Time Frame

Royalty checks are distributed one to two times per year. They cover six- to 12-month periods during which the book is sold. They usually arrive within 90 days of the end of the royalty pay period.

Amount

A percentage of the sales of each book are paid to the writer as royalties. The industry standard ranges from 7 to 15 percent. The check amount is the amount of books sold minus returns, discounts and reserves against returns. The result is multiplied by the royalty percentage.

Features

The discounts are given to wholesalers and retailers to induce them to sell your book. Royalties are usually paid on net sales. This is after the discount is taken off the price. Any books returned are also subtracted from your sales amount.

Reserve Against Returns

Publishers of books subtract up to half of your royalties to hold just in case of returns within the next royalty period. If there are no returns, this amount is added onto the next royalty check

Recipients

Each owner of the copyright will get a royalty check; it is the royalty payment divided by the number of recipients. You receive royalties as long as you own the copyright and your books or songs sell.

Source:

Advances and Royalties: How Authors are Paid

Encarta: Royalty