Blogger: Wendy Lawton
Location: Books & Such Central Valley Office, CA
So what’s another thing your agent does not want to hear? How about, “I need to see at least an xxx dollar advance for this book.” Or even the milder, “How much of an advance can I expect to get from this book?” Or worse, “I’ve talked to my friend whose sales are about the same as mine and she gets xx dollars for her books and I only get x.”
Why are those questions so bad?
Back when I was first writing I found it frustrating that I could never find out how much money I could expect to make. I’d sit in writer’s workshops and no one even asked the question. I’ve always been a pragmatic sort. I didn’t mind paying dues as long as I knew I’d eventually be making x amount of dollars. Is it too much to ask? Who would ever apply for a job and not ask this most basic question?
So why does the first statement, “I need to see at least an xxx dollar advance for this book” raise an agents’ hackles?
It’s because it supposes a book is like a product where the producer sets the price based on the cost of goods, manufacturing and overhead. That’s not how it works in this industry. The “price” paid to the author of a potential book is set by the market and we have almost no way of anticipating what will happen. If there are multiple publishing houses interested in a book then it goes to auction and the spirited bidding sets the price. The advance may go far beyond what anyone would have normally expected that book to earn out in its first year but that over-the-top kind of interest hints at what may happen when the book hits the market.
If there’s only one house interested, the bean counters at that publishing house go to work and try to figure out how many books they can conservatively expect to sell in the first year. (Emphasis on conservative.) They’ll offer you that estimated year’s royalties as your advance. Unless there are extenuating circumstances, this could be a take-it-or-leave-it price, except for a little wiggle room we agents may have to nudge it upward. Those proforma sales forecasts may be based on what your previous books sold, on what similar books sold, on the hunches of the sales teams, etc. Saying you need a certain amount of money for that book makes about as much sense as walking into a Lexus dealership, telling them you need a brand new SUV and you must get it for $7000.00. The arbitrary price has no bearing reality whatsoever.
That’s why the second question, “How much of an advance can I expect to get from this book?” never gets answered until we have an offer in hand. It is largely impossible to forecast. Until we begin to see what kind of interest there is, we would simply be guessing. I have clients who only clear a four figure yearly income, others who make a respectable five figure income, a few who are into six-figures and one who makes seven figures+/year. If you asked me to explain why each client is there it would take forever. The number of variables is staggering– most are completely out of our control. Success just happens. Or not. God chooses some to bless (or curse, depending on their response) with unexplained riches. Others, equally talented, may languish in obscurity despite their best efforts. We have no idea whether we’ll be called to riches or poverty, writing-wise. Sad but true. (But the secret is, all that really matters is how we respond to what we are given.)
You might ask what’s wrong with the observation, “I’ve talked to my friend whose sales are about the same as mine. She gets xx dollars for her books and I only get x?”
Isn’t that just good market research?
No, on so many levels. First of all authors cannot be compared. There are too many variables and too many subjective issues. Secondly, talking about contract points with anyone other than your agent is not only inappropriate, it may be illegal. Many contracts have a nondisclosure clause. It would be the same as discussing your salary with a colleague at work– crass and unprofessional. Thirdly, many people exaggerate or withhold important details. For instance, many contracts have what are called bonus clauses for performance. These are not advances in my humble opinion. At best they are accelerated royalties. I’ve often heard agents or writers add the bonus to the advance to come up with a much heftier number for reporting. When I hear a number thrown out by an author, I’m always skeptical.
And advances are just one part of the picture. Some bestselling authors would rather trade big advances for higher royalties since they make far more in the long run. Others go for broke and take a reduced royalty to get a bigger advance. A writer who tries to line himself up to another writer’s yardstick is probably comparing apples to oranges.
I’ve just touched the tip of the iceberg. I know you have a million questions about money. Ask away. I’ll answer if I can or tell you why there’s no definitive answer.
Wendy,
No wonder you tell authors not to give up their day jobs so quickly.
What you say is true in many industries. It’s not about the money any more for me. I’ve learned my lesson. You have to be happy where you are and be happy doing it. I know I can make more money other places doing what I am doing but I am happy where I am at, making what I do. If I make money from any non-techhnical writings that I may do, then to me that would be a bonus.
I think I must be naive because these are questions I would never consider asking. Not that I wouldn’t be interested in the answers, I just figured there were so many factors that played into the decision it would be almost impossible to answer these.
You’ve said some writers prefer the larger advance and reduced royalties, while others prefer the reverse. This seems like a decision that resides mostly with the publishing house. Am I wrong?
Thanks for another great article.
Cheryl
Although it’s impossible to predict, Lori, the flip side is that some writers eventually make an excellent living. I guess it’s the same with every non-salary position– real estate or sales for instance.
Cheryl, those can be negotiating points. Especially a smaller advance in favor of higher royalties. Think about it. The writer is offering to share the risk with the publishing house, saying I believe in this book and I think it’s going to sell.
I agree with Lori. I have a job to provide me with an income, getting paid for writing is like getting paid to eat ice cream. Having published only poetry thus far, I’m gotten somewhat used to not getting paid for my words!
What I’m wondering is, if you contract for a multi-book deal and the first book sells like hotcakes, can the amount you get for book two increase? In other words could you renegotiate midstream? Conversely, if the first book bombs, do they still have to take book two?
Wendy, Such profound words – all that really matters is how we respond to what we are given. So much is within that simple statement! Thanks for such an insightful post.
Laura
(But the secret is, all that really matters is how we respond to what we are given.)
Such a powerful truth. One I’m trying not to forget. More and more I sense God teaching me how to be a good steward in this wait time–how to respond with gratitude and peace through all the highs and lows.
~ Wendy
I agree with Sarah – getting paid for writing would be like getting paid for eating ice cream! Like so many things, writing seems to be a labor of love. Any money that comes in, whether great or small, is just icing on the cake (… or caramel sauce on the ice cream?).
Thanks for this! These are the kind of insights writers need to know. The more false/wrong expectations that are removed from the get-go, the better.
as i said yesterday in relation to another subject. …
we rookies don’t even begin to know what we don’t know!
Lori,
I’m in the process of writing my first manuscript and my agent is probably going to start shopping my proposal within the month. How is the advent of e-publishing going to impact offers from interested publishers? Is the day coming we’ll all start dealing directly with e-publishers?
I hope not.
This is why most of us aspiring novelists and bookwriters should be tested frequently for rabies. Trends would tell me I have a better chance of earning more writing a thirty-second television spot than I can penning a 100,000 word historical novel. So why do we do it? Because we must.
As always, a very informative post, and I can only echo the other commenters that the one thing that jumped out at me was “But the secret is, all that really matters is how we respond to what we are given.”
Paul, I think you mean Wendy and not Lori. I have no familiarity with e-publishing. Now if you were talking about documentatiion for rocket engineers/scientists I could be of service.
Michael, I love what you said about getting tested frequently for rabies.
Hey, be glad if you even get an advance. But an advance is just an advance. Hope that you get the sales that will take you beyond it.
: )
Good question, Paul. while we could technically sidestep publishers with the new media, would we want to? Marketing and publicity are going to become more important than ever– how do we drive readers to our book? It’s much like self-publishing. We certainly have the technology to make books without the publisher but no means to get those books into the marketplace. We’ve all heard stories of self-pubbed authors who have a garage filled with books.
I see the same passion to just get read that most of the others here have and I think that I would give the books away if I could see the readers response as they read.
I must admit it is overwelhming though when a check comes. I came up with a twist on Abercrombie and Fitch and when my christian based Abreadcrumb and fish t-shirts started selling it was very up lifting. When you believe it’s one thing, but when others believe, you feel blessed.
How many books have you seen the synopsis for and gone “wow” and then not sell as planned, and how many do you take a chance on and then say “wow” later when they out sell your expectations. The market seems so changing.
I’ve been told by a couple of friends that I ca easily publish to an e-book without any help. I was wondering if that is something that will hurt our relationship as author/agent? I don’t want to jepordize our relationship before it even starts. Now that’s possitive thinking.
Thanks this is the most help I have gotten from any site.
If one has a long-term view of their writing career (and assuming they’ve kept their day job), it seems to me that it would be better to focus on royalties and not the advance.
I really appreciate the etiquette lessons in the agent-author relationship…..and the wonderful explanations answering the proverbial why questions!
I agree with Steve, this site is more helpful than most. Thanks and can’t wait to read the next post.
Thanks for the posting Wendy and all the great comments. You guys are teaching me so much and making me realize I have so much more to learn about this industry. Oh Well! I will just have to keep writting, reading and most importantly learning as I go.