What Terms for a Royalties-Deal?

5 replies
Hey guys,
I sell digital products and I made a deal with a writer to pay him royalties on a product.
It's a 123 pages ebook sold for 27€ with bonuses.

How would you structure the deal knowing that:
- I setup the website, wrote copy, created the upsells and bonuses , and I run traffic with my money
- I sell with Clickfunnels for Advertising campaigns
- I sell with Clickbank for Affiliate Traffic

I was initially thinking about:
- 15% of revenues from Clickfunnels, on Front End only (I pay for traffic)
- 20% of revenues from Clickbank

BUT...
- On Clickbank, the affiliate commission is 75%. So 20% of 25% (Vendor's cut) is only 5% commission...
- I want to use the Clickbank JV functionality to automate as much as possible.
- If I decided to run traffic to Clickbank instead of Clickfunnels, with an affiliate link, I would get the 75% + 80% of the 25%...so 95%. It makes no sense to structure the JV that way...

Knowing all that, what would you recommend please ? I want to keep it simple and automated.

Thanks
#royaltiesdeal #terms
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  • Profile picture of the author Kay King
    I made a deal with a writer to pay him royalties on a product.
    What was that deal? Was it specific or is it 'in process'? What terms has the writer suggested, if any?
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    • Profile picture of the author ValentinCavelier
      Originally Posted by Kay King View Post

      What was that deal? Was it specific or is it 'in process'? What terms has the writer suggested, if any?
      The initial deal was:
      - 15% on clickfunnels sales
      - 20% on clickbank sales (Vendor's cut)

      Thanks for your interest
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      • Profile picture of the author JohnMcCabe
        Originally Posted by ValentinCavelier View Post

        The initial deal was:
        - 15% on clickfunnels sales
        - 20% on clickbank sales (Vendor's cut)

        Thanks for your interest
        Sounds like you already have your terms. Why do you want to change them?
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  • Profile picture of the author Frank Donovan
    The simplest solution? An upfront, flat fee for the book. Then, if you're intent on paying royalties, have them kick in only after reaching an agreed number of sales or net revenue value. You keep all revenue from the upsells.

    But in general, offering royalties is only worth your while if you want to keep the writer on board for future projects.
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    • Profile picture of the author ValentinCavelier
      Originally Posted by Frank Donovan View Post

      The simplest solution? An upfront, flat fee for the book. Then, if you're intent on paying royalties, have them kick in only after reaching an agreed number of sales or net revenue value. You keep all revenue from the upsells.

      But in general, offering royalties is only worth your while if you want to keep the writer on board for future projects.
      Yes I know, but in this case it's a writer with whom I'll work on multiple projects.
      I don't pay her upfront but only on royalties.

      So what would you suggest ? Especially in the setup of the Clickbank JV...

      Thanks for your interest
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