Getting a book deal with a major publishing house is many writersâ ultimate dream. But how does a book deal work? While the details of your contract may vary, book deals with traditional publishers tend to be structured in more or less the same way. Here's a quick breakdown of the standard financial components of the book deal, so you'll know exactly what to expect going into this exciting step: 1ď¸âŁThe advance: This is a sum that the publisher pays to the author upfront against any future royalties the book will earn. It is typically paid in multiple installments. For ex: If your advance is $40k, the terms of your contract might say that youâll receive $10k upon signing, $10k upon acceptance of the manuscript, $10k upon publication, and $10k one year after publication. 2ď¸âŁRoyalties: Royalties are the percentage of the book's retail sales that go back to the author. These rates are graduated based on the number of copies sold. For ex: an author may earn 10% on the first 5k copies sold, 12.5% for the next 5k copies sold, and after that 15%. Initially, royalties go toward paying back the advance. This means you wonât receive royalty payments until (& unless) you "earn out" your advance, which means the royalty amount exceeds the advance you were already paid. 3ď¸âŁAgent commission: Finally, in traditional publishing, you will typically have an agent who will negotiate the book deal with the publisher. They'll receive a 15% commission on both your advance & your royalties, if you earn any. Of course, you retain the other 85%, and you couldn't have gotten the book deal without your agent, so hopefully that 15% commission isn't a dealbreaker! Follow me for more writing advice & insight into the publishing industry!
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