Pub Rants

Category: Publishing Deals & Contracts

Coronavirus & U.S. Publishing

by Kristin Nelson

I hope when this article hits your screen, you are safe and healthy while sheltering at home. If you are in the medical profession, I’m sending extra-warm health karma your way. You are on the front lines, and we here at NLA appreciate all you do. My mom is almost 80 now and long retired, but she was an RN. I know exactly what kinds of sacrifices you and your family are making right now.

As a way to jump into this month’s article, I re-read my February column. The words “and may become a global threat” have sadly come to fruition. In the last two weeks, our world has shifted on its axis. 

We here at the Denver office implemented work-from-home over nineteen days ago, so all of us are luckily sane and virus-free. As half our company already works remotely and all our main processes (including CRM and accounting) are cloud-based, we have seen very little disruption in our work flow. The agent team IMs every day, and we’ve been doing weekly video Chime meetings for the last four years, so it feels like business as usual for us. Where we work literally does not matter, although we all miss laughter and shared coffee.

Publishing as an industry can maintain some stability in this work-remotely world. I can report the following:

  • Contracts-in-process are closing in about the same amount of time as they were closing previously.
  • Payments and royalties have not been disrupted as almost all publishers pay via ACH.
  • Foreign deals are still happening, but they do feel a little slower.
  • Film/TV options are occurring, despite news of major agencies doing pay cutbacks and furloughs. I had two offers come in just this week.
  • NLA agents are submitting projects, and editors assure us they are eager to read. They have lots of time to read.

The publishing picture is currently stable, but I also want to speak to the reality of having physical stores nationwide shut down for weeks on end. I expect much lower physical print runs in the months to come. Recent releases saw much sharper drop-off in sales than what would have been normal. Although publishers’ marketing and publicity teams are devising alternative strategies, if households are strapped tighter with a layoff, etc., book sales will suffer. That translates to editorial boards being more discerning on what is acquired and definitely more conservative in advances offered. 

I anticipate a tightening across the board. Stay inside. Stay well.

Recent news articles:

Publishers Struggle With When and How to Move Pub Dates

HMH Reduces Salaries

Paradigm Layoffs

UTA Cuts Salaries

Creative Commons Photo Credit: Nenad Stojkovic

Coronavirus Hits Publishing

by Kristin Nelson

(This article originally appeared in the NLA Newsletter on February 14, 2020. Stay tuned on Wednesday 4/1/2020 for a follow up article.)

It rather cracks me up that according to USA Today, Google searches for Corona beer have surged recently. A good portion of Americans are searching “beer virus” to find information about the epidemic currently sweeping China and threatening to go global. For the record, the coronavirus (now renamed COVID-19) has nothing to do with the refreshing beer you can stick a lime in. And if you want more info on the origin of the name, wikipedia might be a good source. 

But it’s no laughing matter when something far across the Pacific impacts publishing right here on American shores. And once again, China is back in the spotlight. In September 2019’s newsletter, I talked about how the trade war between the US and China is impacting foreign-rights licensing. Now it’s a virus causing disruption. I fear it’s going to be a lean year for sales in that part of the world. 

NLA partners with a terrific foreign-rights co-agent in Asia—a partner who keeps us in the loop with detailed updates. Normally, we’d be catching up with him at the book fairs in Bologna and London, but, sadly, not this year. International travel is risky right now, so to be safe, they’ve canceled. I one-hundred percent support health over attending. 

Here’s how the epidemic is affecting publishing in China:

  • Chinese companies are having employees work remotely so as to minimize contact. In publishing, this will significantly impact contracts, royalties, and payments. I actually have a big deal happening in China. Luckily we received the on-signing payment back in September, but I have a sense that other payments will be a lot slower to come in. Luckily, most of our authors don’t rely on foreign advances when doing their annual financial planning. Still, it’s tough news.
  • In good news, publishers are still reading manuscripts. But unless a title is super hot, offers will not be as forthcoming.
  • The big rights fair of the year, The Beijing Book Fair, normally happens in September. That might be canceled. Lots of deals happen at that fair, so cancelation will be a blow.
  • Printers, physical bookstores, and banks remain closed. Yep, I’m sure you can extrapolate how that impacts so many things in this biz.

In this global publishing world, Asia’s problem is our problem. And all of it affects an author’s bottom line.

I won’t raise a beer to that. Or stick a lime in it. 

Creative Commons Photo Credit: eFile989

How #MeToo Movement Impacts All Authors

by Kristin Nelson

For NLA’s March newsletter I wrote this article but hadn’t had a chance to post on the blog. Then PW recently ran this article on 4/27/2018 about how Publishers are increasingly inserting language into their contracts that allows them to terminate based on an author’s behavior. 

In further analysis and examination, I truly wonder if this is just a “change in market conditions” masquerading as a morality clause. 2018 is going to be an interesting year for contract negotiation!

AGENT KRISTIN’S ORIGINAL NEWSLETTER ARTICLE.

In October 2017, the #MeToo hashtag went viral on Twitter. Thousands of women shared their stories of sexual harassment, misconduct, and injustice in the workplace. The momentum began with the allegations against film titan Harvey Weinstein and then morphed into movements across other industries.

It hit publishing in a big way in February 2018 with Anne Ursu’s  bombshell of an article on Medium about sexual harassment in the children’s book industry.

It engendered a lot of conversations here at NLA, as I imagine it did for a lot of authors out there. But I wonder how many authors realized that the #MeToo movement would directly impact them in one very specific and unexpected way: in their contracts.

It was no surprise to me when we received a Penguin Random House contract recently, and lo and behold, there was new language in clause 7.c, which deals with publication. There is a new “morality” clause that cites that if the author’s reputation materially changes, such changes could be cause for termination of the publishing agreement.

Every non-author-friendly clause in publishing contracts is there because of some other author’s previous bad behavior. But in general, I don’t subscribe to the philosophy that NLA clients have to contractually pay for the mistakes of others.

Personally, I fully understand why PRH wants to add this language given recent current events. I certainly support the intention! As an agency, though, we are going to negotiate this clause to be more fair for an author who isn’t guilty until proven innocent.

My sense is that PRH will not be alone in amending boilerplate language. We’ve got several other agreements coming our way in the next two weeks. We’ll definitely be looking for the addition of these types of morality clauses.

Creative Commons Photo Credit: Luke Hoagland

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.

What To Do If Your Books Are Popular In Iran?

by Kristin Nelson

The short answer is nothing. There actually isn’t much you can do.

Rarely discussed in publishing is the fact that certain countries don’t recognize or honor copyright law. Persian countries (including Iran and Iraq) are an excellent example of territories that don’t. Persian publishers will often translate popular novels and publish them in their countries without a license, and the author does not receive a dime as an advance or royalties.

Kind of shocking, isn’t it?

This situation has happened a number of times for my authors. We usually find out about unlicensed editions when an author receives fan mail or a lovely note from the translator. Even though the Persian publishers don’t feel much obligation to the author, we have found over the years that the translators actually do. And often they will reach out to the author and ask permission to do the translation—even though they know (and are quite apologetic) that the publisher has no plans to compensate the author in any way.

I have a special place in my heart for these morally centered translators.

So what can an author do when it becomes apparent that his or her books are being translated and published in countries that don’t honor copyright protection?

My answer is this. The author should offer to write a special foreword for the edition in exchange for a nominal fee. It’s my attempt to get the author at least some compensation. Yet so far no Iranian publisher has taken me up on this offer.

But I’m hopeful. Someday…

Photo Credit: Peta de Aztlan

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

A Query That landed A Mid-6 Figure YA Book Deal

by Kristin Nelson

Emily Easton at Crown Books for Young Readers has won, at auction, Scott Reintgen’s debut science fiction young adult trilogy beginning with THE BLACK HOLE OF BROKEN THINGS. In the novel, a Detroit teen accepts an interstellar space contract only to realize the promised millions must be won in a brutal competition where winners face the ultimate choice—take the money and become pawns in the corporation’s sinister plans or find a way to fight that won’t forever compromise their humanity. Publication is scheduled for 2017. Kristin Nelson at Nelson Literary Agency brokered the mid-six figure deal for North American rights.

To celebrate Scott’s awesome news, I’m delighted to share with my blog readers Scott’s original query letter that landed me as his agent and resulted in an auction for a mid-6 figure young adult book deal.

Date: July 1, 2015 at 1:58:01 AM MDT

To: querykristin@nelsonagency.com

Ms. Nelson:

I have the highest respect for you and how you represent your clients. After looking through your submission guidelines, I felt that my novel might be a good fit for your list. Thank you for your time and consideration.

THE BABEL FILES [title was changed for the actual submission to editors] is a completed, YA science fiction book of 83,000 words. Readers familiar with Pierce Brown’s Red Rising or Fonda Lee’s Zeroboxer will find similar elements in my work. I do feel one of the most important features of this novel is the focus it has on a main character who is a PoC. Having worked in urban schools my entire career, I so often find my students have little to no representation in these types of books. I was hoping to give them an opportunity to see themselves, vibrant and on the page and victorious. To this end, I followed advice I received from author Mary Anne Mohanraj at the World Fantasy Convention. She suggested I seek readers of a diverse background in the beta process. I did just that and was incredibly pleased at the response to Emmett’s authenticity and relevance.

Emmett Atwater isn’t just leaving Detroit; he’s leaving Earth. Why Babel recruited him is a mystery, but the number of zeroes on their contract has him boarding their lightship and hoping to return to Earth with enough money to take care of his family, forever.

As he and nine other teenagers wormhole their way through space, Emmett discovers the promised millions aren’t a guarantee. Each recruit must earn the right to travel down to Eden. There, Babel will use them to mine a substance that’s quietly become the most valuable in the world. Emmett’s year-long flight will act as a competition. Every training session is measured, every point matters, and Emmett will do anything to win. But Babel’s ship is full of secrets. Secrets about the volatile substance they’re hoping to mine, about the reclusive humanoids already living on Eden, and about their true intentions for the kids that don’t win their competition. As Emmett uncovers the truth, he realizes he’s not fighting for wealth or glory, he’s fighting for his life.

I am a 10th grade English and Creative Writing teacher who has spent years sharing my favorite science fiction and fantasy novels with my students, and I’ve started writing stories with them in mind. THE BABEL FILES is my third completed novel, and the first in a science fiction trilogy. I have included sample pages below for your consideration. I look forward to your response.

All best,

Scott Reintgen

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!

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

Are Subscription Services good For Authors?

by Kristin Nelson

On Wednesday, May 20, I was delighted to be in town for one of the Association of Authors’ Representatives‘ (AAR) monthly educational meetings, which are designed specifically for literary agents. Such a rare treat, since I’m not based in New York. May’s topic was subscription services (i.e. Scribd and Oyster) and whether such programs were good for authors.

I’m going to go out on a limb here and say yes, I do think subscription services are okay for authors—although I’m going to stop short of calling them “good” since these services are still too new, so the verdict is still out. I’ll tell you why, but first let me sum up the evening.

On the panel were four gentleman: Brian Murray (CEO of HarperCollins), Andrew Weinstein (Scribd), Mathew Shatz (Oyster), and Marc Ribot (Content Creators Coalition – Music Industry).

The panel tackled how the model works and why HarperCollins decided to come on board and make their catalog available in these services. And the reason? Because both Scribd and Oyster are paying a full book sale royalty to the Publisher (and then the Publisher pays the author his/her percentage) if a customer reads 20% or more of the actual book via the subscriber platform.

All of this info has already been covered in multiple Publishers Weekly and Publishers Lunch articles, so in essence, the evening didn’t necessarily present new information. Not to mention, since Oyster and Scribd are competitors, neither representative could be completely candid because of proprietary business practices. That, understandably, is going to limit the discussion.

Although I’m not sure the evening actually answered the question posed in the program heading, I did learn two valuable new things:

1) As Marc Ribot noted, this was not how subscriber services worked in the music industry, and had such a royalty set-up existed for this industry, things would be a lot different/better for musicians.

2) Neither Scribd or Oyster is designed for new, frontlist titles. If a new release was featured on the platforms, their systems would be overwhelmed by subscribers’ demands for the new release, and their budgets would be overwhelmed by their agreements to pay out full royalties.

The strength of the platforms is improving the discoverability of a backlist title (defined as having been published and out in the world for at least six months). In other words, demand for the title has leveled off, yet the title could still be discovered by a subscriber at no risk (as they pay a monthly flat fee for all-they-can-read).

That nugget of information finally made subscriber services and their value for authors click for me (along with Scribd addressing the issue of piracy via a robust spider-bot system that searches for illegally uploaded content).

For authors with a long career and extensive library of titles, this is just one more way to reach a reader—and get paid a full royalty, even if the reader does not finish the book.