by Steve Laube
Recently Ann Voss Peterson wrote of her decision to never sign another contract with Harlequin. One major statistic from the article is that she sold 170,000 copies of a book but earned only $20,000.
Multiple clients sent me Peterson’s “Harlequin Fail” article and wanted my opinion. My first thought is that this was the typical “a publisher is ripping me off” fodder. But that would be a simplistic and knee-jerk reaction and unfair to both Peterson and Harlequin.
Yes, Harlequin pays a modest royalty that is less than some publishers. Since when is that news? That has always been their business model because it is the only way to create and maintain an aggressive Direct-to-Consumer and Trade publishing program. Their publishing machine is huge and they are a “for profit” company. For Profit. If they are unprofitable, they go away.
If an author is uncomfortable with the terms, then don’t sign the contract (which is Peterson’s decision going forward). I urge each of you to be careful not to sign a contract and then complain about it later. Unless you were completely hoodwinked you agreed to those terms and should abide by them.
Understand that I am not being critical of this lady’s decision. It is her choice to do so.
But my issue is not with the money (although it is important) it is a larger question. She says she has sold 170,000 books but not made that much money. For the record Peterson has signed with Thomas Mercer which is one of the publishing divisions of Amazon.com…a traditional publisher of sorts, so she may still reach a 100,000 plus audience. So is it all about the money and not about number of readers? If Peterson had chosen to go Indie (solo) and published using the e-book option (like the Kindle Direct Program) and sold 10,000 copies she would make the same amount of money. BUT she would have 160,000 fewer readers! One Hundred and Sixty Thousand.
Consider the stadium where the Arizona Cardinals (NFL) plays seats 63,000. So, in essence this author’s choice could mean walking away from three stadium sized audiences for her stories.
In Peterson’s case it does not appear to be a dollars vs. readers issue because she has signed with another publisher. But for many who are frustrated with their publishing experience it is a good question to ask.
Reaching 170,000 readers is a rare place in this busy industry. And don’t forget that the success of those numbers made her an attractive acquisition for Amazon.com . That is not the case for most writers whose midlist numbers can be depressing. (Read CBA fiction author Eric Wilson who laid out his income while publishing with traditional publishers over a ten year period and has chosen to go a different route with his new books.)
If you wish to wave goodbye to traditional publisher and go Indie (independent) I believe the first question to ask is whether or not you want to start a small business. Just like an entrepreneur. Those authors who are entrepreneurs are ideally suited for the self-publishing route. The understand the energy it takes and pitfalls ahead.
The second question is whether they can sell enough copies to make it all worthwhile. And are also are willing to take responsibility if a book fails.
But not all artists are entrepreneurs. I know of many authors who have gone this route. One sold 1,000 copies of their e-book in a year. Another is averaging about $1,000 in revenue each month…but had to self-publish ten books to reach that threshold. Another has sold about 2,500 e-copies in a few months but the numbers are slowing considerably. Each of these writers can get much more guaranteed income from going the traditional route. Their indie effort is nice income (in this business any income is nice) but it is not a replacement.
P.S. In my opinion it is wrong to compare Amazon’s traditional publishing divisions (like Thomas Mercer) with other publishers. Amazon is so incredibly large and diversified that they could lose money on publishing for five years and still be profitable elsewhere. For a company like Harlequin they are solely vested in publishing (not Zappos shoes, or used books, or electronics). Thus their cost structure is different. Amazon has brilliantly used their economic model and created one that takes advantage of their infrastructure without having to build from scratch.
Is that a defense of traditional publishing? It could be seen that way. But it is more a reminder not to compare oranges with apples. They are not identical.
Your Turn
What is your take on this issue?
Is there a question on this topic you would like to have answered in a future blog?
I read the article referred to yesterday and was shocked by the huge sales numbers vs the relatively small income. However, I’m glad I read this take on it, too. It presents another side to the issue and raises some concerns worth thinking about. (Decreased readership for instance.) I suppose in this day and age, it is up to the individual author to make the choices that best benefit them. In the case of Ms. Peterson, she has established a name and a readership so she should be okay, but lets not forget the wonderful ‘service’ harlequin did by helping her establish those sales in the first place…
@Tim: of course $20k is not bad for a romance novel. It only gets bad if that $20k should have been $40k per the terms of the contract. Nothing is bad if both parties to a contract perform adequately and according to the contract’s intent. Where it gets bad is when one party treats the other in an abusive fashion. If I understand Ms. Peterson’s original post correctly, there were a lot of questionable numbers.
@Tim By your logic $20k is good for any book then depending solely on how long it took to write it? So if J.K. Rowling’s publishers had tossed $20K her way she should have shut up and been happy? Really?
And for those of you commenting here who obviously didn’t read Ann Voss Peterson’s original post, she spelled out how Harlequin actually created a separate entity to ensure that they took a bigger cut from their authors. And she took full responsibility for the fact that she originally signed the contract. She was simply stating why she wouldn’t be signing more contracts in the future. (btw, I am not friends with Ann, never met her, and have actually never read her work.)
@Nikole Don’t devalue yourself. Writing is a lot of hard work. You should be paid decently for your efforts. It’s not a hobby it’s a profession.
Valerie,
In point of fact, I suppose I would have to say yes. Don’t get me wrong; I think it’s great that J. K. Rowling made a lot more than the original £1000 she received from the publisher. But here’s the thing: anything we receive that exceeds what it takes for us to survive is an overflow of the blessings of God. My point is that $20,000 is more than enough for Ann Voss Peterson to live on during the time she was writing the novel. Outside of that, she can either write another book or get another job.
Harlequin, by paying its authors so meanly, is earning itself rather an unwarranted overflow of blessings from God, I would say.
Being grateful to God is one thing; being grateful to the big corporation that is using every means to cheat and underpay the authors without whom it would have no business is quite another.
Tim – I agree with you that we should be grateful for our blessings, but there’s also the issue of good stewardship. If you’ve been given a gift of writing, and you have several different options for publishing, you could argue that it’s a Christian’s responsibility to find the best option. It might be Harlequin — they pay less, but they reach more readers, if you think that’s where God’s leading you. But on the other hand, I doubt they’re really taking the profits and using it to advance the Kingdom either. An author might be led to self publish — still reaching a large number of readers, and the increased writing income might free her time up to serve in different ways as well. I guess what I’m saying is that the simple act of evaluating what Harlequin offers and deciding not to take future offers from them is not in itself an ungrateful act. On the contrary, I think it’s a wise and responsible one.
Lexi,
If Harlequin is not honoring the contract, that would be cheating, but if they are, how can we make the claim that they are underpaying their authors, no matter how much of a “big corporation” they may be? I’ve never seen a definitive guide that can tell us how much a manuscript is worth. Harlequin is looking for a lower quality manuscript than some of the other publishers are, so it should come as no surprise that they are paying less. But at the same time, they don’t want the lowest quality stuff either, so they pay enough to keep serious authors interested. That’s just good business. I don’t see how it is cheating or underpaying.
Tim,
Please be careful with your evident dismissal of the quality of writing found in romance novels. You wrote “Harlequin is looking for a lower quality manuscript than some of the other publishers are, so it should come as no surprise that they are paying less.”
I have a number of writers who would find that highly insulting.
No publisher seeks lower quality manuscripts just so they can pay less money. At least not the publishers our clients write for.
Livia,
That is true. If you have several options, you should pick the best one. All I’m saying is that making $20,000 from writing a novel isn’t such a bad deal. Are there better options? There may well be, but $20,000 for writing a novel is a sweet deal as it is.
@Tim – I believe you are confusing two things: income and what we do with our income. I agree that “anything we receive that exceeds what it takes for us to survive is an overflow of the blessings of God”; in fact, I would take it a step further and say that every good thing we receive is an overflow of the blessings of God. But what does that have to do with negotiating a fair rate for your work? Haven’t you read that a worker is worthy of his wages?
If the writer in question earned $20k on a book that sold a few copies (perhaps because of an unreasonable advance she somehow forced out of the publisher), then you may consider that a sweet deal (one that is very unfair to the publisher, who would likely never want to work with her again). But she’s claiming she earned $20k on a book that sold almost 200k copies. That’s $0.11 copy for the writer, as she points out. That’s no sweet deal. Do you believe the publisher is only making that $0.11 per book? It’s unfair wages for work that has brought the publisher lots of success, and I’m not surprised that the author doesn’t want to work with the publisher now that she has other viable options.
Don’t forget something else Christ said: “Behold, I send you forth as sheep in the midst of wolves: be ye therefore wise as serpents, and harmless as doves.” Harmless as doves, in this context, I’d take to mean that a writer shouldn’t try to screw the publisher in a business deal (though I can’t see how that could happen); but wise as serpents would mean figuring out what your work is worth and demanding to be paid fairly for it or finding another venue, which is exactly what this writer did. Good on her!
Steve,
That isn’t quite what I meant. First, I wasn’t saying anything against romance. (Why is it that everyone seems to think I am?) For that matter, I wasn’t saying anything against Harlequin, simply that they have set their offers at a level at which they can acquire the quality of manuscript their readers are willing to accept.
That is somewhat backwards from what you accused me of saying. Rather than looking for lower quality to save money, they do not have need for as high of quality, so they are able to set their offer accordingly.
Tim,
Agreed. You did not mention romance specifically. But there have been comments on other posts where the genre was mentioned by you.
Still, to imply that Harlequin is taking a lower quality manuscript, for whatever reason, is not a complimentary thing to say. Either to the authors who write for them or to the publishing company as a whole.
Karl,
I look at it like this: He promised to fill the cup; anything beyond what he promised is an overflow. I’ve got nothing against negotiating a “fair wage.” But what is a fair wage? I would love to see someone try to define a “fair wage” without defining it in terms of what other authors are making.
Steve,
I agree, it isn’t a complimentary thing to say. However, when you posted the list of Christian book award winners a couple of weeks ago, I don’t recall seeing Harlequin anywhere on that list.
“If Harlequin is not honoring the contract, that would be cheating, but if they are, how can we make the claim that they are underpaying their authors, no matter how much of a “big corporation” they may be? ”
Have you read the article, Tim? Ann Voss’ argument goes beyond the contract terms. Much of her complaint has to do with Harlequin exploiting loopholes in the contract — licensing the books to a “licensee” that was actually part of the same company in order to pay lower royalties. Now, I don’t know the ins and outs, and if Steve wants to chime in, I’d be curious what he thinks of this. But this seems to be more than just an author signing a contract and regretting it. Even if it follows the letter of the contract, it doesn’t seem to honor the spirit of it.
“” But what is a fair wage? I would love to see someone try to define a “fair wage” without defining it in terms of what other authors are making.”
That’s exactly the point, Tim. Ann pointed out in her article that many writers make more. And thus, she left.
Tim wrote: “I would love to see someone try to define a “fair wage” without defining it in terms of what other authors are making.”
Tim,
Sorry, I don’t think that’s right.
A fair wage for a worker is like a fair price for a house – it depends on lots of factors (such as supply/demand, the state of the house, the neighbourhood, etc.). When you’re choosing a price for listing your house, the first thing you do is look at houses similar to yours and see what they sold for. Somewhere in that ball park would be a fair price for your house (assuming those sales were recent and market conditions haven’t changed). To belabour the first point I was trying to make, you wouldn’t sell your house for what you personally need to survive; you sell the house for what it’s worth (and then can donate the excess if you choose, of course). Same thing for authors – you don’t sell your work for what you personally need to survive, but for what your time is worth, given your range of experience and skills and the current demand for those experiences and skills. One good way to figure that out is to see what others in your field are making (in a job interview, the hiring manager will often ask, “What do you expect to make at this job?” A good place to start is to ask what the last person who had the job made). So it’s an unfair challenge to ask for a definition of fair wage without comparison to what other authors (similar to you) are making (with their publishers or on their own). However, looking at the numbers objectively, it’s hard to defend that an author making $0.11 a copy on a book is a fair wage when there’s a reasonable expectation that the publisher will sell several hundred thousand copies (and so easily recoup their initial investment of advance, editing, cover art, formatting, etc.)
By the way, and not to derail this discussion onto theological matters, but where does Christ promise to fill your cup? I’m genuinely curious because that isn’t ringing bells with me. (Some translations of the Bible have Him promising to fill your cup of joy until it overflows, but I don’t think that’s what you’re referring to.)
There seems to be a bit of implication that this author should be pleased with reaching 170,000 readers versus earning more money. Why is it an either-or? What author wouldn’t want both? She has made a decision that works for her. Don’t think that it should be couched as if she took the less noble route.
Patricia,
You are right. Ideally it should be a both-and. And note that I did not criticize Ms. Peterson for her decision. I wrote “Understand that I am not being critical of this lady’s decision. It is her choice to do so.”
In fact she did exactly what she should have done considering the level of dissatisfaction with the business arrangement she had with her publisher. If any business relationship is no longer working then other alternatives should be considered. But her experience is not necessarily universal. It was her experience. Every author’s mileage may vary depending on the publisher, the contract, the economy, the author’s entrepreneurship, etc.
My points in the blog should not be viewed as a criticism of Ms. Peterson. Instead I was trying to raise other questions for those considering going the Indie route.
It is always wise to consider all options and their implications before investing time, money, and content.
I tried to describe it the other day and ended up with the phrase, “The publishing industry is a labyrinth. Except that the walls move every day.”
So, if it’s just about sheer number of readers, when I query you or any agent, seeking representation, it’s okay to count approx. 86,000 free downloads of my books in addition to the 42,000 paid ones–because after all, it’s a football-sized stadium worth of readers. But wait, I’ve seen agents mock indie authors who have counted those readers. So which is more important, the readers or the paid downloads?
MP,
I suggest listing the sales and in parentheses list the additional free downloads. That is what we do when asked for sales history of our client’s books. Free copies are acknowledged to show total readership.
I hope I have not mocked anyone on this issue.
Timothy said:
“But here’s the thing: anything we receive that exceeds what it takes for us to survive is an overflow of the blessings of God.”
I agree. During this recession, many friends and family members have been forced to take jobs that pay little more than minimum wage. The once-lucrative salary for my own profession (I’m a paralegal) has dipped to an all new low — low, as in what I made right out of university. The world has changed, and I suspect that this is reflected in the world of publishing, too.
I am a new writer. I have an awesome agent who I’m sure will represent my interests more than adequately. I accept any prospective good fortune that might come my way with gratitude. If I net enough from my work that makes up even a part-time income, I’m doing much better than many Americans and far better than most aspiring writers.
Thank you, Steve, for adding your own perspective to this issue. You’ve made a lot of good points, and I do hope that any writer who’s contemplating a book contract will take heed and approach it with a hefty dose of realism.
Re Writer’s Digest. Several years ago, maybe 2005, Reed-Elsevier (the mega-company that produces BEA and intntnarioeal expos among other ventures) bought WD. WD’s focus has changed since then.At the time of the acquisition, independent free-lance judges judged the Writer’s Digest Magazine’s International Self-Publishing Book Awards. I’d judged in the literary fiction category for three years and had been asked to judge again. But when the change-over was made, I was no longer needed . I haven’t determined how the judging is done now.This could have been a cost-saving device. For each book judged, WD paid shipping to the judge, paid the judge, and WD paid return shipping for books deemed worthy of the next round. I’m sure the shipping cost more than the judging when everything was taken into account.So the writer has bottom-lined one more time.
Tim said:
“Here I’m thinking: she made $20,000 on a romance novel. What’s she complaining about? I figure, if you count just the time an author is actually writing or doing work on the book, it should take one to two months to write a romance novel. Let’s say that is 320 hours. That works out to be $62.50 per hour. I know a lot of people who would love to make that kind of money.”
Hi Tim, if you read Ann’s guest post you would have seen that she earned that $20,375.22 over a period of 10 years. That averages out to just over $2K a year. Living in this country, $2K a year is not a livable wage in anyone’s estimation. I liked Ann’s open and honest post. I’m happy she made a smarter business decision for her writing career.
Werner, you can’t figure wages that way, and I did read her post. In most jobs, you get paid by how much work you put in, not by how long or how many people are using something you created. It is unreasonable to think that a book written 10 years ago should be paying a living wage today. Our expectation is that an author will continue writing, producing more books.
In fact, it appears that Ann Voss Peterson has 31 books. Or approximately 3 books per year. Multiply 3 books per year by $20,000 per book and you end up with $60,000 per year.
I promised myself I wouldn’t sit here and stew over the comment about the lower quality books at Harlequin(and hence, a lower quality writer), but how can I not? So, I guess I have to jump in. Puh-lease don’t denigrate authors who have poured sometimes months and months even years into a book that they go on to sell to Harlequin or to any other royalty-paying house that one person might deem not as worthy as another royalty-paying house. I know some very wonderful houses that are working from the ground up to build readership and reputation. And let’s face it, they are a business. They will take only what we, as authors, and others in the industry, allow them to take. If no authors sign, the rates will go up. Supply and demand. But it doesn’t mean that a house which has a huge suppy available to them necessarily cranks out an unworthy product. Romance or not, isn’t the question, but rather, a written word that touches another life. That’s what it’s all about and to sit here and insult writers, some who have considerable following by the way, who continue daily sweating blood to reach readers is disgusting. BTW, how many negative comments come from writers with an established readership? Probably not many, the real writers aren’t concerned, they’re plugging away and developing their craft instead of tearing down other writers.
Linda,
Denigrate? Don’t you think your word choice is a little strong?
I don’t believe it denigrates authors to say that publishers have different requirements for the manuscripts they publish. I don’t think it denigrates authors to say that some publishers take on new authors more frequently than others, while some publishers seldom publish anyone who does not have an established readership and several books to their credit. I don’t think it denigrates authors to say that some of the publishers that won’t give them the time of day now may be in a bidding war for their work a few years from now. I don’t think it denigrates authors to say that some publishers focus on quality more than others. And I don’t think it denigrates authors to say that some authors wish to stay with the publisher they started with, even when other publishers have begun to take interest in their work. And I don’t think it denigrates authors for us to rank publishers by how high they’ve set the bar. I can appreciate the chauvinism of those authors who have found a publisher they like, but I believe it is beneficial for the rest of us to weigh our options.
Tim, you’re on the hook for this one. Your original statement was that HQ accepts lower quality stories than other publishers that you didn’t name. This is derogatory. Would you feel comfortable hearing someone say that self published stories are invariably inferior to trade published stories? I would never go so far as to say this. Even if I thought so (and I’ve seen some pretty poor quality in both spheres), it’s disrespectful to my fellow writers, and I would never post such opinions.
Deb,
No, I would not be comfortable with that, but not for the reason you think. I would be uncomfortable with that statement because it is too broad and unspecific.
On the other hand, if someone were to say, “Timothy Fish doesn’t write as well as some of the other authors,” I would not consider that denigration because I know it to be true. I won’t, but I could name authors who write better than I do. I would even go so far as to say that there are romance authors who write better than I do. Take Denise Hunter, for example. Granted, I’ve only read one of her books and it was one she gave me, but I have no problem with saying that she is a better writer than me. And for the record, I believe Harlequin has published some things that her current publisher, Thomas Nelson, would have rejected.
Having read some indie and self publications, I can attest to the commonplace lack of quality often found there, because there was no competent Editor involved. Editors have to be paid for, and self publication tends to bypass them to save $1-2K (USD). As a result, they tend to produce sub-standard publications.
For me, it is not so much the form of publishing / printing / distribution etc. in themselves which say “Goodbye to Traditional Publishing,” but the exclusion of the Editor which alone does that.
Are you talking about the lack of quality of the story its self, or of the more technical editing? Technical editing being Copy editing, Proofreading, and Formating of files.
B.S.
Technical.
Steve,
First, I’d like to thank you for the original blog and topic. I am new to the ACFW with a membership now just over a year. I purchased the 2011 Conference CD/MP3 and learned a lot from your Agent Panel sessions.
Second, after reading Margaret Daley’s post about the ‘speed date’ opportunity with Love Inspired (division of Harlequin) I began to research the publisher. I started with a trip to Mardel’s and reading Daley’s novel A LOVE REKINDLED. Loved her work and coupled with the requirements from H/LI began to study how I might get in on the ‘speed date,’ by expanding original screenplays into actual novels.
I researched H/LI from the MP3 spotlight of Harlequin and looked at several other authors who have and continue to publish with them. Those who responded spoke positively of H/LI.
I was surprised Mardel’s (Arlington/Texas) had such a small selection (2 shelves less than 2 dozen books) and yet just yesterday saw that my Wal-Mart Neighborhood Market had a shelf rack of 10 shelves, 10 book titles per shelf, and about 3 copies of each on hand (300 total). Then I saw the larger picture (coupled with other box retailers and online subscription/order opportunities). Harlequin is a pretty major operation.
From Rhonda Gibson to Arlene James and Leeann Harris I was impressed to see some of the names associated with the line and those I’ve recognized from the ACFW forums (plus two I’ve met regionally). Impressed that Margaret writes for them as well as other publishers too.
My question is more on the basics for an un/pre-published writer just starting out on this journey. I’ve been a writer in electronic media for over 35 years but new to print publishing – so in light of the others who have posted my question is more a ‘chicken or the egg,’ issue. Figuring any opportunity to pitch a major publisher with a potential novel can be a good experience, what happens if H/LI likes my proposal and pitch? Is there time given to secure an agent or is it a quick contract within a set number of days to sign? And does that present a problem later in the process towards getting representation from a good agent? Can this interest also benefit the opportunities of getting an agent?
The main point of attending the ACFW Conference in September is to meet and interview potential agents (and they of me) in addition to putting names and faces to so many met or answering on the form posts. While I’d love to have someone interested in my work (as H/LI) I’m cautious not to sign anything until I have either an attorney and/or (preferably) an agent representing me. I also wonder if a relationship with H/LI is a help or hinderance of writing other work for potentially larger or better deals with other publishers. Does this make your work harder or is it a good thing to be already published?
In light of the intellectual posts these questions are basic, but for un/pre-published newbies, they seem to be the right questions to ask. What is your counsel/advice how to proceed IF (and a big IF) H/LI is interested and a contract is extended? How should we proceed with this ‘speed date’ opportunity?
Thanks in advance and look forward to meeting you at the 2012 Conference.
What’s that I hear?
Sounds like a dinosaur dying.
This discusison here is old, from 2012 (I write this June 2014). But I came across it and thought an update would be pertinent for readers who visit.
In Feb of 2013, Ann Voss Peterson revealed how sales went with the book she released May 2012 (the month of this original blog post and comment discussion). I think we must agree that $33K NETTED in 8 months soundly trounces over $22K earned out in 10 years, especially since this book will remain available, continuing to sell, continuing to trickle income into Ms. Peterson’s pocket.~~~~~
“Let me share some numbers:
Last May 8 through 12 using KDP Select, I gave away 75,420 copies of Pushed Too Far.
In May and June, I sold 11,564 copies, netting me $22,316.30.
I also had 874 borrows during this time for another $1902.30.
So in a bit over six weeks, Pushed Too Far earned $24,218.60 and was downloaded onto 87,858 e-readers. My highest earning Harlequin Intrigue earned me $21,942.16 in the last twelve years.
Verdict: In less than two months, Pushed Too Far became my highest earning book. EVER.
As Joe has said many times, sales ebb and flow, and PTF has been no different. But for May through December of 2012, this one book (Pushed Too Far) has had a grand total of 15,257 (paid) sales and borrows, netting me around $31,179.03.
I also had 874 borrows during this time for another $1902.30.”
Her revelation was blogged over at JKonrath’s blog in Feb of 2013, for any who want to read it in context.
Ooops, I added the borrows income twice (copied /pasted that part twice by mistake). 31+K net, not 33K.
Interesting, very interesting! 🙂
Thanks for sharing, Mir!
And I applaud her success. Back when this post was written I was more concerned with complaining about past contracts. We don’t question the fact that contracts were not author friendly. But they were contracts that did launch this author’s career and made some of the indie success possible.
Steve
I also self-published a novel 3 years ago. I’ve sold to friends and family, but I didn’t have the financial resources to fully take on the marketing aspect like I thought I would. Since then, I have rewritten it. The book needed some changes, I removed a couple of chapters and characters, etc. I also added new material to it. I have read about the extremely slim chance that a publisher would be willing to work with me, even with an agent (assuming that I could obtain representation). I have been torturing myself over what to do. I’m open to suggestions. I also see that this post was published several years ago, so I hope that Steve or someone else with experience will respond. Do I bother submitting a proposal for it to an agency? Or, am I stuck in the indie route?
(I have written a sequel, but I didn’t publish it.)
I’ll take more readers over more money every day and twice on Sundays.
I think back to the six-year-old kid whose teacher thought his writing was good enough to put into a small book, the kid who shared the book with the whole class (maybe 25 readers) and everyone at the family Christmas (maybe another 35… large family). I still remember his reaction to other people reading his stories — that first story about a SCUBA diver’s encounter with scary sharks and hundreds of stories since as he grew.
While I’m incredibly blessed to make my entire living writing, and hope to continue doing so, I’d hate to see the look on that kid’s face if I told him someday his main reason for creating stories would be money.
I love old posts. So many interesting replies. Maybe it’s my accounting background, but if I were publishing only one book a year, I would actually prefer an advance that is less than what I expect to collect in total for the book in the first three years after it is published. If the book sells much better than the publisher anticipated, that spreads the revenue recognition out in a more tax-advantaged way in some cases, so I would not focus on getting the biggest advance possible. It’s total revenues I would look at as well as their timing relative to other income from my normal job. So, more sales is better than a bigger advance, at least from my perspective.
I was just calculating the potential impact of royalty revenues (different scenarios) on my tax situation. Self-employment taxes are no fun at all. So that $5k or $20k or whatever is typically less than half of what you think, all costs netted out.
Taxes aside, building a customer base slow and steady seems more productive than struggling to broker a bigger advance. And that means good quality books churned out on a fairly regular basis if this is going to be a production-of-income venture. Otherwise, I just enjoy writing my books. They use my mind in a way my day job with numbers does not.
Also, I believe my audience is still shopping mostly at traditional book stores and not primarily on Amazon. Hence, an agent it is for me and I would not begrudge them or the publisher their fair take.