Connect channel revenue to contract language
Distribution usually changes the revenue received per copy; royalties may be calculated from MSRP, wholesale price, net receipts, or another contract-defined base. Those labels are not interchangeable. Enter the agreed base before applying a percentage.
How to apply it
For example, a 5% royalty on a $20 net-receipts base is $1 per copy, while 5% of a $40 MSRP is $2. The arithmetic is simple; the difficult and essential question is which base the agreement actually uses and what deductions are permitted.
Questions and decisions
Ask for sample royalty statements, payment timing, returns treatment, audit rights, and recoupment order. Model expected copies with both a cautious and a stronger sales scenario, but do not present a planning model as a contractual interpretation.
Next step
Use the linked tools with your project’s documented inputs, retain the source or quote date beside the scenario, and update the decision when the specification changes.