Pub Rants

A Very Nice Literary Agent Indulges in Polite Rants About Queries, Writers, and the Publishing Industry

Category: negotiation

How #MeToo Movement Impacts All Authors

For NLA’s March newsletter I wrote this article but hadn’t had a chance to post on the blog. Then PW recently ran this article on 4/27/2018 about how Publishers are increasingly inserting language into their contracts that allows them to terminate based on an author’s behavior. 

In further analysis and examination, I truly wonder if this is just a “change in market conditions” masquerading as a morality clause. 2018 is going to be an interesting year for contract negotiation!

AGENT KRISTIN’S ORIGINAL NEWSLETTER ARTICLE.

In October 2017, the #MeToo hashtag went viral on Twitter. Thousands of women shared their stories of sexual harassment, misconduct, and injustice in the workplace. The momentum began with the allegations against film titan Harvey Weinstein and then morphed into movements across other industries.

It hit publishing in a big way in February 2018 with Anne Ursu’s  bombshell of an article on Medium about sexual harassment in the children’s book industry.

It engendered a lot of conversations here at NLA, as I imagine it did for a lot of authors out there. But I wonder how many authors realized that the #MeToo movement would directly impact them in one very specific and unexpected way: in their contracts.

It was no surprise to me when we received a Penguin Random House contract recently, and lo and behold, there was new language in clause 7.c, which deals with publication. There is a new “morality” clause that cites that if the author’s reputation materially changes, such changes could be cause for termination of the publishing agreement.

Every non-author-friendly clause in publishing contracts is there because of some other author’s previous bad behavior. But in general, I don’t subscribe to the philosophy that NLA clients have to contractually pay for the mistakes of others.

Personally, I fully understand why PRH wants to add this language given recent current events. I certainly support the intention! As an agency, though, we are going to negotiate this clause to be more fair for an author who isn’t guilty until proven innocent.

My sense is that PRH will not be alone in amending boilerplate language. We’ve got several other agreements coming our way in the next two weeks. We’ll definitely be looking for the addition of these types of morality clauses.

Creative Commons Photo Credit: Luke Hoagland


Article 4: Negotiation Tactics of Good Agents

As featured in our April newsletter, an agent’s most important skill is the ability to negotiate well on behalf of the author client. Authors hire agents to protect their business interests in publishing. This is why a literary agent has a job.

Simply put, good agents do good deals on behalf of their authors.

So let’s discuss what I mean by “good” in terms of a deal and how that can be defined. Most writers might assume I’m talking about the level of the advance—as if how the negotiated amount is the only barometer of a decent deal. In reality I’m talking about every facet of the deal offer and the fairness and equability of the final contract the author signs.

Think of publishing as like a marriage or long-term relationship. It begins in love and happiness and for a lot of authors, the love affair lasts their whole career. But there is always the possibility of it ending in conflict and, in some cases, animosity. The point of the contract is to take the emotion out of the relationship and to clearly spell out the expectations of each party. This is why it’s imperative for an agent to negotiate a good deal and the best terms in a contract.

So just what are the negotiating tactics of good agents?

* Good Agents negotiate the advance.

A Publisher’s opening offer is not the highest advance the publisher is actually willing to give. Good agents know and understand this. It’s a bartering tool, the first give-and-take for what an agent is willing to grant and for what the publisher is willing to give in exchange. There are a ton of strategies involved here. This is just to spotlight one tactic.

* Good Agents only grant rights that are commensurate with the advance level being offered. 

If the advance is low, the agent will restrict the rights being offered to a publisher. A negotiation tool for getting a higher advance may be the willingness to offer World English or World rights in exchange for more monies up front.

Cliff notes for the types of publishing grants:

North American rights = publisher only has the grant of rights to sell the title in the US, Canada, and US territories such as the Philippines.

World English rights = publisher only has the grant of rights to sell the title in the English language around the world, including UK, Australia, New Zealand.

World rights = publisher has the grant of rights to sell the title in the English language around the world as well as to sell the licenses to have the title translated into other languages.

* Good Agents only sell World English or World rights if the subrights splits are standard. Otherwise, good agents restrict the deal to North American.

Standard splits, as defined by the Big 5 publishers, are 80% to author/20% to publisher for the UK and 75% to author/25% to publisher for translation. Some publishers (usually the smaller ones) only want to offer a 50/50 split, which is significantly less advantageous to the author than if his or her agent reserved World rights to license separately in each territory. (Remember: the author would then have to pay the agent commission on top of not receiving the standard 75% or 80% split. That’s definitely a reduction to the author’s bottom line.) I’ve also seen 60/40 (in author’s favor) offered.

* Good Agents don’t sell the publisher world translation rights or audio without reversion clauses.

If the publisher does not exploit or actively pursue the rights, the author is stuck and cannot earn money on the licensing of these potentially lucrative rights. Since part of an agent’s job is to help authors earn a living from writing, unexploited rights is untapped money potential. Publishers love “warehousing” rights just in case, but reversion clauses force publishers to actively try and license those rights or lose the ability to do so.

* Good Agents only sell rights or do deals with publishing houses that offer standard royalties or the equivalent (if royalties are based on net, which is the case for a lot of smaller publishers).

* Good Agents pre-negotiate “tricky” contract clauses in the deal memo stage so as to completely eliminate the issue at contract stage.

A favorite publishing house tactic, once the offer is accepted and contract generated, is to reply with “that should have been negotiated during the deal memo stage” as a way to say “no” to a requested change. To avoid this, actual clause language often has to be negotiated upfront with the editor during the deal negotiation. (“Tricky” clauses include the non-compete clause, the option on next book clause, the out-of-print clause, and many more).

It’s an icky strategy, as it’s not fair to the editor, who is often placed in an awkward situation. After all, they know deal points, not contract language. Sadly, this is becoming more and more standard.

* Good Agents have deal memo boilerplates that are unique to each house (and these deal memos are two, sometimes three pages long) 

Rather than use the publisher-generated deal points, which usually only cover the basics in an eight-point list and nothing else. Agency-generated deal memos cover all the tricky bits for that specific publisher, since contracts vary greatly from house to house.

* Good Agents have the editor confirm deal points memo via email before officially closing the deal.

This just came up for me recently where a deal was closed and went to contract stage, but the contracts department didn’t input the royalty escalator agreed upon during the deal negotiation. Because I had the final deal memo along with the editor’s confirmation email, it ended up being a simple non-issue, and the contract was changed. Without that confirmation, the author might have been stuck with lesser royalty structure.

Good agents could write a book on how to actively negotiate a publishing deal and contract. There are so many facets this series of articles can only touch on the highlights.

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The genesis: In January 2015, Backspace co-founder Karen Dionne and I had a conversation in which she mentioned that writers sometimes want representation so badly they are willing to sign with an average or even a below-average agent. Trust me, not all agents are equal. I replied, “Well, writers don’t know what they don’t know.”

In that moment, a lightbulb went on for both of us. Writers don’t know what a good agent does. How could you if (1) you’ve never experienced it and (2) you’ve only ever had one agent and no way to assess just how strong he or she might be at the job?

Thus, this series of articles was born.

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Archive:

February 2015 Newsletter – Article #1: Agent As Savvy Business Manager

March 2015 Newsletter – Article #2: Commanding Authority: An Agent’s Negotiation Edge.

April 2015 Newsletter – Article #3: Fearless Negotiation: An Agent’s Most Important Role for an Author


Article 4: A Story of Three Authors (A Cautionary Tale) by Karen Dionne

In a perfect world, every literary agent would be a fearless negotiator, working tirelessly to get the best possible book deals for his or her clients. But the world isn’t perfect. And sometimes an author’s career goes off the rails because their agent doesn’t have the knowledge, skills, or tenacity necessary to negotiate well on the author’s behalf.

Author #1 had a six-figure offer from a major publisher for the first three books of his self-published middle-grade series. He also had no agent. The publisher recommended several, and the author signed with one. Sadly, the agent did not negotiate better contract terms. This meant the author now had to give the agent 15% of the exact same six-figure deal he’d set up himself.

The author hoped the agent would earn his commission going forward by advocating for the book during the publishing process. But in time, the author realized his agent wasn’t doing anything he wasn’t already doing himself. He terminated the relationship and negotiated the next three-book deal without an agent.

As the time neared for the next contract, this author still felt he could get a better deal if a savvy agent negotiated on his behalf. He interviewed carefully and signed with an agent with an excellent reputation who was also a fan of the author’s work. The agent soon learned what the publisher hadn’t yet told the author: sales were soft, and there wasn’t going to be a third offer.

The agent pitched a new series, but the publisher wasn’t interested. Neither were the other publishers the agent submitted to because of the author’s declining sales record. He and the agent parted ways, and the author’s dream of supporting his family with his writing was over.

This author is convinced the outcome would have been different if his first agent had been a tougher negotiator—not only in regard to the size of the advance, but also in the thousand-and-one ways his agent could have run interference with the publisher to ensure that the author’s books got the in-house attention they needed and deserved. This agent may have been afraid to rock the boat, but it was the author’s ship that sank.

Author #2 was with an agent who always sold world and film rights to the publisher. Every client, every deal, without exception. Not every agency has its own foreign-rights department, nor does every agency partner with a foreign-rights co-agent in order to fully serve their clients.

In time, the author realized they had a problem. This author’s books were doing very well in the territories where they were available, but the publisher’s foreign-rights department had only sold them into a handful, and nothing was happening with film. When the author discussed the situation with their editor, the editor recommended the author get another agent—even though this meant the editor would have to work with an agent who was a tougher negotiator.

Not only did the new agent sell the film option for the author’s latest book, but the agent also made sure it was a “complete” offer, meaning that a producer, director, and screenwriter were committed to the project before recommending the deal. Previous film offers that didn’t have all these components in place were rejected because this agent was a tough negotiator who wasn’t afraid to hold the line.

Author #3’s agent got him a two-book deal with a well-known mass-market-paperback publisher. The contract included joint accounting. If you’ve been reading Kristin’s “Think Like an Agent” article series, you know that joint accounting can have negative consequences, as this author was about to find out.

When his first book published, it sold reasonably well. Meanwhile, the author was busy writing the second. To his surprise, the publisher rejected the book. The author wrote another, which the publisher also rejected. The author wrote a third book, which the publisher rejected when the book was half finished.

Are you keeping count? Two-and-a-half books written over who knows how many years in a valiant effort to deliver the second book of his contract. Meanwhile, because these two contracted-for books were irrevocably linked due to joint accounting, even though the first book was selling well, during all that time, the author didn’t see another dime.

If you’re wondering where the author’s agent was through all of this, so was I. Why didn’t the agent run interference with the publisher? Why was this author forced to spend years writing multiple books without getting paid for them? Surely there was something a savvy agent could have done.

The author wrote a fourth book, which the publisher finally accepted, only to drop the book after Borders went bankrupt. Eventually the author got the rights back to his books and self-published these novels along with the ones his publisher had rejected. All of his books have been very well received by readers, and the author is now with a small publisher with an excellent reputation. Most important, the author feels that his career is finally on track.

Admittedly, much of what determines the success or failure of an author’s career is beyond the author’s and the agent’s control. But holding out for an agent who is a fearless negotiator can be the author’s best defense in a challenging, uncertain business.

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Karen Dionne is an internationally published thriller author, co-founder of the online writers discussion forum Backspace, and organizer of the Salt Cay Writers Retreat and the Neverending Online Backspace Writers ConferenceShe is represented by Jeff Kleinman of Folio Literary Management. This panel discussion along with the full Backspace Writers Conference video archives are available exclusively to Backspace subscribers and online conference registrants. 


Contracts: One Little “s” Can Change Everything

Publishing contracts may not be my favorite part of the job, but I have to admit, they are never boring. Case in point, this past month I’ve been working on an Australian contract for one of my clients. All the requested changes had been handled; we were simply awaiting the final clean contract in PDF.

When a contract arrives, I always compare the signature copy to our master redline. Just in case. When a contract goes through five or more drafts, it’s likely something was accidentally added or omitted.

In reviewing this particular contract, I noticed one very small change in the Out of Print clause that hadn’t been present in any of the previous drafts. “The Work” had been changed to “The Works.” To make a long story short, and to diminish the narrative tension here, it was simply a drafting error on the publisher’s part. The final contract was corrected quickly but I highlight this error because the addition of an “s” radically changes the Out of Print clause.

Let me explain why. In OOP clauses, we include sales thresholds as one of the determiners of whether a title is out of print. For example, a contract may include a line that reads that if “The work” is has sold fewer than 250 copies in two accounting periods, then it is considered out of print.

This is a simplification of the whole clause, but it will give you the general gist of where I’m going.

If this contract happens to be for multiple books, then the addition of an “s” can have major consequences. If the line is changed to “The Works,” suddenly it’s not just one title that needs to sell fewer than 250 copies in two accounting periods, it’s ALL the works in the contract together that need to fall below the sales threshold.

As you can imagine, if the sales of more than one book are being counted in the total for the sales threshold, that will make it that much more difficult for the author to ever get his or her rights back. The definition for Out of Print has changed substantially.

To think like an agent, know that it’s not necessary for there to be a major word change in any given clause to radically change the contract. In this instance, one little “s” can change everything.


The UK Contract – Now Equally As Important As the U.S. Contract

In today’s global digital publishing environment, negotiating a UK contract has now become equally as important as the home-court US contract. So if you want to think like an agent, spend as much time reviewing your UK contract as you do your US one.

Now that used to be easy. UK contracts traditionally have topped out at twelve or thirteen pages. A veritable reading breeze in comparison to the 25+ page marathons you get from US Publishers.

Not so any longer, from what I can tell. I’ve negotiated several UK contracts that are giving the US a run for its money in terms of length.

In fact, one UK contract’s out-of-print clause (a.k.a. the OOP) recently made me burst out laughing. The clause stated that a book would not be deemed out of print until earnings for that title, in all formats, added up to less than 75 pounds in two accounting periods.

Seventy-five pounds during a one-year period.

That is laughable, but I don’t think this publisher’s intent was to be funny.

Depending on the price point of the title (and let’s just say the average price in the UK is ten pounds), that would be the equivalent of selling something like eight copies, in any format (which would include high discount, special sales, premiums, book club, audio etc.) in one year.

Sheesh. I think a publisher would really be messing something up if they can’t sell eight copies of a particular book in a twelve-month period. Typical UK contracts set an out-of-print threshold of several hundred copies, so if you were going to do an earnings equivalent instead, it would need to be around fifteen-hundred pounds to be reasonable.

Definitely not a number you want to overlook!


If You Remember One Thing, It Should Be This: Never Sign An Unnegotiated Boilerplate Contract With Any Publisher

STATUS: I feel like I need to flex my brain muscles to get back into shape for daily blogging. 

What’s playing on the XM or iPod right now?  DANCE HALL DAYS by Wang Chung

I recently talked to a writer who had signed a small publisher’s boilerplate contract.

Shudders.

Let me start by saying that the signed contract was with an established and reputable small publisher. Still I shudder.

Let me highlight here that I wouldn’t want a writer to sign the boilerplate contract with any publisher -be it a small one or a big six publisher. All boilerplates are terrible. That’s why agents negotiate the heck out of them.

Pitfalls of Boilerplate Contracts

1) Every publishing boilerplate I’ve seen grants the publisher all rights. Oh boy. Honestly folks, you never want to grant rights to a publisher for things they won’t exploit effectively such as dramatic rights (film/tv), merchandizing, theme park rights etc. The rights will just sit there. And you can’t earn money unless those rights are sold.

2) Boilerplates have no recourse if the publisher fails to publish. Then writers are stuck in limbo forever! They can’t contractually demand the rights back for failure to publish. Writer is stuck. Not good.

3) Boilerplates often have no out of print clauses. I recently derailed a deal because I could not get the small publisher to insert one. They would have had the rights into perpetuity with the author having no way to ever get the rights back unless the publisher felt like it. Uh, no.

4) I’ve seen boilerplates that have a never-ending option clauses. If the publisher doesn’t take the writer’s next book, they still get to see the one after that and the one after that….. Yep, that author will never successfully be placed at a new home if that is the case as the new publisher would want an option for next work at the very least. That can’t be granted if the above is the case.

5) Boilerplate contracts don’t allow the author to see copies of sublicense deals. If that is the case, how can an author know what was sold and on what terms to verify the royalty statements? Good point, right?

And I could go on and on.


Importance Of Specifying Format Of Initial Edition

STATUS: Auction tomorrow. Always fun.

What’s playing on the XM or iPod right now? FADE INTO YOU by Mazzy Star

Here’s a contract tip that is both simple and yet can have a large consequence if not done.

As an agency, it’s been a long-time policy for our deals that publisher must specify initial publication format in the contract. For example, if a publisher wins a book at auction and part of them winning was a commitment to doing the book as a hardcover (for example), then when it comes time for publication, we don’t suddenly want the publisher to do the book as a trade paperback original instead.

One reason for this has to do with the author’s ability to earn out an advance. If a publisher paid a solid six-figures for something, the author is going to need the hardcover sales (with the higher price point) to earn out. Not to mention, with a hardcover initial edition, the author gets two publishing shots toward earn-out as the publisher, as a general rule, will publish the trade pb edition about a year later.

Makes sense.

Here’s another reason for specifying format of initial edition. As agents, we want to ensure that a publisher will do both a print AND electronic edition and not just publish a digital-only edition if that was not the original intent for accepting deal/contract. (Sidenote: Obviously, if an agent is selling a title to a digital-only publisher, then ebook only as initial format is understood.)

In this rapidly changing publishing landscape, and the rise of ebook sales, it is conceivable that a publisher buys a book with the intention of doing both formats and then decides later to not do the print edition and publish it only as an ebook.

I have not heard of this happening–yet. But why chance it?

Part of our job is to anticipate possible issues.


By Far The Biggest Issue

STATUS: It gently snowed all day—which made Anita and I feel quite cozy here at the office.

What’s playing on the XM or iPod right now? BLUE SKIES by Tom Waits

In the new Macmillan contract is clause 6. (b) Copyright on Derivative Works. To state bluntly, this clause gives the Publisher the right to create “derivative works” based on the work they are buying from the author. And to add insult to injury, the publisher owns the copyright to any of these “new works.”

Eyebrow raise.

Yes, it is as bad as what you are thinking it means.

First, this is actually in direct contradiction to US copyright law and can’t be legally enforce but hey, what do I know.

Second, no way an author can sign a contract without amending or deleting this clause although I know some poor soul is going it alone and will end up doing just that.

For goodness sake, at the very least, get in touch with the Authors Guild before doing anything so detrimental to your intellectual property rights.

More Tom Waits music on iLike

-12 Degrees

STATUS: We’ve got the heat cranking. Poor Sara in the loft needs a fan!

What’s playing on the XM or iPod right now? TALKIN’ BOUT A REVOLUTION by Tracy Chapman

Quite frankly, I think this entry’s title sums up the day.

Here I am with Chutney about to brave the 15-minute walk to the office with a wind chill of -20.

Is that a Dog in your pocket or are you just happy to see me? *grin*

New York is going to get hit tomorrow so we are anticipating two nicely quiet days where the phone doesn’t ring. I’ve been averaging about 3 hours a day on the phone for the last week.

Plenty of time to tackle the Macmillan contract again. With luck, I’ll make it to page 20 this afternoon! The words “electronic media” are making me nervous.


A Contract Whine

Status: The high tomorrow is going to be 3 degrees. Oh Joy. And Chutney will still not thank me when I make her wear her fido fleece.

What’s Playing on the XM or iPod right now? HEROES by David Bowie

I think this is definitely more of a whine than a rant. I’m finally negotiating the new Macmillan boilerplate because just recently I sold a novel to that publishing house. And yes, I know that they implemented that new boilerplate many moons ago. Even though I reviewed it at that time (to see what I was in for) it’s not relevant until the first negotiation happens at that house. Although many of our boilerplate items were transferred into the new Macmillan contract, so much of the language has changed (or new clauses created), it might as well be brand new.

So to be generous, I reserved 4 hours to give it a solid read and to write up my requested changes letter. After 2.5 hours of diligent labor, I had only hit page 11 of the 28 page contract.

Oh, this is going to be fun one to negotiate.

More David Bowie music on iLike

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