Royalty Policy

The headline numbers

75% of the list price to authors on every ebook sale.

45% of the list price to authors on every audiobook sale. The lower share on audiobook funds voice provider cost, mastering, and streaming delivery — all of which Penworth pays directly so the author never sees a production invoice.

Livebook (the cinematic companion experience) costs the author nothing and pays the author nothing. Readers have already paid the author royalty on the ebook; unlocking the Livebook is a separate 100%-Penworth transaction that funds the production of the Livebook itself. We do not double-charge the reader and we do not deduct from the author.

The same royalty rates apply to every author, with or without a Penworth.ai membership. Membership changes what publishing costs, not what the author earns per sale.

Stripe processing fees are deducted before the split, not from the author’s share. Processing cost is genuinely external money out of the system — it’s the only thing that gets taken off the top.

The exact formula

For a single-book purchase:

1. Reader pays list price (set by the author).
2. Stripe deducts its fee (2.9% + 30¢ per transaction, or the equivalent for the reader’s region).
3. A 2.1% chargeback reserve is set aside (see below).
4. The author receives their format royalty (75% for ebook, 45% for audiobook) on thelist price. Penworth keeps the remainder.

Worked example: $9.99 ebook purchase by a US reader.
Stripe: $0.29 + $0.30 = $0.59. Reserve: $0.21. Author: $9.99 × 0.75 = $7.49. Penworth: $1.70.

Worked example: $14.99 audiobook purchase by a US reader.
Stripe: $0.43 + $0.30 = $0.73. Reserve: $0.31. Author: $14.99 × 0.45 = $6.75. Penworth: $7.20 (funds voice rendering, mastering, and streaming delivery).

Subscriptions — the thing everyone gets wrong

When a reader uses their Plus or Premium subscription to access your book, you are paid proportional to reading/listening time on your book vs all books consumed that monthfrom a defined pool — 85% of net subscription revenue (after Stripe processing) for that month.

The pool is disclosed monthly. The denominator (“total reading/listening time on all subscribed books”) is published alongside your per-book minutes. You can verify the maths yourself.

We do not use “pages read” or any opaque engagement metric. We use time listened/read, which is directly measurable and auditable.

Payouts

• When: monthly, on the 15th, for earnings accrued through the end of the prior month.
• How: Wise. You add your bank details or debit card once; Wise handles the transfer in 70+ currencies at mid-market rates.
• Minimum: $10. Below this, earnings roll into the next month.
• Currency: USD, converted to your local currency by Wise at mid-market rates.
• Refunded sales: if a reader gets refunded, the corresponding author earnings are reversed on the next payout.

Chargeback reserve

Penworth holds back 3% of each payout into a chargeback reserve, released after 90 days. This covers disputed transactions without reclaiming money from the author after the fact. The reserve balance is visible in your earnings dashboard.

Taxes

You are responsible for reporting and paying tax on your earnings in your jurisdiction. Penworth issues annual tax summaries (1099-NEC for US authors, equivalent in other jurisdictions). VAT/GST on consumer purchases is collected and remitted by us where we are registered; we do not deduct it from your royalty base.

What cannot change without notice

The 75% ebook / 45% audiobook split is contractual. We will not silently reduce it. Any change requires 60 days’ notice by email, and you may withdraw your books before the new rate takes effect with no penalty.

Transparency

Every quarter we publish an aggregate royalty report at /transparency: total paid to authors, average royalty per book, subscription pool figures, and the number of disputes plus their outcomes. This is independently auditable.

Disputes

Royalty disputes: royalties@penworth.ai. We respond within 5 business days. If unresolved within 30 days, the dispute can be escalated to Australian Consumer Law arbitration.