how do book authors make money? per book sale? or pre-sale agreement?

Question

for example, is it based on every book that sales you get certain percentage. or you get paid XXX amount to write the book, and whether it sells millions or bombs makes no difference

Answer 1

Let me walk you through some of the options...

One option is to sell the book outright to a publisher. Some publishers (usually small houses) only publish what they buy outright. In this case, you (or your agent) negotiate a selling price, and that's it. You are payed a flat fee, and all rights revert to the publisher. No matter how many copies are sold, you get nothing more. Most publishers do not operate in this manner.

Most publishers work by the royalty system. When a publisher accepts a book for publication, they usually pay a writer an advance of a few thousand dollars (unless the writer is extravagently well known, in which case the advance can be in the millions). This advance is later deducted from the royalties the book earns.

The standard contract pays the the author 10% of the book's retail price as a royalty. Most contracts also have provision for increased percentages if a book sells more than 5,000 copies (sometimes 10,000 may be required). If the threshold of sales is met, the author's percentage increases to 12.5% (and sometimes 15%).

This is the way most contracts are written for hardbacks as well as paperbacks. In the old days, publishers only bought hardback rights, and the author could then negotiate paperback rights seperately. But these days they are usually sold together.

A publisher will buy exclusive rights usually for only a part of the world. For example, your publisher may purchase only the "English Language Rights." This would leave you free to negotiate individual contracts with other companies for Spanish Language Rights, French, etc.

If one is writing fiction there are also adaptation rights. You may be able to retain all other rights to yourself, so if someone wishes to turn your novel into a movie, you can sell the option to a producer for whatever he's willing to pay. Most options last for a period of 6 months to a year. If, after the time expires, the producer cannot make the film, all rights revert back to you, and whatever money he paid for the option is yours. You're free to sell the option to another buyer.

This covers the main points: Hardcover, Paperback, worldwide sales, secondary markets. These are the main ways one can make money.

Cheers, mate.

Answer 2

Usually the money goes to the bookstore and the publisher. Some universities and charities run their own publishing houses and, in that case, the charity would benefit from the profits from the books. When the book enters the Public Domain than there is no author that can collect royalties. The publishers collect all the profits that come to them. People want to buy the Bible and the Koran so why shouldn't a publisher print them for that market?

Answer 3

1

Answer 4

pre-sale agreement