When determining the ideal Royalty rate for your products, it's essential to consider both how you value your Content and what you believe Customers are willing to pay. The Standard Royalty Rates are advised to help your Products remain competitive in the marketplace while rewarding your Content. For physical Products, we recommend setting Your Royalty Rate between 5% and 10%. This range ensures that your pricing remains competitive and is in line with what Customers expect to pay for similar items. For Instant Downloads, Your Royalty Rate can be anywhere between 5%-99%.
If you opt for a higher Royalty rate, your Products may be positioned in a more premium market—similar to high-end art or exclusive designs—where Customers expect to pay a bit more for the added value of unique, high-quality items–but sales may be less frequent.
It’s important to note that if you set Your Royalty Rate above 10%, an "Excess Royalty Fee" of 5% (of your Gross Royalty) will be applied. This fee is an additional consideration that can impact your overall Earnings for the sale, but it’s up to you to decide which strategy serves your needs best. Ultimately, the best Royalty rate for your Content will depend on your Product’s uniqueness, the target audience, your pricing strategy and promotional efforts.