STATUS: Monday madness! Sounds like a new game show. I can’t believe it’s 5 pm already. Lots of phone calls and prep work for my NYC trip in two weeks.
What’s playing on the iPod right now? HEARTS AND BONES by Paul Simon
Which I blogged about a couple of weeks ago, I just received a letter in the mail today from Random House stating that as of Dec. 1, 2008, they’ll be changing their eBook royalty rate policy.
Sigh. Here we go. RH used to have one of the nicer royalty rates in the industry (of the big NYC Houses that is. I think a lot of the smaller, ePublishing houses have more aggressive standard rates from what comment posters have mentioned.)
RH’s standard royalty rate was 25% of retail (as opposed to 15% of retail that most houses use).
Now they are moving to 25% of net amount received. A big difference. Now it’s still on par with what industry “standard” tends to be in New York but I’m still disappointed.
From the letter: “The new rates are very much in line with the ebook and digital audio rates being offered today by our major competitors. Previously, Random House’s digital royalties represented a considerable premium over the digital royalties offered by other publishers. As the economics of publishing in digital formats come into clearer focus, we realize we can no longer afford to offer such a rich premium if these businesses are going to mature and become profitable.”
I was tempted to add some commentary in there but refrained. For me, RH’s generous eBook rate gave them a bit of an edge if all other factors were equal. Well, that’s going the way of the dinosaur.
If you are a new author, chances are good you are going to get the industry standard in your first contract (barring crazy auction and publishers throwing around huge pots of money that is). And if you are an established author (with a solid track record that’s building), well then, all royalty rates are negotiable, aren’t they? eBook being just one of the factors to play with in the deal points negotiation.