PPA | Terms, structures and payment
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Terms, structures and payment

The cover price is split roughly as follows between the different links in the selling chain:

Retailer

Wholesaler

Distributor

Publisher

25%

15%

10%

50%

The distributor will negotiate with the publisher to determine the percentage of the cover price to be remitted. The following factors will influence the remit level:

  • potential copy sales;
  • cover price;
  • frequency;
  • the cost of carriage.

As it takes a while to get finalised sales, payment to the publisher is staggered. A typical payment phasing for a launch might be:

  • 50 per cent of the estimated net sales 35 days after the end of the month of publication;
  • balance of payment 60 days thereafter.
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