Pub Rants

Category: publishing contracts

One Book or Two? Maybe Three?

STATUS: I was “this close” to getting to everything on my TO DO list today.

What’s playing on the XM or iPod right now? MY WAY by Frank Sinatra and Willie Nelson

Last year, a fellow agent friend and I gave a workshop on doing a single-book contract versus a multi-book contract. I was a little surprised at how many writers showed up for it. Hey, maybe these would make a few good blog entries.

First Q: When is doing a single-book contract ideal and when is a multi-book contract best?

Answering this question takes into consideration a lot of different factors. Let’s start with the obvious. If you write genre fiction, it’s almost always to an author’s advantage to do a multi-book contract.

For example, if you write fantasy and the first book being sold is the first in an envisioned trilogy, well, it would be better to have the publisher commit to three books. That way the entire series has a shot of being published. It often takes several books for a series to pick up momentum. What’s important is the publisher commitment—even if in the end a series does well and it was “undersold” initially in terms of the advance.

More common case is that a series has to build over time with the subsequent books and then the books start to earn out. Besides, who wants to sell book 1 in a trilogy only to be left in a lurch if the publisher doesn’t pick up the other books? It’s not easy (read “nearly impossible) to sell books 2 & 3 to another house. If sales are sluggish, it’s really unlikely another house will pick it up.

For another genre such as romance, careers build best if an author can release books within 6 to 8 months from each other. That means really tight schedules/deadlines for the author to make that work so doing multi-book contracts make sense. It’s also best to do multi if the stories are “linked” (as in they stand alone but have characters that might have been introduced in first novel).

Is there an advantage or disadvantage for doing 2 books vs. 3 or 4? Sure. Lots of agents differ on their opinion of this so I can only speak for myself. In general for me, the number of books sold at one time depends on the author (how fast he/she can write), on the project (how many books envisioned) and whether I think the author was undervalued. What I mean by that is if the offer was initially too low for a 3 or 4 book deal or if I thought the monies should have been higher in the auction and I don’t want to lock the author in for too many books at the lower rate. Obviously, reverse is true. If the monies are good, then why not lock in for more books as the commitment is strong from the publisher.

As you can see, lots of factors at play. How does an agent know? We’ve been doing this long enough that we pretty much use our gut sense of what feels right as the offer unfolds. I’ve yet to be wrong.

I’ll talk about single-book contract tomorrow.

Wiley (cont.) And Tidbits

STATUS: Is it Wednesday already?

What’s playing on the XM or iPod right now? LONDON CALLING by Clash

Okay, my wifi at home has gone kaput. Sometimes I don’t get a chance to blog while still at the office so then I’ll pop online via the laptop at home. Kind of difficult when it’s not working. Hopefully that will get taken care of tomorrow.

So many little tidbits to share. Most of them funny and it’s not even Friday yet.

Authors Guild and Wiley continue… Lots of people didn’t agree with the AG stance on Google but I’m still quite glad they are out there being a watch dog for authors.

In the best headline I’ve seen recently:
Cops bust woman, 74, for pouring mayo in book drop

All I can say is there must not be a lot going on in Boise, Idaho. Still, I’m dying to know the motive for this condiment crime spree. (Never imagined those three words would appear in the same sentence together.)

And best for last. You know publishing has hit mainstream when The Onion jumps in the mix. I just laughed and laughed. (It’s TWILIGHT but with Minotaurs!).

Wiley Responds and Friday Funnies

STATUS: Where has the morning gone? Eek.

What’s playing on the XM or iPod right now? HEY GOOD LOOKIN’ by Hank Williams

Today Wiley issued a press release asserting the Authors Guild is in error.

Any Bloomberg authors want to weigh in anonymously and comment, feel free.

And to kick off the weekend, the Bronte Sisters Power Dolls (courtesy of my client Laurence)! Bless youtube. Where would I be without them? Enjoy!

Publishers Behaving Badly

STATUS: All my post-BEA stuff is done! Yes.

What’s playing on the XM or iPod right now? FOREVER YOUNG by Alphaville

After my blog tirade two years ago when Simon & Schuster didn’t play nice in the sandbox (by deleting the crucial last four lines of their Out of Print clause without telling anyone), you know how strongly I feel about publishers behaving badly.

Sounds like John Wiley & Sons might be doing similar if the Authors Guild strong warning is anything to judge by.

I do not have any authors impacted by the sale of Bloomberg Press to Wiley so I have not seen this letter. And for the record, I have no personal take or stake on the situation but for general purposes, I like to pass on warnings when they occur so they reach as many readers as possible.

If you’re impacted by this, you might want to touch base with the folks at the AG.

eBook Royalty: Another Way To Protect

STATUS: Not sure what is up with Mondays but they seem to be getting away from me lately.

What’s playing on the XM or iPod right now? CAPE CANAVERAL by Conor Oberst

Most authors, at this point in time, are not interested in walking away from a publishing contract over electronic book rights. The numbers are growing certainly (as we can see that statement to statement) but the numbers, in general, are still very small in comparison to traditional print sales.

Now there are certainly some exceptions. I’m very interested in seeing how it unfolds for author JA Konrath who has long blogged about making a living from electronic book sales and has decided, for his most recent novel, to go with Amazon Encore for the print with the release from Kindle coming earlier. (By the way, Mr. Konrath is embarking on this journey with his agent.)

From what I can tell from my own negotiations as well as from convos with other agents, Publishers are currently holding very firm on 25% of net receipts for the royalty structure. If they are doing an agency commission model (i.e. Apple) they are either not changing their definition of net amounts received in their contracts or they are sticking to the definition that it will be based on monies actually received by the publisher—translation: royalty of 25% of net to author calculated after 30% commission paid to third party (such as Apple). In other words, author is receiving 25% of 70% (not 100%). Reference my earlier blog entry on this topic to get up to speed.

So, if the author does not want to walk away from the offer over ebook royalty (and right now I’d have to say that’s most authors), what does an agent do?

We find another way to protect the author. One method is to include language in the publishing contract that dictates that if industry standard changes in regards to electronic book royalty rates, then the rate can be amended or renegotiated in the future to adhere to new industry standard.

Feel free to add that tidbit to your contracts file.

How Enhanced Ebooks Will Cause Havoc

STATUS: It’s 8 p.m. and I’m still working…

What’s playing on the iPod right now? KISS by Prince and The Revolution

In this instance, I’m not relieved to have my assumption proven right. When the first mention of “enhanced” ebook emerged, it became immediately apparent (to me at least) that an enhanced ebook is a multimedia product. A subright agents always reserve for the author.

Agents reserve these rights because in order to do a book-to-film deal, you have to be able to grant multimedia rights to the film studio as part of the grant of rights for the option.

This was reinforced for me today as I reviewed film contract with a major studio. Sure enough, in the rights reserved to the author section, I found this clause:

Electronically Read Editions: The right to publish the text of published print editions of the Property via the Internet and in the form of CD-ROM, DVD, videocassette tape or similar electronically read devices individually purchased by the end-user. Such electronically read editions may not contain moving visual images (other than the text) or audio tracks of any kind.

Look at that last sentence. Here it’s clearly stated in the film contract that the ebook cannot have any animation or sound element.

Well, guess what publishers would like to have with an enhanced ebook? Yep. We’ve got a problem, Houston. If publishers dig in on this and this is the studio’s stance, well, granting a publisher a not-clearly-defined enhanced ebook right (which is multimedia) could derail a film deal.

Luckily for me on this contract, it’s not an issue as the deal in question has a publishing contract that predates any of this recent hoopla.

But it’s clear that this is going to be an issue in the future.

When Contracts Directors Have A Sense Of Humor

STATUS: Off to a terrific start today.

What’s playing on the iPod right now? STAY UP LATE by Talking Heads

From a lot of my posts lately, I imagine that you think all my recent conversations with contract directors at the big houses have been contentious.

In reality, that hasn’t been so. I have to say, that I personally like all the contracts directors at the major houses. They are under the gun and yet they’ve handled differences of opinions with good temper, grace, and with reason—even if I don’t agree with their stance.

In fact, one of the contract directors from a big six house even made me spit coffee and sputter with laughter in our last conversation.

When I mentioned that I didn’t agree with the 25% of net publishers were currently sticking with and that I was not inclined to accept the same percentage if we were to negotiate an expanded or enhanced electronic book, the director, totally deadpanned, quipped in return that I must obviously share his opinion that the split percentage to the author should be lower for an enhanced ebook as they are more expensive to produce.

I was so surprised that I just burst out laughing as did my contracts manager. You gotta respect a contracts director with a sense of humor. Grin.

A Difference of Opinion I’m Sure

STATUS: Just a twinge of a cough remains. Kristin—9 flu—1

What’s playing on the iPod right now? HOME by Daughtry

Rumor has it that several of the big 6 publishers are coming out with new boilerplate contracts in the next couple of weeks. I know for sure that Hachette is working on a new one as is HarperCollins.

With these new “boilerplates,” I already know there is going to be a significant difference in opinion about what a Publisher thinks is a boilerplate item and what an Agent will consider as a boilerplate item versus a right that needs to be negotiated up front.

I have a feeling (call it intuition—snort) that the definition of what constitutes an “enhanced ebook” or a “multimedia product” (that’s a new catch phrase I’ve been hearing as of late) will be at the center of these new boilerplate contract debates between publishers and agents.

I, myself, have yet to see a new “boilerplate” contract but am waiting with bated breath… Oh being an agent is just daily fun.

Burning Question about Agency Commission Model

STATUS: TGIF!

What’s playing on the iPod right now? BEEN CAUGHT STEALING by Jane’s Addiction

As you can imagine, I’ve been having a lot of conversations with various Contract Directors at all the major publishing houses as of late as we navigate contract negotiation.

I was in discussion with one person from a Big 6 house and we got to talking about returns with electronic books. Were they going to be allowed on the agency commission model that publishers have with entities like Apple?

According to this contracts person, the answer was yes.

So I asked what I thought was a rather pertinent question. I said, “if Apple allows returns and they’ve already deducted the 30% agency commission from the sale, how will the publisher know that the commission should have been refunded to them for the returned-sale of that title?”

Contracts person: “Good question.”

Glad I could be of some help…

We Interrupt This Q&A

STATUS: Off to Italy tomorrow but I will try and blog.

What’s playing on the iPod right now? TELL ME WHAT by Fine Young Cannibals

To give you a real rant. Today I found out that Penguin is no longer sending out final contracts electronically in locked PDF.

Why? Because some unethical agent decided to tamper with the e-lock and then make unauthorized changes in the contract before sending on to a client for signing.

Now the rest of us have to go back to the stone age of having things mailed (unbelievable!) to us.

Unethical agent, I want to hunt you down and slap you upside the head.

Now, I have argued with Penguin to create an “approved agents list.” I’m sure there are many agents like me who have more than proven that we don’t contract tamper and can be trusted with a locked electronic PDF for final contract.

I’m so annoyed by this, I can barely type. And other publishers, please don’t take this step backwards. There is a lot of technology out there that could resolve this issue. Use it. Going back to snail mail is costly—and I do mean in actual dollars.