What does it actually mean to get a book deal? What are common deal terms, and how does the money work? What are the pros and cons of big vs. small publisher?
Starting with the super basics: if you get a book deal (from a legitimate publisher), you are guaranteed that a team of professionals will edit, design, distribute and promote your book in some fashion. In the case of any decent sized (or well established) traditional publisher, you know your book will be available to purchase from mainstream booksellers, if not in actual book stores!*
*there are some caveats to this that I will go into later
Your deal with your publisher will involve a lot of variables, and your agent will negotiate with your publisher on some/all of the following:
- How much the publisher will pay you for each book
- A payment schedule & terms for when the publisher will pay you
- World/World English/translation print rights (publishers like to retain, many agents fight to keep)
- Audio rights
- Film/TV rights
- Royalty rates for hardcover, trade paperback, digital
- Bonus terms (if applicable)
+ a bunch of other complicated stuff that your agent will manage (and this is why you need a GOOD and experienced agent because publishing contracts are no joke)
Most publishers will offer an advance, as you will hear it termed, which is what they are paying you to publish your book. It is an "advance on royalties."
A good agent will negotiate advance/deal terms so they are favorable to you. Ask lots of questions if you're unsure of something/how they work.
Advances are paid in installments. It is VERY IMPORTANT for authors to understand this, as publishing money is not paid to the author in a lump sum and monies can trickle in at odd and unpredictable times. I will go into publishing money in detail in another chapter.
Your agent gets 15% of your advance. The publisher will pay your monies owed to your agent/agency, who will remove their 15%, and then pass on your portion to you. Money always flows this way, from the publisher to your agent to you.
You must pay taxes on your advance, and those taxes are not taken out of the monies before you receive them. You will need to SAVE THE MONEY for your taxes.
You won't receive royalties for your books until you earn out your advance. There is all sorts of hand-wavey magic involved in your publisher calculating when you've earned out, and frankly I don't understand it all (but your agent should!). The important thing to know: most authors do not earn out their advances.
Contracts are separate from the offer, which your agent will negotiate and accept upfront. Then they will negotiate the terms of the contract, going back and forth with the publisher. This can take months. Good agents are aces at contract negotiation and will fight to get you the best possible terms. Be patient, and buy your agent a nice thank you present when all is said and done.
Once your deal is done, your agent will introduce you to your editor and at that point, your relationship is with your editor and your publisher. Many agents like to be copied on everything, others only on the most important things.
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#HowToAuthor: Book Deals & Marketing
Non-FictionAdvice for writing book-shaped things and getting them traditionally published. This series will cover everything from querying to agent fit, to building a platform and marketing yourself.
