Pub Rants

Category: agenting

Article 2: Commanding Authority: An Agent’s Negotiation Edge

by Kristin Nelson

Article #2: Commanding Authority: An Agent’s Negotiation Edge

in the series WHAT MAKES A GOOD AGENT? by Agent Kristin and Karen Dionne, co-founder of Backspace

In January, one my clients emailed me a great note to kick off the new year. She wrote:

“This is going to sound random, but I feel the need to do a bit of effusive gushing to you. As you probably know, authors eventually turn to gossip (about their contracts too) and I recently found out that several writers I know are stuck with joint accounting, one of them being a NYT bestseller. To say the least, I was agog. My next, immediate thought was that I have the best agent ever.”

Because my client knows that all our contracts here at NLA have separate accounting. I really appreciate when my authors recognize a good job well done because let me tell you, great contract negotiation is not the sexy part of agenting. But it’s the backbone of a great career for my authors.

First, let me explain what joint accounting is: A multi-book deal that grants joint accounting allows the publisher to apply all earnings for all books on that contract to the total advance granted; in other words, none of the books earns out until all of the books earn out.

Separate accounting, on the other hand, specifies that each book’s earnings apply only to that book’s advance; in other words, if book one earns out, the author begins to earn royalties, even if the subsequent books on that contract have yet to earn out. Yay! Royalties!

I decided early in my career that Nelson Literary Agency would only do multi-book deals if the contract granted separate accounting. I weighed the pros and cons, and I just couldn’t see an advantage to granting joint accounting. Since my job as agent is to advocate on behalf of my authors, I’ve held firm on this issue—even if it means we can only sell one book to an editor instead of two or three.

If editors know that joint accounting isn’t available, they don’t bother asking me for it. Why am I sharing this example? Because I want to discuss what could be considered a rather nebulous concept, and my #1 criteria for what makes a good agent:

Good agents command authority naturally.

What does it mean to command authority naturally? For one thing, it means that an editor has immediate respect for the agent. They view the agent as powerful, well informed, and fair yet tough. Especially when it comes to negotiation. So if the agent has established that she won’t grant XYZ in a deal, then editors don’t bother asking for it. In other words, the agent is not a pushover as a negotiator.

There are many agents who are absolutely lovely people but who don’t command authority naturally.

Why should you, as a writer, care about this?

Because it is the essence of this biz. Publishers (who are not evil, by the way) want the most they can get out of a contract (which is often not in the author’s favor), and the agent’s job is to grant only what won’t be detrimental or disadvantageous to the author so that the author gets the fairest contract possible.

The goal is to meet in the happy middle, where both the publisher and the author feel satisfied. And it’s simple: Authors with strong contracts have more successful careers.

So if an agent commands authority naturally, editors will respect that. Editors who know an agent is a negotiating pushover will ask for as much as possible, and since the agent won’t stand tough on key issues, writers get stuck with yucky stuff in their contracts, joint accounting being just one example.

In fact, I know of agents who simply accept the first offer an editor gives without any negotiation whatsoever. Yikes!

Agents who command authority naturally get their projects read more quickly.

Agents who command authority naturally get higher advances and better royalites for their authors’ work.

Agents who command authority naturally are granted more compromises during negotiation, making sure contracts are advantageous for the author.

Agents who command authority naturally get more leverage when dealing with conflict (for instance, over a cover image or something else in the author’s career).

By the way, this doesn’t mean that the agent will always get her way. But it does mean that the editor respects, values, and weighs seriously the agent’s opinion. And sometimes that translates into swaying the editor on the issue.

Agents who command authority naturally are just better at the job of agenting. And in my mind, if the agent is better at agenting, the author is going to have a stronger, more successful career.

And since authors want to make a living writing, this becomes pretty important indeed!

*******

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.

*******

Archive:

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

Article 2 – When Agents & Editors Respect Respect Each Other by Karen Dionne

by Kristin Nelson

Guest Blogger: Karen Dionne

One of my favorite panels regularly offered at my Backspace Writers Conferences was one in which I invited an agent I respected to bring in an editor they’d worked with to discuss the process of selling and bringing out a book. Sometimes called “Agents and Editors, Working Together,” sometimes “The Business of Selling the Book,” these discussions were far more interesting than their titles. I loved how they pulled back the curtain on an aspect of the publishing business that authors generally don’t get to see: the relationship between agents and editors.

The conversations were always casual, engaging, and honest. It was easy to see that the agent and editor respected each other and enjoyed working together—even though they acknowledged their jobs often put them on opposite sides of the fence.

I thought about these panel discussions after I read Kristin’s article about how a good agent needs to command authority naturally. In one discussion, the editor lamented how hard it was to know if the agent pitching a manuscript was telling the truth.

Agents lie to editors? I remember thinking. Apparently, some do. Editors know it, and it makes their jobs harder. As an example, the editor said an agent might tell her they have “interest” in a manuscript. Normally this means another editor wants to acquire the book. But “interest” could mean as little as the agent and editor had waved to each other in the hallway. The editor was exaggerating for effect, but the truth beneath her comment was clear.

“I will never, ever lie to an editor,” the agent broke in. “I’m a salesperson, so naturally I’m going to portray the book in the best possible light. But I will never say anything that’s factually untrue.”

“I know that,” the editor replied. “And I trust you. Personal relationships are super important to figuring out what’s actually going on [in negotiations].”

Or as Kristin puts it: “For an agent to command authority naturally means that an editor has immediate respect for the agent. They view the agent as powerful, well informed, fair, yet tough.”

Kristin also says: “Agents who command authority naturally get their projects read more quickly.” 

In the same panel discussion, the agent told the audience that if he thinks a book will generate interest from multiple publishers, he likes to send the book to editors on a Thursday. Why Thursday? So the editors can read the manuscript that night, get their colleagues on board the next day so they in turn can read the book over the weekend, and the following week the agent can hopefully set up an auction.

“We hate when agents do that!” the editor said. Dropping everything she had planned and reading is the last thing she wants to do at the end of a busy week. But because she respects the agent, she trusts that when he says the manuscript is hot, it really is, and he’s not lying in order to get the project read quickly. So she reads the manuscript right away.

“Agents who command authority naturally are just better at the job of agenting,” Kristin says.

At another of my Backspace conferences, when I met the editor the agent brought in for this panel and told her who my agent was, she said, “You have a good agent. He’s tough.”

I found out later that my agent and this editor are friends. Yet their friendship doesn’t preclude my agent being a tough negotiator when the situation calls for it. More important, this editor respects my agent because he is.

*****

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 Conference.

She 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. 

Why Deal Lunch is Best Served With A Large Pinch of Salt

by Kristin Nelson

Get ready! A real rant I’ve been wanting to do for awhile.

First off, I want to make it clear that this is in no way a commentary or a critique of Michael Cader and his amazing Publishers Marketplace. I firmly believe that Cader, by launching the Deal Lunch feature of PM, has brought a ton of transparency to an industry that had very little before the site was launched in 2001. He deserves a big round of applause.

But I don’t think the general public realizes that deal announcements on Deal Lunch are based on the honor system. Agents report the information to PM and it’s not Cader’s job to fact check or police the deal announcements posted there.

And I know for a fact that some agents exaggerate or misrepresent the deals they post there. How do I know this? From conversations I’ve had over the years with editors about deals I was skeptical went for the money range represented in the deal.

Sometimes authors talk to one another (as well) and we agents get the real details about what happened behind the scenes of a deal. I saw a deal announcement recently that made me shake my head as I was privy to the deal details. The reality of it was definitely not reflected in how it was announced.

By the way, everyone in the industry knows this. I’m not blogging about a topic that will be a shock to any industry folks. Most of us just shrug and say “it is what it is.” But I think it does a disservice to aspiring writers who might rely on the Deal Lunch for an accurate picture of agents and the deals they do.

And the word that is most misused on Deal Lunch? The word “pre-empt.”

For the record:

* it is not a pre-empt if a project is only shopped or seen by one editor.

* it is not a pre-empt if the project is the contractual option material that the editor then offered for.

* it is not a pre-empt if there are no other offers made on the project. If there is only one actual offer, then it’s simply a regular deal.

Quite simply put, a pre-empt is an offer an agent accepts to keep a book from going to auction because there are multiple publishers interested in the work and there are multiple pending offers or multiple offers already on the table.

Any other use of the term is a misrepresentation of the deal.

So if you are an aspiring writer and you are using deal lunch as research, just remember to weigh all the information gathered there with a grain (or a big pinch) of salt.

 

 

 

 

Why Authors Should Pay Attention to Gravity

by Kristin Nelson

Last week, Deadline posted the news that Warner Bros. was claiming victory after the dismissal of a $10 million lawsuit regarding the blockbuster movie Gravity starring George Clooney and Sandra Bullock.

Quick Summary: Bestselling author Tess Gerritsen brought the suit making a claim that the movie was based on her book that New Line Productions had optioned in 1999. Warner Bros. acquired New Line studios and what is in question is whether Warner Bros, after the acquisition, is required to honor the New Line option agreement.  She explains in good detail on her blog.

So Warner Bros. might be crowing victory but what this boils down to is that the case was initially dismissed based on a legal technicality. Corrections need to be made to the case and then refiled. Nothing really has been decided.

So why should you care? You might be a writer at the beginning of your career. Maybe you don’t have a project under a film or tv option as of yet. Maybe writing as a career is simply a dream at the moment.

But someday you may very well be an established career author and what is decided in this court case will have far-reaching repercussions for all authors where Hollywood is concerned. You can bet that book-to-film co-agents are watching this very closely as are literary agents. This will change how projects are optioned in the future.

And just maybe the project being optioned is your book.

2014 End-of-Year Stats!

by Kristin Nelson

It’s that magic time of year when I tally up the numbers and share with everyone Kristin’s Yearly Stats! Last year we reported numbers on the whole agency, but I figured it would be fun to just take a look at my own year in review. Please note that sales figures are approximations rather than exact calculations.

Enjoy!

9

books sold

99

foreign-rights deals done (down from 128 last year). Twenty-nine were deals made in Asian territories, and the other 70 were for the rest of the world. All 99 foreign-rights deals were done on behalf of 12 of my clients.

1

new client (I actually wasn’t reading much during 2014 but I’m actively reading in 2015!)

35,000+

estimated number of queries read and responded to

45

full manuscripts requested and read (down from 67 last year)

856

number of sample pages requested and read (down from 972 last year)

4

number of projects currently on submission

6

TV and major motion picture deals (I actually did all 6 in November and December!)

3 million+

copies in print/sold for my bestselling long-running series this year

2 million+

copies in print/sold for my bestselling individual title

2.5 million+

copies sold for my bestselling hybrid author

3 million+

ebooks sold for two of my bestselling indie-publishing-only authors.

31

number of print runs for the longest-selling title

9

conferences attended (which includes Bologna Book Fair, BEA, and Frankfurt Book Fair)

33 

New York Times bestsellers (up from 31 just last year)

175

physical holiday cards sent

450

electronic holiday cards sent

Not telling it’s so embarrassing

number of eggnog chai lattes consumed during November and December

Lots

of late nights reading on my living-room chaise with Chutney

All

great days loving my job!

Worth The Conference Registration Cost

by Kristin Nelson

Last month I gave a webinar on how Digital is rapidly transforming publishing.

I love giving this workshop at conferences every chance I get because most writers are completely confused by the stories that are making today’s headlines and how that impacts writers. It’s my chance to really explain all that is going on.

Attendees always walk away telling me that my workshop alone was worth their conference registration cost. (Of course they could just be humoring me…) LOL

Still, it makes me happy. I always want aspiring writers to be informed as much as possible.

We are doing something unique this month and making the recording available for streaming.

Writers: Please Read Your Contracts

by Kristin Nelson

I know for a fact that some of my clients don’t actually read the final contract they sign. I also freely admit that this makes me nervous. No person should ever be so trusting, even though I know I do a heck of a job on every contract negotiation. I actually prefer that all my clients read their 25+ page contract from first page to last. In fact, I even welcome questions or any concerns a particular clause might raise.

Why? Because I’ve looked at that publisher’s contract a million times, and my familiarity with it might actually be a liability rather than an asset. It never hurts to have a fresh pair of eyes on a contract I’ve read three times before I send on to the client for signing.

Fresh eyes might be a fresh perspective, and a client’s questions based on his or her interpretation of the contract language might actually make me evaluate familiar clauses in a whole new way.

Not to mention, Publishers Weekly just ran a story called For Major Publishers, Will Print No Longer Be the Norm? In it, PW highlights that agents are concerned about publishers who no longer guarantee a publication format in their contracts. In short, publishers are becoming more hesitant to commit to printing a physical edition of your book–just in case they want to do eBook first or eBook only.

Well, a big reason a lot of writers are interested in partnering with publishers is because publishers offer the advantage of producing both print and electronic formats. And if a print edition is not guaranteed…well, that might change the author’s desire to sign a contract.

Luckily, we here at NLA have made it a standard to specify the production of a print edition in our authors’ contracts. It’s always a tough discussion, but we are sure to get publishers to guarantee that they will produce a print edition in the deal-points stage, before contracts are even drawn up. That way, the expectation is clear early on so the author can decide whether or not to accept the publisher’s offer. This has been our standard for years now, but I’m guessing that getting publishers to agree to it is only going to get tougher.

Thinking like an agent ensures that you read your entire contract. Word for word. And that you start thinking like a negotiator. What have you read about in the news lately that might need to be covered in a publishing contract? Maybe you’ve read about “subscription services,” which is quickly becoming a hot-button issue. If you see that, or anything else, in your contract that you don’t understand, have a conversation with your agent. It’s probably rare you’ll think of something that your agent hasn’t, but, honestly, you never know.

Fresh eyes can be a powerful tool.

Contracts: One Little “s” Can Change Everything

by Kristin Nelson

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 Amazon – Hachette Spat

by Kristin Nelson

This just hit the newswire in the last week but I’ve informally known about this since late fall 2013 (as early as November). The problem? My Hachette authors and I noticed this “shipping issue” multiple times and brought it to our Hachette Editors’ attention. 

Multiple times. Repeated emails. We were assured that all was fine. (Which we, of course, did not believe since it kept happening….)

This is yet another moment where big publishing could have chosen to partner with authors and agents by explaining the truth behind Amazon’s muscle flexing.

Instead, Hachette choose to go with “we don’t discuss contract negotiations” tactic, which leaves their authors in the dark, agents like me fuming, and fosters a general atmosphere of distrust that the publisher is not being forthright.

Not the end goal here! What we need is more communication, not less.

Let agents and authors help you take a stand–which is actually what’s going on now and is detailed in this New York Times Article.

As happens time and time again, the truth does emerge and leaves those of us who have been asking about it for the last six months with exasperated hands in air, the desire to bang head against desk, and authors who now won’t believe the publisher when the response is “all is fine” in the future.

New Buzz Word: The Hybrid

by Kristin Nelson

The latest buzz phrase in digital publishing is the “hybrid” author. In short, that means an author who is both digitally self-publishing and partnering with a traditional publisher. The hybrid aspect can work in a variety of ways such as…

1) Author has kept digital rights but partners with a publisher for the physical print edition.

2) Author has series that she/he is self-publishing digitally but also has a series or books with a traditional publisher so is publishing simultaneously in more than one venue.

According to stats presented at January’s Digital Book World, hybrid authors make 15% to 20% more than their traditionally published counterparts. In other words, it pays to be a hybrid author. But now this phrase is starting to be kicked around when it comes to agents and agenting. So what does it mean in that context? I’ve got a couple of bullet points to share.

1) Hybrid agents place authors with publishers but also assist clients to self-publish without being a publisher themselves.

2) Hybrid agents take on authors to simply sell foreign and film and let the other stuff evolve over time.

3) Hybrid agents get creative on new ways to manage/license a right or handle a property (think Rowling’s Pottermore site as an example of hybrid agenting to the max).

4) Hybrid agents are flexible. They don’t stick with the “this is how agenting has been done for X number of years” and that might mean allowing clients to self-publish on their own but be ready to do a print-only deal.

This past week I sat on a publishing panel here in Denver at the Auraria campus, which houses the University of Denver, Metro State, and the Community College of Denver. One of the questions asked was this: “what do you miss from how publishing used to be five years ago.”

My answer?  “Nothing.”

Hybrid agents don’t long for the past. We are solely focused on the future. Amen.