Your Agency may negotiate royalties instead of a flat fee payment, or a combination of Advance fee and Royalty, which is more common. The advance fee is usually an advance on the Royalty so it needs to have been paid off in actual sales before your royalties come through, until then your statements will show a negative balance.. Royalties are usually based on a % of the sale price of the goods that your artwork is on (retail price or wholesale price minus any fee samples and returns).
The frequency of the Royalty is calculated or accounted for can be quarterly, six monthly or yearly.
We have a dedicated Royalties team here at Accounts Admin that process the above criteria so that they can track your payments.
Royalty statements are chased if they are over the scheduled frequency as above. They are then checked and invoices are raised, those invoices are then chased like any other invoice. Royalties take over twice the administrative time than flat fee payments!
Since payments are often smaller, bank fees are also a disproportionately larger ration.
Once the Royalties team receives statements from your Client, and we invoice them, you will be able to see whether you are entitled to any royalties in your own portal via an invoice.
We also routinely send you the statements so you can track how much of the advance payment is still outstanding before you can earn more money (from the sales/royalties).
You may direct any questions you may have about royalties (frequency, payment dates, commission form, etc). to our Royalties team email@example.com.