Monday, June 27, 2011

How Authors Get Paid (Because Most People Don't Actually Know)

There seems to be some confusion as to how authors make money off of their books. I know, because I was recently attacked by a rabid fan via email. What? Me? How?

I tweet book deals I find on Twitter at least once a week. I like to share the deals, because not everyone can afford full price books. I never assumed that would make me some sort of target.

Apparently, some fans are operating under the assumption that authors get an exact percentage of the exact price each copy of their book sells for. This is completely untrue.

If I share that you can buy Awesome Book by Author X on Amazon for $4 instead of $14, I am in fact not stealing that extra $10, or even a percentage of it, from the author. Neither is Amazon.

Let me explain this as I understand it:

Author X sells her book to a publisher. The publisher pays Author X a chunk of money called an advance. The amount is based on how well the publisher believes the book will sell.

Author X is not paid again until bookstores have purchased enough copies of her book to cover the advance she has already received.

Then, every six months (usually, but the exact time frame is specified in Author X's contract with the publisher) Author X receives a royalty check. This check pays Author X for the number of copies sold to bookstores that they have yet to be paid for.

Some authors will never see another check after their initial advance, if the book does not meet the publishers sales expectations.

Author X's payments are in no way effected by how much money each reader spends on each copy. If the bookstore does not sell the books it has ordered, it either takes a loss by selling them at a price less than what they themselves paid, or they send them back to the publisher who will give them a partial refund.

The copies returned to the publisher are what can effect the amount of money an author will receive, as those returns will be counted against Author X's next royalty check (usually. Once again, it all varies from contract to contract).

I am in no way stealing money from authors. I'm not even stealing money from Amazon, as they want to sell these books and have lower the price to entice readers to buy said books. I am simply alerting others to amazing deals so that they too can own spectacular books.

Dear ultra fanatical readers, I get that you love your favorite authors. Really, I do. But it would be nice if you could get your facts straight before attacking people. I understand the concept of author royalties can be confusing, but if you don't understand completely, you should ask. Or Google it. Or just shut up. Because while I love your enthusiasm, you need to direct your crazy elsewhere.

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