Gail Anderson-Dargatz

Resources for Writers

On Publishing

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ADVANCES, ROYALTIES AND AGENTS, oh my!

- A Primer on Traditional Publishing

Advance:

…is just that.  It is an advance against the royalties the publisher expects you to earn.

If your book cover price is $10, and your royalties are 10%, then you can expect to make $1 per book sold at that cover price.  (Often, your publisher may sell for less when in bulk. And when that happens, you make 10% of the amount the book sold for, so a lot less.)

So…if you receive an advance of $5000 (which would be considered a nice advance in Canada from a traditional publisher) then you would have to sell 5001 books before you would start seeing royalties.  (At least.  It may be more like 7500, if they’ve sold some of your books below cover.)

In Canada, royalties are supposed to be distributed quarterly, according to standards set by TWUC (The Writers’ Union of Canada).  But this standard is not law; often, publishers ignore these guidelines and pay royalties semi-annually. 

Example:  Melodie sells 1200 copies of Rowena Through the Wall from Oct. 2015 to Dec. 2015.  She has already ‘sold through’ her advance in previous quarters (see below for an explanation of sell through.) The royalties on these sales will appear on the March 15 royalty statement.  So in fact, for a book sold Sept. 1, she won’t see her $1.50 until March 15, nearly 6 months later.  And that’s with the best publisher.

Sell Through:

This is the term to describe if you have ‘made up’ your advance.  Let’s go back to that example of a $5000 advance. If your book has sold 5001 copies, you have ‘sold through’ your advance.

This is a key event in the life of your book, and a critical thing for your book to achieve.  If your book doesn’t sell through, then you are unlikely to get a new book contract from that publisher.

You can see why a large advance comes with stress.  The smaller your advance, the easier it is to sell through. 

(Even if you don’t sell through, you keep the full amount of the advance.)

Agents:

An agent handles the business side of your writing (contracts, etc.)  Agents typically take 15% of your income. 

So, if you received an advance of $1000, an agent would take $150 of your advance.  Now you can see why it is so hard to get an agent.  They don’t want $150 for all their work – they want $1500 or more!  So until you are getting advances of $10,000, it is hard to get an agent.

Resource Categories

Blogs on Craft

On the Building Blocks of Fiction

Coming Soon!  Tips on how to craft vivid scene that allows the reader to experience events right along with the characters.

On Finding Your Big Idea

Insights into the writing process and what a writer's day really looks like, as well as perspectives on research and writing from real life.

On Getting to Know Your Characters

Advice on the many ways you can make your characters come alive on the page for both you and your reader.

On Deciding on Point of View

What is the best perspective from which to tell your story? Writers discuss how they made choices on point of view and voice.

On Choosing Your Situation and Setting

Writers talk about how they use situation and setting to build story and convey emotion.

On Developing Conflict and Structure

From how to work in different genres to finding the real story, writers offer good advice on building conflict and structure.

On Revising

Tips on how to gain distance from your work and to how to re-imagine your next draft.

On Publishing

Writers offer practical advice on the business of writing and promotion, and on the importance of finding a writing community.

On Making a Living as a Writer

Writers offer words of wisdom on living on less.

On The Writer's Life

Writers talk about their life as a writer.

About Gail

Gail's novels have been national and international bestsellers and two have been short-listed for the Giller Prize, among other awards. She works with writers from around the world on her online teaching forums.