Libraries: Public and school libraries that purchase books directly from the publisher or wholesaler (e.g., Baker & Taylor). Authors make: Royalties on cover price of LIBRARY's purchase. Authors do NOT make royalties when the book is checked out. Sales: Varies from library to library based on library budgets. Benefit to author: Readers might discover an author in the library and then buy that author's books new. If books are popular, libraries will buy more copies of the author's next book.