How Authors Get Paid: Royalties vs. Advances and Marketing

Have you ever wondered how authors make money from their published works? Or if they get paid every time their book is sold or just once when it's first published? This article will delve into the intricacies of author payments, exploring the differences between royalties and advances, and comparing these to the expenses involved in marketing and promoting books.

The Basics of Author Payments

Authors receive a portion of the sales of their books, with the publisher receiving a larger portion. This split is typically specified in the contract signed between the author and the publisher. Authors can make more money from their work, especially in the digital age, as the overall share of royalties has increased.

Fiction versus Non-Fiction

Fiction books typically work in a slightly different way compared to non-fiction. For fiction, the process begins with the author writing the novel, which may or may not get published. The author receives an upfront sum for the sale of the book, along with royalties on each book sold. This is a more straightforward process compared to non-fiction.

In the non-fiction genre, the process is more complex. Authors pitch their ideas to publishers through proposals. If a proposal is accepted, the author is often paid an advance to support the writing process. Once the book is completed, it is published, but the author may not see further payments until their initial advance is covered. After that, they start to receive royalties, typically a small amount per book sold.

Understanding Royalties

Royalties are what authors earn for each copy of their book sold. The percentage of royalties varies depending on the format of the book (hardback, paperback, ebook, and audiobook). Authors may also receive a different percentage depending on the number of books sold. The royalty percentage is agreed upon in the contract.

Traditionally, publishers provide an advance on royalties, which is paid in three parts. The first part is when the book is accepted, another when it is deemed ready for publication, and the last one when the book publishes. This advance must be deducted from the royalties. Until the advance is completely covered, the author does not receive any royalties.

Additional Considerations

It's important to note that the payment structure varies based on the type of contract. Ghostwriters, for instance, usually receive a flat fee or an hourly rate and may not get royalties unless specified in the contract. Similarly, authors of media tie-in books might get a flat fee per book without royalties. And, for certain work that is part of an author's job duties (such as at think-tanks or special interest groups), the possibility of earning royalties can be non-existent.

Marketing and Promoting Books

While authors receive royalties and advances, a significant portion of the money that goes into marketing and promoting books is used by publishers to increase the book's visibility and sales. These expenses include advertising, book tours, content marketing, and marketing campaigns. The goal is to generate more sales, which, in turn, can lead to higher royalties for authors once the initial costs are covered.

The Reality of Author Earnings

Despite the complexities of payments and marketing costs, many authors struggle to make a living from writing alone. Best-selling authors may earn substantial sums, but the majority of authors barely make a living. As noted by James Michener, 'In America it’s possible to make a fortune as a writer but not a living.' Authors often need to supplement their income with other jobs or rely on a steady stream of income from multiple sources.

So, while royalties and advances are an important part of an author's payment structure, it's crucial to understand that the book industry operates more like a business than a guaranteed path to wealth for most writers. Effective marketing and promotion can increase the likelihood of financial success, but the success rate is far from guaranteed.