Pub Rants

Category: agents

The Power of Persistence

by Danielle Burby

We are in the season of hot chocolate, sweaters, and storytelling late into the night. Because of that, and because this is the last NLA newsletter of 2017, I wanted to share a story of authorly hard work, hope, and, ultimately, perseverance with you. If you have gotten nothing but rejections for your query, or you haven’t landed that agent, or your full manuscript has gotten nothing but passes, DON’T GIVE UP!

I met Jillian Boehme when I landed my first agency job in 2013. I was an assistant and she was my boss’s client. At that time, she had already spent eight years working toward a book contract. She’d written several manuscripts before landing an agent and been on submission to editors at every reputable publishing house with three additional manuscripts that had gotten nothing but passes. In 2007, she had also started a popular (and, at the time, anonymous) writing advice blog called Miss Snark’s First Victim, which boasted many success stories by connecting numerous authors with agents who went on to sell their books. And yet, despite her hard work, despite her industry connections, despite continuing to write and building her platform, despite having an agent, despite her persistence, she could not seem to sell a novel.

The thing about Jill is that she has an unrelenting work ethic mixed with a deep core need to create art. Every time she was knocked down (and it happened many more times than either of us wanted), she shook it off and approached her writing with a renewed sense of determination. When she submitted her fourth novel, a YA sci-fi, my boss and I gave her a massive revision that, among other things, included eliminating a love triangle by changing the gender of a character, throwing away an entire central plot line, and replacing it with an entirely new one. She got the edit letter, took a breath, and pulled it off beautifully, improving the manuscript by miles in the process. Sadly, that book didn’t sell either, but it did do something important. It pushed her to be a better writer.

By the time Jillian wrote her fifth book for submission to publishers, she had switched to YA fantasy, which my boss at the time didn’t represent, but happens to be one of my favorite genres. I was building my own client list and she and I had been working together for almost three years. We had developed a relationship built on trust, jokes, a love of chocolate, and mutual admiration. Neither of us knew for sure whether she’d ever land a book deal, but I had never seen any author work harder, bounce back from rejection more completely, or improve so drastically in skill and technique with each project. She approached her career with a dogged determination and kept trying even when she had every reason to give up. I loved her fifth book; it was the strongest thing she’d ever written. My boss stepped aside, we formalized our agent/author relationship, edited together, pushed it to be even better, and enthusiastically submitted to editors. We got so close. Every rejection was a heartbreaker, glowing and filled with praise. It still didn’t sell.

Now, twelve years in to Jillian’s journey to publication, five years in to my own relationship with her, and six publisher-submitted manuscripts later, all that hope and hard work has finally paid off. In November, we announced a deal with one of NYC’s major publishers. Jillian’s debut YA fantasy, Gathering Storm, sold to the brilliant and insightful Elayne Becker at Tor Teen in a two-book deal and will be published in Summer 2019. It is already generating film interest.

It is my personal philosophy as an agent that I need to be my clients’ biggest fan and cheerleader. We are a team. There were times when Jillian felt discouraged and couldn’t find hope; in those moments, I told her I’d take care of hoping for the both of us. I have read each of her books upwards of five times and we’ve had endless (and wonderful) editorial and strategic conversations. The agent/author relationship is a special one of shared enthusiasm and dedication to art and business. Through each rejection, we looked to the future and strategized about the next step. This was a very meaningful win. When the offer from Elayne came in, Jillian and I both cried a lot of happy tears.

Whether you are querying agents, waiting for that first book deal, or already published and working to climb higher, you can look to Jillian and her journey for inspiration. Remember that rejections are a badge of honor. It means you are in the game; people in the industry are reading your work. No matter how many no’s you get, all you need is one yes. And, most importantly, there is no such thing as overnight success. To move forward in this business (or in any business), you must constantly learn, grow, and improve. Work hard and don’t ever give up. You are reading this because you are a writer; keep writing and keep getting better. The rest will follow.

Nabbing A Top Agent Before They Are a Top Agent

by Kristin Nelson

Or to give this article a subtitle: 365 Days of Agent Slumber Party

I have to say that 2017 has been absolutely amazing for me. When I took the next step to expand Nelson Literary, I had my work cut out for me. I knew that. I had my sleeves rolled up and was ready to mentor young agents to success. Little did I know how much fun I would have in the process.

In January, Danielle and Joanna came on board and when September hit, Quressa joined the team. Every Tuesday afternoon, the agents of NLA connect to share our own stories about what submissions we are currently reading, what might have an offer of rep that we need to discuss, and what sample pages are causing excitement.

It’s basically been 365 days of an agent slumber party geeking out about writers and sample pages.

We four agents are so simpatico, it’s been a non-stop year of great conversations, giddy excitement when an author said yes and joined NLA, and heartbreak when we didn’t land that client.

Oh the heartbreak.

Rarely do writers hear that it happens on the agent end as well! We don’t always win the agent beauty contest and trust me, we four felt really bummed when that happened.

In 2017, it held true that a really good project would receive multiple agent offers. I’m not sure if that’s because there are a lot more agents (than there were, say, a decade ago), or if the pool of great projects has shrunk in the last two years. (I prefer to think the reason is that there are more agents so the competition is stiffer).

Some projects we were very keen on had as many as 10 offers of rep on the table. Statistically speaking, we certainly can’t win them all. And if a more established agent offers, well, it’s going to be that much harder for a newer agent to win that representation competition. After all, their reputation and client lists are still building.

But here’s a thought I want to share with writers. There is a good argument for seriously considering the offer from an agent who is earlier in her career. Here’s why:

Wouldn’t it be awesome to nab a top agent before the world knows they are a top agent? In other words, agents who will, 5 or 6 years from now, have so many well-known clients that they will be highly sought after? Agents who in just a few years will have client lists that would be a privilege for you to join? Or to put it another way, wouldn’t it be terrific to be the author who makes the agent’s reputation because of your success?

Heck yeah that would be fantastic. Over the years, I’ve heard back from many a writer who turned me down early in my career before my reputation was solidified. (By the way, I hold no ill will as I completely understand that I was unknown then. It’s a bigger risk than signing with an established agent.) It’s just interesting that years later I will often hear from some of these writers. They’ve sent me lovely notes highlighting that they wish the could turn back time and say yes instead.

With Danielle, Joanna, and Quressa, here is your chance. Risk-free. These agents are aggressively growing their client lists at NLA. Under my tutelage, they are honing their tastes so editors know to move their submissions to the top of the reading pile. They are learning exactly what it means to be a top agent in negotiation. They are learning how to analyze royalty statements, assess foreign deals in a context, and leverage Hollywood effectively. They are watching and learning how to manage a “big” author’s career. They are learning how to be a top agent.

And the best way for you, the writer, to be a part of that is to say yes to an offer of rep from them in 2018.

I’m going to make a bold prediction: these three ladies are all going to be considered top agents within the next 5 years. Agents whose client lists you’ll want to be a part of.

And all you writers need to do is say yes when they offer in the new year.

*grin*

Creative Commons Photo Credit: dlovins99

Gone Hollywood

by Kristin Nelson

I used to dream about about this town (Supertramp anyone?), but now I just wish I could have a month free from tackling a film or TV contract. And yes, I realize I’m whining about a good problem to have.

This summer I did seven book-to-film deals. (I’d like to clarify here that NLA does not represent screenplays or screenwriters. We only sell the film/TV rights to projects for which we have also sold the print/digital rights to a publishing house. I definitely do not want a stream of screenplay queries after this article goes live.)

Film/TV contracts tend to be 40 to 50 pages long and often require many rounds of negotiation before the contract is final and ready to sign. Studios hate to give in on requests because the biggest issue in Hollywood is that every contract sets precedent for the next—and neither side wants to get stuck with a deal term that will later come back to haunt.

So film/TV deals are quite sexy (for the author), but the time investment for the literary agent is significant. Most literary agents work with a film co-agent to shop and place film/TV rights, but I’ve negotiated and closed deals sans co-agent in conjunction with my entertainment attorney.

All this to say that even if a film co-agent is on board, it is actually the literary agent’s job to negotiate the heck out of the author’s reserved-rights clause in a Hollywood contract. Who better understands the publishing agreement than the original agent who brokered the publishing deal? I speak from experience: there are lots of changes that can be made in a Hollywood contract, and if your agent is not getting significant changes, author beware. You might want to engage an experienced entertainment attorney to act on your behalf during the contract negotiation.

The Anatomy of a Reserved-Rights Clause in a Film/TV Contract

Now let’s chat about the anatomy of a reserved-rights clause in a Hollywood contract. (There’s no way to tackle every aspect of a Hollywood deal in one article, so I see a series in my future!) The first thing that should be included in this clause (which, by the way, spells out which rights the author gets to keep, i.e., which rights are not being granted to the studio upon signing of the contract) is, rather hilariously, a hot-button topic during negotiations. I’m talking about novelization rights.

Think about it. The novel already exists because this is a book-to-film or book-to-TV deal! Yet the studios always try to get the right of novelization to the movie. As we all know, whether we like it or not, a film can vary greatly from the original novel on which it was based.

So just how can a studio novelize a film when the novel already exists, and they, in fact, based their production on that novel?

The answer is simple. They can’t. Novelization must be a right reserved to the author. Some studios literally won’t allow that, so we have to do an odd workaround—we have to “freeze” novelization rights so neither the author nor the studio can pursue. (Side note: this does not impact the original novel the author wrote, as that is already in existence.)

Yep. If you are thinking that is pretty ludicrous, I’m in total agreement with you. But that’s Hollywood.

Next month, I’ll chat about reserving all publishing rights in this important clause and the one publishing right we’ll actually allow as it’s good for the author and the studio.

Creative Commons Photo Credit: Eva Luedin

Money Talk: Where Does Your Commission Go?

by Kristin Nelson

By Danielle Burby

In this column, we discuss everything authors should know when it comes to landing an agent and navigating the complexities of the publishing industry. You know how to query and what to ask when an agent offers you representation, but here’s a slightly more sensitive topic: commissions.

Agenting is a sales job, which means your agent doesn’t get paid for their work on your book until you get paid. An agent takes on a project and invests their time, energy, and resources with the hope that the project will sell to a publisher. If the project doesn’t sell, the agent doesn’t doesn’t get paid. (If an agent ever asks you to pay a fee for their services, walk away. They are not a real agent.) The industry standard commission rate is 15% for domestic sales (with slightly different rates for various ancillary rights). Once a book has sold and the contract is fully executed, the publisher schedules an EFT or writes a check to the agency, and the agency retains 15% and sends the author a check for the remaining 85%. It may never occur to an author to wonder what happens to the 15% commission they just paid.

There’s no true industry standard in the arrangement between agents and agencies surrounding that 15% commission. Every agency has a slightly different way of approaching this matter, but a general rule of thumb is that the agent gets some of the money and the agency gets some of the money. Essentially, you are paying the agent directly for his or her work and you are also paying the agency to continue growing, investing in support staff, and providing you with the proper services.

Possible splits:

  • A very typical split between agent and agency is 50% of the commission (or, in other words, 7.5% of the entire deal). For example, if your book sells for $50,000, the total 15% commission payment is $7,500. It is reasonable to expect that $3,750 of that will go to your agent.
  • Many agents have built-in escalators (much like authors), incentivizing them to hit certain sales goals by bumping up commission percentages.
  • Your agent may get a higher percentage of the split (60%-70%) if the agency he or she works for doesn’t provide office space or support staff.
  • It is rare, but not unheard of, for agencies to pay their employees below 50% of that 15% commission.

Different ways of paying agents:

  • Commission only. Agents on a commission-only arrangement are paid when their authors get paid. Payments here are intermittent. Many commission-only agents work side jobs until they are able to build their list to a point where they have a steady, comfortable income.
  • Salary for services to agency plus commission. Many agents build their client lists while simultaneously serving in salaried support-staff roles for an agency (assistant work, subsidiary rights work, etc.) until they are financially ready to switch over to commission only.
  • Draw. A draw is an advance on future earnings, much like publishing houses pay to authors. Agents on a draw are paid a fixed amount of money annually that they are then expected to match (and hopefully surpass) in sales. Once they have earned back the draw, they begin to receive commissions. This provides an agent with a level of financial security and stability, allowing them to agent full time, though some agents are hesitant to accept a draw because the stakes are higher if sales goals aren’t met.
  • Salary. Some agencies pay agents a salary in exchange for the entire commission. In this case, agents often make a very comfortable salary and receive an annual bonus if they hit very high sales goals.

Ultimately, it is an agent’s right to keep his or her financial agreement with an employer private, and I wouldn’t recommend asking about it on The Call or in conversation. That said, arming yourself with an awareness that these different arrangements are out there is important for you as an author. And, knowing them, you may be able to read between the lines to figure out how it works for your agent.

This is important because, the truth is, how your agent is paid does impact you. If your agent isn’t receiving appropriate commission percentages, he or she may change agencies. If an agency isn’t investing their own percentage in support staff and company growth (and therefore more services for you), it is something to be aware of because, chances are, your agent is doing extra work. In the first several years of agenting, the money comes in slowly, unpredictably, and often in small sums. If an agent is just starting out and is being paid commission only, it can be very difficult for that agent to pay the rent and bills. Publishing is a very tough business with a high burnout rate. The way agencies pay their agents absolutely contributes to an agent’s ability to stick it out.

Every agent has to build from somewhere, but some agencies offer their employees more support in that arena than others. While your agent has no control over this and shouldn’t be penalized for, say, not being in a position to work full time, it is something you want to think about. Consider it in the same way you’d weigh whether you want an editorial agent, a boutique agency, or an agent with a large vs. small client list. As always, the more you know about the way publishing works, the better!

5 Qs Authors Don’t Ask but Should When an Agent Offers Rep

by Kristin Nelson

In the last two weeks, we at NLA have offered representation to seven authors, most of whom received multiple offers. All agents are aggressively seeking new talent right now! It’s awesome to talk to savvy authors who have a list of good questions prepared for their initial conversations with prospective agents, questions like:

• What is your communication style?
• How would you describe your dream client?
• What is your editorial vision for my work?
• What would your submission strategy for this work be if you took it on?
• What happens if my project doesn’t sell?
• Are you open to me writing in different genres?
• Can I chat with a current client?

All these are questions you should ask; you definitely want your agent to be a good personality match and share your vision for your career. But you also want that agent to be your best advocate and protect your business interests in the publishing industry. With that in mind, here are five key questions authors should also be asking, but in general I never hear:

1) What is the average duration of a contract negotiation at your agency? At NLA, average time is three or four months, as we’ll stand firm on key clauses until a compromise is reached. We don’t rush it. If a publishing house has recently revamped its boilerplate contract, then that timeframe can more than double, as we’ll have to negotiate the boilerplate contract first, and then negotiate your specific deal.

2) Will I be involved in seeing the original offer and then the final offer from the Publisher? NLA always shares with our clients the details of the first offer and what we negotiated to create the final offer. Clients are always invited to participate in the process and weigh in.

3) Will I have a chance to review the original contract from the publisher as well as all the requested changes documentation, and then the master redline of the final contract I’ll be signing? Can you walk me through any contract clause that I might not understand? At NLA, we share all this documentation, whether clients want to read it or not, so that clients are 100% confident that their deal and contract have been fully negotiated. And I’ve spent many an hour on the phone or Skype, combing through contract particulars with clients to make sure they’re completely comfortable with what they’re signing. Most agencies simply forward on the final contract for signatures, and that’s it.

4) Do you regularly audit royalty statements? How much money has the agency recovered by doing so? At NLA, we’ve recovered hundreds of thousands of dollars over the years for our authors because we regularly catch errors when auditing their royalty statements. And we catch errors in almost every accounting period—that’s how frequently it happens.

5) How many non-agent support staff are at your agency? This is important, as it’s very hard for an agent to do all of the above, and do it well, without significant assistance from non-agent support staff. At NLA, we have three agents and a team of six in-house non-agent support staff to protect our clients. Most agencies have a lot of agents and very little, if any, support staff. The agents are expected to be independent silos and handle all of the above plus all agenting duties. It’s not possible to juggle all that without letting stuff fall through the cracks.

Bonus question to ask if you are feeling bold: What percentage of your clients make their living solely from writing? If you ask me this question, I can truthfully say that 95% of my clients earn their living as authors—meaning they earn enough money to support themselves without a secondary job or support from a partner.

Back in the crazy days of the late 2000s, there was a popular agent, active on social media, who landed a lot of clients, posted some sexy six-figure deals, and then disappeared. I ended up taking on a former client of this now defunct agent/agency and realized, to my horror, that the author had been signing boilerplate contracts with no negotiated changes. The agent hadn’t negotiated a thing! The author was new to the business and had no way of knowing the agent wasn’t doing the job. Even though that agent looked hot from the outside, s/he had actually done very little to protect the client’s interests.

You can make sure that doesn’t happen to you. This is your career. Ask the above 5 Qs. After all, these aren’t the sexy tasks, but they do affect an author’s bottom line. Don’t feel uncomfortable or worry that you might insult the agent. If an agent becomes defensive when asked legitimate questions, then chances are that agent isn’t right for you.

Stay smart, savvy, and shrewd. Check out my “What Makes a Good Agent” article series on Pub Rants. You are your own best advocate.

Creative Commons Photo Credit: Chris Potter

Is Your Manuscript Ready? By Danielle Burby

by Kristin Nelson

You’ve done your research and know the basics of writing an excellent query letter, but what comes next? What happens when that query letter works and an agent requests your novel? At the end of the day, it all comes down to your manuscript. Are you and your manuscript ready for an agent? How do you know? The short answer: Ask yourself whether you’re treating this like a marathon or a sprint.

Once you’ve typed “The End,” you may be tempted to immediately go out and query every agent you can find, but keep in mind that, while it is a major accomplishment to finish writing a novel, even the most practiced authors need to take time to revise. The first draft is where the ideas form on the page, but it is only in subsequent revisions and rewrites that the actual story begins to emerge. Writing, like any other art, is a craft that takes skill and dedication. Keep in mind that you don’t have a deadline. There is all the time in the world for you to work and rework your novel until you have gotten it into the best shape you possibly can.

As you revise, remember that this is your world and you have full control over it. What a liberating superpower! Nothing in your novel is fixed in stone. This means you can have fun and play with everything from characterization to the rules of the world to the stakes and goals that drive the plot.

Some tips for revising:

  • Print out your draft and make notes in the margins to highlight moments that can be improved.
  • Map out the plot, point by point. Poke as many holes in the logic as possible. Re-map and revise.
  • Read the entire novel from start to finish several times, with a different focus each time—plot, character, language, copy editing.
  • Read out loud and listen to your words. Hearing can illuminate writer tics in need of eliminating or monotonous sentence structure. Revise with that in mind.
  • Share it with trusted readers who will push you even farther. If someone has a crazy suggestion, give it a shot! If it doesn’t work, at least you’ve tried it. Revise again. Repeat.

Whichever revision style you choose (and you can choose more than one!), your goal should be to make your book better, stronger, more powerful.

My biggest piece of advice to new authors is this:

  • Set the bar high and take the time needed to get to a masterful final draft.

Too often we get requests from agent-seeking writers asking for a chance to resubmit a now-revised manuscript. Occasionally we may say yes, but more often we have to say no because of time constraints. You might only have one shot at an agent read. Spend it wisely. Remember that each and every draft will make you better at what you do. Keep creating and writing and challenging yourself. Keep running this marathon.

2016 End of Year Stats!

by Kristin Nelson

Wowza, did last year fly by! I was just getting used to writing 2016 on documents, and now I have to switch to 2017. In any case, it’s time for our end-of-year stats:

2 new agents at NLA (Joanna MacKenzie and Danielle Burby come on board!)

39 career New York Times bestsellers (up from 37 in 2015. So close to being able to say “more than 40.”)

59 books released in 2016 (25 print releases, 9 reprints, and 21 digital releases)

3 new clients (lots of exciting news to share soon)

30,000+ queries read and responded to (estimated)

92 full manuscripts requested and read (up from 87 last year)

1 project currently on submission (just happened!)

86 foreign-rights deals done (down from 99 last year, mainly because I only took on one client in 2014): 17 in Asia, 3 in Brazil, 10 in Mexico/Latin America, and 56 in Europe

2 TV and major motion picture deals (one not announced and yet and the other, sadly, was cancelled half way through the negotiation, much to our dismay)

50 print runs for my longest-selling title, Jamie Ford’s HOTEL ON THE CORNER OF BITTER AND SWEET—which originally published in 2009. Up from 46 just last year. The Energizer Bunny of novels with millions sold!

8 conferences attended (which includes Y’ALL West, RWA, Frankfurt Book Fair, and Honolulu Writers Conference)

Millions of units sold of bestselling series, which had a 10th-anniversary edition in 2016—yay Gallagher Girls!

Millions of units sold of bestselling individual title. WOOL just keeps finding new readers.

Millions of units sold of two bestselling series—yay Marie Lu!

140 physical holiday cards sent

713 electronic holiday cards sent (up from 539 in 2015)

Not telling it’s so embarrassing eggnog chai lattes consumed during November and December (I actually tracked them this year, and that just made me less likely to share the actual number.)

Lots of late nights reading on my living-room chaise with Chutney (that old dame just keeps getting more snuggly with every year)

All great days loving my job!

Welcome to the new New Year!

Photo Credit: Richard Grandmorin

NLA Welcomes Danielle Burby

by Kristin Nelson

As announced on Publishers Weekly, NLA is pleased to welcome two new agents: Joanna MacKenzie and Danielle Burby.

I was always the class bookworm, but, for some reason, I spent most of high school convinced that my future was in Broadway. In fact, I felt really bad for the English teacher who told me she thought I was destined for a career in books because she was so very wrong. Turns out she knew me better than I thought! Of course, looking back, the fact that I never left the house without a minimum of two books (the book in progress and at least one backup) should probably have tipped me off.

I double majored in creative writing and women’s studies at Hamilton College (both “impractical majors” that have been incredibly practical for me) and figured out that creative writing classes do a really great job of honing your editing and critiquing skills. After internships at several top literary agencies and publishers, I spent four years at New York based literary agency and began building a client list before moving to NLA in January 2017.

I primarily represent YA and MG along with very select mystery and women’s fiction. I look for a strong narrative voice and a cast of characters I want to spend time with (which doesn’t necessarily mean they need to be likeable!). Something all of my clients have in common is the ability to sweep me up in their writing and make me grateful for a chance to spend time in their worlds. When I finish a novel and immediately want to thank the person who wrote it, I know I will have the enthusiasm to fight tooth and nail for that author.

Click here to check out my Manuscript Wish List.

NLA Welcomes Joanna MacKenzie

by Kristin Nelson

As announced on Publishers Weekly, NLA is pleased to welcome two new agents: Joanna MacKenzie and Danielle Burby.

I owe my love of books to the librarian of my childhood bookmobile, who, after I had worked my way through The Baby-Sitters Club and Sweet Valley High, lifted the velvet rope and let me in to the grown-up section, where I discovered V.C. Andrews. And to my father, who gifted me Cat’s Cradle, Wuthering Heights, and One Hundred Years of Solitude for my 15th birthday.  In 2002, I got my start in publishing at a Chicago-based literary agency. While there, I successfully placed numerous manuscripts that have gone on to become critically acclaimed, award-winning, and bestselling novels. I love working with authors who embrace the full publishing process (read: love revisions) and am committed to the stories my clients want to tell both with the words they put on paper, as well as with the careers the build.

I am excited to join the Nelson Literary Agency team, and to expand my list in both adult and YA. I’m looking for the epic read that, at it’s center, beats with a universal heart. In particular, I’m drawn to smart and timely women’s fiction, as well as absorbing, character-driven mysteries and thrillers—both, ideally, with a little edge. I have a weird obsession with, what I call, “child-in-jeopardy lit” and can’t get enough kick-ass mom heroines. On the YA side, I’m interested in coming-of-age stories that possess a confident voice and characters I can’t stop thinking about. Originally from Poland, and by way of Canada, I’m all about narratives that deal with the themes of identity and the immigrant experience as well as those that delve into all aspects of the relationships that make us who we are—parents, siblings, best friends, and first love.

Click here to check out my Manuscript Wish List.

Former Egmont Authors: Check Your Royalty Statements

by Kristin Nelson

Publishing is a complex business with a lot of moving parts. Every contract is unique, and most errors we find on royalty statements are caused by data-entry mishaps that occur when contract terms are incorrectly keyed into publishers’ accounting systems.

In other words, human error is often the culprit.

So I’m going to give Lerner the benefit of the doubt and assume that such a scenario is currently at play here.

A recap of history for context: In January 2016, news hit the wires that Egmont USA children’s publisher was closing up shop due to its failure to find a buyer.

This created a lot of consternation, as more than 100 titles that were going to be published were now suddenly in limbo and contracts would most likely be canceled.

Good news was just around the corner, though, in the shape of Lerner, who bought out the titles and committed to honoring the contracts. Authors would live happily ever after!

Until their royalty statements arrived.

On the surface, everything looks normal. Royalty rates appear to be the same as they were under Egmont—except for one very crucial difference. Egmont contracts specified that author royalties would be calculated based on list price. But when the Lerner statements arrived, royalties are now being calculated based on net amounts received.

Not the same thing.

How do they differ? Let’s do some easy math: 10% of list price = approximately 20% of net amounts received. If this in play, the author will earn approximately the same amount of money, regardless of whether the calculation is done based on list price or based on net amounts received.

So not a big deal. The problem occurs if the number “10” stays the same, but how it was calculated changes.

Here’s why: 10% of net amounts receive is one-half (1/2) the royalty money earned in comparison to 10% of list price.

That’s a significant drop for the author.

It’s pretty easy to see how this might simply be a data-entry mistake. Either way, I feel compelled to alert writers might have been unagented when they signed contracts with Egmont and, thus, probably didn’t catch this accounting error—especially if they are unfamiliar with deciphering royalty statements.

It is also possible that a fair amount of literary agents have also missed it—especially if they haven’t yet audited the Lerner statements.

So former Egmont authors, check your contract, and then check your royalty statements. Make sure you’re getting paid everything you’re contractually owed!

Photo Credit: Ano Lobb