There are several types of royalties that can be paid to authors. One type is royalties paid on retail sales, where the author receives a percentage of each retail book sold. Another type is royalties paid on net proceeds, which includes all book sales, including those outside of retail.

Remember that discounts and sale prices affect net proceeds. It's important to understand the publisher's royalty model, discounts, and structure before signing a contract. Want to learn more about writing and publishing?

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