Roaylty Payment

Community Community & Industry Discussion
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1

Hello, I have a question about the Royalty Payment. There are 2 examples below, I am new and don’t know how to calculate.

1 example:

  1. Quarter :4000 $ —> 200 $ royalty;
  2. Quarter :20000 $ —> 1000 $ royalty;
  3. Quarter :30000 $ —> 1500 $ royalty; or should i subtract every quarter 3k $ (30000 $ - 3000 $ = 1485 $ Royalty ?

2 example:

or do I calculate all Quarters together and than the 5 % royalty

e.g. for the 3rd. Quarter : 4000 $
+ 20000 $
+ 30000 $
54000 $ -----> so the royalty is 2700 $

Please don’t write link references
Thank you for your answer

2

I am also confused how royalty works. How do I pay them? How they will know how much I am earning with this?

3

If you made $4000 gross revenue in a quarter, the first $3000 of that is royalty free, so you have $1000 of royalty-bearing gross revenue. Royalty is 5%, so in that quarter, you would owe a royalty payment of $50.

If you made $20,000 gross revenue in a quarter, the first $3000 of that is royalty free, so you have $17,000 of royalty-bearing gross revenue. Royalty is 5%, so in that quarter, you would owe a royalty payment of $850.

If you made $30,000 gross revenue in a quarter, the first $3000 of that is royalty free, so you have $27,000 of royalty-bearing gross revenue. Royalty is 5%, so in that quarter, you would owe a royalty payment of $1350.

Royalty payments are calculated on a quarter-by-quarter basis. I.e., revenue and payments in one quarter have no effect on the other quarters.

4

Under the EULA, you are obligated to report your revenue, and your royalty payments will be based on that revenue.