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Are there rules of thumb for royalty amounts?

April 26, 2017amounts Royalty rules Thumb

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Are there rules of thumb for royalty amounts?

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Figuring out what royalty to ask for is always a challenge. As sort of a really rough rule of thumb, the allocation of the revenue generated can be 25% for the licensor and 75% for the licensee. This is because the licensee is usually doing all the sales and marketing related to generating revenue. It varies greatly from industry to industry.