Pricing and Royalty Statements

Please note: The following FAQs apply to you only if you purchase a Standard Package.

Do I make money when I self-publish my book with Responder Media?
How much royalty do I earn from e-book sales?
Will I be paid a royalty even if I live outside the United States?
How is the price of my book determined?
What is distribution cost in self-publishing?
How does Responder Media calculate royalty payments?
Can I receive a volume discount on a large book purchase?
When is my book's price set?
Can I change the price of my book later?
What payment form will I receive my royalties in?
When am I paid royalties? When do quarters start and end?
How long does it take to receive payment?
Can my royalty check be split between a co-author and myself?
Can I arrange for someone else to receive my royalty payments?
What is the difference between a channel or retail sale and a Responder Media sale?
Am I paid royalty on books I purchase?
I've noticed my book being sold as "used" on websites but I have not received payment; why haven't I been paid?
Why is my book listed at a different price on certain sites?
How do I know that I am being paid fairly for my book sales?
Why does Responder Media need my Social Security number?
I do not have a Social Security number because I am not a U.S. Citizen. What now?
Will Responder Media send me a 1099 to report additional income from royalty payments?

Do I make money when I self-publish my book with Responder Media?
Yes, when someone buys your book, you will receive a royalty amount from the sale. Since we do not buy the rights to your book from you, we will not give you an advance on your book like a traditional publishing company. However you do receive royalty payments from each book sale. These royalties are taxable income for you. Read other FAQ below to learn how your book price and royalty amounts are determined.

How much royalty do I earn from e-book sales?
You will receive 50 percent of the payments received from the sales of your e-book, less any distribution and technology fees, taxes and returns. Royalties will not be paid on copies provided free of charge or sold to the author.

Will I be paid a royalty even if I live outside the United States?
Yes, you will be paid a royalty even if you live outside the United States or are not a U.S. citizen. (There is only a slight difference in the laws of taxation. Read the FAQ about this below for details.)

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 once the selling price is determined.

What is distribution cost in self-publishing?
The distribution cost is calculated by the costs involved in offering your book for purchase through various channels. These costs include maintaining your book on a website, keeping information current, order fulfillment, customer support and any other processes to ensure that your book is available to others.

How does Responder Media calculate royalty payments?
Royalties are based on the payments we actually receive from the sale of printed or electronic (e-book) copies of your book, minus any shipping and handling charges or sales and use taxes. Also, we offer discounts to retail and wholesale customers, so the royalty amount you receive depends on what type of customer bought your book and any discount they received.

Here's an example of a common sales transaction:
The cover price (list price) for your book is $17.95. Your Responder Media royalty rate is 50 percent. A retailer places an order for your book through Ingram Book Company, a wholesaler. Ingram, in turn, purchases your book from Responder Media at a 55 percent discount (our standard discount to wholesalers). Ingram then resells the book to the retailer. Your royalty on this sale of your soft cover book will be calculated as follows:

Retail Sale Example:

$17.95 (SRP "Suggested Retail Price")
- $9.87 (55% Retail Discount)
= $8.08 (Net Retail Discount)
- $4.97 (COGS "Cost of Goods Sold")
= $3.11 (Net COGS)
x 50% (Royalty Rate)
= $1.56 (Royalty Earned from a retail sale)

You should be aware that the largest retailers, including Barnes & Noble and Amazon, place orders for Responder Media titles through Ingram; those orders will appear as wholesale sales on your royalty statement.

Can I receive a volume discount on a large book purchase?
Yes. As a Responder Media author, you are able to purchase copies of your book for a discounted price. You'll also receive a larger discount as you order a greater number of copies. The price of the cost per book depends on the book format and page count.

Paperback Discounts: Book Quantity	Dicount*
1-24	30%
25-49	35%
50-99	40%
100-249	45%
250-499	50%
400-999	55%
1,000-1,999	60%
2,000 +	Call for a Quote

Hardcover/Color Book Discounts: Book Quantity	Discount*
1-25	20%
26-50	30%
51-100	35%
101-250	40%
251-499	45%
500+	50%

* Orders must be for a single title, same print format, shipped to single address, no mix and match. All volume discount orders must be prepaid. Author purchases are royalty exclusive and non-returnable. Does not include author event discount purchases. Shipping charges are not included. Discounts apply to your book's retail price.

When is my book's price set?
The price of your book is set 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?
No. Once the price of your book is set, it stays that way for the entire life of the book.

What payment form will I receive my royalties in?
Your book sales royalties are paid by mailed check. When your royalty earnings for a book reaches $75.00 or more, we will pay out your royalties on a quarterly basis (four times per year). We will continue to hold your royalties until the balance due to you is $75.00 or more.

When am I paid royalties? When do quarters start and end?
First Quarter: January 1 to March 31 (checks are mailed in late May)
Second Quarter: April 1 to June 30 (checks mailed in late August)
Third Quarter: July 1 to September 30 (checks mailed in late November)
Fourth Quarter: October 1 to December 31 (checks mailed in late February)

You are paid for the books sold and shipped in the given time frame. If a book was purchased online on March 30, but the book was not actually printed and shipped until April 2, then you would be paid in the second quarter, not the first, since the book didn't ship until the second 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 because we have no way of tracking that sale. Also, you earn a royalty when the book is printed for a retailer who purchases your book for their store, but not when the consumer actually purchases the book off the shelf in the store.

How long does it take to receive payment?
It takes about two months after the quarter closes until the royalty payments are sent to you. First Quarter checks are mailed in late May, Second Quarter checks are mailed in late August, Third Quarter checks are mailed in late November, and Fourth Quarter checks are mailed in late February. (See specifics in the FAQ above)

The two month timeframe is because we do not receive the reporting sales information until 30 days after the close of the quarter. Then, we need additional time to verify, compile and send out the information to you.

Can my royalty check be split between a co-author and myself?
No, because of tax restrictions we cannot offer a split royalty payment between individuals. Of course, when the payment comes to you, you may do whatever you wish with the royalties.

Can I arrange for someone else to receive my royalty payments?
Yes, but only if you transfer the entire rights of your agreement with Responder Media to that person. That person will also hold the copyright for the book. If you would like to arrange this, please contact our customer support team.

What is a channel or retail sale and a Responder Media sale?
When a book is sold through the Responder Media website, it is considered a Responder Media sale. A retail, or channel sale, is when the book is sold through any retailer other than Responder Media (like Amazon.com or BarnesandNoble.com). Your book selling price must be the same for both Responder Media and retail sales, but you will earn a different royalty amount depending on the type of sale.

Am I paid royalty on books I purchase?
Royalty payments on books you purchase depend on how you place the order. If you place an order for copies of your book through an e-mail to Responder Media and receive your author discount, then no, you will not receive a royalty payment for that order. This is because you receive the "royalty" as a discount up front. However, if you order directly through our website or a retailer and pay full price, then yes, you will receive a royalty payment for that purchase.

I've noticed my book being sold as "used" on websites but I have not received payment; why haven't I been paid?
Often, retailers list books on their websites 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 is actually selling a used copy of the book, you would have already been paid in the past for the original sale.

Why is my book listed at a different price on certain sites?
When you publish with Responder Medai, your book is circulated to various retail channels through Ingram and Baker & Taylor, our book distributors. Retailers can list the selling price of your book at whatever price they wish, although most follow the suggested retail price. 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 provided with a royalty statement showing book sales and royalty payment details each quarter. The statements are compiled and cross-examined by multiple parties to ensure an accurate record of your royalty payments.

Both our printer and distributors 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.

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

Why does Responder Media 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 percent 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.

I do not have a Social Security number because I am not a U.S. Citizen. What now?
Even if you live outside of the United States, you will still earn a royalty just as our American authors do, but we are required to withhold 30 percent of your royalty earnings. This percentage will be withheld unless you apply for a foreign tax number by submitting a W-8BEN. With a foreign tax ID, we're no longer required to withhold taxes. Any money that was previously collected can be reclaimed with your taxes at the end of the year, but we cannot repay it. For more information, or to download a W-8BEN, visit www.irs.gov.

Will Responder Media send me a 1099 to report additional income from royalty payments?
If you earned $20.00 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 first, second and third quarter of the current year and the fourth 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 $20.00, then the IRS does not require you to report it, so we will not send you a 1099 form. (If you are not a U.S. citizen, you will receive a 1042, very similar to the 1099.) If you have further questions regarding reporting taxes, please contact your tax professional.