The Mystery of a Book Deal
In an attempt to understand the business side of a book deal, I will lay out the issues that seem important and my understanding of them. I know there are many variances and differences between small and large publishers but I will try to review the issues in general terms.
Once the book is written the next goal is "the deal" but at what point is a deal a "good deal"?
Advances. From what I understand, advances run from $0 to hundreds of thousands of dollars. With the typical first time author getting an average of between $1,000 to $7,500. J.A. Konrath signed a three book deal with Hyperion in 2003 for "low six figures" for discussion purposes only let's assume the advance was $150k or $50k per book. A good deal? Yeah, probably in the scheme of things. He recently signed another 3 book deal beyond the original.
When is the adance paid? Probably a triggering event, like submission of completed manuscript for edit.
Royalties. I've read that royalties are paid once the advance is recovered. These royalties can run from 5 to 15% of the cover price. I've recently heard $3 a book for hardcover. How are these paid? Monthly? Quarterly? Annually?
Hardcover, Paperback, Trade Paperback, and Audio Books. Royalties vary. There may be a different publisher for each. The original publisher may get a significant cut of the royalties. Anyone know how this works?
First Print Run. I think this is very important in determining success. I have heard an average hardcover print run for a first time author is around 7500 though it's a little murky how many are actually printed. If these sell out will there be a second printing? How many then? Over what period of time?
Remainders. What happens with remainders(unsold books)? Can the author buy them at a pre-determined price? This should be in any deal.
Out of Print/Back List. Will the publisher keep your backlist in print? If not can print rights revert to the author? What happens to an authors backlist?
Copyright. Who retains the copyright? Author or publisher?
Subsidiary Rights & Movie/Merchandising. I don't know enough about these to discuss them. I would assume for a realitively popular book they may be more valuable than the royalties but this is only a guess. Anyone know how these work?
Earn Out. This will be a big determining factor of whether an author is published again. The calculation should be part of the deal. There are squishy numbers like overhead that can effect how, when, or if an author will earn out. It should be in the contract.
I am sure I have missed many other aspects of a book deal and would appreciate any insights published authors out there in the blogsphere can add. These are the issues I view as critical to a good deal. Your thoughts?
Once the book is written the next goal is "the deal" but at what point is a deal a "good deal"?
Advances. From what I understand, advances run from $0 to hundreds of thousands of dollars. With the typical first time author getting an average of between $1,000 to $7,500. J.A. Konrath signed a three book deal with Hyperion in 2003 for "low six figures" for discussion purposes only let's assume the advance was $150k or $50k per book. A good deal? Yeah, probably in the scheme of things. He recently signed another 3 book deal beyond the original.
When is the adance paid? Probably a triggering event, like submission of completed manuscript for edit.
Royalties. I've read that royalties are paid once the advance is recovered. These royalties can run from 5 to 15% of the cover price. I've recently heard $3 a book for hardcover. How are these paid? Monthly? Quarterly? Annually?
Hardcover, Paperback, Trade Paperback, and Audio Books. Royalties vary. There may be a different publisher for each. The original publisher may get a significant cut of the royalties. Anyone know how this works?
First Print Run. I think this is very important in determining success. I have heard an average hardcover print run for a first time author is around 7500 though it's a little murky how many are actually printed. If these sell out will there be a second printing? How many then? Over what period of time?
Remainders. What happens with remainders(unsold books)? Can the author buy them at a pre-determined price? This should be in any deal.
Out of Print/Back List. Will the publisher keep your backlist in print? If not can print rights revert to the author? What happens to an authors backlist?
Copyright. Who retains the copyright? Author or publisher?
Subsidiary Rights & Movie/Merchandising. I don't know enough about these to discuss them. I would assume for a realitively popular book they may be more valuable than the royalties but this is only a guess. Anyone know how these work?
Earn Out. This will be a big determining factor of whether an author is published again. The calculation should be part of the deal. There are squishy numbers like overhead that can effect how, when, or if an author will earn out. It should be in the contract.
I am sure I have missed many other aspects of a book deal and would appreciate any insights published authors out there in the blogsphere can add. These are the issues I view as critical to a good deal. Your thoughts?
