How Book Advances and Royalties Work
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- เผยแพร่เมื่อ 30 ก.ย. 2024
- Money in publishing! How does it work? I'm going over how advances and royalties work in traditional publishing. Everything you need to know! How advances are determined, earning out, future advances, payment schedules, living off book money.
The Medium article that inspired the latest conversation about money in publishing: / how-to-lose-a-third-of...
My advances spreadsheet: alexadonne.com/...
TIMESTAMPS
02:21 Advance basics/payment schedules
05:35 How do publishers determine advances?
09:00 Payment schedules/delays
11:31 Earning out (joint vs. separate accounting)
13:39 Why not earning out is not failure
16:05 What should you do with your advance?
18:01 Living off your advance
20:17 Royalty basics
23:52 Don't run away from traditional publishing though!
24:35 Advances & marketing
26:23 Your sales history will follow you
27:25 Advances are going down across the board
30:20 Financial planning/advising
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Fun game: Figure out the word I say with a strong Maryland accent, and the word that slips in with a Boston inflection. Also want to note: I have a financial advisor now because of the 401K inheritance I received from my mother, not because I am rolling in publishing money. I'm not rich lol.
Eke.
Didn’t know you’re from there I lived there too :)
submission? 6:43
Haha ok it's "negotiate." Baltimore o! Watch for it in any video where I say it and you will NEVER unhear ha! (also trips me up on "couch" and "house" when I'm not being careful with my diction) And my grandmother's Boston comes on strong when I say "rather." I caught it while editing and was like "woah I really say it like that?!"
How “bout dem O’s! (I hope Twain would approve this dialect spelling ;) )
If you do a whole video on taxes... do you know how it works if you're based in Europe but have a US agent and publisher? I imagine it's a numbercracking nightmare... my fear is double taxation, but I think it varies from country to country.
I'm not a writer, and don't plan on being a writer but clear information like this makes me really appreciate writers. Makes me feel good about paying full price on books I love when they come out, knowing that I'm supporting their hard work and all of their ups and downs about having a career as an author.
That's sweet of you to say. :)
Thank you
The world needs more people like you
Wow, that article is a real roller coaster. I've never seen someone so angry their publisher paid them "only" $300k+. Real tragedy there.
And the writer spent more time blaming the industry instead of doing her own research. It was a very juvenile take and shows a lack of curiosity.
@@a.gunter2893 I know, I'm no professional author but even I've heard of how fickle the industry is. Like, did she never talk to a single other published author ever? All the ones I've ever met speak often of this stuff, and give warnings like "It's often harder to sell your second book thank your first."
@@chrissycook7673 In the description. Should be near the top.
I can’t wait for the video on taxes!! (Never thought I’d actually say that lol)
XD sammmme!
Alexa comes back to save us all from financial ruin again, what did we ever do to deserve you?😭❤
Honestly, I'd rather make a deal with a publisher to lower a deal so we can keep a good consistent advance, rather than risking a massive drop.
So long as I earn enough to keep writing as a job, I'm fine with that.
Well, I think the issue is that most pubs don't pay advances that are high enough to keep anyone writing as a job (unless they have a wealthy spouse). So you should take what you can get, if you get it.
Cup Cake Unleashed unless you can live on $15,000 or so, spread out over two years (which is how an advance works, as well as the typical amount.) then you probably can’t keep writing as a job. Most people can’t, unless you become an instant bestseller.
Hey Alexa, I was wondering about one thing: Do I have to get a permission from the publisher or do I have to give some amount of money to my agent when I sell merchandise based on the books I write? Like for example having a comic figure drawn based on the main character and have it printed on a mug or t-shirt. (Sell it on my homepage or on a print on demand page.) I don't mean the marketing of the book, but for making extra money by the side.
Depends on the contract you sign. Statues, t-shirts, etc are considered merchandising. If you sold your merchandising rights, then probably yes. Everything should be in the contract.
This video about killed me. I think my brain has a bruise on it. BUT, I'm glad to know what to look for now. I think if I had just rolled in and discovered this stuff on the fly I would have choked out. So THANK YOU.
Yes... I would’ve been frustrated and discouraged but now I know what I’m getting into.
"Nobody told me not to waste my money!"
How is that even an excuse?
Thanks for this info. I’ll admit, hearing the royalty rate was so low is one reason I was soured against traditional published; it still doesn’t seem ENTIRELY fair to me but it does make a lot more sense. I always appreciate your honesty.
I’m intrigued regarding taxes; can you arrange for them to just be taken out of your advance? Taxes are confusing no matter what.
I still think self publishing is going to be my route, for various reasons, but I always appreciate becoming more informed!
"Where are you going to get health insurance?"
*me* Thank god I'm not American
Thank you for the video! It was so interesting hearing about the different scenarios, and I like how your personality always shines. It really felt like you were looking out for all of us! I hope you'll see those checks soon! 🙏😁
I'm so glad we're talking about this and that authors are being more transparent. I'm a planner and thisbis exactly the kind of information that helps me develop a game plan.
YES! no one wants to talk about the money cause it’s personal but that makes it all in the dark for debut writers. I love that she’s talking about this, because even without the numbers the warnings are needed
Definitely would love more videos on money in publishing, and I’m really looking forward to the one on taxes! I’ve learned a lot about this industry from you, and the info you bring is certainly eye opening. Thanks!
I'm not even a writer but I want to work in publishing and all your videos are so informative.
I think this woman's brain works at three times the speed of mine.
me: has never even come close to finishing a first draft
also me: watching this
This has to be one of the best videos I've ever seen. So real and honest on publishing with all the facts explained simply enough. Btw I've been binging your videos because hell you're entertaining as hell to watch and listen to :) Loving your vids and book writing advice. I'm glad I am just in writing as a hobby (my day job is IT) and the solitude in my thoughts is what I enjoy the most (crafting worlds, characters, situations, etc). I watched this because I was curious if publishing would be worthwhile - it sounds anxiety enducing and I get plenty of that already, haha.
Thank you for keeping it REAL!! sometimes i feel like traditional publishing is huge, it will defeat me. this means the world
Thanks for another great video! The article was definitely an interesting read. Is it wrong that I don't feel 100% bad for Heather though? I just feel that she needlessly villifys traditional publishing for things that she ought to have researched herself. I realize that perhaps her agent could have done better on telling her how to spend her money, but then, I've never been in any job or had any boss or gotten any money that came with a manual on what to do with it. We definitely could all stand to be more transparent about money, but ultimately I think we also have to be personally responsible.
No, that's where I fall too, as did many trad pub people. There's a lot of arrogance and entitlement in the article that realllllly stretched the boundaries of my empathy. She made poor choices and is blaming Big Bad Trad Pub for her own decisions. Leaves a bad taste in my mouth. I also have trouble believing that one of the most respected agents in the biz didn't offer sound counsel. But also it's NOT an agent's job to tell you how to manage your money. They will tell you "your sales didn't meet expectations so going into this new submission, we should expect a lower advance." Or they certainly would EXPLAIN a lower advance, should you receive one. I think it's tacky that she's thrown her agent under the bus here.
I clicked in from someone posting the link in the replies to an author talking about their royalties so far on Twitter.
Video is only 10 seconds in, but my ADHD brain sees the hair and the green top and goes, "alternate universe where Shaggy is femme and brainy?"
So appreciate your channel and everything you do, Alexa!
I know your intent isn't to scare people away from traditional publishing, but I still want to share this and similar videos of yours with certain family members who get on my case about switching from indie to trad, because they secretly think I'm not a "real writer".
Keep up the good work, thank you for all the info. It sounds exactly like the advice and complaints I heard from other authors before I made my decision to go indie. Sure, sure, I only made an estimated $1 today, but at least...at least...um... At least I can't have my books rejected? Yeah, it's a HUGE risk, either way you jump right now, and weighing the pros and cons is vital to your career as an author.
I can see why you have a TH-cam channel now! Lmao. 50k subscribers is some good clout lmao. Thanks for the advice, I'm sure your main drive for this channel is to share your knowledge, you're just very genuine and I love it!
Writers -- marry a person who has a guaranteed, high-paying job. Treat your spouse well.
Here it is, the basics. I need to review this topic. Thank you Alexa.
I find all of this so interesting! Thank you Alexa! I'm also super excited for the one on taxes!
Could you do a video explaining what you can write off on taxes?
If you want to do research for a book set in London, can a vacation be a write off? Writing retreats? Book purchases? In your case since you have a youtube channel, can you write off your camera? What about a new computer purchase and so on. I have so many questions when it comes to what you can and cant write off as a writer.
It's tricky to do business expenses write-offs for creative endeavors. In film school, they told us to hire a tax accountant so it can be done correctly and you won't end up owing the government millions.
Also, vacations will never be written off. Even if you put it own as research because there are other ways of getting that information. The IRS will audit you faster than lightening.
This is why you need an accountant.... I've read pretty consistently that travel for research IS deductible. But don't take the word of random TH-camrs for it.
@@coneil72 I know sometimes I go with my daughter and her family and she writes some of it off on taxes. What I don't know she gives it to her CPA.
We don't need health insurance in Great Britain. Healthcare is free at point of delivery.
I love these videos. I have never found more informative, point blank information broken down and laid out so neatly anywhere. I've been following your videos for over a year now and just love them. Thank you for all your work!
Alexa, you’re an angel for doing these videos! I’ve looked to them for every step of my publishing journey and your advice is 🎯🎯🎯
Your videos convey a genuine concern for your fellow authors, which I really appreciate. Just wanted to say thank you.
Honestly, I've not read the article you're referring to, but really it sounds like those lottery winners who complain they are broke in 5 years because... they didn't know how money works? I liked that you kept most of the "OMG you're so stupid" out of your voice when talking about the article's author but really you can't do stupid things and not get a little of that.
Everything you said was very helpful in understanding exactly what the nature of the business is, so thank you.
Yeah the author got a LOT of salt served to her when it was posted and I hate to add to that. I do think they were quite... obtuse about the book industry and their money, and they honestly displayed some pretty gross entitlement in the article that I didn't go into here. Anyone who sniffs at a 35K 2 book deal (so 70K total) just completely loses me. That's still a LOT of money (and she turned it down! Said no to the 2 book deal and only took 1, but then her next advance dropped to 25K, which is STILL QUITE GOOD.). No one should feel entitled to 6 figure deals, sigh.
@@AlexaDonne I don't understand some people. I'm just shaking my head in derision.
@@elizalagonia1049 Yeah I think that's why she got so much pushback from professional authors. It's REAL entitled to brag about two six figure book deals and then turn your nose up at high 5 figures! After 4 of her books failed, she was lucky to get another contract, let alone at that number. Those are good STARTING numbers nowadays (35K per book would be a very solid advance for a YA).
@@AlexaDonne 35k, was about the average when selling a screen play to a micro major movie studio, about ten years ago, before netlfix really took off. Clearly not livable for LA or NYC. That's why so many artist (writers, actors, photographers, illustrators, etc) have side hustles. Everything is freelance, and nothing is forever.
I used to work in the film industry, and there is a saying, "biz is only good until your next job"
Hey Alexa, thank you for this. Question relating to money things, do you know things about arts/writers grants?
I live in Canada so there are going to be differences to the grants available, but the Arts grant system itself is an inscrutable monster that looks like it occasionally gives a peasant a pat instead of eating them.
So, I can't help but be curious, and wary.
Every grant I looked at required being signed to a book deal already, by traditional publisher (which I expected), but several grants seem like they're there to help cover costs for the writing process as well.
The USA seems to do grants somewhat like they do public broadcasting, which is state by state, so some states with gutted arts programs might have nothing to offer, but it might be useful to some? I don't know, but I want to learn more.
Just become famous beforehand and then you can write a crappy book that'll get sold for nothing.
This video was amazing! And so informative, thank you so much for spending the time to create it!(:
Alexa, thanks so very very much for this video! I'm a chickenshit who never even tried to get her book published because I was so scared of everything you talked about in this video. Now that I know what to expect, its like someone opened up the closet and showed me there's no monster there. This knowledge about money is such a relief. Thanks so much, Alexa! God bless you!
Thank you for delving into this topic! I enjoy your realistic and grounded approach to topics that are often avoided.
I would love a video with tips for diving into market research. I listened to your podcast episode that touched on it, and the most basic suggestions about where to find the information was incredibly helpful! I don't expect you to do all the work for me, but figuring out where to even begin has been a challenge.
This is exactly the video I needed! Thank you so much!
I like the video. But PLEASE stop laughing during your presentation.
I'm here for information NOT to watch you laugh
Please, could you talk about the "Hybrid Publishing Model" and what does this mean? Thanks
I'm so glad you did this video. You're definitely my favourite booktuber 🌟
Your videos always give me so much anxiety, lmao! But they're also so informative, so thank you for being open and honest about these topics. I'd rather know it all now than be surprised with it down the road if I ever get a book deal.
Hi Alexa! I’d love to know your thoughts on whether or not an author should have an S Corporation or stay sole proprietor, the pros and cons, what maintaining an S corporation entails, etc. I haven’t had much luck finding info online and I so appreciate your clear and detailed explanations!
I have friends who write and say things like, "I want, in five hundred years, to have people quoting my books like we do Shakespeare." Meanwhile, I'm like, I just want to publish a book; not a great book, not an Earth shattering, changes people's perspective on the world kind of book, but just a book. I don't really think I'll earn money on it, I just want to have a real book sitting on my shelf with my name on the spine. So I think my expectations are pretty well grounded...then again wouldn't it be awesome to outsell JK Rowling, James Patterson, and Steve King combined, and be earning millions a year just off my royalties, while I live in some gorgeous beach house with my pool man...sigh, that would be nice. Anyway, back to my day job.
Alexa! Geez, this chunk of information is highly appreciated. Only really discovered your channel about ×2 weeks ago... Starting with the "harsh advice" videos. I'm busy penning a ×7 part fantasy novel series at present and, though I'm not totally sure the American markets completely mirror those in my country of origin, sunny South Africa, the insights are greatly valued. Keep up the great work! I'm totally a fan now. Oh, it goes without saying, that I'll be making purchase of your literary works 😊
Have yourself a wonderful week ahead.
Alexa, you should make a video explaining the entire business side of traditional publishing and how everything from literature agents to publishing deals works so my friends and family can stop making assumptions 😉
Excellent video! All of this is necessary information if you want to survive in this business. No matter what happens I'm keeping my job and staying in my nice little townhouse in my home state.
You look amazing in green! Thanks for the advice, Alexa.
Ms. Donne! Your TH-cam work is SO valuable! It is informative, well-organized, useful, presented with charm and, when potentially disappointing to some, you show tact or plain talk. Mucho gracias
do they give you a marketing budget? or does PR come out of my pocket as an author?
Pretty much, everything here, and from the article I read, should be covered in any personal finance class.
Thank You Alexa, you always make the most enlightening videos. Love the eyeshadow by the way, you look great!
Thanks for this, very informative!
These videos are so helpful and I'm amazed at how well you explain it :)
Thank you!!
Did you ever make the tax video? I can’t find it
Thanks for the info! Im looking forward to the taxes. :)
What if you've already written your book, do you still get an advance? Or do they just buy the book outright?
You still get an advance. They will probably want you to do edits to your finished book.
Very helpful video!!!
I just got 107 dollars on my book that I sold
It was really informative and I appreciate you going through it all!
Thank you for the honest information. It’s very helpful for people like me who don’t know how advances and royalty work. I’m definitely keeping my day job.
"If you're single... you probably simply cannot quit your job... Even if you do, where are you going to get health insurance?!"
lmao I hate this country sometimes. As heavily as the economy is skewing toward contracting-based jobs, we still can't get proper healthcare without a traditional 9-5. (Unless you're in a particularly lucrative contracting job... which most people are not.)
I still can't get over how the French publishing industry almost never gives advances and when they do it's something like 1,500€ (except for Big Names ofc) :/
I'm a young writer, and I'm very new to the author world. I started writing because it was fun and I couldn't turn this scene in my head into words on a page. I never really thought about the fact that if I published it I would get money. Now I'm even more excited to publish.
You are so very informative and much appreciated for the sharing of your publishing knowledge. I recently wrote my first book and am in the process of looking for a legitimate publishing company to work with and need to know in advance how the basics work, hence why your videos are so needed. Please continue to keep us informed; hopefully your good deeds will be reciprocated in the form of good royalty money! :) And I also wish you continued success in your writing career.
What if you don't want an advance? For instance, pretend that you worked on this and edited the book before you even query. You work two part-time jobs, and really what's the point of an advance if you basically finished the book? (I understand editing for publishers, etc..) Would you be able to negotiate royalties if you reject an advance?
Important information 👍
Retirement? Writers never retire.
I think how to handle is money is something that really needs to be taught in schools - and isn't.
I never knew anything about 401Ks or investing or even really taxes until AFTER I got a job.
And most of what I know is self-taught.
Another great video! Every time I feel like I'm beginning to understand publishing, I learn something new from you! (It's feels both great and awful at the same time!)
Question: I was searching for word count earlier today and I realized your word count video is about 2 years old. Any chance for an refresh on that? I'm planning on writing a magical realism YA novel for NaNoWriMo (haunted house meets Buffy) and I can't find a target word count for that anywhere!
Word counts haven't really changed at all, though I could make a refresher video so it's more current, re: my set up and comfort on camera. For YA light speculative fiction I would aim for 70K.
@@AlexaDonne thanks! 😁
I'm wondering if it's a good idea to ask for higher percentage royalties and no advance when gettng your first book deal. This way, the publisher doesn't hate your guts if you don't sell well. If you do sell well, then you get a higher percentage of income and a great sales record.
The downside of course is that you're having to delay the monetary fruits of your labor even longer.
Thoughts?
Gosh, I pray everyday I could meet a mentor sister like yourself. I’m currently working on my first memoir but I have no one to help or guide me. All I have is a book written by Mary Karr and Tara West to pave the way for me. But that’s okay because I will figure out a way! Thank you for the wisdom and guidance 🙏🏼🤝
If I ever get traditionally published, I’d honestly just want a smaller advance. They offer 5k? Cool, easier to earn out, not going to feel like I have an insane amount of money and go crazy from it..and I mean, I’d feel weird getting some big number
Hi Alexa, do you have any advice for how to write LGBT characters without falling into banality?
(for a friend)
I was actually surprised that advances were so high (five figures!) and royalty percentages were so high (up to 10%). If a writer is not planning on quitting their day job, that is a pretty sweet bonus on top.
YOU SHOULD HOST A LIVE WRITING SPRINT!!! Either alone or with Lainey and kat! 🖤🖤🖤
Thanks for the video again! I was just thinking about the 80% 20% numbers you gave in the video. I think this concept is actually pulled from something called the Pareto Principle which is a general "rule" taught in most marketing classes. In theory, 80% of profits come from 20% of consumers (in this case authors)
Thanks for this. Do you know what percentage of audiobooks writers usually receive?
thank you for all the info
I’d love to see a video about NA, and why it just kinda...disappeared. Maybe if anybody sees it making a comeback?
I love your videos and find them very informative. I think the author was lamenting on her mistakes and readily admits that she could and should have made better choices. Yes she whines, but who wouldn’t after doing such stupid stuff with this large windfall (I know I’ve made incredibly naive choices in my career/life) However it does seem like her agent, especially after the second large advance, would have cautioned her that this was not the norm. While it’s not their job, it is their job to ensure their client understand what they have negotiated for them.
So overall how much can you make on one good book a year? High end and low end? Google search says 40k to 65k on average? Sound correct?
I am very curious about how publishing pay scheduled break down tax wise. Can't wait for that video.
Alexa, did you take the spreadsheet off your website? I wanted to try it, but when I checked your site it was gone.
I hate being old sounding, but I am looking forward (Not too sure that is the right phrase) to your tax video. Your videos about the business are very informative and eye-opening.
@@chrissycook7673 Maybe not, but it sure makes feel it. lol
Thanks for this video I have a question I understand not getting royalties unless you earn out your advance. Is this based on the total? For instance if your advance is paid installments then are royalties only earned after you have have reached the total of all the installments? Just want to make sure I am understanding correctly. Again thanks for demystifying the financial aspects of the industry.
Yep a Ton of Negatives here! So glad II've decided to go with Self Publishing!
Say you luck out and score big. You turned in you manuscript on time and its in good shape and you’ve fulfilled everything else you were responsible for. Your book is published and sales are great.
Since they pay you once a year or whenever and thing’s can change/people can leave can they ever just stop payment if they can find a reason like your book sales do poor after the big release date? Say after a year your book doesn’t sell at all, maybe a tenth of what it should be, can they then withhold your payments?
You said you have a day job while you wait for your next advance. May I ask what kind of day job you do that supports your writing but doesn't interrupt it and also if you intend to leave that job at any point?
I work in television marketing. Been doing it nine years and I really enjoy it. It suits my personality/skills and I never have to take my job "home with me." During busy periods, it can become impossible to write, but it's only a few times a year I have to block my time for day job business and the rest of the time I can easily juggle both. Also, very importantly, I work for a company with an excellent work culture, on a team where everyone supports each other and work/life balance. Vacation time is never questioned/pushed back on--and taking days is actually encouraged. If you need to leave early one day to take care of something, it's fine. I can have calls with my agent or whomever on lunch and it's fine. I'm paid a comfortable (though honestly too low for all the work I do, but that's this work economy) salary, and most importantly: the health benefits at my company are above average. I have medical, dental, vision, low or no copays on doctor's visits and prescriptions, and they also offer things like IVF and adoption assistance, as well as free, remove mental health services. They do 401K matching and I'm fully vested, which means I will keep every cent of their matching as long as I work here. I'm up to 3 weeks vacation, which will increase to 4 when I hit my next milestone. I plan on staying indefinitely unless there are MAJOR changes. The stability I have with this job is just too good to pass up. I would consider changing my specific job in the future, but I would transfer to another department. I want to stay in the company.
I get published I'm taking the money and self publishing.
Thinking of writing something easily consumable, a franchise like Harry Potter even though I hate Harry Potter
This is totally helpful!!! Definitely good info to know!! Thank you!!
Also depressing. 🙀😳🤓
Thanks for another great video. Are royalties for audiobooks any good?
Yikes that article was painful to read. She should have found your videos!
Well 😬😬 at least I live outside of the America so I don’t think I have to worry about taxes.
Fantastic video! Thank you for the spreadsheet, the detailed information and the wisdom!
Thank you so much! This video is so clear and amazing. You are my favorite TH-camr Alexa!
Hey Alexa! Love your videos. I was curious about your experience with international book sales
Thank you so much, Alexa. Your videos are like beacons of light in a dark expanse of uncertainty haha!