author advance

The Myth of the Unearned Advance

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This post by Steve Laube originally appeared on his The Steve Laube Agency blog on 6/13/11.

A common myth permeating the industry is that a book is not profitable if the author’s advance does not earn out. I would like to attempt to dispel this myth.

First let’s define the term “Advance.” When a book contract is created between a publisher and an author, the author is usually paid an advance. This is like getting an advance against your allowance when you were a kid. It isn’t an amount that is in addition to any future earnings from the sale of the book. Instead, like that allowance, it is money paid in advance against all future royalties, and it must therefore be covered by royalty revenue (i.e. earned out) before any new royalty earnings are paid.

The advance is usually determined by a series of assumptions that the publisher makes with regard to the projected performance of each title. The publisher hopes/plans that the book will earn enough royalty revenue to cover the advance within the first year of sales.

A NY Times essay a couple years ago casually claimed “the fact that 7 out of 10 titles do not earn back their advance.” Of course they did not cite a source for that “fact.” But I have seen it quoted so often is must be true! (and it isn’t.) The implication then is that a book isn’t profitable if it doesn’t earn out its advance. The publisher overpaid and has lost money. The author is the happy camper who is counting their cash gleefully celebrating the failure of their publisher to project sales correctly.
– See more at: http://www.stevelaube.com/the-myth-of-the-unearned-advance/#sthash.NsjuD9CI.dpuf

 

Read the full post on The Steve Laube Agency blog.

2014: Some (Honest) Publishing Numbers, and (Almost) Throwing in the Towel

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This post by Kameron Hurley originally appeared on her site on 12/31/14. Note that it contains strong language.

About this time last year, GOD’S WAR, which had been out in the UK for a solid seven months, had sold just 300 copies there, and every single major publishing house had passed on THE MIRROR EMPIRE, the epic fantasy novel I thought was the most marketable thing I’d ever written.

I was, to be blunt, pretty fucking devastated.

A lot of people think that once you publish a book, that’s it – you go on publishing books. The publishing world opens its arms to you and welcomes every book like a precious squealing babe. The reality is that publishing your first book is when the real work starts. All that time you spent leveling up your craft, on dealing with rejection, on editing and revision: that was just a warm up for the crushing reality of life day-in, day-out as a published author.

In early January of this year, I was getting ready to shelve THE MIRROR EMPIRE and take a break from writing for  a while, and come up with something somebody wanted to read. I knew MIRROR EMPIRE was a good book, which was frustrating: it was just a good book nobody wanted to buy at the moment. I needed to wait for the market to shift. The plan was I’d just hold onto it until somebody at some house got a new job – new editors have different opinions. Maybe somebody would buy it some day. In the meantime, I had no project idea that was more marketable than this one, so… I was going to need to take some time to recover from my disappointment and write something new. Another slog of a year, I figured, with no new book coming out, again.

Like a lot of Night Shade Books debut authors caught up in the spiral of near-bankruptcy and eventual sale, my work had suffered from declining sales, especially the third book. RAPTURE had sold low, just 2,000 copies, only about 350 of which actually showed up on Bookscan. Low sales like that give editors on the fence about a project a good reason to pass. The performance of that third book was not helping MIRROR EMPIRE.

 

Read the full post on Kameron Hurley’s site.

 

These Days, Writing Isn’t A Career. It’s A Rich Man’s Hobby

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This article by Toby Young originally appeared on The Telegraph on 1/16/15.

Writing’s always been lopsided, but it’s got a lot worse in the last decade

I envy William Hague. Not the £2.5 million country house he’s just bought in Wales, although that would be nice. Rather, the fact that he plans to spend his retirement writing books.

These days, you need a substantial private income – or a public sector pension – to be a full-time writer. Last year, a survey of 2,500 professional authors found that their median income in 2013 was £11,000. That’s a drop of 29 per cent since 2005 and significantly below the minimum salary required to achieve a decent standard of living.

The writing game is notoriously lopsided, in which a small handful of bestselling authors earn a fortune and the vast majority live on scraps, but it’s got worse in the past decade. “You’ve always been able to comfortably house the British literary writers who can earn all their living from books in a single room,” says the author Will Self, whose own royalties have tailed off in recent years. “That room used to be a reception one, now it’s a back bedroom.”

 

Read the full article on The Telegraph.

 

How Much My Novel Cost Me

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This post by Emily Gould originally appeared on Medium on 2/24/14.

Writing my first book got me into debt. To finish the next one, I had to become solvent.

IT’S HARD TO WRITE ABOUT BEING BROKE because brokeness is so relative; “broke” people run the gamut from the trust-funded jerk whose drinks you buy because she’s “so broke right now” to the people who sleep outside the bar where she’s whining. But by summer 2012 I was broke, and in debt, and it was no one’s fault but mine. Besides a couple of freelance writing assignments, my only source of income for more than a year had come from teaching yoga, for which I got paid $40 a class. In 2011 I made $7,000.

During that $7,000 year I also routinely read from my work in front of crowds of people, spoke on panels and at colleges, and got hit up for advice by young people who were interested in emulating my career path, whose coffee I usually ended up buying after they made a halfhearted feint toward their tote bag–purses. I felt some weird obligation to them and to anyone else who might be paying attention to pretend that I wasn’t poor. Keeping up appearances, of course, only made me poorer. I’m not sure what the point of admitting all this might be, because I know that anyone who experiences a career peak in his mid-twenties will likely make the same mistakes I did, and it’s not even clear to me that they were all mistakes, unless writing a book is always a mistake, which in some sense it must be.

In 2008 I sold a book-in-progress for $200,000 ($170,000 after commission, to be paid in four installments), which still seems to me like a lot of money. At the time, though, it seemed infinite. The resulting book—a “paperback original,” as they’re called—has sold around 8,000 copies, which is about a fifth of what it needed to sell not to be considered a flop. This essentially guarantees that no one will ever pay me that kind of money to write a book again.

It took me a while to realize that my book had failed. No one ever told me point-blank that it had.

 

Click here to read the full post on Medium.

 

Paying Writers What they Deserve

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This post by Hugh Howey originally appeared on his site on 7/12/14.

Traditional Publishing is no Longer Fair or Sustainable. This was the sad but accurate headline in The Guardian this week. It followed a report on author income from the ALCS, the results of which led Nicola Solomon, head of the UK’s Society of Authors to declare:

Authors need fair remuneration if they are to keep writing and producing quality work. Publisher profits are holding up and, broadly, so are total book sales if you include ebooks, but authors are receiving less per book and less overall due mainly to the fact that they are only paid a small percentage of publishers’ net receipts on ebooks and because large advances have gone except for a handful of celebrity authors.

This comes right on the heels of The Daily Mail’s piece about Hillary Clinton’s latest book. The memoir has sold well by most measures, moving 161,000 copies in the first three weeks and 86,000 in week one, but the book has dropped in the charts, and it appears Simon & Schuster will take a loss due to the $14,000,000 advance paid to Hillary.

Forteen million dollars.

By publishing math, this advance was warranted. Her previous book sold well enough for the bean counters at S&S to come up with what seemed necessary to both retain Hillary and turn a profit. But this methodology flies in the face of recent rhetoric about the role publishers play in the protection of literature and the nurturing of “the writing life.”

With that sum of money, you could pay 500 writers $28,000 to enjoy a full year of the writing life. Or you could pay 250 writers $56,000 if they don’t understand how to squeak by as a starving artist. Not only that, Hillary Clinton doesn’t need another penny for as long as she lives. She didn’t need to be supported while she wrote the book. So how exactly are publishers the patrons of the literary arts? Nicola Soloman nails the problem with the current blockbuster model of entertainment: The rich get richer and the poor get poorer. We shovel money at the outliers and drop everyone else.

 

Click here to read the full post on Hugh Howey’s site.