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The royalties that type web sites such as MyFonts, Fonts.com, FontShop and Veer offer are across the board. MyFonts offers a fair 65% by default, while others go down to 35%, and possibly lower.
Short-term self-interest would dictate that a designer or foundry should get onto as many sites as possible, at whatever royalty rate they offer. But, this would seem to be bad strategy for the type designer community in the long-term, because a type site that offers designers/foundries a higher royalty ends up at a financial and competitive disadvantage to a site that offers less. This is because they make far less money per sale. So, in the long run, the type sites offering designers and foundries the lower rates, are the ones who will survive and thrive, thereby undermining designers and foundries.
Over time, designers and foundries accepting lower rate therefore undermine their own financial self-interest, and that of the entire type designing community, by putting those offering them the highest royalties out of business, as higher-earning type sites are able to pay for the advertising and technology to grow their business at the expense of others.
So, my question is: do people agree? and do type sites offering lower royalties have any justification at all for their lower royalties other than pure economic selfishness? Do they offer anything that a site offering a higher royalty does not? And if indeed, accepting lower royalties is bad for designers and foundries, should designers and foundries band together to protect their interests?