Hi everyone,
I have several questions about the 5% royalty fee we need to pay when we decide to sell our product. I will start right off the bat and begin with an example:
GAME: Bunny Hoppers Xtreme
Price: €10
So far I understand it’s 5% royalties PER game PER quarter (there are 4 quarters in a year) AFTER 3000 dollars (2688 euros).
So if you earn 3500 dollars (3136 euros) you pay 5% fee over the 500 dollars (or 5% over 448 euro).
So IF this is correct then this is an example sheet:
Q1
–January--------------- You sell 400 copies (400 x 10) wich nets you 4000 dollars.
–February-------------- You sell 450 copies (450 x 10) wich nets you 4500 dollars.
–March----------------- You sell 350 copies (350 x 10) wich nets you 3500 dollars.
Total profit: 12.000 dollars. thats 5% fee over 9000 dollars = 450 dollars
Q2
–April------------------ You sell 300 copies (300 x 10) wich nets you 3000 dollars.
–May ------------------- You sell 400 copies (400 x 10) wich nets you 4000 dollars.
–June------------------ You sell 500 copies (500 x 10) wich nets you 5000 dollars.
Total profit: 12.000 dollars. thats 5% fee over 9000 dollars = 450 dollars
Q3
–July ------------------ You sell 600 copies (600 x 10) wich nets you 6000 dollars.
–August--------------- You sell 600 copies (600 x 10) wich nets you 6000 dollars.
–September---------- You sell 650 copies (650 x 10) wich nets you 6500 dollars.
Total profit: 18.500 dollars. thats 5% fee over 15.500 dollars = 775 dollars
Q4
–Oktober- You sell 150 copies (150 x 10) wich nets you 1500 dollars.
–November- You sell 150 copies (150 x 10) wich nets you 1500 dollars.
–December- You sell 150 copies (150 x 10) wich nets you 1500 dollars.
Total profit: 4.500 dollars. thats 5% fee over 1500 dollars = 75 dollars
Total profit BEFORE 5% fee: 47.000 dollars
Total profit AFTER 5% fee: 45.250 dollars
Total paid in fee: 1750 dollars
So I have 3 questions about this entire royalty stuff:
**1) Is the above stated list correct or did I forget anything (or made mistakes)?
-
If the above is correct then for how long am I paying that 5% royalty fee for?
Let’s say I release a game and it’s going 3 years strong, am I paying royalty fee till the game completely dies out and it isn’t selling anymore? -
If I would decide to NOT sell Bunny Hoppers Xtreme, but I give it away for free and on the website I have a donation button. Do I pay royalty on that?**
It seems to me that it is kinda a pain in the butt to keep sending the Royalty Payment updates to EPIC every 3 months for so long. It’s getting even worse if you have
3 to 6 products released. How in hell are you going to keep track of that?
Please let me know if I got the royalty fee thing right. I’m very curious to know also what the best way would be to track your income and the amount that needs to be paid
to Epic.