A Lesson in Book Contract Negotiations
October 22, 2009 by Maria Keckler
Filed under Beginnings, The Whole Nine Yards
In the following guest post, Laurie A. Gray shares the lessons she learned negotiating her first book contract. Because writers on their way to publication often forget or ignore the business side of writing, it is helpful when someone like Laurie can share her experience:
My first publishing contract! I remember holding it in my hands with awe and even trepidation. As a lawyer, I’ve seen my fair share of contracts, but in this case, I immediately called on a friend who is a published writer to help me identify and negotiate the real issues.
:
The contract was for my first young adult novel Summer Sanctuary (Luminis Books/Spring 2010). One of the benefits of signing with a small, independent book company is that I really did have some negotiating power.:
My primary goal, however, was not to “get everything I could,” but to accurately reflect our good intentions for a long and prosperous business relationship. There were three areas that I targeted for negotiations: royalty fees, option for next work, and author copies.
1. Consider graduated royalty fees
The company offered a small advance and fixed royalty schedule of 10% for hardcover and trade paperback copies. I graciously accepted the advance, and requested a graduated royalty schedule. A graduated schedule allows the publisher to recover its upfront expenses before sharing the profits of a successful book with the author. I asked that my royalties increase to 12% after the first 15,000 units and 15% after the first 30,000 units. Luminis agreed.
2. Be wary of an Option-for-Next-Work clause
A second area that concerned me was a clause entitled “Option for Next Work.” At the time I received this contract I had already finished my second young adult novel and begun work on my third. I wasn’t sure which one would be considered my “next work,” and I had already sent my second novel to other publishers for consideration. What if a large book publisher accepted my second novel and also required an option for my next work? In addition, there was the risk that the smaller publisher might not successfully promote my first novel or might go out of business while holding the option on my next work. I asked to have that clause removed entirely, and Luminis agreed.
3. Ask for a few additional copies of the book
Luminis originally offered me 10 author copies and 5 agent copies upon first publication. Since I didn’t have an agent, I requested 20 author copies, and Luminis agreed.
:
The fact that Luminis so readily agreed to each of these changes shows that my requests were reasonable and easily doable from their perspective. Could I have engaged in more aggressive contract negotiations and perhaps obtained an even more favorable contract from this publisher? Perhaps. Yet our negotiations set the stage for a cooperative business relationship rather than an adversarial one. This is the goal of contract negotiations.
The Ultimate Goal
The goal is to establish the foundation for a mutually beneficial, professional business relationship. Contract negotiations are not a zero-sum game with a limited number of dollars to be divided between the publisher and author. The real key is not how each dollar is divided, but how many dollars can be generated by working together to develop, market and sell the book. Your publisher really does want you to succeed. They’re banking on it!
:
Luminis Books is a relatively new, independent publisher. I am excited by their vision for my book and eager to embark upon this journey together.
:
Question: What can be added here to help writers become more comfortable with the business side of publication?
—–
Laurie A. Gray, J.D. is a part-time Deputy Prosecutor in Allen County, Indiana and the founder of Socratic Parenting, LLC . Her first novel for young adults, Summer Sanctuary, is due for release in 2010. Read more…
* Laurie’s picture courtesy of Tim Brumbeloe
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Contract Negotiations
by Laurie A. Gray, J.D
My first publishing contract! I remember holding it in my hands with awe and even trepidation. As a lawyer, I’ve seen my fair share of contracts, but in this case, I immediately called on a friend who is a published writer to help me identify and negotiate the real issues.
The contract was for my first young adult novel Summer Sanctuary (Luminis Books/Spring 2010). One of the benefits of signing with a small, independent book company is that I really did have some negotiating power. My primary goal, however, was not to “get everything I could,” but to accurately reflect our good intentions for a long and prosperous business relationship. There were three areas that I targeted for negotiations: royalty fees, option for next work, and author copies.
1. Consider graduated royalty fees
The company offered a small advance and fixed royalty schedule of 10% for hardcover and trade paperback copies. I graciously accepted the advance, and requested a graduated royalty schedule. A graduated schedule allows the publisher to recover its upfront expenses before sharing the profits of a successful book with the author. I asked that my royalties increase to 12% after the first 15,000 units and 15% after the first 30,000 units. Luminis agreed.
2. Be wary of an Option-for-Next-Work clause
A second area that concerned me was a clause entitled “Option for Next Work.” At the time I received this contract I had already finished my second young adult novel and begun work on my third. I wasn’t sure which one would be considered my “next work,” and I had already sent my second novel to other publishers for consideration. What if a large book publisher accepted my second novel and also required an option for my next work? In addition, there was the risk that the smaller publisher might not successfully promote my first novel or might go out of business while holding the option on my next work. I asked to have that clause removed entirely, and Luminis agreed.
3. Ask for a few additional copies of the book
Luminis originally offered me 10 author copies and 5 agent copies upon first publication. Since I didn’t have an agent, I requested 20 author copies, and Luminis agreed.
The fact that Luminis so readily agreed to each of these changes shows that my requests were reasonable and easily doable from their perspective. Could I have engaged in more aggressive contract negotiations and perhaps obtained an even more favorable contract from this publisher? Perhaps. Yet our negotiations set the stage for a cooperative business relationship rather than an adversarial one. This is the goal of contract negotiations.
GOAL: Establish the foundation for a mutually beneficial, professional business relationship.
Contract negotiations are not a zero-sum game with a limited number of dollars to be divided between the publisher and author. The real key is not how each dollar is divided, but how many dollars can be generated by working together to develop, market and sell the book. Your publisher really does want you to succeed. They’re banking on it!
Luminis Books is a relatively new, independent publisher. I am excited by their vision for my book and eager to embark upon this journey together.
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