Publishers often include a provision in their contracts that gives them the first right of refusal on an author's next book. There are several reasons for this. One is that it takes a tremendous investment of time and money to launch a new author's career. Your first book might generate only enough sales to cover the advance and maybe a little more, but your second, or even your third, might be a bestseller, and that success will make the investment in your first book worthwhile. In general, publishers like to establish long-term relationships with authors because they know that the profits are more likely to come later rather than sooner.

Authors who are looking to build careers also tend to look for a publishing home, because there are both tangible and intangible benefits to working with the same house on a series of projects. For one thing, you're a known author now, rather than one of the many unknown; it's easier to market your next project to a publisher that already likes your work and is enthusiastic about producing and selling it. Your relationships with editors and even the publicity department get stronger over time, which in turn helps build your career.

Your Next Project

In most cases, your publisher won't even want to look at your next book until it has some sales figures for your first. That usually means you'll have to wait at least three months after your first book hits the store shelves before submitting your next proposal or manuscript. Sometimes the publisher will want to wait six months. This can be frustrating for authors who are anxious to get on with their careers, but it is a sound business practice from the publisher's point of view.

There are a couple of tricky points in the “future projects” clause. One is the issue of genre. Suppose your publisher specializes in nonfiction trade paperbacks, but you want to write a novel next. Does your “future projects” clause prevent you from shopping your novel to fiction publishers? If the clause isn't specific enough, you might have to get the publisher's permission to market your novel elsewhere, even though you know the publisher isn't interested in it.

Another gray area arises when the book you've sold is actually the second book you've written, but the first you've had published. If you have your proposal or manuscript for the other book all done up and ready to be marketed, do you have to wait the three or six months before submitting it to your publisher? What if your publisher already rejected that first proposal during your first round of marketing? What if you get a belated offer from a different publisher after you've signed the contract for your first book?

The answers to these questions all depend on the wording of the “future projects” clause. If these situations apply to you, make sure you point them out to your agent or, if you don't have an agent, raise them during the contract negotiations. Although it can be tedious trying to get the wording of the contract just right, it will save you enormous headaches later on.

Matching Offers

The “future projects” clause usually gives the publisher a finite period to consider your next proposal or manuscript. Often the publisher gets thirty days to decide; if the publisher doesn't make you an offer by the end of the thirty days, you're free to approach other publishers. However, many times the contract will include a clause that gives your publisher the right to snap up your next project by matching the terms of any other publisher who might be interested.

This is a bad deal for authors. The first thing other publishers will ask you is whether your current contract has a “matching offer” clause; if it does, other publishers likely won't be interested. The reason is simple: Publishing is a highly competitive business, and publishers can't afford to waste their resources going after a project that may be yanked from them at the last minute. If at all possible, make sure your contract eliminates the trouble-some “matching offer” clause.