies widely. Often a higher share than traditional publishing.
Shared
Varies by contract
Audiobook platforms
Royalty share with exclusivity or a flat fee
Producer or author
Depends on agreement

* Verify current royalty rates and conditions on each platform before you decide.

Compare these models in more depth in our guide to Book Publishing Services.

What Does a Royalty Look Like Per Book?

These examples use hypothetical numbers. They show how the math works. They are not predictions of your earnings.

Scenario
Calculation
Author Earns Per Copy
KDP paperback at $15.00 list price, $4.50 print cost
60% of $15.00 = $9.00, minus $4.50
$4.50
IngramSpark paperback at $15.00 list price, 55% wholesale discount, $4.50 print cost
$15.00 minus 55% = $6.75, minus $4.50
$2.25
Traditional hardcover at $28.00 list price, 10% royalty
10% of $28.00
$2.80
KDP ebook at $9.99 list price, 70% option
70% of $9.99, before delivery fees
about $6.99
The Takeaway

A lower royalty percentage can come with a publisher that pays for production and offers wider bookstore reach. A higher percentage with self-publishing means you carry the costs and the marketing. Compare total earnings after costs, not just rates.

What Does a Royalty Look Like Per Book?

These examples use hypothetical numbers. They show how the math works. They are not predictions of your earnings.

Scenario
KDP paperback at $15.00 list price, $4.50 print cost
Calculation
60% of $15.00 = $9.00
minus $4.50
Author Earns
$4.50
Scenario
IngramSpark paperback at $15.00 list price, 55% wholesale discount, $4.50 print cost
Calculation
$15.00 minus 55% = $6.75
minus $4.50
Author Earns
$2.25
Scenario
Traditional hardcover at $28.00 list price, 10% royalty
Calculation
10% of $28.00
Author Earns
$2.80
Scenario
KDP ebook at $9.99 list price, 70% option
Calculation
70% of $9.99
before delivery fees
Author Earns
~$6.99
Executive Takeaway

A lower royalty percentage can come with a publisher that pays for production and offers wider bookstore reach. A higher percentage with self-publishing means you carry the costs and the marketing. Compare total earnings after costs, not just rates.

How Do Royalties Differ by Format?

Print Books

Print royalties depend on list price, printing cost and retailer discount. Page count, trim size and color pages change printing cost. Heavier books and full-color interiors earn less per copy.

Ebooks

Ebook royalties are usually higher per sale because there is no printing cost. Retailers set price bands for their top royalty tiers. Delivery fees may apply.

Audiobooks

Audiobooks earn through a royalty share or a flat-fee production deal. Exclusive distribution agreements often pay a higher share than non-exclusive ones. Check the term length and your ability to distribute elsewhere.

To see how royalties work at each retailer, read about our Book Publishing Services.

For audiobook terms, see our Audiobook Production Services.

What Is an Advance Against Royalties?

An advance is money paid to the author before the book sells. It is an advance against future royalties, not a bonus. The publisher keeps your royalties until the book earns back the advance.

Most self-publishing platforms and many hybrid publishers do not pay advances.

Key Concept

The “Earning Out” Rule

This process is called earning out. If the book does not earn out, you usually do not repay the advance. However, always check your publishing contract for specific repayment terms.

What Contract Clauses Affect Author Rights and Royalties?

Review these clauses in any publishing contract. Ask a publishing attorney to read the full agreement before you sign.

Grant of rights

Exactly which rights you license: formats, languages, territories

Term

How long the license lasts. Life of copyright is the longest.

Reversion of rights

When and how rights return to you, for example if the book goes out of print

Out-of-print definition

Whether ebooks and print-on-demand count as in print forever

Royalty base

List price or net receipts. Defined in the contract.

Subsidiary rights split

Your share of film, translation and audio deals

Option clause

Whether the publisher gets first look at your next book

Non-compete clause

Limits on publishing related books elsewhere

Accounting and audit

How often you get statements and whether you can audit them

Pricing and discounts

Who sets the price and how deep discounts can go

Termination

How either side can end the agreement

What Are Red Flags in a Publishing Offer?

Be cautious if an offer includes any of these warning signs:

A request for all rights, forever, in exchange for a fee from you.

No reversion clause or an unclear one in the contract.

Hidden costs or required copy purchases forced upon you.

Vague royalty language with no stated calculation base.

Promises of bestseller status or guaranteed sales.

Pressure to sign the publishing agreement quickly.

Free ISBN offers that restrict your publisher-of-record status without telling you.

Refusal to show a sample contract before you pay.

If you are comparing offers, a publishing consultation can help you understand what each option includes.

How and When Are Authors Paid?

Payment Schedules

Payment schedules differ by platform and publisher. Self-publishing platforms usually pay monthly, with a delay after the sales month. Traditional publishers usually issue royalty statements once or twice a year. Statements should list units sold, price, discounts and returns.

Taxes & Withholding

Royalties are taxable income in most countries. Tax forms and withholding rules depend on your residency and the platform you use to distribute your book. Consult a tax professional for your specific situation.

How Does Book Publishers NYC Handle Author Rights?

100% Rights Ownership

You keep all your rights. We are a service provider, not a traditional publisher claiming ownership. You retain 100% of your copyright and all exclusive publishing rights across every format, language, and territory.

Zero Royalty Share

We do not take a cut. Because you pay for our production and marketing services upfront, you keep 100% of your earnings directly from the sales platforms. There are no hidden royalty splits.

Accounts in Your Name

You are the publisher of record. All publishing accounts (including KDP and IngramSpark) and your purchased ISBNs are registered entirely in your name and under your control.

Transparent Contracts

No hidden clauses. We provide a clear, jargon-free service agreement detailing our deliverables and confirming your total ownership. A sample agreement is always available upon request before you sign.

Explore exactly what is included in our transparent, author-first approach by visiting our Self-Publishing Services in NYC.

Who Owns Rights When Other People Contribute?

Ghostwritten Books

Ghostwriting agreements usually assign the work entirely to the named author. Confirm this in writing to ensure full ownership. See our ghostwriting services for details.

Illustrated & Children’s Books

Illustrators often hold copyright in their art unless a contract explicitly assigns or licenses it. Agree on rights, credit, and royalty terms before commissioning illustrations. See our children’s book publishing page.

Cover Designers & Editors

Always get a written agreement that clearly states who owns the final design or edited files, and specifically how you may use them for marketing and distribution.

Co-Authors

When writing with a partner, it is crucial to agree in writing on ownership shares, royalty splits, and decision-making authority before the book goes to market.

Author Rights and Royalties FAQs

What are author rights?

Author rights are the specific legal permissions that dictate exactly how a book is published, distributed, sold, and adapted into other formats. These permissions include print, ebook, audiobook, translation, and international film rights. As the creator, you have the power to keep, license, or sell each of these rights separately depending on the specific publishing contract you choose to sign.

Do I keep my rights if I self-publish?

Yes, you retain full ownership of your rights in almost all self-publishing scenarios. When you choose to self-publish, you keep the copyright and generally only grant the platform a non-exclusive license to distribute your work. However, you must always read each specific platform’s terms and conditions carefully to confirm they do not include hidden exclusivity clauses or unexpected claims on your intellectual property.

How much do authors make in royalties?

Royalties depend entirely on your chosen publishing route and the specific book format. Self-publishing platforms typically pay a much higher share of the list price after deducting necessary printing costs. In contrast, traditional publishers pay a significantly smaller percentage per book sold, but they often provide an upfront advance and handle production expenses. Always compare the total potential earnings after all costs are factored in.

What is the difference between list price and net receipts?

List price is the official retail cover price of your book. Net receipts refer to the actual money the publisher receives only after subtracting massive wholesale discounts given to bookstores and online retailers. Because of these deductions, a royalty percentage based on net receipts will always pay you significantly less money per sale than that exact same percentage calculated from the retail list price.

What is an advance against royalties?

An advance is an upfront payment given to the author that the publisher recovers directly from your future book royalties. It is important to understand that this is not a free bonus. You will not receive any additional royalty checks until your share of the book sales officially earns back the exact amount of the initial advance provided by your publishing company.

What is a reversion clause?

A reversion clause legally returns your publishing rights back to you under very specific, predefined contractual conditions. For example, this often happens when the publisher officially declares the book out of print or when annual sales fall below a certain minimum threshold. You should always check exactly how the contract defines “out of print” so your rights do not remain trapped indefinitely in print-on-demand limbo.

Who owns the ISBN, and why does it matter?

The official owner of the ISBN is legally recognized as the publisher of record for that specific book edition. If you purchase your own ISBN directly, you maintain total control over your book’s industry listing and metadata. Conversely, using a free platform-supplied ISBN usually lists that specific company as the publisher and often severely limits where else you can distribute or print that exact version.

Do I need a lawyer to review a publishing contract?

Hiring a legal professional to review your contract is strongly recommended before signing anything. Publishing agreements are legally binding documents that dictate the control of your intellectual property and financial earnings for many years. An experienced publishing attorney can properly explain complex legal jargon, identify hidden red flags, and actively negotiate much better terms to ensure your author rights remain fully protected over time.

Are royalties taxable?

Yes, book royalties are classified as taxable income by the government in almost all countries. The exact tax treatment, necessary reporting forms, and specific withholding rules will vary drastically depending on your country of residency and the international location of the distribution platform. Because publishing income can complicate your annual filings, you must consult a certified tax professional to ensure you remain fully compliant.

Does Book Publishers NYC take any rights to my book?

No, Book Publishers NYC never claims any ownership over your publishing rights or intellectual property. As a premium service provider, we firmly believe the creator should maintain total control over their work. You retain one hundred percent of your copyright, keep all of your exclusive publishing rights, and receive all of the royalties generated from your personal platform accounts without us taking any percentage cut.

Understand Your Options Before You Publish

Your rights and royalties shape your income for years. Talk to a publishing consultant before you sign anything. We will explain your options and the exact work each publishing route requires.

Explore Self-Publishing in NYC

* Disclaimer: This page provides general educational information and is strictly not intended to serve as legal or tax advice. Please consult a professional attorney or tax advisor for specific guidance.

Book a Publishing Consultation

Scroll to Top
×

Special Offer!

Ready to publish your book? Let's discuss your project today and get a free quote.

Get Started
×

Submission Successful

Your query has been successfully submitted. Our team will review your details and reach out to you as soon as possible.