Royalty Guide · 3 min read
How to read a royalty statement
Statements look opaque until you know what the columns are for. Then they are the best evidence you have.
A useful statement tells you four things: which work earned, where it earned, in what period, and what was deducted. If any of those is missing, you cannot verify the number — and unverifiable numbers are how errors survive for years.
Gross receipts are what the society or licensee paid. Net receipts are what remains after their deduction. An administrator's commission is then applied according to whatever the agreement says, and the remainder is the writer's share. Foreign earnings will also carry an exchange rate and the date it was applied.
Check that every work you expect appears at all. A missing work in a statement is usually a registration problem, not an earnings problem, and it is fixable.
What to remember
- Look for work, territory, period and deductions on every line.
- Read your own agreement for how commission is calculated.
- A missing work usually means a registration gap.