Let's Talk Turkey

Now that Thanksgiving has come and gone (note the word "turkey" in my title), I know we're all starting to think about that joyous season that's just around the corner... A time when men and woman think deep thoughts and spend too much money. I'm speaking, of course, about tax season. You see, you're about to spend a ton of money on gifts at Christmas, then you'll be facing all those one-time expenditures like life insurance that arrive at the start of the year, then right after that Uncle Sam will come with his hand out, wondering where HIS little bit of income is. Really puts you in the holiday gift-giving mood, doesn't it? So let's talk about money in publishing for a few minutes.

Diane wrote to say, , "I can't seem to figure out when I'm getting paid on my publishing contract. it's driving me crazy!" 

One of the things I've noticed about many of the writers I've met with over the past several years at writer's conferences is that they often aren't clear WHEN they are paid. For the record, most contracts I negotiate are paid half-n-half -- that is, half the advance is paid within 30 days of signing the contract, and the other half is paid upon completion of the writing assignment. Some publishers will pay in thirds, with the last third being sent upon publication of the manuscript. And, in fact, that's probably going to become more popular with publishes, as they try to spread out the risk more and more. 

That said, there are a number of variations to this. I once did a contract that was paid in sixths (signing, upon creation of an extended outline, the rough draft, the completed draft, publication, and...um...Lindsay Lohan's birthday or something -- it was pretty stupid). The POINT is that a writer wants to get as much money as possible, as soon as possible. That's why we agents fight having a check delayed. And it leads into the next question...

Ben wrote and said, "I had a big-name author tell me she never takes and advance. Why should I?"

You should because you worked to produce the book, Ben, and you should be paid for your work. Sometimes a big-name author doesn't ask for an advance because they don't need the money. If that's your situation, wonderful (and can you loan me twenty bucks?). But think of it this way: If a publisher makes you an offer in January 2010, you may not see a contract until March. Then you spend six months writing the book, so you turn it in by September. They take a year to produce it, and finally get copies on bookstore shelves in August 2011. You're now into it more than a year-and-a-half. Without at advance, you've earned nothing. On top of that, the publisher is going to take EVERY STINKIN' DAY ALLOWED before he pays you. (If the contract says you'll get a check within 90 days, you can bet he won't be sending it until the 90th day.) AND if the publisher tried to talk you into doing a cheap deal because "you'll get the money on the back end," that means you have to wait until the book has been out there for a selling season, so the accounting on your royalties isn't done until December 31, 2011. THEN they'll wait their 90 days to send you your check. And that means that great book contract you sold in January of 2010 won't actually put any money into your pocket until March of 2012. And no, your publisher, who has been selling your books and collecting your money, doesn't plan to pay you any interest on the money they took in months ago.

I'm not saying it's unfair, I'm just saying advances are not an evil, or even a necessary evil. They're part of the business, and they help writers survive while creating their art. NOW do you see why agents have a tendency to clamour for advance dollars?

Carol wants to know, "What can I do about a publisher who hasn't sent me my completion money?" 

Technically, your completion money is due when you turn in your manuscript. But publishers have slowed that down in  recent years by saying your manuscript has to be turned in, edited, and approved -- which sounds fair in practice, but it sometimes seems as though projects have approval withheld just to keep the publisher from paying on them. (Note that I said "sometimes." Not "frequently.") What can you do? You can have your agent call them and ask the hard question. Of you can do it yourself. You're all in a legally-binding contract, so this probably says something about understanding what you're signing when offered a contract, Carol. 

When I was a free-lance writer, I noticed that publishers (both magazine and book) tended to put me on the bottom of the pay ladder. I once called a publisher to complain that I hadn't been paid, and the response was, "Oh. Yeah. Sorry. Guess we'll get you next quarter." The measley $1500 they owed me meant little to them -- but it was MY HOUSE PAYMENT FOR TWO MONTHS. So, yeah, I eventually got over my reluctance to talk money with publishers. (I'm not nearly as nice as some, I suppose, but I make up for it with consistency.)

And this is a good time to face facts: If you're uncomfortable talking about money, or you can't be bothered nagging that publisher who keeps forgetting to pay you (and there are a couple who are really slow), then you need to find an agent you're comfortable with, who is competent with both numbers and negotiation, and talk to him or her about handling this for you. You'll find it's worth it to you.

Got a question about money and publishing? Send it along...

-Chip MacGregor

 

Comments

[yarnbuck]

Thanks, Chip. With only two mircro-press, unagented deals to my credit, your insights help.

[Sharon A Lavy]

Thanks for the info.

[Susanne]

Chip, this is all great information, but how does an author working with smaller publishers wrangle good contracts without an agent on their side?

I am on my fifth book contract, but because I am being published with smaller companies I have had agents say, "You're not worth my time."

[Lea Ann McCombs]

Chip, I wondered if you see advances becoming a thing of the past with publishing facing the same kinds of hits that other businesses are. Do you foresee publishers removing the advance and going toward more of a book-on-demand type system? Would that be cost-effective for them?

[Lea Ann McCombs]

Chip, I wondered if you see advances becoming a thing of the past with publishing facing the same kinds of hits that other businesses are. Do you foresee publishers moving toward more of a -book-on-demand type system and paying authors with royalties only? Would that be cost-effective for them?

[AimeeLS]

Wow, food for thought. I guess that first contract and book are going to be a real eye-opening experience.

I've read a lot that many publishers don't WANT to deal with writers directly - which bothers me. I have a background in business and a head for it. I'd like to be at my own negotiation / strategy table when it's appropriate...

Is that unrealistic?

[Tamara Cooper]

Excellent post. Answers most of my questions about advances and payments.

[Cecelia Dowdy]

I heard that some big-time, bestselling, NY Times authors don't earn out their advances? They get a huge advance, and the publisher knows that they won't earn it out and that's okay? Is this rumor or truth, and if it's truth, why would a publisher do this? Do they just want to make the author happy?

[Lisa Lickel]

Could I claim the price of the books I use as promotional giveaways as a deduction?

[Candace]

Great information, great blog, and GO BUCKS!