How do people get royalties?

People receive royalties as compensation for the use of their creative works, such as books, music, patents, or other intellectual property. Typically, the creator enters into a licensing agreement with a publisher, record label, or other entity, which pays a percentage of sales or revenue generated from the work. Royalties can be calculated based on various models, including per-unit sales, performance fees, or a flat fee for specific uses. The exact terms depend on the agreement made between the creator and the entity using the work.