Pub Rants

Category: agents

Because Agents Are Human Too – Part 3

by Kristin Nelson

This month’s topic is the hardest to quantify, because when an agent offers representation, it will be difficult for a writer to ascertain his or her financial viability. This is often knowledge that doesn’t become apparent until after a business partnership has been established.

Regardless, it’s still worth saying: Good Agents are financially stable as agency entities as well as in their personal lives. 

First, let’s discuss why this is important. For those who are new to the publishing industry, keep in mind that money always flows to the author, not away. So, an agent earns her living by being paid a 15% commission (slightly different percentages for foreign and dramatic rights) on advances and royalties for projects sold. In other words, a book is sold to a publisher, the publisher sends a check to the agent, the agent takes her 15% commission based on the gross amount and then passes the other 85% through to the author.

Pretty simple. So why is it important for an agent to be financially stable in both her business life and her personal life? Because you don’t want your agent making fast, split-second decisions about your career, what deals you should accept or not accept, based on the fact that she might really need her 15% commission that month to pay her bills—either for personal debt or for the agency. Same is true when the contract comes in. You don’t really want an agent who will “rush” through a deal-points negotiation or a contract just to get it signed so that she can receive her commission faster.

That’s never going to be in your best interest.

Is it possible to identify the financial stability of an individual agent? In the initial stages of forming a representation partnership, probably not. But here are some thoughts to keep in mind:

*  Does an established agent, in the business for five years or more, still take on a lot of clients? That can be a sign that her current client list does not generate enough money to support her or her agency.

An established, good agent with solid financial stability takes on only select clients in any given year. Agents who need the money often take on a lot of clients so there is more front-end money (advances) coming in rather than back-end monies (revenue generated through royalties). Evaluate an agent’s sales track record and assess how likely the money generated by those sales creates financial viability for the agent.

Are all the deals for small or no advances? Do larger deals that have sold at auction for six figures balance out the smaller deals? Have enough clients on the agent’s list been successful enough to potentially earn back-end royalties to support the agent or agency?

Even when NLA was in its infancy and the budget was tight and small, I was very selective in offering representation. I had a five-year business plan and a business loan to make sure agency expenses were covered as I slowly built up my client list. Good agents don’t jump into agenting on a wing and a prayer. Good agents are savvy entrepreneurs with a plan.

* Does an agent close a deal quickly and then process the contract equally as fast? See my previous Fearless Negotiation article on this topic, as this might be a red flag.

* Does the agent talk about money in oblique or negative ways? There are certain expenses that are just part of being in business as an agent (i.e., paying for one’s own health insurance if an independent contractor under a larger agency umbrella). Does the agent kvetch or consider it a “hardship” to cover these types of expenses? Often that will come out in casual conversation and could be a sign of financial instability.

* Is the agent an independent contractor affiliated with the agency? If so, then that agent has to cover all their own expenses outside of the agency umbrella. Does that agent attend major events like Book Expo or Book Fairs, even when they have to foot the bill themselves? Or does that agent only attend conferences that reimburse travel, hotel, and meal expenses?

* Does the agent balk at footing extra, necessary costs—such as a consultation with an attorney for special situations or issues?

* Does an agent talk with a long-term perspective? Agenting is hard, and lots of new agents come to the business with wide-eyed optimism and then don’t last beyond two or three years. If an agent is committed to the career regardless of the finances associated with it, that will come through in casual conversation.

Keep in mind, this is not a get-rich-quick career. An agent needs to be in for the long haul to make it a success.

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General Summary about the Article Series: Just as the title suggests, because agents are also human beings, they are going to embody both good and bad traits found in human nature. No one is perfect. And as some authors have discovered, some agents are more imperfect than others!

Your job as an author is to objectively recognize those human attributes or failings in your agent and decide whether they impact your career. Hopefully they don’t. To this end, Karen Dionne of Backspace and I have put together a whole list of topics to tackle for “Because Agents Are Human Too.”

Photo Credit: Rich

A Digital Love Story of Survivability

by Kristin Nelson

The following would have been impossible even seven years ago:

This week I sold the film/tv rights for a memoir that a major publisher took out-of-print in 2013. But because of the indie-publishing revolution, the author had made her memoir available in the digital realm. Because of that, it was discoverable by a major Oscar-winning director and producer who not only took an interest, but also optioned the rights for television.

Sounds like fiction, doesn’t it? Back in 2005, I met Kim Reid at the Pikes Peak Writers Conference in Colorado Springs. Kim had made a pitch appointment, but she pitched me a novel that didn’t sound right for my list. However, in the course of our conversation, I learned about her extraordinary childhood as the daughter of one of the lead detectives who helped solve the Atlanta child murders, committed by Wayne Williams in the seventies and eighties.

I immediately told her, “You need to write that. I could definitely sell it!” So she did, and I signed her as a client. It took sixteen months of dogged determination, and Kim surviving a slew of rejections, but I finally sold No Place Safe in June 2006.

Kensington Publishing did a lovely job with it. Good packaging. Wonderful editing. And then the book was published, and bookstores shelved it, oddly, in African American Studies rather than in biography, where it truly belonged. I can honestly say that the shelving diminished the book’s discoverability, as well as its ability to sell.

Heartbreaking. By 2013, the work was out-of-print, and the rights reverted to Kim.

Luckily, the digital revolution happened. So Kim, in partnership with NLA Digital LLC, indie published the memoir to give it a second chance at life. Director/producer John Ridley found it. Bought a copy. Read and loved it so much that he convinced ABC Studios to buy it for him.

Suddenly, a memoir that would have dropped completely from sight was saved by publishing’s digital transformation. This title now has a ton of exciting new possibilities unfolding.

This is why I love agenting in the digital age. Authors have so many more options available now. And this particular terrific story happened to a very worthy book!

Photo Credit: Alyssa L. Miller

Because Agents Are Human Too – Article 2

by Kristin Nelson

(Just a note, this post is from our archives. Some references and links may be from past years.)

August’s topic might be the most controversial. At the very least, I imagine opinions will vary widely, and I welcome any conversation this might spark.

For an agent to be successful, she has to build trust with editors. Editors have very little free time, so they have to trust that what an agent submits to them will be worth reading. To that end, agents build relationships with editors to create that trust. Publishing, in this sense, isn’t the same as selling widgets. It’s rather an intimate industry.

And there is a narrow balance beam an agent has to walk between creating a good relationship with the editor and advocating for the author client.

With this in mind: Good Agents are friendly with editors but not friends with editors.

This is a very important distinction. It’s OK to be friendly in a professional relationship, but being friends poses a potential conflict of interest that might affect the agent’s ability to represent a client.

Quite simply it comes down to this. If an agent has to address a complicated or difficult issue with an editor (an issue that might lead to a split between the author and the publisher), whose side does the agent need to be on? The client’s of course.

But if an agent is good friends with an editor, the agent might not be willing to jeopardize that friendship to be the author’s champion.

At the very least, the agent might hesitate, and that is a real concern. If your agent has committed to representing you, he or she should never put personal priorities over yours.

Even though 95% of the time, it’s peaches and cream with the publisher and author, and a chummy editor relationship won’t be an issue, there will always be that other 5% where a big issue arises. It’s inevitable during a writer’s career.

As a lot of agents and editors are based in New York, where professional functions provide many opportunities for socializing, the line can blur more often than not. That’s something to keep in mind, and one reason being based outside the Big Apple can actually work in an agent’s favor—geographic distance helps create the “friendly with” versus “friends with” dynamic.

Even if an agent strongly believes she can wear two hats and be in agent mode rather than friend mode when the situation calls for it, keep in mind that agents are humans too and, therefore, fallible when it comes to managing the many types of relationships they maintain in their professional and personal lives.

The best agents, even those in New York, are mindful and respect the boundary between “friendly” and “friends.”

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Summary of article series: Just as the title suggests, because agents are also human beings, they are going to embody both good and bad traits found in human nature. No one is perfect. And as some authors have discovered, some agents are more imperfect than others!

Your job as an author is to objectively recognize those human attributes or failings in your agent and decide whether they impact your career. Hopefully they don’t. To this end, Karen Dionne of Backspace and I have put together a whole list of topics to tackle for “Because Agents Are Human Too.”

Photo Credit: Tinou Bao

#querywin – An MG Novel Sparks Memory

by Kristin Nelson

(Just a note, this post is from our archives. Some references and links may not correspond with recent events.)

This week I requested a full manuscript for a middle grade children’s novel. When I was reading, I was instantly captured by the voice of the narrator. So original. But I see good writing all the time.

Q: Do you want to know what tipped the balance and made me request the full manuscript?

Answer: As I was reading, it made me recall exactly the way I thought when I was that character’s age. And I had forgotten that I had felt that way when I was that age. Right there, that’s brilliant writing at work.

And that’s when you know the writer has nailed the MG voice as well as the MG character. As an agent, I’m compelled to ask for the full to give it a read. If you are writing for a middle grade audience, that is what you should capture on the page. And if you don’t, dig in and get back to work. You were that age once. Tap into the resource that is you.

Photo Credit: Nora’s Photo (Creative Commons)

Authors, Do You Know Where Your Money Is?

by Angie Hodapp

(Just a note, this post is from our archives. Some references and links may be from past years.)

Every six months, you get an envelope from your agent. You tear it open, take out the enclosed check and royalty statement, and glance at the numbers on both. You shrug and mutter, “Guess that looks about right.” Then you toss the statement on your to-be-filed pile at the back of your closet, endorse the check, and head to the bank.

Sound familiar?

I can’t even begin to tell you how many published authors I’ve talked to at conferences who don’t give their royalty statements much of a glance. Why? Because they don’t know what they’re looking at. “Dammit, Jim, I’m a writer, not an accountant,” they say (or something along those lines). “Besides, isn’t that what I pay my agent to manage for me?”

News flash! Like you, many agents consider themselves word people—not numbers people—and your royalty statements are just as baffling to them as they are to you.

This means that the buck, quite literally, stops with you. Have a conversation with your agent about the level of support he or she is providing when it comes to combing through your statements and making sure you’re getting paid everything you’re owed.

More importantly, educate yourself. Learn how to audit your own statements.

Every year, we at Nelson Literary Agency recover thousands—sometimes tens of thousands—of unpaid dollars on behalf of our clients, simply because we audit their royalty statements.

Does this mean that publishers are nefarious, knowingly cheating authors out of a few bucks here and there to improve their own bottom lines? In our experience, no. (In fact, not all errors we find are made in the publisher’s favor!) Every error we’ve called to a publisher’s attention has immediately resulted in the issuing of a corrected statement and, when called for, a check covering the difference.

Without naming names, here are some examples of errors we’ve recently found on our clients’ royalty statements:

1. Unpaid royalties of approximately $5,000 because the publisher had applied a $10,000 advance against the author’s earnings when the actual contracted and paid advance had been only $5,000. This means the author had actually earned out—though the statement said otherwise—and was now owed nearly $5,000 in earned royalties.

2. Unpaid royalties of approximately $4,200 because the publisher’s accounting department missed the fact the author’s contract contained a royalties escalator. What’s that? A royalties escalator increases the author’s royalty rate in steps, based on units sold. For instance, a contract might specify that the author will earn 10% for the first 5,000 copies sold, 12.5% for the next 5,000 copies sold, and 15% for all copies sold thereafter. In this case, the author had sold about 12,500 copies of a hardcover edition priced at $16.99, but she had earned only 10% for all of those copies. Not one, but two escalators had been missed.

3. Unpaid royalties of approximately $7,300 because the publisher sold nearly 6,500 copies of a $17.99 hardcover edition at “high discount,” even though Agent Kristin had ensured that the author’s contract limited the number of copies the publisher was allowed to sell at high discount. What does that mean? When publishers sell copies of your book at higher-than-usual discounts, it’s common that the author’s contract will specify that she will earn “one-half the prevailing royalty rate” on those copies. Because Agent Kristin had limited the publisher’s high-discount sales, this author should have earned 12.5% on those particular 6,500 copies, but she earned only 6.25%, and we were able to recover the difference. (By the way, does your agent understand this and negotiate your contract’s high-discount clause in your favor?)

Dear Authors, the only way to protect your assets is to do the math. Join me July 30, from 6:00 pm to 8:30 pm, for my Royalty Statements Auditing Workshop, a live webinar sponsored by Nelson Literary Agency. Hope to see you then!

Because Agents Are Human – Article 1

by Kristin Nelson

Just as the title suggests, because agents are also human beings, they are going to embody both good and bad traits found in human nature. No one is perfect. And as some authors have discovered, some agents are more imperfect than others!

Your job as an author is to objectively recognize those human attributes or failings in your agent and decide whether they impact your career. Hopefully they don’t.

To this end, Karen Dionne of Backspace and I have put together a whole list of topics to tackle for “Because Agents Are Human Too.”

Topic 1: Because they are human, good agents keep their client lists small and manageable.

The trick is to define what is considered small and manageable. This question is asked at conferences all the time, and the truth is that the answer is going to vary widely depending on the agent and the agent’s situation.

Some things to keep in mind:

*Is the agent part of a larger organization/agency that supplies a lot of support staff in terms of auditing royalty statements, reviewing contracts, accounting, etc.? Or, if he or she is with a smaller, less corporate agency, how many non-agent personnel does the agency employ?

Many agencies employ a lot of agents but very few support staff. It’s typical in this industry that agents are one-man bands. They handle all the business elements listed above, and even if they’re associated with a larger agency, they still operate as the sole proprietors of their client lists. To be blunt, doing agenting well requires far more work than one person can handle in an eight- or ten-hour day—which means a lot of agents aren’t doing things like auditing royalty statements and thoroughly negotiating contracts.

More support staff = more clients an individual agent can manage successfully.

Here’s a good rule of thumb: If your agent has a lot of support in place, a larger client roster is not really a concern. If they don’t, then know that a larger client list is pretty difficult to manage, and more than likely, some business aspects are going to fall through the cracks.

Some possible red flags:

*Some agents operate on what we call the “shotgun” approach. They take on a bunch of clients, throw a lot of stuff out on submission, and see what sticks. These agents will have a lot of clients on their rosters.

*A high number of small- or no-advance deals could indicate that an agent is operating on the shotgun approach.

*Agents who are already established (five+ years as an agent) should have developed strong financial security with their current client roster. Be on the lookout for agents who suddenly take on a lot of clients all at once or during a short period of time. It could mean their current client list isn’t supporting their business.

*Be aware of agents who have high rate of client turnover, or who do a lot of one-time deals for authors but few subsequent deals.

For me, a small client list means fewer than 50 clients. My list is currently at 32.

Other agents may easily have a comfort level at 60 or 70 clients.

The real question here is, as an author, what is your comfort level regarding how many other clients your agent represents?

Like Finding Loose Change in the Sofa – Kind of

by Kristin Nelson

So just this week, we received an outstanding Australian royalty statement for one of our clients that had been missing. Because we actually track, review, and audit our statements, even foreign ones (and let me tell you what a nifty trick it is to do the Japanese statements…) we immediately spotted one rather large problem.

Oddly, there were no ebook sales listed anywhere on statement. Dating back since 2013. Not a single ebook sale in the last 2 years is a bit hard to believe, so we pinged the publisher.

Sure enough, the ebook ISBN wasn’t linked to this title in their accounting system. It was there but floating out in the ether with no title to attach to. Once it was appropriately linked, voila, almost $1000.00 was owed to the author.

And as my client so aptly replied to me, like finding loose change in the sofa!

Kind of. 😊

Even if the publisher controls the World Rights, we ask for the statements so we can review. Because I’m pretty certain that given the deluge of statements the internal publishing rights team receive, they aren’t paying super close attention.

Want to know how to audit royalty statements for yourself? We start you off easy by tackling U.S. royalty statements first. Our contracts and royalty guru Angie Hodapp is showing you how on July 30, 2015. Be a smart and savvy author. Auditing royalty statements. Only a couple slots left as there is a cap on attendance.

Photo credit: Branko Collin

Anatomy of A Query Rejection

by Kristin Nelson

This June, I taught a query workshop at Lighthouse Writers Workshop’s Lit Fest. Afterward, one participant approached and asked me to read a response letter she had received (not from me). She wanted to know if it was a “standard” rejection letter. I read it aloud and was a little chagrined to discover just how similar it was to the letter I had been using for years. I told her that yes, this was not a personal letter but a standard rejection. Two days later, I was chastised by an aspiring writer who said it was time for us to change our standard rejection letter. Obviously that poor person had received our letter multiple times.

But I took the chastisement to heart. It was time for a change. So I’m going to share with you, my newsletter readers, our standard rejection letter and explain why I chose the verbiage I did.

Dear INSERT WRITER’S NAME:

KN: I actually do input the writer’s name. This business is so impersonal (some agents don’t even respond at all if they aren’t interested in a query), but I always want writers to be acknowledged as human beings. Even though it takes longer to respond to queries.

Thank you so much for thinking of me for your query. I wish I could offer a more personalized response but on average, I receive 500+ email query letters a week.

KN: This is true. In fact, I receive way more than 500 queries a week. Recently I’ve been averaging about 100 to 150 email query letters a day. Don’t let these stats daunt you. If you are serious about your career, you’ll persevere. Know the odds, but give them only the weight of a side note. I have signed many a client after finding them in our query inbox.

Do know that every query letter and sample page is read, and even though your project is not right for me, it might be right for another agent so don’t give up!

KN: This is true. I actually read a lot of my own queries on a daily basis. However, when I travel or have a crazy day, Angie, Jamie, and Karrie jump in to help out. They have to. After just two days, the inbox grows unwieldy. I also really do mean the last line. I’ve passed on any number of queries for projects that weren’t right for me but that other agents loved and went on to represent and even sell. I can only champion what I feel passionate about. Not everything will be a good fit for me. 

I’m also sorry I have no agent recommendations to offer.

KN: I had to include this. We were receiving so many reply emails asking for a recommendation that it was taking too long to respond to every query twice. We had to preemptively make it clear that we could offer no more information. 

Good luck with all your publishing endeavors.

KN: Absolutely. My rejection letter to your query is only one little bump on your journey to becoming a published author. 

Sincerely,

Kristin Nelson

Perils of Waking Character Openings – Take 2

by Kristin Nelson

Q: Why does the opening character awakening scene of the HUNGER GAMES work when 99.9% of slush pile opening pages do not?

Wowza. With over 7000 people reached on Facebook and untold number of Twitter shares, I obviously hit some kind of nerve. We should entitle these last two Pub Rants blog entries: The Perils of Writing About Novel Openings with Characters Awakening.

So let’s talk about this some more.

I spotted a lot of comments where writers mentioned the opening of the HUNGER GAMES. Fair enough. So let’s take a look at that first paragraph and analyze why that waking up character opening works and 99.9% of what agents are seeing in the slush pile doesn’t.

When I wake up, the other side of the bed is cold. My fingers stretch out, seeking Prim’s warmth but finding only the rough canvas cover of the mattress. She must have had bad dreams and climbed in with our mother. Of course, she did. This is the day of the reaping.  (Copyright: Suzanne Collins, Hunger Games, Scholastic Press 2010)

1) Opening 2 sentences. The importance is not on the character awakening but to alert the reader to what is different from normal.

2) Third sentence. We know Prim is a child and that it’s fairly normal for her to have bad dreams. Right away, in the hands of the master writer, even though we as readers don’t know much else about the characters etc., we know that whatever their life is, easy it is not.

3) The reason for the bad dream. The Reaping. I don’t know about you but I finished the first paragraph with an instant question that I had to know more about. What is the reaping? And why would it cause a child to find comfort with her mother when normally she wouldn’t? It can’t be good. I’m compelled to read on.

So trust me when I tell you that the majority of character waking up novel openings we are seeing in the slush pile do not remotely achieve the narrative momentum achieved in just 5 sentences shown above. The opening scenes we are seeing is literally about a character waking up and not much else. Sometimes they’ll then go to the bathroom to look in the mirror (so as to describe what the character looks like to the reader).

I’m not pointing this out to ridicule beginning writers who may recognize they’ve done this. I’m pointing it out because it’s less about the action (waking up) then about the purpose for starting the novel there. Most slush pile submissions with this construct are not using the awakening character for a compelling purpose.

And thus why agents pass on sample pages with this construct 99.9% of the time.

And here are a couple of other things new writers should keep in mind:

1) Already established authors can get away with an opening that most beginning writers can’t. Why? Because their agent and editor already trust them as writers. Once that trust is earned, you can play with all kinds of constructs or break all kinds of rules and publishing will even embrace you for it.

2) Established authors are not held to the same rules as new writers. Fair? No. But it’s the bald truth. Established authors can dump back story, input too much exposition, or do other lazy writing tactics and their fans will simply forgive them.

If you are first-timer trying to break in, the length of forgiveness is short indeed.

Photo Credit: Vic

The Perils of Waking Characters

by Kristin Nelson

OBSERVATION: Beginning your novel with the main protagonist waking up in bed will have agents passing on the material 99.9% of the time.

Here’s why:

It’s an opening we see way too often (not sure why) and 99% of the time, this opening simply is not the best place to launch your story.

1) In general, this action in an opening scene is static (read: uninteresting). It’s a struggle to make it interesting enough to merit beginning your novel here.

2) I’m going to venture a guess that a lot of newer writers don’t know where to begin their story so starting here seems like a safe place.

3) Just trust me on this, there is a better place to begin your awesome story. My suggestion? Connect back to what made you excited to write this novel in the first place and see if you can’t tap into that energy and channel it into your opening scene. Chances are good, you won’t then choose to begin your story with your main character waking up.

And LOL, wouldn’t this make a fun writing challenge? Have already successful, established authors participate and make it a requirement that their story has to begin with character awakening. Could be hilarious. Could be the first time we see a kick-ass opening with this construct.

Photo Credit: James Theophane, Creative Commons