Learn how compensation earnings are calculated and when compensation payments are made, direct deposit payment options for compensation earnings (bank checking account or PayPal), instructions for updating compensation payment information, and compensation payment schedules for print books and ebooks.
Lightning Source pays the publisher the wholesale price less the cost of printing for each book sold through the global distribution network. The wholesale price is calculated from the list price and wholesale discount provided by the publisher. While Lightning Source accepts a range of wholesale discounts, the then-current minimum wholesale discount can be found on the title setup page within your Lightning Source account. Minimum allowed wholesale discounts can vary from time to time and are set by Lightning Source at its sole discretion. As the publisher, you are solely responsible for ensuring your pricing is appropriate for the wholesale discount you set.
A wholesale discount of 53% to 55%, with a ‘returnable’ status, generally allows for the widest availability through most retailers and bookstores, as it allows these retailers and bookstores to receive their standard trade discount when purchasing books from the wholesalers and resellers who are part of Lightning Source’s global distribution network. There is no guarantee that any given wholesaler, reseller, or retailer will purchase or make any book available for sale, no matter the wholesale discount.
The following is an example of how compensation earnings are calculated, with US market pricing:
$25.99 Retail/List Price of the book
-55% Wholesale discount distribution partners receive
$11.70 Wholesale price that the distribution partners pay Ingram
-$7.18 Print cost for a 6x9 (229x152mm) BW Interior paperback
$4.52 Compensation earnings
Depending on the country you are located in, there may be additional VAT or GST charged on top of the Global Distribution Fee for print books.
**NOTE ABOUT WHOLESALE DISCOUNTS: As you can appreciate, we are not the only piece of the distribution chain in your title. Each company that is involved in the distribution chain may receive a portion of your wholesale discount. Offering a 53% to 55% wholesale discount in the US (including Canada) market and 48% to 55% in the UK, Europe, and Australia markets, allows bookstores to receive their normal trade discounts from distributors and wholesalers they buy books from.
IMPORTANT: If you make changes to the list price, discount, or returns option it can have a negative impact on the compensation you receive.
Lightning Source will provide a monthly Sales Report to the publisher via email. At a minimum, Lightning Source monthly reports include the book title, ISBN, Quantity Shipped, Wholesale Price of books sold, Cost of Printing, Returns, and Net Compensation per title. Reports will be emailed within five (5) business days at the end of the month and will include sales for the current month.
Publishers may select from the payment methods listed below:
- USD ACH direct deposit (must be US-based bank) - No minimum
- USD PayPal - $30.00 minimum
- CAD ACH direct deposit (must be Canada-based bank) - $25.00 minimum
- GBP BACS direct deposit (must be UK based bank) - No minimum
- EUR BACS direct deposit (must be EUROZONE-based bank) – €25.00 minimum
- AUD BACS direct deposit (must be AU based bank, NO NZL banks) - $25.00 minimum
Payments are made to the publisher, via selected payment method*, 90 days from the end of the month in which the sales are reported.
Certain payment methods require minimum compensation thresholds to be met before payments are issued. If the publisher’s compensation is less than the minimum thresholds for the selected payment method in a month, publisher compensation will be paid in the next month that cumulative compensation is over the applicable threshold. Regardless of the chosen payment method or currency, Lightning Source may issue payments by check in USD at its sole discretion, a non-negotiable $25.00 check handling fee will be applied for every check written.
PLEASE NOTE:
Publishers may elect to have sales paid in any of the following currencies: USD, AUD, GBP, and EUR; however, it will not change the reporting currency. Sales reports and the publisher compensation report will reflect a specific market’s currency.
- Compensation earnings can be deposited to a PayPal account (if available) or a bank checking account. We can not make deposits to bank savings accounts.
- Payments are made to the publishing company/business or legal name on the Lightning Source account and it must match the name on the checking account. Payments may be rejected if the name on the account does not match the name on your bank account.
- Only one currency and bank account can be applied. You cannot change the currency you will be paid in so make sure you select the correct currency.
- Changes to compensation payments should be applied online by the publisher.
INSTRUCTIONS FOR UPDATING COMPENSATION PAYMENT INFORMATION
Because your compensation payment for print and ebook sales is sent to you via direct deposit (or your PayPal account), it is important to make sure your information is correct and up-to-date. If you need to review or update your direct deposit or PayPal information, you can do this in your Lightning Source account.
- Log on to your Lightning Source account
- Click the drop-down arrow next to your account name in the top right-hand corner
-
Select “Publisher Compensation”
- Select one currency type for your compensation payments.
- Click “Edit” or “Add Compensation Information”
- Update or add payment information. Do not use spaces or dashes when entering bank checking account numbers, routing numbers, etc.
- Click “Save”
IMPORTANT NOTE: When you activated your Lightning Source account, you provided your bank account information and chose the currency to be paid in for books sold through our global distribution network. You cannot change the currency you will be paid in, so please ensure you select the correct currency.
You will be paid for each book printed and sold through the Wholesale Services. You will not earn compensation for orders placed through your account.
You can learn more about compensation payments and minimum payment requirements HERE.
IMPORTANT NOTE: You cannot change the currency you have chosen to be paid in.
0 Comments