In the traditional publishing model authors can get paid in two ways, either a flat fee (a onetime lump sum) or on a percentage, or royalty, of each book sold.  Then there is the increasing popularity of self-publishing.  Here we’ll outline the differences.

When working with a publisher each contract will vary but there are common practices in the industry.  Typically royalties for hardcover books are about 10% while 6%-8% can be expected for paperback.  A new trend emerging is for publishers to pay authors based on net rather than the retail price of the book.  A store will purchase books from publishers at a discount between 30% – 50% and whether an author will be paid on retail or net price of the book is determined by the publisher and not usually easily negotiable.

Authors usually receive a 50% advance against future royalties when signing the agreement and the other 50% upon receipt of the final manuscript.  Publishers are looking for manuscripts that appeal to the masses as they are at risk of loosing money if they [ more ]