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It's Monday. I'm subbing, editing, rejecting, etc. etc. Mostly waiting, right along with you, my little beasties;)

Ran out of coffee, received correspondence from an editor that the post office had accidentally shredded (thank goodness it wasn't a royalty check). Did I say it's Monday?

As promised, here's a bit more concerning deal points. I'm not going to include graphic novel, dramatic (film and TV included), or merchandising here. Why? Because I'm a firm believer in holding all of those rights (so there nah nah). Here's a few--


Sale of mass market paperback reprint......................................50%

Book clubs.........................50%

First serial rights....................90%
(this covers a sale to a magazine prior to publication, often retained by the author)

Second serial rights...................50%
(this covers a sale to a magazine after publication)

Audio.....................................75%

An author should get at least 50%.

Foreign rights are an either/or. If the advance is high enough, or you feel the publisher is better equipped to sell, then shoot for 75% on foreign and translation, as opposed to keeping these.


Stay literate;)

Busy day, but smooth as butter:)

First on deal points, let's go over royalty structure. Think I've said it before, but I'll say it again just in case (Lost is coming back on soon, so bear with me, my little beasties(it's like I have Lost ADD lol). And, hey, can't wait? Check out www.findf815.com) ---royalties vary whether we're talking hardcover or paperback.

If a publisher offers you one straight rate, it's time to think again. Royalties are structured. Here's examples of a fair royalty structure (not bad, but not the best in the world)--

Hardcover:

10% on RETAIL COVER PRICE for first 5,000 copies
12.5% on next 5,000 copies
15% on copies above 10,000

Mass market:

6% on first 150,000 copies
8% on copies above 150,000

Now, why did I capitalize RETAIL COVER PRICE? Simple. You need to pay close attention, as many smaller publishers are going to base royalties on NET.

Let's look at the sample from yesterday's post--

Price point (cover price)..... $20.00

Net per book ....................... $11.00

So if we're talking royalties based on retail cover, you're getting $2.00 per book sold (on first 5,000 hardcover), whereas if we're talking royalties based on net, you're getting $1.10 per book sold (on first 5,000 hardcover). HUGE DIFFERENCE!

Stay literate;)

This is just a sample, mind you, to give you an overall view of what a publisher takes into account when coming up with an advance amount. There are actually various ways for both editors and agents to come up with this number and other factors I consider (royalty amount, sub-rights split, etc.) This sample is based on one provided in How to be your own Literary Agent by Martin P. Levin (a must have book if you're going it alone).



Sample P&L--

Price point*........................................................................................ $20.00

Average discount .............................................................................. 45% (the average amount the price point is reduced when sold to a retailer or wholesaler)

Average net per book........................................................................ $11.00

Estimated initial print run* ............................................................. 120,000

Returns .............................................................................................. 40,000 (this figure represents the number of returned books. Usually estimated as one-third of the initial print run)

Net Unit Sales ................................................................................... 80,000 (print run minus returns)

Net receipts ....................................................................................... $880,000 (net unit sales multiplied by average net per book)

Manufacturing cost .......................................................................... $420,000 (this rate can differ. I used $3.50 per unit(book) multiplied by initial print run)

Overhead .......................................................................................... $308,000 (35% of net receipts)

Total manufacturing and overhead............................................... $728,000

Net before Royalty and profit ....................................................... $152,000 (net receipts minus total manufacturing and overhead)

Target profit .................................................................................... $88,000 (10% of net receipts)

Advance available ........................................................................... $64,000 (net before royalty and profit minus target profit)


Like I said, this is just an example. Manufacturing cost can be different, discounts could be more or less, price point will change (this is hardcover, whereas paperback would be much less), etc.

Confused? Go find yourself an agent:)

Lindabudz asked:
What is the process for reviewing agented submissions at your house?

Presumably they are sent to a specific editor. Do assistants read them first? If so, do they have final say if it's a "no" or do they pass them all on to the editor with recommendations?

At the house where I work, when agented submissions come in, they are almost always passed to the editor’s assistant or the intern first. We read them. We try to read them all the way through, but our unofficial policy is that if we hit 50 pages and it’s still a chore to read, then we stop reading.

I usually try to read all the way through even if I’m not really engaged, to see if it gets better or if the ending makes it all worth it, or if the characters are great and it’s just the weak plot that needs work, or whatever.

After I’ve read it, I write a reader’s report for our editor. The RR is usually about 1-2 pages long, and gives a short plot summary, and then our reactions, good and bad, in detail. The RR talks about plot and voice and characters and dialogue and description – like a really detailed book review. I detail what exactly I liked and didn’t like.

And then I give the RR and the MS to my editor. Sometimes, when I pass it on, I’ll make a recommendation, either for or against. Sometimes I’ll tell my editor that I like it, but it needs work.

After that’s done, it’s in the editor’s hands - usually. My boss will definitely take my advice under advisement – that’s why I read it first, after all – but then he reviews it by himself. I’ve done the ground work – he can look at my RR and get a sense of the MS.

Once in a while, my boss will hand me an agented MS and tell me to read it, write him a report, and if I don’t like it, to reject it by myself. Usually, the ones that that happens with are ones from smaller agencies (and by smaller, I don’t mean smaller staffed, I mean less well known, less established), agencies that he doesn’t trust as much or have as good a relationship with. It’s one of the reasons that it’s important not just to have an agent, but to have a good agent – one who has a relationship with editors, someone who really knows what specific editors are looking for, so they trust their judgment and will pay closer personal attention to the MSs that they give them.

If the original editor likes the submission but thinks it might be better for someone else at the house, does he/she pass it along?

If something comes along and it’s not right for my editor or even my imprint, but it’s really great, my editor will happily pass it along to the editor or imprint that he thinks it might be better for.

However, that is not always the case. One of the editors in my imprint used to work at a different Big Name Publishing House, and he told me that that house was much more competitive, and if an editor found something that they thought was great but not for them, they would never, ever pass it on.

So I guess it varies by house.

Keep the questions coming!