Standard Publishing
Traditional publishing houses pay their authors in one of two ways: a royalty that is usually a percentage of the retail or wholesale price of the book; or a flat fee which is a “work for hire” where the author is considered an independent contractor and retains no rights to the work. There are three tiers of publishing houses with each having their respective advantages and disadvantages: large publishers, often owned by conglomerates, can offer wide distribution and publicity but frequently this is allocated to authors of potential blockbusters; midsize publishers that usually maintain a strong backlist, adding a longer life to your book, but lack the clout large publishers have in obtaining greater visibility in bookstores; and the small publisher where you can receive individual attention but are largely left to on your own to promote your book.
The Contract
The terms and conditions that define the author-publisher relationship are found in the contract. Unless you are well versed in publishing contracts, you should have an attorney experienced in publishing law or a literary agent represent you. Some of the important clauses you should examine are:
The rights that are sold to the publisher and the rights that are retained by the author
The advance and the royalties
Time period for the author to deliver the manuscript
Right of the publisher to reject the manuscript; what determines acceptability; the procedure and time period for the author to revise the manuscript to make it acceptable
Insurance coverage available to the author
Time period for the author to review the galleys
Large publishers generally use a contract modeled on the standard publishing contract, which consists of many “boilerplate” clauses. Midsize and small publishers are more likely to customize their contracts. The contract furnished to an author for signature tends to favor the publisher and should be critically examined and negotiated before signing.
