Royalties and Reporting

Clear Royalties Begin with a Clear Definition
Huggins Publishers believes that authors should understand how book income is calculated, when royalties are reported and what deductions apply.
The applicable royalty percentage and reporting method are stated in each author’s signed publishing agreement.

What Are Net Publishing Receipts?
Net Publishing Receipts means the money actually received from book sales after deducting applicable sales-related costs.
These costs may include:
• Sales taxes
• Customer refunds and chargebacks
• Customer or promotional discounts
• Retailer and marketplace commissions
• Printing costs
• Packaging, shipping and fulfilment
• Payment-processing fees
• Other directly attributable sales expenses  
Royalties are calculated from Net Publishing Receipts—not from the advertised retail price before expenses.

Illustrative Sale
The following example is for explanation only:
Selling price before tax: CAD $30.00
Printing and fulfilment: minus CAD $8.00
Payment processing: minus CAD $1.20
Net Publishing Receipts: CAD $20.80  
With an 80% author royalty:
Author royalty: CAD $16.64
Huggins Publishers share: CAD $4.16  
The actual amount may vary according to the book’s production cost, selling channel, currency, customer location, discounts and fulfilment expenses.

Royalty Rates
Professional Publishing—Upfront Payment
The standard royalty allocation after publication is:
• 80% to the author
• 20% to Huggins Publishers  

Professional Publishing—FlexPay Recovery Period
During the recovery period, the standard royalty allocation is:
• 70% to the author, applied toward the recoverable balance
• 30% to Huggins Publishers  
The agreement explains what happens after the FlexPay balance has been recovered.
Ready to Publish

Qualifying Ready to Publish projects may receive:
• 85% to the author
• 15% to Huggins Publishers  
A royalty rate applies only when it is expressly stated in the signed publishing agreement.

Quarterly Royalty Statements
Authors receive quarterly statements showing, where applicable:
• Units sold
• Gross sales received
• Refunds and adjustments
• Printing and fulfilment costs
• Payment-processing and marketplace deductions
• Net Publishing Receipts
• The applicable author royalty
• FlexPay amounts recovered
• The outstanding FlexPay balance
• The royalty amount payable to the author  

Royalty Payment Schedule
Royalty statements and eligible payments are normally prepared quarterly. The signed agreement will identify the reporting periods, payment method, minimum payment threshold—if any—and required author information.
Authors are responsible for keeping their contact, banking and tax information current.

Returns and Adjustments
Returns, refunds, chargebacks or sales corrections may be deducted from the current or a future royalty statement when they relate to amounts previously reported.

Author Dashboard
Authors who have at least three active Huggins Publishers titles may qualify for Legacy Author Club status and access to the Huggins Author Dashboard.
The dashboard may provide a private overview of titles, available sales information, royalty statements and author-support resources. Dashboard access supplements—but does not replace—official quarterly statements or the publishing agreement.

Questions About a Statement
An author who believes a statement contains an error may contact Huggins Publishers within the review period stated in the agreement. We will examine the relevant records and provide clarification or a correction when required.