Blogger: Rachelle Gardner
One of the things that always generates excitement among authors is the prospect of an “auction” between publishers for their book. But there’s also a mystique surrounding auctions, and many writers wonder how they actually work. So let’s pull back the shroud of mystery and peek at what an auction looks like.
Why are auctions so exciting?
The prospect of an auction means that several publishers are interested in your book. That’s exciting in itself, but more than that, the high level of interest means publishers are confident that they can probably sell a lot of copies, so of course that means a higher advance (than if there wasn’t an auction). Knowing people are excited about the book, combined with the prospect of decent money, is one of the best things that can happen to an author. So the excitement is warranted.
When does an agent decide to hold an auction?
Usually when two or more publishers express interest in making an offer on a book, the best way to handle it is an auction. Contrary to myth, this doesn’t mean the book is guaranteed to be a blockbuster bestseller nor does the author have to be a celebrity. It simply means it’s strong enough that several publishers are interested in publishing it. The auction is held to keep things fair — to give each interested publisher an equal shot — not just to drive up the price.
How does an auction work?
There are different kinds of auctions, and the agent decides how each auction will run. They could be via phone or email, often being a combination with offers coming by phone, followed up in writing via email.
In a “best bids” auction, the agent sets a date and time by which all interested publishers need to have their offers in. They’re expected to put their best offer on the table, so each publisher has the opportunity to figure out what they’re realistically willing to pay for it, without having the price driven up by competing bids. Usually a best-bids auction is held if only two or three publishers are expected to bid.
In a “round robin” auction, the agent sets a deadline date for offers. Once all the initial offers are received, the lowest bidder is given the opportunity to outbid the highest or drop out; then the next lowest bidder is given the opportunity to top the highest bid; and it continues until there is one winner standing.
Sometimes before an auction, the author and agent (or attorney) actually sit down with the interested publishers and talk for an hour or so, to get to know one another. This is extremely helpful for both author and publisher in making their decisions. If a face-to-face meeting isn’t possible, there will usually be conference calls in which the author and agent talk with the editorial and marketing staff at the publisher.
Of course, sometimes big celebrity authors cause a feeding frenzy. This usually happens when memoirs become available from big celebrities; or former U.S. Presidents; or people involved in big news stories.
Is an auction all about the advance?
Surprisingly, an auction isn’t totally “show me the money.” Especially when the author is a non-celebrity, the agent may be looking at the total publishing package, including marketing plans and perks, bonuses, release dates, royalty rates, sub-rights, how excited the publisher seems about the book and how much they seem to “get it,” and who the editor will be.
What’s a pre-empt?
Sometimes one publisher is especially interested in acquiring the project, and will make a bid they hope is considerably stronger than what anyone else is offering, telling the agent they’re making a “preemptive offer.” If it’s strong enough and the author and agent are excited about the publisher, the project will be taken off the table before the auction has a chance to get going. The book is said to be sold “on a preempt.”
Is any of this surprising to you? Have you dreamed of having your book sold at auction?
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Carol McAdams Moore
I am totally in love with the more commonly-known kind of auction. It is wonderful to search through wagons of items for that treasure or object of interest and then to stand with others who also see the item’s worth.
This post is very informative about the kinds of auctions held in the publishing world. How exciting it would be to be a part of a publishing auction!
Norma Horton
It seems to me, Rachel, that especially for a “newbie” author, the advance is the least important element on the table if a proposal goes to auction. Don’t sales of a first book largely set the tone for the author’s markeability and literary future? So doesn’t it make sense to weight the evaluation in favor of those elements (marketing plan, editor, etc.) that can drive the quality and exposure to its highest level? I realize we all have investments to recoup, but focusing on the number seems like short-term gratification to me.
If/when Mary and I face this delightful possibility, my priority will be about building momentum for the other books in the series, and I think Mary’s will be too. The advance seems almost like a red herring, the easiest thing for a publisher to “give” in the equation. Your thoughts?
And can you give other examples (unless I’m stealing thunder from a future blog) of items that you think are particularly important to watch for in an auction?
Thank you for this informative post.
NLBH
jennifer della'zanna
I agree with Norma! And I have a friend whom went through an auction for his first book and said it wasn’t as much fun as you would think!
jennifer della'zanna
Who, not whom! Darn phone doesn’t know grammar!
John Grabowski
What is? 😉
Cheryl Malandrinos
Fascinating post, Rachelle. I didn’t have any real idea how these worked. Can’t say that I’ve dreamed about it happening to me–at least not right now–but in the future it would be nice. I’m focused on trying to build my brand to add value to what I can offer an agency.
This has been a year of mild setbacks, but we must all go through those seasons to get to where we want to be.
Jeanne T
It’s always interesting to learn more about lesser known aspects of the publishing industry. I appreciate your insight into how they work, and the different kinds of auctions. Are certain types of auctions more desirable than others? How often do you see an author you represent have a book that goes into an auction process?
I think it would be pretty wonderful to have a book sold at auction. To know that it’s sought after, well, that seems like it would a heady experience. 🙂
Meghan Carver
Good question, Jeanne. How often does this actually happen?
Janet Grant
Rachelle isn’t able to answer questions today, so let me step in and reply.
Auctions are kind of like magnificent sunsets. You never know for sure when one will occur, and you just enjoy it when it happens. All the right elements have to be in place: the right project, at the right time, and several publishers interested. We kind of know which projects are likely to stimulate an auction, but surprises do occur. I’d say, in our agency, we conduct 6-8 auctions per year.
Jeanne T
Thanks Janet, for the answer to my questions. I love the analogy of a magnificent sunset. 🙂
Leslie Miller
An auction sounds amazing. It’s great food for thought, auction or no, that the advance is not necessarily the main consideration. In this day and age, I would definitely want to know how much marketing I’d receive and how excited they seemed about the project. Those two might be the deciding factors for me.
Meghan Carver
That’s interesting that part of the total publishing package includes the editor. I can see why a sit-down would be valuable, especially since a continuing publishing relationship would hopefully develop. An auction would definitely be a dream come true!
Jennifer Major
I am an auction fan.
I know a bit about bidding, and being all chill and cool, and then the thrill of the win.
If I had a book go to auction? Well, I’d be somewhat ecstatic.
donnie nelson
. . . I might have a problem here – What if I end up bidding on my own book and I end up the high bidder? ha ha
Andrew Budek-Schmeisser
There’s an interesting parallel in academia – when a highly-qualified individual becomes available, he or she will take competing offers from universities, and play off the offers against one another.
It’s not all about salary – the ‘package’ includes teaching loads (as low as possible), startup packages (money allotted to kick-start research at the new university), participation in ongoing research, and moving expenses. Sometimes a package will include a job offer for a spouse, as well.
I would love to have one of my books auctioned. It would be a refutation of those many years spent out in the cold.
But it’s not a must-have. A career is usually built by slow degrees, and I’m content with that.
Karen Barnett
So fun! Since it’s not based completely on advance, does it ever get difficult to judge between offers? Does it have to be a clear-cut winner, or does the agent have some discretion in taking a lower offer with a publisher they feel would be a better match for the author?
Michelle Joseph
Hi Karen,
If you don’t mind I want to piggy-back off of your comment. I was wondering the same thing. Also, if you know that one publisher will do a better job, do you let them know the highest bid to see if they will match it? It may not be about the money, but if the publisher knows that the agent will go with them for less money because they know their work, what’s to say they wouldn’t use that to their advantage? I’m not saying they would low ball you, but it’s a business right and getting the best deal is the adjective on both sides.
Elaine Faber
On my best day, I’d have just one a publisher who wanted to print my mystery series. To think that several publishers at the same time might want it, is beyond my comprehension. Thanks for sharing something else for me to dream about. 🙂
Ted Cross
If I were lucky enough to get an auction for one of my books, I’d be more interested in other aspects of the publisher and contract than just the advance. I’d want to know that the publisher will do more with the marketing than other publishers. I would like to have some influence on the cover, since so many covers these days are outright terrible, and I’ve got a really great eye for what makes a good one and what doesn’t. I’d like to have a publisher that is really excited by my work and gets it. I’d happily take less money up front if I could have these!
Jerry Eckert
Absolutely dreaming of an auction. My novel is historically based, set in South Africa during the 10 years surrounding Mandela’s prison release. I lived those times, working for peace with the outgoing white government and the incoming black government. History wrote my plot line, I know the actors. So, aside from a secondary interest in the advance, my auction interests rest on what they offer regarding overseas marketing, especially in southern Africa and movie rights in the USA.
Jerry Eckert
Second comment, a question really. Do authors ever use the auction mode to select among two or more interested agents?
Crystal Walton
From your experience, how often do auctions occur for first-time authors?
anon
“the total publishing package, including marketing plans and perks, bonuses, release dates, royalty rates, sub-rights, how excited the publisher seems about the book and how much they seem to “get it,” and who the editor will be.”
How successful are you at getting all these written into the contract? Because things like marketing plans and perks generally aren’t contractual obligations, which means if the publisher’s excitement wanes, or the editor leaves and the new editor doesn’t “get it” the author could still find herself out in the cold.
I see people commenting that they would take less money for an exciting promotion plan–that’s great, if the promotion plan holds up and everything falls into place. It’s not so great if parts of that promotion plan fall through (such as, say, a co-op deal falling through). I’d love to hear how agents go about ensuring that clients really get the full value of what a publisher promises, but only in a non-binding way. An advance, at least, is irrevocably paid.
Norma Horton
I would guess that in publishing, as in the rest of the business world, nothing ensures enthusiasm and delivery more than a well-written contract. Just as the advance is part of that contract, a detailed and documented promotion plan should be — will HAVE to be. As one of those who wants to focus on what happens beyond the advance, believe me when I write that the attention to detail apparent in my manuscripts is nothing compared to the scrutiny any contract will receive. And if I have to choose between short-term gratification (the advance) or long-term (the marketing pacakge), I’ll go long every time.
Martha Ramirez
Excellent post! Thank you for sharing the details.
Jevonnah
Enjoyed this. Learned a lot. Thank you!
Sue Detweiler
Rachelle,
Thank you. This is very helpful.
Amanda
Ha! I had heard about these and was going to research it. Thank you for this very interesting and informative post. I enjoy seeing behind the curtain in the publishing industry.