Blogger: Wendy Lawton
One question I get over and over from writers is, “What would you say is the average advance a writer can expect to receive for a book?” I’ve answered that question a number of times in blog posts but since the question keeps coming up, I’m guessing it won’t hurt to dust off the subject and address it once more.
Wouldn’t it be nice if I could make this simple and just name a number? Unfortunately, it’s not that easy. The question of advances must be taken on a case-by-case basis because there are four variables: the author, the publishing house, the project and the agent.
The author— If you are perceived to be an A-list author, you bring a lot more to the house than just earned-out advances. Many houses are willing to pay more than the sales projections dictate– more than what they think a book will earn out–for the opportunity to publish you (stature), to try to provide a forever-home to you (future earnings) and to forge a link with your readership (enlarge their following).
If you are a solid writer, a solid earner, a publishing house may offer you a bigger advance to lure you away from your current house (paying for the upheaval, so to speak). Or if you stay at your present house, a good, stable house may look at your earnings over time and decide to reward you with a bigger advance as a way of letting you know you are valued and to encourage you to stay with them.
If you are a developing writer, beware of big advances. You need to establish a track record. You can’t afford a failure early in your career. The hardest thing to overcome in publishing is a bad numbers-to-advance ratio. Every time an agent goes out to sell you, he has to try to explain away those numbers without giving proprietary information about your former publisher and without appearing to trash anyone’s marketing efforts.
If you are an author with a history of regrettable numbers (for whatever reason) you need to be flexible about any advance. You have a career that needs rebuilding. The best case scenario would be to take a break-out book (like we can predict this) to a solid house regardless of the advance. We have some bold editors out there who recognize great writing and are sometimes willing to put everything on the line. Make it easier for them to do this by being flexible about your advance.
Or, if you are a one-book-only author, say, someone who is selling his own life story, you don’t need to worry about a career arc. You can go for broke.
And there is the author with money problems, who may be willing to sacrifice a long-term career for a large infusion of cash.
The House— Each publishing house has its own advance philosophy. Some good publishers are pretty inflexible about advances. They know how to build careers, but they almost have a set payment structure for their category books that they apply across the board. The nice thing is that most of these advances earn out, and many do phenomenally well. These publishers understand their business model. Other houses pay high advances regularly, which never come close to earning out. Who knows how they answer to their management or board of directors, but that scenario can be a fiasco for the authors. Your numbers at those houses will look atrocious. Most solid houses will work hard to offer an advance that reflects reality.
The Project— This is the hardest element for us to evaluate. It might be easier in nonfiction. But if you have a book that everyone agrees is a stunner, that becomes a consideration. Your agent may spot it. If you are not settled at one publishing home, and your agent is shopping it around, you’ll get multiple offers and that will be a first indication. You can’t go by what your mother, friends or spouse thinks.
The agent— Many agents believe it’s important to get as much money up front as you can, regardless of the probability of earning out. These might be agents who work with you on a project-by-project basis or who are not expecting to work with you for your whole career. (Bad scenario.)
You may have an agent who is working on a career plan with you. Your agent sees each contract as a potential career builder or career breaker. He will chew over each step, worrying about how it will affect your whole career. He may encourage you to seek a smaller advance if it brings about some other objective.
Then there is the agent you need to avoid who has his own money problems and needs to make as much money in the short term as possible. He will push for as much as the market will bear regardless of who the publisher is or the potential of earning out. He knows he can always replace the current client with a fresh client—they’re lined up waiting.
There’s so much more. That’s why agents and editors spend so much time praying over these things and working out potential scenarios. The variables are almost endless. Just remember, there are consequences to every decision you make. My job, as an agent, is to try to mentally play out those consequences in advance and make a wise decision based on the goals of the client, the strength of the project, the quality of the house, etc.
I look forward to your comments. Does it all sound unfair? Frustrating? Do you hate it when anyone refers to A-list writers (because you suspect that means there is a B-list and a C-list–and you fear you’re on the D-list)? Let’s talk.
I have realised for a long while that this question is “how long is a piece of string?” However it would be nice for a new author whose novel is not a breakout (that might be a dream but, let’s be realistic here, those are in the minority) to get a yard stick to measure against. If I am so blessed with receiving an advance I will rely on my agent to guide me.
Personally I would prefer a low advance and earn on royalties over a period, for tax reasons. I already earn pretty well in my current job so any advance would be heavily taxed. regular royalties might reduce that burden, or at least give us a chance to re-evaluate our family financial arrangements. On the flip side I understand that a low advance may not incentivize the publisher to market as strongly. It’s a complicated game. Good job I’m not doing it for the money, but to get my story out into the hands of readers who will hopefully enjoy them.
You’ve outlined the dilemma well, Nicholas.
What’s an “average” book? No such thing. It follows, then, that there is no average advance.
*I’ve always liked the security of the same deposit in my bank account every two weeks. Writing my book has taken me out of my safety zone. It only makes sense that its earnings will go there too.
*God didn’t give me the book idea as a source of income. My goal is to transform lives, not get rich (but I’ll take whatever money–thank you, God).
Agreed, Shirlee! If the money were offered I’d take it, but I don’t need a fancy house or a Ferrari, or trips to Tahiti. I would, however (and to Barbara’s horror) buy a restored M18 ‘Hellcat’ tank destroyer, the fastest armoured vehicle of WW2. The gun, sadly, would have to be inert, but I live in a place where I could happily rip through the sagebrush to my heart’s content and my wallet’s dismay.
* And no one would bother me:
“Dude, what the H*** is that writer dude up to now? We gotta talk with him.”
“Uh, bro, let’s maybe not. He’s driving a TANK.”
But they would be wrong. A TD is not a tank; different mission, and that makes all the difference. So THERE. Smell my exhaust, peons, and marvel.
LOL!
Smiling, Andrew. 🙂
Here goes the most in-depth analysis of the advance phenomenon I’ve read in my writing journey.
I do agree with all points, no exception. Just one question though.
How does the industry judge an A-list author?
We use that term loosely but it is the author who is selling heads and shoulders above all others, usually hits the NYT bestseller list. But there’s no real definition.
Wendy, this is information that many of us learned by bitter experience over time as we travel our own road to writing. I’m happy that you explain how advances are calculated and why they vary widely, yet don’t throw out actual numbers. Thanks for shedding some sunlight on the subject.
Great post, Wendy. I appreciate your explanation of the various components that go into determining an advance. Your explanation of the elements does not sound unfair.
*I appreciated reading that agents and editors pray over these kinds of decisions.
*I’ve already figured that, if I ever get published, the advance will probably be lower,due to the climate in publishing. And honestly, I’d prefer a lower advance so it’s easier to earn out. I’m thinking this is better than a higher advance that doesn’t earn out.
*Thanks for sharing this, Wendy!
Great post, Wendy. You explained this very well.
* I don’t care what list I’m on. If one person turns to Jesus and accepts hope from what I write, I’m already a smashing success. Since that’s already happened, I don’t need to chase anything else, and indeed such a chase might move my message from what it has to be. We are a glowing string of beads, held together by linked arms strengthened by love, across a dark abyss. I am content to hold fast to those on either side. They can, I hope, have the confidence that I will not let go to catch the brass ring.
* Money’s nice, but it wouldn’t change my life much. I’d be in the same place, doing pretty much the same thing, with my money or Tom Clancy’s money. I have the advantage here of not being dead.
* I do agree with Chris’ comment about taxation. If I absolutely had to choose between a huge advance or steady royalties, I’d pick the royalties. I’ve had to cash in a retirement plan, and the tax bite was ugly.
* One thing that would also bother me about a big advance would be the lack of control; I would be to some large degree beholden to the House’s marketing plan, and if it was screwed up the failure would be placed at my feet. No, thanks.
I love your advantage, Andrew!
Andrew, I love your definition of a “smashing success”. It’s an eternal one too. 🙂
Your comment resonates with me, Andrew. I hope my words will lead readers to Jesus or to a deeper relationship with Him. Money might be nice, but knowing God is using me . . . that’s a huge encouragement.
Good priorities.
Hey D List Writers Unite!
But seriously, the impression I get from this is that publishing goes better for all involved if the author remembers that there are so many people with different needs and goals when a book is published. To ignore your publishing houses need for financial viability would be foolish in the long run. Consider each element carefully before making demands.
Your post was so interesting, Wendy. I felt encouraged when you mentioned agents and editors taking the time to pray about their decisions. It would be a comfort to know the person who represented my work cared enough about it to pray.
like a credit card limit, i think it is best to have an advance you can make back rather than something that you earn out forever with no royalties. i don’t look at them as income so much as money for investment in what i hope will be a long writing gig. in my mind, as a debut author, i haven’t actually made money from writing yet because i have not yet made any royalties.
because so few authors can actually make a living at writing, it is good to have your income coming from elsewhere so that your advance can go back into marketing, research trips, upgrading computer, etc.,
In this day and age, if you are thinking about publication because you want money or a full-time career, you better think about it as a Plan B. it’s just too tenuous a profession and its rewards are not monetary at all.
Right, Rachel. And having a steady income while you are starting out on your writing journey takes a huge load off your mind leaving it free for creativity.
Wendy, your post is another excellent example of why the Books and Such blog is a must read. To be honest I rarely thing about the possibility of an advance because I’m more concerned about winning the readers’ hearts. I want to write until I drop, I don’t want to be dropped. A big advance would be a scary and risky prospect, unless I trusted my agent’s motives and wisdom. As far as A-B-C-D-list writers go, I need to remember this is a business. We must aim for the top while remembering Who is at the very top. God’s more interested in my heart than my numbers; I need to be too.
Blessings ~ Wendy Mac
I love your perspective, Wendy. My hope is that my words will win readers’ hearts too. That’s the best “payment” we can hope for.
And the truth is, Wendy, we can’t control the success, no matter how hard we work at it.
I would be happy with any advance, large, average, or small, because that would mean someone wants to actually publish me. Hopefully the book would sell and I would make it up on the royalties. To be honest, I am more interested in the royalties not the advance.
Right now I only see myself as a one-book-only author.
This is rather complicated. It’s almost like a flow chart, this means that and that means this. It is also formulaic with a measure of the unknown to complicate matters. I see where the agent has to decider the code, especially for the newbie author. Very interesting. Thanks for the info, Wendy.
Dear Wendy: Actually it was a great answer. Because there are no set fast rules, no laws and no amount is right or wrong. Authors should look at the bigger picture and push to have their story in the right hands and then work like crazy to do their part to market it. Warm regards, Jacqueline Gillam Fairchild–author: Estate of Mind, Her Majesty’s English Tea Room
Spot on!
Great analysis, Wendy. Having probably seen every possible scenario your perspective is valuable and fascinating. I’m assuming an A-list writer is a recognized name in publishing/editing/agenting circles. Seems like there are many B and C-list published authors…not sure how a D-list author fits into publishing…maybe as a “never-give-up, I’m gonna conquer this” writer? LOL
Anyway, enjoyed reading this posts and thanks for sharing your experience and expertise!
🙂
Refreshingly honest.
Such a helpful post, Wendy! Thank you. I learned a lot from the information you shared. I wasn’t aware of that balance of needing to earn out the advance or your numbers would look bad. I would have thought that a large advance was always better, so I really appreciate this information! I’m so thankful for agents who can help authors prayerfully make the best decisions.