How are author's paid?

Question

Is it a commision based on each book they sell? Do they get paid differently for domestic and international sales? Generally speaking, at what level does an author begin to be able to command a fee for a speaking engagement or reading?

[These questions don't pertain to mega-superstar authors. I am just talking about the average, new to the business writer.]

Answer 1

It depends on the publisher. In the case of smaller publishers, you most likely receive no advance - just royalties on sales. They are paid according to contract - quarterly, bi-annually, whatever the contract states. Most smaller publishers don't have the money on hand to advance. One thing you must remember is that with these small publishers, there is a lot of scamming going on. You are entitled by law to see the books and records of the company to ensure they are not underpaying you. You can also go to distributors like Ingram and BakerTaylor and use their automated lines to type in your ISBN and find out exactly how many of your books are sold. You can do that with any book. It is your job to make sure you're paid fairly. Ask for records.

If you are with a large publisher you will receive an advance. The formula for figuring an advance is 50% of the expected royalties on the entire first print run. In other words, the average print run these days is 15 thousand copies. If your book sells for 24.99, your 10% royalty would be 2.49 per book or 37,350 for 15,000 copies. Half of that would be 18,275. That would be your advance. It would be paid to you less 15% which would be sent directly to your agent who negotiated the deal. When - and if - your book sells more than 7,500 copies, you start getting royalties on additional sales - again less your agent's fee. Depending on your contract, a second, third and subsequent print run may pay royalties on an increasing scale with even bonuses for hitting certain levels.

IF you are lucky and you have a good agent, your book may end up in a bidding war and your advance can go way up. You can also get a bonus if two or three major publishers really want the book. That is your agent's job - to do what they can to push your book and encourage more than one publisher to show interest.

There are clauses in your contract concerning international sales -- usually your American publisher will give you the rights to sell to a foreign publisher. Quite honestly, most authors don't make much on foreign sales. Some authors get next to nothing -- they just want to see the book in other countries. It is cool to have Russian and Japanese and French copies of your book on your bookshelf. But don't expect a fortune unless the book ends up being a runaway best seller.

As for commanding fees for speaking engagements and readings, the answer is that most authors don't ask anything except perhaps travel expenses. You are selling your books. Readings and signings mean additional sales and they really benefit the author more than they do the bookstore. Most authors are happy to do it. You must remember that as a new author, it is highly unlikely that your publisher gives you a marketing budget. So promoting the heck out of your book is something you do to help yourself. I personally know of one author who would sign on street corners if you let him. He took a children's book to #1 on the NY Times bestseller list and got himself a very huge contract for a second and third book by promoting himself like crazy. It worked for him. If he hadn't, his book would have gone nowhere fast.

I would say that unless you are in that "megasuperstar" category, don't push the issue of fees - you will probably get told "never mind" and the store will find another author hungry enough to do it for free just to increase sales.

Hope that helps.

Pax - C

Answer 2

I am a published author and can only speak from my own experience. Each publishing company establishes their own percentages. For the first so many books they pay you a percentage of what they sell the books for(not the price the customer pays) after say 5,000 copies the % goes up and after 10,000 it goes up again. The percentages are small however.

Normally a book that sells for 20.00 at B&N, the author receives about 60 cents(this is of course based on your contract with the publishing house). You can buy your books from the publisher(at a discount, usually of 40-50%) and sell them yourself. Thereby keeping the mark up.

The fees I charge for speaking engagements vary. Sometimes I speak and tell stories for free(I am a storyteller) other times I charge. I have been offered as much as $250.00 for a hour speaking engagement. So I say it depends.

On foreign sales the % are hard to figure as it is on a conversion of the currency used.

If you are in the writing business to make a lot of money, you may be dissappointed. Unless you are well known or have some pull, your audience is limited and you must try to get your name out whenever possible.

Good luck.

Teddy Baer Hugs and Magical Wishes to you and yours. May your lives be filled with Teddy Baer Hugs and Magical Moments.

AJ Rodriguez

Answer 3

Christina's answer was quite good. I just want to expound on one thing.

There is no "level" you have to reach to be able to charge a fee. If you get published and thereby become known, any promoter or store can contact you to issue an invitation. However, many times a book is to its author what a film is to its star(s) -- promotion is generally a necessity if the property is popular. So if you write a mega-hit book, the publisher [like a film's producer] may ask you to do a book tour, for which you likely won't be paid much [although travel expenses would be taken care of].

I love writing, but I hate the business aspects of it. Same for my arts pursuits. So, if you become successful, invest in a knowledgeable manager to take care of all that crap for you.

Answer 4

I think it depends on the genre. For romance, you get an advance. Half on signing the contract and the other half when the approved manuscript is delivered. Then, once you've "paid back" the advance, you get a percentage of the royalties.

As for getting paid for speaking, once you're published, you can charge a fee.

Hope that answers some of your questions.