October 3rd, 2014

BrainUnderRepair

Writing Excuses 9.40: Understanding Royalties with Paul Stevens

Writing Excuses 9.40: Understanding Royalties with Paul Stevens

From http://www.writingexcuses.com/2014/09/28/writing-excuses-9-40-understanding-how-royalties-work/

Key Points: Royalties are basically a percentage of the list price of physical books sold to a bookstore. Hardcovers are usually 10% of list price for 0-5000 copies, 12.5% for 5000-10,000 copies, and 15% above that. TPB is 6-8%, usually graduated, perhaps 7% to 25,000, 8% above that. Mass Market paperbacks are usually 8% to 100,000 or 150,000 and 10% above that. Ebooks and audio are usually 25% of net amount received. Discounts on physical books usually don't change the royalties, discounts on ebooks do reduce the net. Advances are paid to an author, usually in two or more pieces, on signing and on delivery of the manuscript. Advances are money loaned against earnings. Earning out means enough copies are sold so the royalties cover the advances.  Royalty statements are a snapshot as of a certain date and include copies sold, returns, reserve against returns. The author gets the most in their pocket from a hardback, but good recommendations are worth more. Early purchases (first week, first eight weeks) are also important to set the bookstore's expectations.
Collapse )
[Brandon] We are out of time. I would like to thank Paul Stevens, and I would like to make Dan give us a writing prompt.
[Dan] Okay. Well, I will give you a writing prompt.
[Brandon] I warned you ahead of time this time.
[Dan] I know.
[Brandon] I remembered.
[Dan] I thought of a good one. This happened yesterday, I thought of a great one, and then I forgot what it was. I...
[Laughter]
[Dan] I get so interested listening to the guest, I don't even talk on the show. I'm just like, "Yes, Paul, tell me everything about this because it's rad."
[Mary] I will give you a writing prompt.
[Dan] Oh, thank you.
[Mary] Your writing prompt is to write the writing prompt that Dan Wells should have given you.
[Laughter]
[Dan] If you write the actual one I thought of and forgot, then we need to have a conversation, because that's creepy.
[Brandon] Thank you, Westercon. I forgot to mention, we're recording live. So thank you, guys.
[Screams]
[Brandon] This has been Writing Excuses. You're out of excuses, now go write.
[Applause]
  • Current Mood
    accounting