After writing yesterday about Amanda’s Major Deal, I thought I’d revisit some of the realities of publishing and remind you that Major Deals and seven figure advances are NOT the norm. If only.
(To review – advances are what the publisher offers before publication – an advance on royalties. The author doesn’t get any royalties until the book has ‘earned out’ – sold enough copies so that the royalties cover the amount of the advance. That can take a while, depending on the size of the advance. On the other hand, even if the book doesn’t sell well enough to earn out, the author still gets to keep the advance.)
The size of the advance signals the publisher's expectations for the book (s) and how much 'push' the publisher is likely to put behind the book(s). The size of the advance is of interest to booksellers deciding whether to order the book and in what quantity and t0 reviewers and others in the industry.
But people don't like to talk about money -- at least, not in precise terms. So they say things like seven figures (or five or six -- I don't think anyone crows about a two or three figure advance.)
Publishers Marketplace has a handy series of code terms that are widely understood in the industry and leave a pleasant uncertainty as to whether that 'nice' deal is at the high or low end.
"nice deal" $1 - $49,000
"very nice deal" $50,000 - $99,000
"good deal" $100,000 - $ 250,000
"significant deal" $251,000 - $499,000
"major deal" $500,000 and up
When I told a friend that I had a contract with Bantam Dell for two books, the first thing he said was “Are you going to be rich?”
The short answer is no. My advances have been right in the middle of 'nice.' Pleasant but probably not even minimum wages.
Very few authors are well paid. The average advance from major publishers is $5,000 (less 15% for agent.)
A quote from an unknown source: “As far as making money at this business, I agree with those who say the few who do are in the minority. The U.S. Bureau of Labor Statistics puts out an annual list of income by occupation. I remember one year seeing "writer" listed directly above the lowest paid occupation on the list--migrant farm worker."
Of course, most writers dream of becoming one of the few -- like Amanda. Her story will fuel the dreams of many a struggling novelist.
As well as leaving a few of us just a bit green with envy.