Interests of the publishing house and those of the author

Reference no: EM13686683

The typical way that authors get paid for writing a book is via a royalty arrangement. For every book sold, the author gets a certain percentage, something like 15 percent of the list price on hardcover sales and 10 percent for paperback. The author might also obtain an advance against future royalties. This advance is usually paid in parts; one part upon signing of the contract, another upon delivery (and acceptance) of the manuscript, and the rest upon publication. How does this payment system create the right incentives, and where might it create a wedge among the interests of the publishing house and those of the author? Is there a better way to pay authors?

Reference no: EM13686683

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