How Authors Get Paid
Authors are paid in one of two ways: in a percentage of the
price of each book sold (called a royalty), or with a onetime lump
sum (flat fee). Here's how each one works:
The royalty is specified in your contract and varies by
publisher, but a common royalty rate is 10% for hardcover sales
and 6%-8% for paperback. Traditionally, publishers paid the
royalty on the actual retail price, but more publishers are moving
to paying royalties on the net price, or the amount they actually
receive from bookstores (stores purchase books from publishers at
a 30%-50% discount). Though getting paid on retail versus net
price is generally not negotiable, you can sometimes get a
slightly higher royalty if you ask.
Most publishers pay the author an advance against future
royalties. The author receives half the advance on signing of the
contract, and half when the final manuscript is delivered. If
you're getting a 10% royalty on the retail price of a $10 book,
and your advance is $3000, then once your book is published it
needs to sell 3000 copies before you'll start receiving additional
royalty checks. If the book never "earns back" the
advance (selling less than 3000 copies), it's the publisher's
loss. Of course, the publisher is hoping that your book will earn
much more.
The amount of the advance is generally determined by estimating
how much royalty the author would get on the book's first
printing. For a first-time author, the advance may be lower
(because the author doesn't have a track record and so the
publisher can't be guaranteed a certain number of sales). Authors
with an established following may command a larger advance because
they have a built-in audience.
New authors always want to know the numbers: Just how much of
an advance can they expect for a picture book or a middle grade
novel? Unfortunately, there's no easy answer. A small publisher
may not have the resources to lay out more than a few hundred
dollars up front, but might be willing to give a higher royalty. A
first-time author is always a risk for any publisher, and so the
advance paid will be lower than for a second or third book. But
remember that the advance is really just a payment on future
royalties; if your book sells well, you'll get the money in the
long run.
You also need to realize that for a picture book, the advance
and royalty are split between the author and illustrator. So if
you write the text but don't supply the pictures, you'll get
one-half the royalty (5%) and one-half the advance. For books with
only a few black-and-white illustrations, the author gets most if
not all of the royalty, and the illustrator is paid separately.
A flat fee means you'll be paid one lump sum for your book, and
you won't receive any royalties. If you're one of several authors
writing a book for an established series, if you're creating
material for a book packager who does mass market series titles
produced under one pseudonym, or if you're hired to write a
television tie-in novel or work with licensed characters, you'll
probably be paid in a flat fee. The copyright may be in your name
or that of the publisher's. While it's always nice to get
royalties, flat fees may provide you with more money in one lump
sum, and many authors take these kinds of jobs when they're
establishing a name for themselves. Magazines always pay in flat
fees.
If My Books Sells for $16, Why Do I Only Get
$1.60?
Believe it or not, the publisher doesn't walk away with $14.40
profit on a $16 book. A little bit of the publisher's overhead is
paid by each book sold. A large group of people will work on your
book: the editor, copyeditor, proofreader, managing editor, art
director, production manager, marketing department, sales staff
and subsidiary rights (not to mention all their assistants), and
everyone gets a salary. Your book needs to be printed (probably
overseas, especially if it's a picture book) and shipped to
stores. Publicity efforts may include sending out review copies
(which come out of the publisher's pocket), printing up posters or
bookmarks, taking out ads in review journals, and sending the
sales staff to book conventions. Your book has to justify all
these expenses, and still have something left over for the
publisher.
Laura Backes is the author of "Best Books for Kids Who
(Think They) Hate to Read" from Prima Publishing. She's also
the publisher of Children's Book Insider, the Newsletter
for Children's Writers. For more information about writing
children's books, including free articles, market tips, insider
secrets and much more, visit Children's Book Insider's home on the
web at http://write4kids.com
Have comments you'd like to send the author? Please e-mail
Laura at: mail@write4kids.com or
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