The Money Side

Chapters

1. 8.1 Building a licensing budget and sales forecast

   Before you commit to a minimum guarantee, you need a realistic picture of what you'll sell, what it will cost, and what you'll owe the licensor. A simple budget and sales forecast show whether a deal can make money and help you negotiate terms you can actually meet.

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2. 8.2 Calculating royalties: worked examples

   Royalties are usually calculated as a percentage of a defined sales figure, but the result depends heavily on what that figure is and what deductions are allowed. Walking through simple examples helps you check the math in any contract.

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3. 8.3 Recouping the MG

   Recouping the MG means earning enough royalties to cover the minimum guarantee you promised. Until you recoup it, you typically pay nothing extra; once you pass it, you pay royalties on top. Understanding how recoupment works helps you avoid surprises.

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4. 8.4 Currency, payment terms, and invoicing across borders

   Cross-border licensing involves decisions about which currency you pay in, when payments are due, and how invoices and statements are handled. Getting these right avoids delays, disputes, and unexpected costs from exchange rates or bank fees.

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5. 8.5 Audits

   Most license agreements give the licensor the right to audit your sales records to confirm that royalties were reported correctly. Audits are a normal part of licensing, and good record-keeping makes them straightforward.

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