Calculate Creator Revenue & Lulu Commission

by on ‎03-11-2010 03:51 - edited on ‎07-28-2015 11:40 by Community Moderator Community Moderator (89,052 Views)

The net profit from the sale of a print book project sold on Lulu.com is split 80/20 between the Creator and Lulu. For eBooks sold on Lulu.com the net profit is split 90/10 between the Creator and Lulu.

 

eBook Note: eBooks sold on Lulu.com can be offered free of charge or for $0.99 or higher. Net profit includes all revenue earned above $0.99.

 

A print book's net profit is determined by subtracting the manufacturing cost from the total price.

For additional pricing examples, see How Much Money Can I Make? 

 

Lulu Bookstore Example

The numbers displayed below are for illustration only. Manufacturing costs are determined by a book's binding, page count, and paper quality.

 

Print Book (Lulu Bookstore)
If the net profit for an item is $5.00, the Creator Revenue is $4.00 (80%) and Lulu's Commission is $1.00 (20%).

  eBook (Lulu Bookstore)
If the net profit for an eBook is $2.00, the Creator Revenue is $1.80 (90%) and Lulu's Commission is $0.20 (10%)
Total Price »  13.50   Total Price »   2.99
Manufacturing Cost » - 8.50   Hosting Cost » -0.99
Net Profit »    5.00   Net Profit »   2.00
Lulu Commission 20% » - 1.00   Lulu Commission » -0.20
Creator Revenue 80% »    4.00   Creator Revenue »   1.80

 

If your print format book is in distribution and being sold by other retailers, the retailer will purchase your book at the wholesale price your determine. The retailer may then sell your book for any price they choose. Regardless of whether the retailer sells your book at a huge markup or discount, you will always earn the same revenue for each print book sold by that retailer.

 

Print Book Wholesale Price Example

In this example, the retailer will pay $7.90 for your book. They may then resell the book for any price they choose and you will earn $2.00 for every sale.

 

Manufacturing Cost
»  5.50*
Creator Revenue »  2.00
Lulu Commission 20% »  0.40
Wholesale Price »  7.90

 

* The above example takes into consideration that some retailers, such as Amazon.com, own the presses on which your book is printed and can therefore print and assemble books at a lower cost.

 

eBook Distribution Pricing Examples

You may notice that your eBook revenue amounts change based on the retail sites you select to distribute your eBook. That is because some retailers (Lulu, Apple, and Barnes & Noble) act as sales agents meaning they sell your eBook at the price you set then take a set commission based on that price. Other retailers (Amazon, Kobo) operate as resellers. This means they pay a wholesale price to a distributor when your eBook sells. Since these retailers are buying your book from a middleman at a set price, they can resell your eBook at any price they like, including a discounted price. Under the reseller model you will always make the same revenue as displayed in the retail pricing step for each book sold by that retailer, regardless of the sale price.

 

Agency Pricing
(Apple iBookstore, Barnes & Noble)

  Reseller Pricing
(Amazon Kindle, Kobo)
eBook Retail Price »   5.99   eBook Retail Price »   5.99
Distribution Fee »  -1.80   Distribution Fee » -3.14
Net Profit »   4.19   Net Profit »   2.85
Lulu Share (10%) » -0.42   Lulu Share (10%) » -0.29
Creator Revenue 80% »   3.77   Creator Revenue 90%
»   2.56

 

Some retailers, such as the Apple iBookstore, also require prices to end in .99. If you choose the iBookstore as a retail distribution option, we will automatically adjust your price to the nearest acceptable price based on Apple's pricing tiers for each currency. To view these pricing tiers, see our Apple iBookstore retail price calculator.

 

Once your eBook is published, you can view and edit your eBook's retail pricing and distribution options from the My Projects > Manage button.

 

IMPORTANT NOTES:

  • When you select Kobo and/or Kindle distribution, Barnes & Noble converts to the reseller revenue model.
  • Kobo and Kindle distribution are not yet available for authors residing in Australia.

 

Please Note:

Creator Revenues from all distribution channels (Lulu, Amazon, Barnes and Noble, iBookstore, etc.) are displayed on the My Projects > My Revenue page. The displayed revenues are estimates based on retail sales and the creator revenues associated with each work. However, since all works are offered in all country stores, the exact amount paid to the author may vary slightly from the displayed, estimated revenue total. This is due to daily fluctuations in international currency conversion rates. 

 

The payment creators receive is calculated based on the officially posted currency conversion rates on your "payday" – not the day on which the title was sold.

 

Additional Information

How Retail Prices are Determined

Where's My Money?

How Much Money Can I Make?

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Click the links below to view a list of associated articles.

    Lulu Overview: Lulu Basics, Account Information, Glossary
    Publish: Print Books, eBooks, Covers, Copyrights, Products, Pricing
    Photo Books and Calendars: Create, Edit, Publish, Sell
    Sell: ISBNs, Distribution, Spotlight Pages, Revenues, Taxes, Professional Services
    Buy: Ordering, Shipping, eBook Downloads
    Video Tutorials: Brief overviews for getting started

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