OT: Typical Author's Royalty Percentage?

NickHope wrote on 11/19/2005, 1:57 AM

I'm currently renegotiating a deal with a DVD producer in the UK for a DVD that contains around 50% of footage shot by me, and a script written by me.

Until now we've been on a 50/50 share-of-profits deal, but since he has manufactured and sold all the discs over the last 5 years, he's proposing to pay me an 8.5% royalty on the selling price in the future, which he says is in line with his other "authors".

There is no chance of a license fee to use my footage. I have little experience of typical royalty percentages. How does 8.5% sound to you more experienced guys?

Thanks,

Nick

Comments

Spot|DSE wrote on 11/19/2005, 8:37 AM

8.5 falls into the realm of a short royalty on a large sell run, and on the higher end of a small sell run. Can you stagger it based on units?
ie; first 5000 units sold= 5% royalty
at 5001 to 8.5k units=8.5% royalty
at 8501 to 10k units=10% and so forth

The question to ask is how much promo they're expending, and what their actual costs are, not including the manufacturing. What are their actual distro costs? If they're high, then you get a lower royalty because it's their risk. If they're low, then you should have a higher royalty because it's your content.
There is no standard scale, but the sliding averages are between 5% and 18%, with lots of variables and reasoning in between.

NickHope wrote on 11/19/2005, 10:22 AM

Thanks very much for the response Spot.

The quantity is way under 5000 units. It's a very niche DVD, and the producer is basically burning the DVDs to order for sale off his website, to internet retailers, and at trade shows.

So based on the guidelines you've given it seems that 8.5% is not bad.

Nick