A royalty payment is where a pay is constants thanks to a piece of work. For example a writer writes a book, the company would need to pay the writer continuously, due to copyrights. The company normally pays the writer at the end of the month to make life easier for them, since every time the pay is different. Due to the amount of copy the book is being sold within that month. Also the pay is lower than upfront fee as it is a constant pay.
There are things called royalty fees, where they are paid as a contribution for the whole entire organization to keep the system running and run smoothly. Meaning that fee pays for the office workers and other people within that section of the company. Along the writer get part of it as well, as it funds them to produce more work for the company. Therefore it creates a win-win situation for the both of them. Such as if the book is popular around the country, the company would translate that book and publish it around the world, earning more money. For example the famous Harry Potter books, the book is been sold around the world. J K Rowling from being a penniless mother turned into a wealthy person, along making the company earning millions! From that it shows you how much the royalty payment affects the writer, as it is their main income.
However the royalty payment can be anything such as music or costume design. From my own knowledge about theatre, the person who designed the costume for the musical Priscilla, every time when they change the crew members the costume would stay the same. Due to it being designed for the show, a permanent design, from that the designer would get a constant pay for it and it is also copyright. Also if the show goes on tour or is being shown elsewhere the costume would also need to be the same and the designer would once again get paid.
For more information about the royalty payment please click on these links:
For information on J K Rowling: