Author - Compensation


A standard contract for an author will usually include provision for payment in the form of an advance and royalties. An advance is a lump sum paid in advance of publication. An advance must be earned out before royalties are payable. An advance may be paid in two lump sums: the first payment on contract signing, and the second on delivery of the completed manuscript or on publication.

An author's contract may specify, for example, that they will earn 10% of the retail price of each book sold. Some contracts specify a scale of royalties payable (for example, where royalties start at 10% for the first 10,000 sales, but then increase to a higher percentage rate at higher sale thresholds).

An author's book must earn out their advance before any further royalties are paid. For example, if an author is paid a modest advance of $2000.00, and their royalty rate is 10% of a book priced at $20.00 - that is, $2.00 per book - the book will need to sell 1000 copies before any further payment will be made. Publishers typically withhold payment of a percentage of royalties earned against returns.

In some countries, authors also earn income from a government scheme such as the ELR (Educational Lending Right) and PLR (Public Lending Right) schemes in Australia. Under these schemes, authors are paid a fee for the number of copies of their books in educational and/or public libraries.

These days, many authors supplement their income from book sales with public speaking engagements, school visits, residencies, grants, and teaching positions.

Ghostwriters, technical writers, and textbooks writers are typically paid in a different way: usually a set fee or a per word rate rather than on a percentage of sales.

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Other articles related to "compensation":

Compensation Culture
... "Compensation culture" describes a society in which it is acceptable for anyone who has suffered a personal injury to seek compensatory damages through litigation from someone connected with the injury ... Tort reformers criticize legal systems they deem to represent a "compensation culture" as resulting in Frivolous lawsuits that may be settled out-of-court if the cost of ... prohibitively expensive where there is a high risk of compensation claims, making it impossible to host mildly dangerous activities such as children's sports or other public or ...

Compensation can refer to:

  • Financial compensation (disambiguation),
  • Compensation (chess), various advantages a player has in exchange for a disadvantage
  • Compensation (engineering)
  • Compensation (essay), by Ralph Waldo Emerson
  • Compensation (film), a 2000 film
  • Compensation (psychology)
  • Biological compensation, the characteristic pattern of bending of the plant or mushroom stem after turning from the normal vertical position
Pearson Commission - Terms of Reference
... To consider to what extent, in what circumstances and by what means compensation should be payable in respect of death or personal injury (including ante ...

Famous quotes containing the word compensation:

    The compensation of a very early success is a conviction that life is a romantic matter. In the best sense one stays young.
    F. Scott Fitzgerald (1896–1940)

    The only compensation which war offers for its manifold mischiefs, is in the great personal qualities to which it gives scope and occasion.
    Ralph Waldo Emerson (1803–1882)

    Many old people receive pensions for no other reason, it seems to me, but as a compensation for having lived a long time ago.
    Henry David Thoreau (1817–1862)