We have heard from designers that they sometimes get into disputes with their publishers over when the royalties from a crowdfunding campaign should be due: their publishers have argued that the royalties should not be due to the designer until the games actually ship.
In a revenue-based model, the royalties should be due based on when the publisher receives the funds. You may want to include something to this effect in your contract.
Sales through a crowdfunding or pre-order campaign will be considered to be made in the quarter in which the funds are received by PUBLISHER, and royalties shall be payable to the Designer on the normal quarterly basis. For example, the Publisher runs a Kickstarter campaign and sells 2000 copies of the Product through the campaign. Kickstarter releases funds to PUBLISHER on February 10, 2025. Those sales are considered to have been made in Q1 2025, and shall be payable to the Designer as normal Q1 royalties.
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