The Outline for Profit Sharing

Here are the basic principles.

  • Editorial team includes people and organizations that work on project management, editing, artwork, marketing, administration, and other necessary activities for publishing and marketing the book.
    • Editorial team is led by Hyokon Zhiang(ReadBuild) and Charles Montgomery.
  • Editorial team members who also contribute articles for the book count as authors as well.

1. Revenue sharing between editorial team and authors

Publishing as an ebook and online contents:

This applies to ReadBuild, if the book is published as a paid one, Kindle, and any other future electronic or online publication.

The net revenue, after the ebook platform takes its share of revenue (30% – 65%) from the total revenue, will be distributed as follows:

  • Editorial team – 40%
  • Authors – 60%

Publishing as a paper book

Editorial team will collect royalty (usually 6 – 10 % of the cover price) from the publisher, and distribute as follows:

  • Editorial team – 40%
  • Authors – 60%

2. Revenue sharing among authors

Each author will be distributed one’s share of revenue based on the following formula:

  • An author’s share of revenue = word count share (70 to 100% of the author revenue pool) + extra contribution bonus (0 to 30% of the author revenue pool)
  • Author’s word count share = # of author’s words / total # of words.
  • Extra contribution bonus amount and recipients will be determined by the editorial team.
Advertisements

About thenewkoreafiles

Sharing Korean Life, News and Blogs
This entry was posted in Uncategorized. Bookmark the permalink.

3 Responses to The Outline for Profit Sharing

  1. Chris Backe says:

    Nice to know this has been worked out. So, to do some math…

    Assuming the e-book sells at max for $9.99 (and PLEASE don’t tell me you’re going to charge more than that), and that 65% of the royalties are received from said sale (and Amazon offers 70% – where are you selling this thing?), that’s $6.49 to split up from one sale. That’s 40% for two editors ($2.59 total, or $1.295 for each of you), and 60% for the pool of writers ($6.49 – $2.59 = $3.90). While the ReadBuild website doesn’t show author’s names, there are currently 40 stories (not including introductions, etc.).

    But wait! There’s another way to split the pot – the word count + ‘extra contribution’ bonus. Let’s keep it simple, and just assume the maximum possible is handed out. Assuming each one is written by a different person, 40 authors split $3.90 per sale. They’re not all the same length, of course, so ignore that for now. 40 / $3.90 = $0.1026 cents per e-book sale.

    Ten cents per story per sale. And that’s the e-book version, using a best case scenario.

    Looking at the paper version, let’s warm up the calculator again: “usually 6 – 10 % of the cover price” according to you. This, despite my own paper book (printed via Createspace on demand – no need to purchase extra copies) making 28.4% royalty ($3.69 per Amazon.com on a $12.99 book).

    Let’s assume a $19.99 cover price (again, PLEASE don’t tell me you’re going to charge more than that). $19.99 * 10% = $1.99 royalty per copy. 40% goes to the editors, or $0.796 for each of you. 60% goes to the writing pool ($1.194). Assuming forty writers for the current forty stories, $1.194 divided by 40 = $0.02985.

    Three cents per story per sale for the paper version. Out of 1,999 cents, each author gets three of them.

    But people will buy this in mass droves! We’ll sell thousands of copies! OK, let’s explore that.

    Assuming 1,000 of the e-books are sold, that’s $100. Assuming 1,000 of the paper books are sold, that’s $30. If those two numbers are indeed reached, Mr. Editor, you’ve just made a cool $1,295.00 from the e-book and $796.00 from the paper book.

    So, reviewing:
    Individual author’s cut of the pie: 1% or .3%.
    Individual editor’s cut of the pie: 12.9% or 3.9%.

    Tell me my math is wrong, if it is. If it’s not, could you please explain how something that wasn’t about the money will be making the editors 13 TIMES MORE than the writers?

  2. If you read the post again, Chris, you’ll see that

    “Editorial team includes people and organizations that work on project management, editing, artwork, marketing, administration, and other necessary activities for publishing and marketing the book.”

    According to this page:
    https://thenewkoreafiles.wordpress.com/editors/
    That includes six editors, not two, as per your calculations, and the list of people getting editors cuts also will include people who helped us in those other “necessary activities”: people who helped us find and recruit writers, and those who help promote or host the project (for example, the ReadBuild organization), and probably others I’m not thinking of right now, and brings the editor’s share down to somewhere in line with what authors will receive.

    Every contributor agreed to the terms of submission when they submitted their piece. Generally, I’ve been very satisfied with my choice to not participate in projects and initiatives the terms of which, managers of which, or administration of which I dislike. Once I choose not to participate, I generally ignore said projects, rather than harrying the organizers.

  3. Chris Backe says:

    In the interest of keeping this simple, I’ll post this here and be done with the other threads.

    Fine, there are six editors. I missed that part, as it was on a different page. There are also an uncounted number of ancillary positions that will get factored in. Even there are twenty editors, it doesn’t change the author’s cut at all. It simply dilutes the editor’s cuts. Perhaps it will dilute itself to the point where Charles is right, and everyone makes the same (small) amount of money.

    My point was two-fold – first, it looks like the editors are making more than the writers, and second, that the author’s share are miserly at best. If an e-book is sold for $9.99 (to assume a price point, since none has been decided officially), authors make 10 cents per copy per story. Sell a paper book for $20 (to assume another price point), and an author makes about three cents a story. Choose a lower price point or receive a lower royalty, and the share goes down even more.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s