From DBWiki
The owner of a digital work sets the base royalty price. Digital Bazaar stays out of all pricing decisions as a matter of principle; it is the creator's work, thus they should decide how it is sold.
Artists, keep in mind that if you set a digital work's price too high, nobody will buy it. There are other parties involved in calculating the final cost of the digital work; sellers, ISPs, and universities are just a few of the organizations that may charge fees for use of their network connections. However, you have the right to cap their charges and they have the right to not allow distribution of your work through their network connections.
For example, let's say that you register a song that you created called "The Weasel Bopp". You, as the creation's owner, say that you want $0.45 per sale. A seller buys your file and wants to redistribute it for a $0.15 commission. A buyer, using their university's computer network, connects to that seller's server and wants to buy the song. The university has an extra charge of $0.02 on the transaction because downloading entertainment isn't covered under your data services agreement with the university. Bitmunk then adds a standard transaction fee for setting up the transaction and ensuring that you get the file you want. The Bitmunk transaction fee is calculated to be the largest of 15 cents or 15% of the total cost.
Here is a brief table describing the transaction:
Payee Amount
The Weasel Bopp Creator (you) $0.35
Seller $0.15
University ISP $0.02
Bitmunk $0.15
Total Cost $0.67
The total cost of the work can fluctuate, but a artist/creator/publisher is guaranteed that if somebody buys the work, they will get the royalties that they want out of it.
