What are royalties?

  • Royalties are a binding payment to an individual or company for the ongoing use of their assets such as copyrighted works, franchises, natural resources, etc
  • They more like revenue generators specially designed to compensate owners and any bloodline relatives of their work property when they are used for another entity’s use
  • Examples such as music, artworks, etc
  • Examples of real estate are houses, farmland, etc

Why should you buy real – estate?

  • Real Estate appreciates in value over time, with a good investment; you can profit by selling it at a high price 
  • It can easily be turned into a passive income asset; for example constructing multiple houses and renting them out 
  • Take out a loan to buy house 1. Rent it out which will pay the Emi’s partially. Once it’s paid off., purchase house 2 and rent it out as well. Rent’s from both houses will pay for house 2. Repeat till one reaches house 5 or 10 as per risk appetite.
  • The above also gets a tax benefit called negative gearing. The interest paid to the bank is deducted from ones income when calculating ones taxable income.

Royalties from Publishers

  • A publisher pays authors royalties in exchange for the rights to publish their work in book form. 
  • Royalty rates are percentages of book sales and they are entirely negotiable, though some publishers have standard royalty rates or standard royalty ranges that they try to stick to for the majority of their book deals. 
  • Complicating matters a bit, there are also several different types of royalty payments that an author might see in an offer, or a book contract.
  • An advance is an up-front payment made before any book sales occur, but in essence this payment is made in expectation of future royalties

Amazon’s Self-Publishing “Royalties”

  • When you self-publish, you keep the rights to your works. That means, technically, Amazon’s payments aren’t really “royalties,” even though that’s what Kindle Direct Publishing (KDP) calls them.
  • You have two royalties options for KDP eBooks: 35% or 70%. The choice for higher royalties might seem obvious, but there are some stipulations involved, like pricing and geographical availability.
  • You also have the offer to enroll your book in the KDP Select program, which offers a different royalty structure. 
  • No matter which royalties plan you choose, here’s an important point: Authors on KDP keep complete control over their book’s price and promotions. You have the right to use the book however you want to.
  • At the end of the day, your book should be working for you, not the other way around. If you can get a large advance and already have a strong following, traditional publishing might be your best option.