Royalties

Jeff PetersJeff Peters Posts: 29
edited January 24 in Type Business
Without mentioning any particular distributors/resellers, what would you consider a minimal acceptable royalty for normal reselling, for syncing and for pageviews per month?

Comments

  • 70%, but I might be biased.
  • I made a rough estimate of 2–4% of the gross monthly income from Creative Cloud distributed back to type designers in royalty fees as a fair reflection of the value added and hours invested. I have no idea what that figure actually is. Since type designers need the tools to produce the fonts, the least they can do is offer a free CC plan.
  • Sorry, plain English: I pay ~ €60 per month for my Adobe CC plan. I think 2–4% of that should go to type designer royalties.
  • This reminds me of the time Epic Games decided the 70/30 split from Steam was unfair to developers and created its own store with a 88/12 revenue split: https://www.polygon.com/2018/12/4/18125498/epic-games-store-details-revenue-split-launch-date

    Having said that, I believe 70% is acceptable for what you call normal reselling. No idea about syncing and pageviews, though.
  • Frode HellandFrode Helland Posts: 114
    edited January 25
    > the fonts are a value add to it 

    Of course, and I think that value added is 2–4%. If I were to consider only my side of the equation, that number would be much higher. I’m guessing Adobe’s number is much lower.
  • Guys, I'm still new to the font business, but it seems to me that low deductions are acceptable when they are offset by the number of sales. It is better to get 100 sales and get 40-50%, than one sale and 70% of deductions. I am guided by the logic of microstock. What do you think about it?
  • Thomas PhinneyThomas Phinney Posts: 1,585
    To me, the question is whether any given channel provides enough added value to justify using them, compared to the alternative(s).

    I see this much like @JoyceKetterer.

    I do not choose to primarily analyze it by whether some channel is “doing enough to justify their cut.” I think that is treating it as a moral choice, in which you want to punish those who are in essence undeserving in terms of them not doing enough. Although I don’t have a problem with taking ethical positions in business, but I don’t weight that particular question very much at all, compared to whether it makes business sense for me or my company.
  • Thanks for your insight, all.
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