2. Royalty Rates

Royalties are a contractually required payment that the publisher will give you In exchange for the license to publish your game. In general, your royalty will be a percentage of the money that the publisher makes from the game — but how that is defined can make a huge difference. In this section, we talk about:

A. Advances (ask for one!)

B. Royalty methodology (MSRP, Gross revenue, Net profits)

C. Royalties for international sublicenses

D. Royalties for expansions (Derivative Works)

E. Typical royalty rates by product

F. Escalating royalties and bonuses

G. Comparing offers