How much should be the royalty fees for my software

[jkiley]

I got a call from a sales/distribution company and they are interested in distributing one of my softwares to retail stores. They are saying that they have softwares in walmart etc.

They have sent me the contract form...all lawyer's talk. Some make sense, some doesn't.

What kind of royalty fees I should expect? They have that in contract form too but I just want to see what you guys think. Of course, there are no gurantees, and I have a feeling that it is too late for this holiday season.

[jacktackett]

jkiley,

first congrats! sounds exciting. The first thing you need to do is due diligence on this company to see who they are and what type of reputation they have. The best way to do this is with your own lawyer. At the very least your accountant. But before signing any contract you really need to understand it! and that's where your own lawyer is invaluable.

Retail distribution can be brutal - especially with Walmart etc. They're basically a consignment shop - and you're going to be at the bottom of the food chain when it comes to getting paid. The terms of how you get paid are typically spelled out in the contract - and the rate is just one part of that.

Things like % of net or gross sales - or retail price etc. Time frames for getting paid, what costs are deducted or charged to you, and how often you can audit their records. If an audit clause is not in the contract you really should have that added.

I'm more familiar with author contracts and work for hire than retail royalties but if you have a specific question I'd be more than happy to help you. But I'd highly suggest you have your own lawyer look things over.

Again - congrats and good luck!
best,
--Jack