Agent commissions show how much money was earned by the agent within a reporting period.
Commissions are calculated by applying a commission rate to the remaining royalties after an advance or guarantee payment has been deducted from royalties.
Commission = (Royalties - Advance applied) x Commission Rate
Standard vs. Reduced Commission
Standard commission is applied to all the rights attached to the licensing contract and the representation contract. For example, if an agent has a right to represent toys in the United States and they add a licensing contract with rights to sell toys in the United States, then the 'Standard Commission' will be applied to all toys sold within the United States.
Reduced commissions are applied to all the rights attached to the licensing contract and not the representation contract. For example, if an agent has a right to represent toys in the United States and they add a licensing contract with rights to sell toys in the United States and the United Kingdom, then the 'Reduced Commission' will be applied to all toys sold within the United Kingdom while 'Standard Commission' will be applied to all toys sold within the United States.
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