{"id":82399,"date":"2019-09-20T07:02:20","date_gmt":"2019-09-20T11:02:20","guid":{"rendered":"https:\/\/electricliterature.com\/?p=82399"},"modified":"2024-02-01T11:36:48","modified_gmt":"2024-02-01T16:36:48","slug":"an-agent-explains-the-ins-and-outs-of-book-deals","status":"publish","type":"post","link":"https:\/\/electricliterature.com\/an-agent-explains-the-ins-and-outs-of-book-deals\/","title":{"rendered":"An Agent Explains the Ins and Outs of Book Deals"},"content":{"rendered":"\n
Everyone wants to write a book, or to say they have written a book. Publishing a book is still an honor, a point of pride\u2014but like pretty much everything else, it\u2019s also dependent upon a capitalist business model. And the financial side of publishing can be opaque, unfair, and downright contradictory. Combined with the distinctly American habit of not wanting to sully talk of artistry with talk of money, this means that many people who want to make writing their full-time career have no idea how the money part of writing actually works. In this TED talk I will answer some of the most common questions I get as a literary agent about the money side of things. I will try not to make it too depressing. <\/p>\n\n\n\n
Note: this information is based on the American traditional book market, and won\u2019t necessarily apply to other countries, or to self-publishing. <\/p>\n\n\n\n
How much money am I going to get for my very, very good book?<\/h4>\n\n\n\n
This is the single most common question I get from my clients, and other people when they find out I\u2019m a literary agent, and I respond with a very infuriating \u201c$5,000 to $50,000.\u201d <\/em>Most times, though, I\u2019m right! I have sold books for both more and less than those amounts, and to be fair, there are many genres where I can estimate a much smaller spread. But the total advance depends on so many things, including the quality of the work, the sales potential of the work (not the same thing!), the author\u2019s platform and\/or previous sales, the zeitgeist, the \u201cmarket,\u201d how many other editors are interested (if any), how similar books have performed for the publisher and\/or other publishers, and many, many other things. Because there are so many factors, there\u2019s no \u201caverage\u201d book advance. $1,000 is rare. $1,000,000 is also rare. <\/p>\n\n\n\n
What does it mean when you say \u201cadvance?\u201d<\/h4>\n\n\n\n
Because there are so many factors, there\u2019s no ‘average’ book advance.<\/p><\/blockquote><\/figure>\n\n\n\n
A book deal is not patronage for your sheer talent, or even direct compensation for the hours you have toiled to create the book. It is an advance<\/em> against what the publisher thinks your book will earn. The publisher takes a financial risk on your work. If your book doesn\u2019t sell well, you don\u2019t have to pay it back\u2014the publisher assumes that risk. But you do have to sell that much in books to earn anything more on top of that. <\/p>\n\n\n\n
Oh, is that what royalties are?<\/h4>\n\n\n\n
Yes, royalties are what you get when you \u201cearn out\u201d your advance. You earn a percentage of each book sale, and that adds up against your total advance. When you earn more than that, you get royalties. Here\u2019s how that works. (Math incoming.) <\/p>\n\n\n\n
A common royalty rate is 10% of the cover price of the book. If your book retails for $25, then you earn $2.50 a book. (There are different rates for different formats and you can negotiate higher royalty rates, to a point.) If you get a $10,000 advance, you have to sell 4,000 copies of the book to earn any more money (10000\/2.5 = 4000). There are many books that do not sell 4,000 copies and plenty of books that do. <\/p>\n\n\n\n
When can I quit my job?<\/h4>\n\n\n\n
You probably can\u2019t! You\u2019ll see why soon.<\/p>\n\n\n\n
When will I actually get money?<\/h4>\n\n\n\n
Your advance will be broken up into several payments, anywhere from two to four depending on how big your advance is, how you negotiate, etc. First, you\u2019ll get a portion after you sign the contract. Having your agent review and vet your contract, signing it, getting it countersigned by the publisher and<\/em> waiting for the publisher to send your check can take several months. Then you\u2019ll likely get a portion when you are finished writing AND editing, editing again, and editing some more. This could also be months after your contractual delivery date, which could be six months to a year after you sign the contract. You may then get another portion when the book is published, which is almost always about a year after you deliver the manuscript. Even if you got an $100,000 advance, you might get $33,333 when you sign the contract, but after agent commissions and taxes (YMMV), you\u2019ll probably net a little less than $20,000, and you might not get another check for a year.<\/p>\n\n\n\n
Sooooo when do royalties checks come?<\/h4>\n\n\n\n
Royalties are calculated and paid out every six months, but according to a fixed schedule that differs from publisher to publisher. For example, one major publisher sends their royalties out in April and October. The April statement and money (if any) covers books sold from July to December of the previous year. The October statement and payment covers sales made from January to June. Yep! Statements are about 4 months old when you get them.<\/p>\n\n\n\n