Pub Rants

Category: Pub Rants – The Blog

Article 5: Good Agents Audit Royalty Statements

by Kristin Nelson

Over the last decade, I really wish I had tracked how much money NLA has recovered by carefully auditing our royalty statements every accounting period. Because of some big errors found a couple of years ago, it’s probably to the tune of over $600,000 recovered at this point, and it wouldn’t surprise me if that total was actually more. Even now, nary an accounting period goes by that we don’t recover at least $500 to $3,000 owed to a client.

On rare occasions, we have even found errors in the Publisher’s favor—and yes, we do notify them to highlight the correction. Luckily, those have only amounted to several hundred dollars at any given time. And to be clear, Publishers aren’t being nefarious or deliberately cheating the author (with the exception of a few publishers, which will remain unnamed).

Most errors we catch are human errors. In other words, the Publisher’s in-house royalty management staff simply keyed incorrect information into their accounting system. Also, “accounting departments” at some mid-sized publishers and small presses are staffed by English majors. Mistakes will be made.

These mistakes need to be found and corrected and the monies paid to the author client. Here is the jaw-dropping fact: A good percentage of agents do not audit their clients’ royalty statements.

Let me repeat that. Even though authors hire literary agents to guide their careers and most importantly, manage their business publishing interests (royalties being a huge component of this), many agents do not actively audit or even read client royalty statements. This leaves authors to fend for themselves regarding reading and understanding their statements.

So for me, good literary agents audit royalty statements. When I was newer to this business, I did the time-consuming auditing and analysis myself, every accounting period, and shared my comments with my client. Every accounting period. I even hired a professional book royalty auditor to mentor and read behind me to assess my competence and capability. Then I hired and trained our amazing Contracts & Royalties Manager Angie Hodapp to handle this at NLA.

And Angie took it to a level that leaves me in awe every accounting period. I imagine our clients are often in awe as well when every six months, she sends a detailed letter with my comments as well as her analysis of the statement and what questions we had to track down and if extra monies are owed.

A lot of the larger agencies will have staff in-house to handle this (or I hope they do….I don’t actually know as I’ve not worked in a big agency), but I’m willing to guess that most of the smaller, boutique agencies don’t. This means that the author relies on his/her agent to analyze the statements.

So ask yourself. Is your agent doing this? If you don’t know, ask. It’s part of the agenting job. Recently, Angie has been giving workshops at local writing conferences to teach authors how to audit their own royalty statements. Even if your agent does this on your behalf, it’s not a bad idea to also be checking them. Human errors can happen on our end as well!

So with her permission, and worth its weight in gold, a handy list.

How to Audit Your Own Royalty Statements by Angie Hodapp

Keep an excel spreadsheet for each title, and add the following when each statement arrives:

• Track copies sold and royalty rates applied to each edition. Do the percentages match the contract?

• If you have a royalty escalator, make sure you’re watching units sold so you can see if the escalator is triggered at the right time.

• Track royalty earnings for each edition. Add them all up and subtract them from the advance. Make sure your math matches the math on the statement.

• Check for continuity from the last statement’s bottom line (ending balance) to the current statement’s starting balance.

• If the royalty is based on net receipts, then make sure the net amount received by Publisher is reported on the statement, along with number of copies sold. Do the division. How much is the publisher claiming to have received for each unit? Is it a reasonable amount based on the retail price?

• Look at the number of copies reported sold as “high discount” or “over discount” or “special sales.” Publishers love to sell most copies under these terms, which means smaller royalties for you. Make sure your contract limits the number of copies publishers can sell under these terms!

• Watch reserves. Your contract should specify how much the publisher can hold in reserves, and for how many accounting periods after initial publication. You can ask the publisher to release reserves once returns taper off. That’s more money passing through to you, or applying toward your advance.

• Watch returns. Publishers adjust reserves up and down from period to period based on actual and projected returns.

• Watch subrights licenses. Know the terms of all subrights deals, which may include audio, large print, book club (either a stock-buy or a special printing), or other special editions.

• Watch and track foreign right deals. If your publisher holds world rights and is actively selling your work into foreign territories, ask them each accounting period to give you:

—Details of any new foreign-rights deals, including: advance, royalties split, term of license, publication date or planned publication date, and reporting schedule. (Note that most, but not all, foreign publishers report annually, not bi-annually.)

—Copies of the licensing agreements. Even if they’re in languages you don’t understand, it’s within your best interests to have such things in your physical records.

—Note that foreign monies can take from a year to 18 months to pass through the publisher’s subrights department and show up on your statements.

If you want a more in-depth royalty statement auditing experience, join Angie for her upcoming Royalty Statements Auditing Workshop, scheduled for July 30, 2015.  This Webinar is open to the first twenty attendees to sign up.

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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

May 2015 Newsletter – Article #4: Negotiation Tactics of Good Agents

The Pesky Scene Break

by Kristin Nelson

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

Last month I did my ever-popular webinar Creating the Road Map for Your Novel. Of the ten participants, half had trouble with a powerful writing tool called the scene break. Now, scene breaks are awesome—unless they are overused or not used for maximum impact.

Why do writers use scene breaks? During the webinar, we came up with several reasons:

  1. To signal a shift in time (for example, to enter and exit a flashback, or to skip over a brief period of time during which nothing plotworthy happens).
  2. To signal a shift in point of view (POV).
  3. To build suspense, leaving one scene at a climactic, cliffhanger moment to switch to a new scene.

(To read some great examples, see Janice Hardy’s article on the topic of scene breaks.)

Here are three things about scene breaks to note:

  • Don’t use scene breaks too liberally. Think of POV as a movie camera. If you are constantly breaking scenes (moving the narrative camera), your reader is going to be pulled out of one scene and dumped into another. If it happens to often, your reader will get whiplash and lose the narrative thread of your story.
  • Scene breaks that signal shifts in time should be used judiciously and only when doing so actually moves the plot forward. Don’t use scene breaks as tools of convenience when they offer no other narrative impact. This type of scene break is the biggest culprit; when it doesn’t work on the page, it creates the most abrupt interruption in the logical flow of the narrative.
  • When breaking a scene to skip a period of time, ask yourself what happens during the time you’re choosing to skip. Are you skipping action that should be on the page? I’ve read manuscripts in which the hero conveniently gets conked on the head during a battle scene, only to wake up (after the scene break) once his buddies have defeated the enemy. New writers who are intimidated by writing action/battle scenes, or scenes in which the hero might have to come up with a brilliant plan to save the day, will sometimes conveniently skip them. Don’t fall into that trap!

In summary, whenever you are tempted to toss in a scene break, ask yourself: What is the function of this scene break? And what, if anything, am I skipping over that should appear on the page?

Creative Commons Photo Credit: beijo se liga

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.

Where Did All of Kristin’s Good Content on Contracts Go? To our eNewsletter!

by Kristin Nelson

In October, NLA implemented a new feature–a special News Alert eMail blast for subscribers of our newsletter. Today, a blast went out informing readers of how Harpercollins subscription service with Scribd will work and how authors will get paid.

Because my time is so limited these days (sadly!), regular or daily blog posts that alert readers about changes to publishing contracts and how that impacts authors just isn’t possible for me. But I am still doing great posts 2 or 3 times a months. Those columns can be found in NLA’s Monthly newsletter for our subscribers.

If you’ve been suffering from Pub Rants withdrawal, that would be the place to go to get your fix. Our eNewsletter is free. Just click on the Newsletter button at the bottom of our web page to sign up.

And for those of you who weren’t subscribers yet and missed that blast,  here’s the link to where you can see the news.

By the way, this is exactly the type of content I plan to tackle in tonight’s webinar:

Wednesday, November 13, 2013 at 6:00 p.m. Mountain Time.

THE NITTY GRITTY – HOW DIGITAL IS TRANSFORMING THE PUBLISHING LANDSCAPE.

There’s still time to register.

A Tag Line Is Not A Summary

by Kristin Nelson

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

My fabulous webinar on how to craft the perfect pitch paragraph for your query letter is tonight, Sept. 18, 2013  at 6:00 p.m. Mountain time. There is still time to register if you want to come join the fun. 

As part of the webinar registration, I had attendees submit their one sentence tag line and then I read through them all. What was immediately clear is that a lot of folks who are attending used the tag as a mini-summary of the story.

That’s not the purpose! A tag line should be one sentence about the inciting incident (or plot catalyst) that starts your novel moving forward–and without it, you wouldn’t have a story to tell.

So that is just one thing I’m going to be teaching folks how to do tonight. Nail that one sentence tag line about your manuscript!

Agent Reads The Slush Pile Tomorrow – Wednesday, July 25

by Kristin Nelson

STATUS: Have to leave a tad early today. My plan is to read a good portion of a client manuscript this evening.

What’s playing on the XM or iPod right now?  LAID by James

At conferences, the biggest complaint I hear from aspiring writers is this: there is never any feedback given when an agent or an editor sends a rejection letter.

Or, if there is a response, it tends to be generic–something along the lines of “I just didn’t fall in love with the story.”

Writers don’t have a good sense of what is really causing an agent to stop reading.

Well, this webinar is designed to answer that question. It’s a no holds barred (and a tough workshop so be warned) but if you want an honest, straightforward, and helpful response as to why your sample pages might be getting rejected, then this is it.

This is a “fly on the wall” glimpse of an agent reading her slush pile.

I read the first opening 2-pages submitted by the participants of the workshop. If I would have stopped reading, I stop and clearly say why. In general, we tackle about 20 entries selected at random. 

The I crush the writer’s fragile ego under my critique hammer… Just kidding. This is not American Idol style.

I don’t pull the punch but I do try and be sensitive and helpful. This webinar is not about denigrating the writer but it’s also not for the faint of heart.

If you think you are ready, then you might want to consider it. Register here. And I’ll see you tomorrow.

Blogging Authors Beware! You Can Get Sued. Roni Loren Guest Blogs

by Kristin Nelson

Re-posted with permission from original blog post here.

Sara, our lawyer,and I all helped Roni through the situation but here is the whole story below.  You can no longer say that you haven’t been warned!

Guest Blogger: RONI LOREN

So today I’m forgoing the usual Fill-Me-In Friday post to talk about something that I’ve been wanting to blog about for a while but couldn’t until the situation was wrapped up.

For those of you who are super observant, you may have noticed some changes on my blog over the last few months. Tumblr posts went away. Fiction Groupie disappeared. I deleted most of my Pinterest boards. The Boyfriend of the Week has changed format. And all my previous posts from the past three years–all 700 of them–now have new photos on them.

Why is that? What happened?

Well, you’ve probably figured it out from the title, but it’s because I’ve been involved in a case regarding a photo I used on my blog. Like most of you, I’m a casual blogger and learned my way into blogging by watching others. And one of the things I learned early on was that a post with a photo always looked nicer than one with just text. So I looked at what other people were doing for pictures. And mostly it seemed that everyone was grabbing pics from Google Images and pasting them on their sites. Sometimes with attribution, most of the time without. And when I asked others (or looked at disclaimers on websites and Tumblrs), it seemed that everyone agreed using pics that way was okay under Fair Use standards.

Here is an example of a disclaimer I found on a bigger site (name of blog removed):

THIS BLOG claims no credit for any images posted on this site unless otherwise noted. Images on this blog are copyright to its respectful owners. If there is an image appearing on this blog that belongs to you and do not wish for it appear on this site, please E-mail with a link to said image and it will be promptly removed.

And site after site had the same kind of thing. Just look on Tumblr, that same type of disclaimer is on a ton of them. And I’m thinking–well, that must mean it’s okay because if that weren’t true, sites like Tumblr and Pinterest couldn’t even exist because reposting pics is the whole POINT of those sites. So off I went doing what everyone else does–using pics from Google Images, putting a disclaimer on my site, etc.

Well on one random post, I grabbed one random picture off of google and then a few weeks later I got contacted by the photographer who owned that photo. He sent me a takedown notice, which I responded to immediately because I felt awful that I had unknowingly used a copyrighted pic. The pic was down within minutes. But that wasn’t going to cut it. He wanted compensation for the pic. A significant chunk of money that I couldn’t afford. I’m not going to go into the details but know that it was a lot of stress, lawyers had to get involved, and I had to pay money that I didn’t have for a use of a photo I didn’t need.

It wasn’t fun. But the fact of the matter is, I was in the wrong. Unknowingly. But that doesn’t matter. And my guess is that many, many of you are doing the same thing I was doing without realizing it’s a copyright violation. So I wanted to share my experience so that you can learn from my mistake.

Here’s what I learned about Fair Use:

It DOESN’T MATTER…

if you link back to the source and list the photographer’s name
if the picture is not full-sized (only thumbnail size is okay)
if you did it innocently
if your site is non-commercial and you made no money from the use of the photo
if you didn’t claim the photo was yours
if you’ve added commentary in addition to having the pic in the post
if the picture is embedded and not saved on your server
if you have a disclaimer on your site.
if you immediately take down a pic if someone sends you a DMCA notice (you do have to take it down, but it doesn’t absolve you.)

NONE OF THAT releases you from liability. You are violating copyright if you have not gotten express PERMISSION from the copyright holder OR are using pics that are public domain, creative commons, etc. (more on that below.)

I didn’t know better and I had to learn the hard way. So I want to let you all know now so that you don’t have to be a cautionary tale as well.

Plus, beyond not wanting to be sued, most of you who are reading this are writers. Our livelihood depends on the rights to our work. I’ve already had to send my own DMCAs to sites that have pirated my books. So I definitely don’t want to be someone who infringes on someone else’s copyright. A photo is someone else’s art and unless they tell me it’s okay, I don’t have the right to use it.

So what can you do?

1. If you’ve been using images without approval from the internet on your blogs, know that you are probably violating copyright and could be sued for it.

Is the chance high? Probably not. Is it possible? I’m proof that it is. So you may want to consider going through your posts and delete pics that aren’t yours.

2. Search for photos that are approved for use.

  • Creative Commons licensed pics — You can search for photos that are free to use (with some restrictions) through Creative Commons. Usually this means you have to attribute the photo to the owner and link back to their site. (All of my posts now have pics that are under Creative Commons license. And there are actually really great photos available.) Meghan Ward did a fantastic post on the breakdown of creative commons licenses plus listed some other photo sources.)
  • Wikimedia Commons offers free media files anyone can use.
  • Buy a subscription to a stock photo site — This can be pricey up front but then you have access all year. There are also sites that you can pay per pic. (Here is one example of a subscription service. Thanks to Janice Hardy for that suggestion.)
  • Use photos that are in the public domain.

3. Take your own photos and share the love.

Almost all of us have camera phones these days. Instead of just taking photos of our family, think of images you could use on posts. See a stop sign. Snap a picture and save it. Whatever. And if you want to give back and not just take–open up a Flickr account (here’s mine) and list your own images as creative commons so that you can share the love. (You can set it up to where whatever pic you load from you camera is under that license.)

4. Use sites like Pinterest and Tumblr with caution.

I have read way too many terms of service over the last two months. And I’m not a lawyer, so the legalspeak can be confusing and I am NOT giving legal advice. BUT both Pinterest and Tumblr (and most other social sites) say that if you load something into their site (i.e. Pin It or Tumble it) YOU are claiming that YOU have a legal right to that picture. And if the owner of that photo comes after the company, you will be the responsible party. And Pinterest goes so far as to say if you REpin something, you’re saying you have the right to that photo. Yes, if that’s enforced, it would mean that 99% of people on Pinterest are doing something illegal. Will that ever come up? Maybe. Maybe not. But I’m leaning on the paranoid side now. I don’t want to be the test case. And I don’t want to pin something the owner of the photo wouldn’t want pinned.

So pin your own photos, pin things from sites that have a Pin It button (see discussion in comments about the Pin It button, it’s not always a safe bet either.) I pin book covers and movie posters because I figure that it’s advertisement for said movies or books. But other stuff? All those pretty mancandy photos? I’m going to look but not touch.

5. Assume that something is copyrighted until proven otherwise.

That’s your safest bet. If you’re not 100% sure it’s okay to use, don’t. This includes things like celebrity photos. Someone owns those. There are enough free pics out there that you don’t need to risk violating someone’s copyright.

6. Spread the word to your fellow bloggers.

It was KILLING me not to be able to go tell everyone about all of this because I didn’t want anyone else to get into this kind of mess. So if you know someone who is using photos in the wrong way, let them know. I wish someone had told me.

So I know many of you are probably thinking–she’s being paranoid or that the likelihood of this ever happening to you is slim. Well, maybe. But it happened to me. And now that I know better, I’m going to do better (yes, I’m busting out an Oprah quote, forgive me.) And yes, it does kill me a little bit that I can’t go on posting boyfriends of the week and mancandy, but instead I’ll just post links to it so you can see it elsewhere. 🙂

So lesson learned: protect yourself and respect the rights of other artists.

A Quick Look At Tag lines

by Kristin Nelson

STATUS: Come on rain! Don’t just be cloudy and not give it up. Pour gosh darn it!

What’s playing on the XM or iPod right now? PUMP IT UP by Elvis Costello

I’m getting ready for tonight’s workshop so I’m reviewing all the tag lines submitted by the workshop attendees. I asked all participants to submit one sentence as a baseline. So we can do a before and after during the workshop–which is often fun to see.

In other words, I don’t expect everyone to have nailed that tag line. It’s often hard to nail your plot catalyst in one sentence–especially if you’ve never really done it before. Hence the workshop.

But in reading them in prep, I can give my blog readers a bit of insight into what I think these attendees are struggling with. In the workshop, I’m going to clearly explain how to nail a plot catalyst tag line and then how to build your query pitch around that–using three different approaches.

Problem 1: The writer is trying to summarize the novel in the tag line.

Wrong use for it. You just want to nail your plot catalyst. But great, we’ll talk about it tonight.

Problem 2: The writer is relying on reader’s previous knowledge of a story or fairytale.

Not a bad starting point but it’s not going to be quite enough to carry the cornerstone of your pitch. Will work on that tonight.

Problem 3: The writer highlights two necessary elements of the story but alas, in the tag line, they don’t have a relation or a cause and effect so mentioning both doesn’t quite make sense.

In other words, one doesn’t necessitate the other. I’ll just need to point that out and I think this writer will get it.

And there’s still time to sign up if you want to join us! Just click here. I’ll be getting the tag lines soon for any day registers. However, we are going to close the class in an hour or two so if you want to join in, don’t delay.

Fridays With Agent Kristin: Episode 7 – What is A Plot Catalyst?

by Kristin Nelson

STATUS: TGIF! I actually had a great work week. Yes, I  need to read some stuff over the weekend but I’m feeling almost caught up. This means I’m forgetting something huge I’m sure.

What’s playing on the XM or iPod right now? YELLOW by Coldplay

Okay, so I taped this segment a couple of weeks ago. I’m particularly fond of how I start with “good morning.”

Oh well, the content is still good.

In honor of the first video webinar I did (which tackled how to craft the query letter pitch paragraph in your novel), I thought I’d give some tips for those who couldn’t attend.

When I teach writers how to craft the perfect pitch paragraph for their query letters, it all starts with the plot catalyst.

So what exactly is it? I answer that question in today’s vlog. Enjoy!

Because You’ve Asked For It….

by Kristin Nelson

STATUS: Another Gorgeous day! Repeat yesterday’s status.

What’s playing on the XM or iPod right now? LADY IN RED by Chris de Burgh

Or maybe you didn’t but are a glutton for punishment anyway. I’m doing my very popular Agent Reads The Slush Pile as an online Webinar coming up on May 2, 2012 6-8 pm MST.

If you can’t make it to Denver for the LitFest version of this webinar put on by Lighthouse Writers (where the price is not to be believed but the travel to get there might be rough!), here’s your chance to finally experience it for yourself.

Have you ever wondered how an agent reads the fiction submission slush pile? What an agent is thinking during the first opening pages? What makes an agent stop and what makes an agent read on? 
If you have ever wished to be a fly on the wall during that process, this workshop is your chance to get the inside scoop without metamorphosing. 

Literary Agent Kristin Nelson will read the first 2 pages of any submission, the “slush pile”, and give honest feedback as to why she would or would not read on for the sample pages in front of her.

 A couple of things before you click on that button:

1) This webinar is not for the faint of heart. It’s brutal. Now trust me, I will be as helpful and honest as possible. This is not to ridicule writers.  But don’t kid yourself, it will be tough. If you are feeling fragile or that feedback might crush your writer dream, now is not the time for this workshop. If you are tough as nails, just about to submit, want an immediate honest response, then this might be worth doing.

2) It needs to be the actual, opening first 2 pages of your manuscript. If you have a prologue, skip it and grab page 1 and 2 from your chapter one.

3) We can’t promise to read every single entry but we are definitely going to try. If I only have a few left over, I’ll respond on the sample pages and we can send to those writers privately. Right now, I know we can get through them all.

4) You can “audit” the class. Sign up to be there and listen in but you don’t send on the 2 pages. This is for those who are curious about it but not ready to have sample pages read.

If you’ve ever wondered how an agent could make a decision so fast on whether to read on or not or to ask for pages, this webinar will definitely answer that question!