A royalty percentage is meaningful only when you know the amount it applies to. Two publishing offers can show the same percentage yet produce different earnings per copy because their calculation bases and deductions differ. Before selecting a plan, ask for a worked example using your proposed book price.
This guide helps first-time authors understand the questions to ask when reviewing a publishing proposal. The examples below are hypothetical and are not a quotation or statement of PustakInk's current royalty terms.
Identify the calculation base
Ask whether the percentage applies to the printed MRP, actual selling price, net receipts or another defined amount. Then ask which charges, if any, are deducted before that percentage is applied.
For example, a hypothetical 20% royalty on a selling price of ₹250 is ₹50 per eligible copy. If a different agreement applies 20% to net receipts of ₹150, the result is ₹30. The percentage is identical, but the base changes the outcome.
Separate MRP from the sale price
The price printed on a book and the amount paid during a discounted sale may be different. Ask how a discount affects your royalty and who can approve it under your arrangement.
If your proposal uses the actual selling price, request an example at both the normal price and a discounted price. If it uses another basis, have that basis written clearly. Do not estimate income by multiplying the cover price by a percentage unless the agreement uses that exact method.
Clarify different sales channels
A publisher's store, a third-party marketplace, an institutional order and copies purchased directly by the author may have different arrangements. Ask how each channel is recorded and whether the same royalty rule applies.
Keep author-copy purchases distinct from reader sales. If you buy copies and sell them yourself at an event, ask how that transaction is handled instead of assuming a second royalty will also be paid. Record the costs of those copies and the money you collect separately.
Understand returns and settlement timing
Ask when a sale becomes eligible for a royalty, how cancelled or returned orders are treated and whether adjustments can appear in a later statement. Clarify the reporting period, payout schedule and any minimum settlement requirement.
Sales totals, eligible royalty totals and amounts already paid are different figures. A clear report should help you reconcile them without guessing. If your plan uses volume-based tiers, ask when the new tier begins and whether it applies only to later sales or also to earlier ones.
Request a useful royalty statement
- The reporting period and book edition.
- The sales channel and eligible quantity.
- The calculation base and applicable percentage.
- Any returns, adjustments or deductions.
- The amount earned, amount paid and remaining balance.
The exact report format may vary, but these questions help you understand it. Raise a discrepancy with a specific period and transaction reference where available, rather than comparing unrelated dashboard totals.
Keep publishing expenses separate
Royalty income is not the same as overall project profit. An author may also have paid for publishing services, additional copies, delivery or promotion. Keep a simple project record so you can see income and expenses together.
Set sales goals as planning assumptions, not promises. A calculation showing possible earnings at 100 sales does not establish that 100 copies will sell. Start with realistic reader outreach and review actual results over time.
Frequently asked questions
Does a higher percentage always mean a better offer?
No. Compare the calculation base, included services, channel coverage and deductions alongside the percentage.
Will discounted sales always reduce royalties?
It depends on the agreed calculation method. Ask for a discounted-sale example before signing up.
Where should I check PustakInk's applicable terms?
Review the current publishing plans and ask the team to confirm the terms for your book in the written proposal or agreement.
Ask for an example for your book
Contact PustakInk's Bhubaneswar team with your proposed format and selling price. Discuss the publishing workflow alongside sales reporting so you understand both production and the commercial arrangement.