Okay, I didn’t want to leave bad feelings hanging in the air, so I’m posting for a second time today. I hate not feeling upbeat about the publication process, even for a few hours. Onward and upward, as I always like to say.
Thank goodness, then, that intrepid reader Jude wrote in this weekend to ask the burning question on everyone’s mind: “How much does a first book usually garner in way of an advance?” I was shocked — SHOCKED, I tell you — to realize I had NEVER done a post on the subject. So thank you, Jude, for reminding me to do it.
We’ve all heard the stories, haven’t we, of the struggling author plucked from obscurity by the sale of that first book? How Stephen King misheard how many digits were in the advance for CARRIE when his agent called to tell him about it — and then dropped the phone when he finally understood how much money was involved? How Jean Auel’s THE CLAN OF THE CAVE BEAR, garnered what was at the time the highest amount ever commanded by a first novel at auction? How occasionally literary novels wow ‘em so much at Farrar, Strauss that the advances run into six figures?
And on a more modest level, how, referring to my last blog, authors get large enough advances to take extended leaves of absence from their day jobs in order to write and revise?
Before I launch into a description of how the average book’s experience is different from these, let me ask a few questions to those of you new to dealing with the publishing industry: are you sitting down? With a cool drink in your hand, and perhaps a teddy bear to clutch? Have you taken any necessary medication to ward off heart attack or stroke?
If the answer to all of these questions is yes, let’s back up a little and define our terms, so we can discuss the first-time author’s advance productively.
For those of you new to the biz, it’s called an advance because it is an up-front payment of the author’s future royalties, a percentage of the cover price of the book. Essentially, the amount of the advance is the publishing house’s very conservative estimate of how many copies they expect to move. Why conservative? Because if your book does not sell as well as they think, you don’t have to pay back the difference.
Sort of like THE PRODUCERS, isn’t it? An author could conceivably make more money on a heavily-hyped failure — defined by the industry as a book that was expected to sell 100,000 copies but only sold 10,000 — than on a sleeper that was originally expected to sell 3,000 but actually sold 10,000. What a world!
Actually, that doesn’t happen all that often, since (a) a large advance usually means that the publisher will invest more resources in promoting the book ,and (b) the advance calculations are ALWAYS intended to fall on the short side, so the publisher will not be out of pocket much.
How do they calculate it, you ask? Well, it’s sort of as if your parents sat you down a year before your wedding and said, “Here’s what we expect the cash value of your wedding presents to be. If you will sign the rights to any future presents over to us, we will pay for the wedding — gown, invitations, food, everything — and pay you, say, 7% of the cash value of the first 50 gifts, 10% of the second 50 gifts, and 12% for gifts #101 on. We will give you now, at this very moment, a check for 2% of what we think the ultimate cash value of all of your gifts will be, in return for signing our contract. We’ll pay you the rest of your percentage after the gifts have rolled in. Of course, if you would prefer to pay for the wedding all by yourself, you don’t have to agree to this, but we can afford to throw you a much, much bigger wedding than you can possibly throw for yourself — with invitations sent out to thousands of people on your behalf — which may ultimately translate into many more presents.”
Welcome to the world of publishing. A heck of a lot happens before the author gets to toss that bouquet around.
Tomorrow, I shall go into why it actually is good for you to be aware of the norms of the industry, and how you can go about making yourself a savvier hoper. The more you know, the better you can work the system, and the more of a joy you will be to the agent of your dreams!
Onward and upward, everybody. And keep up the good work.