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Subject:
What percentage of profits are shared between authors and publishers?
Category: Arts and Entertainment > Books and Literature Asked by: dho1115-ga List Price: $10.00 |
Posted:
06 May 2006 14:54 PDT
Expires: 05 Jun 2006 14:54 PDT Question ID: 726138 |
When a writer submits a book, such as a novel or non-fiction book to a publishing company and the publishing company decides to publish the book, what percentage of the profits does the author himself get? How are the profits split between the author and publisher? |
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Subject:
Re: What percentage of profits are shared between authors and publishers?
Answered By: belindalevez-ga on 07 May 2006 05:27 PDT Rated: |
<There are two main ways that the publisher pays an author ? flat fee and royalties. Flat fee. The author will be offered a sum of money for the copyright. For example $5,000 may be offered. No further payment will be made to the author. The book may sell few copies in which case the publisher will lose money on the deal. Alternatively the book maybe a best seller and sell millions of copies. The publisher will earn a lot of money but the author will earn just $5,000. Royalties. The author grants a licence to the publisher to publish the book in return for a royalty on all copies sold. There is no standard royalty agreement. It is up to the author to negotiate the best deal possible. Royalties are paid either as a percentage of the price of the book or as a percentage of publishers net receipts and vary from publisher to publisher. There are numerous different types of royalties that may be paid at different rates. Royalties may be paid at a lower rate on remainders (the publisher decides that it will no longer publish the book and sells off any remaining copies in stock). There are royalities for quotation, newspaper and book club and many other subsidiary rights. The type of book published will affect the royalties. Highly illustrated books command a lower percentage. Hardcover books generally pay a higher percentage than paper back books. Due to high discounts offered by publishers to high volume booksellers, many publishers are nowadays basing the royalties on their net receipts. As a guide Hardback books ? 10% to 15% of the published price. Paperback books ? 7.5% to 12.5% of the published price or of publishers net receipts. Authors are usually paid their first year?s royalties in advance. For a first book the royalty paid may be very low. Authors can usually negotitate a higher royalty for their second and subsequent books. Advances are generally paid in two instalments. The first half on signature of the publishing contract and the balance on delivery of the manuscript. The Authors Guild This is an organisation that advocates writers? interests. According to the Authors Guild, you should earn royalties for sales of your book that are in line with industry standards. For example, many authors are paid 10% of the retail price of the book on the first 5,000 copies sold, 12.5% of the retail price on the next 5,000 copies sold, and 15% of the retail price on all copies sold thereafter. http://www.authorsguild.org/ The Writer?s Guild of Great Britain. http://www.writersguild.org.uk/public/index.html Inside Publishing ? advances and royalties. This article gives an explanation of the amount paid in advances and royalties. Source: Writersservices.com http://www.writersservices.com/res/ri_adv_royalties.htm> <Search strategy :> <writers guild> <://www.google.com/search?hl=nl&q=writers+guild&lr=> <Hope this helps.> |
dho1115-ga
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Excellent answer. Thanks! |
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Subject:
Re: What percentage of profits are shared between authors and publishers?
From: gfs-ga on 06 May 2006 18:37 PDT |
Here is the quick answer: An author should get 10 % of the list (going) price of the book and no advance. In other words, the author receives 10 % of the reveneu, the publisher gets 90 % of the revenue. Under no circumstances will a legitimate publisher expect the author to PAY for getting published. Again, authors get a percentage of the revenue and do NOT pay for getting published. Here is the more detailed answer: http://www.ivanhoffman.com/royalties.html And here are two links that will discuss publishing even in more detail: http://publisher-directory.com/qa_question.php?cId=216 http://publisher-directory.com/qa.php Good luck! |
Subject:
Re: What percentage of profits are shared between authors and publishers?
From: atk-ga on 06 May 2006 19:38 PDT |
Adding to the previous comment, I'd just say that it's probably not helpful to think of (as phrased in the initial question) of the author's share of the *profits* of the book. That is, in the sense that profit is usually defined in some sort of revenue-received-minus-costs way, the author should be paid whatever the author is paid regardless of whether the book is "profitable" or not from the publisher's point of view. Also with regard to the previous comment, I'd say that I wouldn't necessarily agree that the author should get *no* advance against earned royalties. Certainly, an advance can be a legitimate part of an author's compensation. Also, the 10% of list price figure, while fairly typical, should not be taken as written in stone; for certain kinds of books, or for certain categories, (or even for certain kinds of sales made by a publisher) an author may well accept a lesser royalty percentage, or a royalty percentage calculated on something other than the book's list price. The important thing is that (1) the author is agreeable to and fully understands the royalty terms and (2) that, as said in the previous comment, that the money flows to the author--i.e. that the author does not pay to get published. (That said, there are co-venture arrangments between publisher and author where an author takes more of a financial risk, but reaps a greater revenue than a typical royalty, but those are not likely to be of interest or available to a typical author...) |
Subject:
Re: What percentage of profits are shared between authors and publishers?
From: probonopublico-ga on 06 May 2006 22:57 PDT |
With my first book (which was published by mainstream publishers) I got the usual 10%, although I did lots of promotional stuff at my own expense. With my second book, I did a deal with a specialist publisher and got a third of the revenues. This was much more rewarding. I now have my own publishing company and so I get all the profits. This is by far the greatest fun. |
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Re: What percentage of profits are shared between authors and publishers?
From: myoarin-ga on 07 May 2006 01:56 PDT |
In some cases, publishers will commission an author and pay a flat amount to write a non-fiction book that they want for a series of some type, e.g., a series on hobbies or cars, etc. |
Subject:
Re: What percentage of profits are shared between authors and publishers?
From: atk-ga on 07 May 2006 07:37 PDT |
If I can add one point of clarification to the answer and some of the comments with regard to instances when an author is paid a flat fee... It is true that many cases where an author is paid a flat fee are cases where the author does not own (and/or cedes to another party) the copyright of the work--a "work made for hire" situation--it's not a prerequisite. Who owns the copyright to the work is one issue. How the author of the work is paid is another issue. And they're not necessarily connected. That is, it's possible that an author who own the copyright of his/her own work may accept payment as a flat fee. It's also possible that an author of a work where someone else owns the copyright is nonetheless paid by some sort of royalty. (For example, the author of a movie tie-in novelization may indeed earn some modest royalty on copies of the book sold even the though the copyright is owned by the movie studio.) Just a nitpick, but it's worth keeping in mind when keeping in mind all the various permutations by which books are written and authors are paid. |
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