What are 'royalties'?

What are 'royalties'?

Jonny Geller (Managing Director - Curtis Brown (Books)) gives expert video advice on: How do advances and royalties work?; Should I accept an offer of a 'flat fee'? and more...

Royalties are a percentage of the sales of each book that you get returned to you once your advance has earned out. Earning out means the amount of books sold exceeds the advance level, and then you'll start seeing those royalties. The higher the advance, the longer it takes to earn out. The lower the advance, the quicker it takes to receive royalties.