In the world of children's books, royalties represent a crucial part of an author's income. They are typically calculated as a percentage of sales generated from a book, allowing authors to earn money each time their book is sold. This payment model often incentivizes authors to create engaging stories, as higher sales lead to more royalties. The specific percentage can vary depending on factors such as the publisher, distribution, and format (e.g., hardcover, paperback, or e-book). Understanding royalties is vital for any author navigating the children's publishing landscape.