royalty management

Why Automating Royalty Management Will be Helpful for You?

Managing the royalty payments can be challenging if you are not aware of the techniques to calculate royalties. Are you utilizing a creative song or video in your project that is created by another individual? If so, you must gather all the information about different kinds of royalty calculation methods. While you are including someone else’s creation into your project, you have to give a certain percentage of the revenue to the creator. That’s what royalty payment is in simple words. Calculating royalty payments is a troublesome thing indeed if you possess no idea of how to do that. In this article, we will sort out all your queries regarding the calculation methods of royalty payments.

First of all, you are likely to know all the relevant applied methods to calculate royalties. Let’s check out what the top methods of calculating royalties are.

Gross revenue payment 

In this method of calculating royalty payments, you are bound to pay a certain percentage of the revenue to the original creator of content before considering your other expenses. That percentage is generally predetermined in the agreement that you have with the original creator. No matter what additional expenses you have to bear from the revenue, you have to pay a certain amount to the original creator.

Net revenue payment 

Here you are supposed to pay the original creator after calculating the expenses you have to bear from the revenue. In this case, you get a chance to consider all your expenses. You have to pay a certain percentage to the original creator from the amount that resides after deducting your expenses. You pay the original creator based on your net profit from the project. As there are chances to save money up to some extent, most companies and organizations prefer calculating royalty payment.

Minimum rent payments 

This method allows the original creator to get a minimum amount every month, even if there is no sale. The rate of payment gets increases as the rate of sales to get increased. This method is beneficial for creators who create original songs or videos.

Royalty advances 

In this case, original creators generally get paid before any earning is made from the projects that include their content.

Price per unit payment 

While you calculate the royalties using the price per unit payment method, you are supposed to pay the original creator based on the number of sold CDs or books.

Monthly royalty expenses 

In general, royalty payments are calculated on a half-yearly or quarterly basis, and payments are disbursed. But in the monthly royalty expenses scheme, you are likely to pay the original creator monthly. It also becomes easy to calculate the royalty expenses of the creator for you.

Challenges that you might face while calculating royalty payments 

Time is a factor 

If you own a production house or an independent media firm, you might use songs or videos of other creators frequently. This is also common in books, and authors often use quotes or paragraphs from other books to make their creations more engaging. But calculating royalty payments can take a lot of your precious time. While you’re associated with a creative profession, you can’t afford to invest much time calculating royalty payments. Besides that, calculating royalty payments can be tedious and irritating for you as a creative person. Therefore, time management is a big challenge when calculating the royalty payments you owe to other creators.

It can interrupt your growth

As you invest a lot of time calculating royalty payments, your opportunities to grow on a bigger scale get interrupted. Whether you’re running a writing firm or a production house, your primary focus should be on taking your creativity to the best level. When you start investing time in royalty payment management, you lose the scope of the ample growth of your creativity.


No matter what method you use for calculating royalty payments, miscalculation can happen anytime. Inaccurate calculations can harm your relationship with other creators. Apart from that, you might miss some data while calculating royalty payments, which might lead to a massive mistake in calculation. That’s why accuracy is a huge challenge in terms of royalty payment management.

Storing all the data 

You might find it difficult to store all the data related to royalty payments. You might calculate the royalty payment that you owe to other creators using Excel sheets. In the end, it becomes exhausting and frustrating to manage all the sheets appropriately. As you hire an accountant to perform such tasks, you might have to spend a lot of money on that.

How our software can help you in managing your royalty payments? 

If you’re concerned about calculating your royalty payments, our software can be an excellent solution for you. Our software includes powerful payment management tools that can help you get track of your royalty payments quickly. Let’s see what our royalty management software offers.

  • We provide regular financial reports where you will find different aspects of your royalty management program. Unearned advances, reverse balances, net payables- you can know it all with a single click.
  • Our automatic royalty calculation tool can be your best friend in calculating royalties. Based on the input data, the tool can calculate your due royalties within minutes. You don’t have to put additional effort into that. The tool is very fast in generating accurate reports, and that can be very helpful for you.
  • You can generate and print royalty statements and invoices whenever you want. Our professional team also sends the statements and invoices to you regularly.
  • You can audit the reports as per your convenience using the report management tool of the software.

These are the reasons why you should automate your royalty management program and enable our software at your service. By doing so, you will help yourself to calculate your due royalties in better ways.