How Copywriting Royalties Work
One of the perks of being a copywriter today is the sea of opportunity …
You have so many options!
You could write and get paid for projects like emails, e-newsletters, case studies, white papers, and more.
But only one type of project offers you a “bonus” income stream.
They’re the lifeblood of most direct-response marketing campaigns.
For one simple reason — they bring in sales!
And that’s why it’s often standard practice for companies to incentivize copywriters to do their very best … with royalties.
Royalties are additional payments you receive based on the performance of your copy.
Essentially, you’re getting a slice of the pie for every sale your words generate.
Here’s how it typically works:
You write a sales letter for a client.
They pay you your project fee. And with most writing projects, that’s the end of it.
You did the work. You got paid. On to the next project.
But with sales letters, many clients will also pay you a 2%–3% royalty on top of your project fee.
So, using some easy math to illustrate …
If your sales letter generates $100,000 in sales, your royalty would be $2,000.
That’s “bonus” money for you since you’ve already done the work.
But the real beauty of royalties is how they can add up …
Because if your sales letter continuously brings in sales, your client will keep using it, sending it to prospects for years.
That means a single sales letter can keep generating royalties for you long after you’ve finished writing it.
And this goes for EVERY letter you write that continues to be mailed …
Meaning you could be getting royalties on numerous letters at any given time.
At AWAI, we’ve been paying royalties on some sales letters for over 20 years now …
And most of our copywriters have numerous sales letters currently in rotation, which means every quarter, they’re getting paid for a variety of projects they wrote in the past.
When you factor in the bonus income stream created from royalties, it’s easy to see why some copywriters choose to write sales letters.
Interested? You can learn more about the project and our bestselling training here.
And if you have any questions abut copywriting royalties, please share with us in the comments, so we can get you the answers.
The AWAI Method™ for Becoming a Skilled, In-Demand Copywriter
The AWAI Method™ combines the most up-to-date strategies, insights, and teaching methods with the tried-and-true copywriting fundamentals so you can take on ANY project — not just sales letters. Learn More »
Hi Rebecca; I've been wondering if the sales copywriter sees proof of the amount of subscriptions sold via the sales letter; or just takes the client's word for the amount of subscriptions sold and royalties earned. How does that part of the process work? Thank you!
Guest (Roberta) –
Hi Rebecca
Which other projects can royalties be applied to?
Thanks!
marion –
I, too, would like to know the answer to Roberta's question, on how the "audit" and verification side of these transactions work.
Persuacious --PERSUAsive - audaCIOUS –
@Roberta and @Persuacious - the client typically provides this information. But if they're smaller or don't have a formal process in place when working with copywriters, you might need to ask.
With regards to "trusting" or "auditing" the information, my advice is always not to worry about it. You want to write for clients you trust. You don't want to start off assuming they'd deceive you - that's never a good way to start a relationship. And if a client gives you a reason to think they might not be ethical, walk. That's one of the many benefits of this career - full control over who you work with.
Rebecca Matter –
@marion - projects where your copy is directly impacting the sale. So potentially things like landing pages, email funnels, etc.
Rebecca Matter –
RM: That's a wholesome attitude and sage advice.
Yet, I think of President Reagan quoting a Russian proverb to Gorbachev: "Trust, but verify." So-Must I forbear writing for any Gorbachevs? (Some deep pocket clients there!)
It's not necessarily mistrust. Small clients,as you note, lack capability to track sales accurately. An impartial tracker would be fair to both sides, accurate and avoid disputes. Do you know of one?
Persuacious --PERSUAsive - audaCIOUS –
@Persuacious - I don't, as I've yet to hear of a copywriter auditing their client - there's are a few issues there, going back to trust. And am not sure small clients (in your example) would be able to pay for a third party auditor. But assuming they're selling digitally, whatever ecommerce platform they're using will have reports complete with tracking. Good luck!
Rebecca Matter –
Hi Rebecca,
Which are the available systems for a copywriter to control the real sales? How can you be sure your client is not going to tell you the sales were lower to avoid paying you what was agreed?
Thanks,
Carlos
Guest (Carlos) –
Hello, I just listened to a long introduction on what a Copywriter does from Barefoot Writer and found it intriguing. My question is how you set up things on your back end...are you self-employed with your own small business? With no steady income,is there a way to not setup that way?
Guest (Rebecca ) –