Contracts are legal documentation of your agreement with another person, organization or entity. In this case, we’re discussing your contract with your publishing house. There are so many things to know (even if you have an agent you need to know your business and that includes contracts) about contracts that I’m just going to list the most important ones and leave you to do your homework on the rest.
- Is the author being paid an advance? Don’t laugh. You’d be surprised at how many writers get so excited about the contract offer that they miss this and don’t even wonder about it until weeks down the road when they think they should have already have received a check. Know whether you’re getting an advance against royalties or just royalties. Also know the payout structure of the advance and/or royalties. It can make a big difference in how you plan your finances.
- What rights are being sold? North American? Foreign? Subsidiary? Don’t know to what these rights refer? Get you dictionary, get on the internet and do some research. A great deal of research. If you have an agent, you still want to know and understand the rights clauses in your contract. Just because your agent negotiates the contract on your behalf, that doesn’t mean you’re off the hook. You are responsible for your career and all decision-making. An informed writer makes informed decisions.
- Reversion Clause. Make sure your book is not in the publishers hands in perpetuity because there’s one book left in a warehouse in Outer Mongolia and has been there for 5 years or one sale on an uncharted South Sea island. Make sure your book reverts if it is out of print in the United States. It would be ideal if your book reverts back within 2-3 years. Obviously, there is much, much more to reversion clauses, but these are two highlights to which you want pay attention.
- Author Copies. I have found that the number of author copies the writer will receive is a big point. I’ll put it like this—if it’s important to my author, it’s important to me. With that said, there are some things you may want to know about author copies: (1) the author makes no royalties on author copies (2) author copies are great for promos and (3) resist the urge to ask for 100 author copies and sell them out of the back of your car—this now makes the author a retailer and you’ll be obligated to pay taxes on all “merchandise” you sell. Use your author copies wisely—to promote your book and maximize book sales.
- Deadlines. Seems like a given, right? Wrong. When negotiating a deadline, make sure you factor in life. If you are the kind of author that has to write a book every time you complete a book to meet your contractual needs, you, of all writers, want to factor in life. Let’s say your hubby or wife comes home and say their company has given them a bonus trip to Hawaii. Unfortunately, your book is due two weeks after your return from the trip. You blithely believe you can write (in between luaus, parasailing, Don Ho concerts) in the hotel room. No, dear writer, you are going to have a nervous breakdown in that hotel room when you realize you’ve written three words and you must write a 100,000 word novel in two weeks. Complete with editorial. ‘Nuff said.
In Part 2, we’ll start with Option Clauses. Those little goodies can make or break your career. In the meantime, do your homework on the first five points and I’ll see you soon!