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Dellarte Press FAQ

Pricing & Royalty FAQ

Do I make money when I self-publish my book with Dellarte Press?
Will I make money when my book is sold online through Dellarte Press?
Will I be paid a royalty even if I live outside the United States?
How is the price of my book determined?
How does Dellarte Press calculate royalty payments?
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 Dellarte Press sale?
Am I paid royalty on books I purchase?
I've noticed my book being sold as "used" on Web sites 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?
How can I track my book sales?
Why does Dellarte Press need my Social Security number?
I do not have a Social Security number because I am not a U.S. Citizen. What now?
Will Dellarte Press send me a 1099 to report additional income from royalty payments?

Do I make money when I self-publish my book with Dellarte Press?

Yes, you will make money when you self-publish a book with Dellarte Press. 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.

Will I make money when my book is sold online through Dellarte Press?

Yes. When your book is sold through Dellarte Press or another retailer you will receive a royalty amount.

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?

During the publishing process, the price of your book will be determined after you have approved your manuscript. The cost of your book is based on the cover cost and page count, which determine the minimum base price for the production of your book, plus the distribution cost and royalty amount. The distribution and royalty amounts are pre-determined.

How does Dellarte Press 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 175 page softcover book is $11.99. Your Dellarte Press royalty rate is 50 percent (after COGS) on all softcover, hardcover and e-book sales. A retailer places an order for your book through Ingram Book Company, a wholesaler. Ingram, in turn, purchases your book from Dellarte Press at a 48 percent discount (our standard discount to wholesalers). Ingram then resells the book to the retailer.

Here is an example of how your royalty is calculated:

$11.99 (SRP "Suggested Retail Price")
- $5.76 (48% Retail Discount)
= $6.23 (Net)
- $3.81 (COGS "Cost of Goods Sold")
= $2.42 (Gross)
x  50% (Royalty Rate)
=  $1.21 (Royalty Earned)

You should be aware that the largest retailers, including Barnes & Noble, Amazon and most Borders stores, place orders for Dellarte Press titles through Ingram. Those orders will appear as wholesale sales on your royalty statement.

Can I change the price of my book later?

No. Once the price of your book is set at a given page count and cover/binding type, 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.

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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 you can, but only if you transfer the entire rights of your agreement with Dellarte Press to that person. That person will also hold the copyright for the book, but not the content of the book or your manuscript. If you would like to arrange this, please contact your publishing consultant.

What is the difference between a channel or retail sale and a Dellarte sale?

When a book is sold through the Dellarte Press Web site, it is considered a Dellarte Press sale. A retail, or channel sale, is when the book is sold through any retailer other than Dellarte Press (like amazon.com or BarnesandNoble.com). Your book selling price must be the same for both Dellarte Press 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 Dellarte Press 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 Web site 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 Web sites but I have not received payment; why haven't I been paid?

Often, retailers list books on their Web sites 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 Dellarte Press, your book is circulated to various retail channels through Ingram, our book distributor. Retailers can list the selling price of your book at whatever price they wish, although most follow the suggested retail price which you select. 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 distributor 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 your publishing consultant to look into the matter more thoroughly.

How can I track my book sales?

Book sales are reported on the quarterly statements distributed with royalty checks. Currently, we cannot track book sales mid-quarter.

Why does Dellarte Press 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 do I do?

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 Dellarte Press 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.

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