While I dove into this research project already knowledgeable upon the subject of publishing, Indie vs. traditional, and each route's benefits, I learned quite a bit more than expected. Even after my studies for law work, I did not know that the term "royalties" when used in publishing had a different meaning than how it has been used recently. The interesting part about the word itself and its use is how some publishers can manipulate the term and the reader of any contract into assuming that it means something it does not. It also means, legally, that a publisher who doesn't understand the term's true meaning (as in, "a royalty is the total amount paid to the author" [Royalties: The Seduction of Self-Publishing]) could get into legal trouble.
Another thing I learned is how to differentiate between a credible source, and one that only appears credible on the surface. While this may not directly pertain to the research topic I've chosen, I feel it's an important lesson. The lesson is important because it teaches me, and others who may be searching for more understanding on the Indie vs. traditional publishing topic, to push the boundaries and do more research about their options. Which publishers are credible and which are a money-sink can be discovered in very much the same way as determining credible sources for a research paper.
There is still much to learn on this topic, and I feel that in order to write a successful paper, I must narrow my search and my topic down further. I think I'd like to focus on royalties, now that I've discovered such a massive misunderstanding about the term and its meaning. I'd like to see what other articles are available for me to use to prove that, legally, a contract that pens a given royalty means that royalty is only meant to go to the author. How is this term misused? How is it used correctly? When does misuse benefit the author, and when does it benefit the publisher? These are only a few of the questions in mind on this topic.
And how does marketing play a role in royalties? This may seem a distant question, but I feel the two are related. After all, the articles I discovered on marketing techniques makes me wonder, if a larger company doesn't spend money on consumer research, then why does that publisher get a larger chunk of the income (see: Understanding How the Traditional Publishing Model Works). A great deal of publishing is how every little thing is tied together. So where does the money earned go, exactly? Why? I look forward to finding out.
This is perhaps the most intriguing (and most often asked about) topic for most budding writers--royalties. For many, many years, a great number of people have fallen under the false impression that all writers are wealthy. After all, if you're a writer, you're famous (sort of). The truth is, most authors are dirt-poor, because very few reach the same notoriety as J. K. Rowling or George R. R. Martin; in fact, a visit to your local bookstore will likely reveal any number of authors you've never heard of.
One of the largest debates an author goes through while attempting to publish their first book is whether or not the royalties will be worth their while. Will the author make enough per sale to eventually live off of? Does the author want a big name behind them with (perhaps) less income per sale, or does the author prefer a smaller name with a potentially larger chunk of pizza?
Royalties: The Seduction of Self-Publishing
By The Independent Publishing Magazine
The article "Royalties: The Seduction of Self-Publishing," printed in The Independent Publishing Magazine does a fantastic job of breaking down exactly what royalties are--they're a percentage paid to an author per sale of a single copy of a book the author penned. The percentage paid out depends on many factors, which the article describes as being determined by the publisher, who can "make [royalty payout] a little more complicated by setting whatever percentage is due to the author on net receipts (less the discount to a retailer, wholesaler or distributor)". This is interesting, as most publishers choose to go this route, even newer and smaller Indie presses. For example, Evolved Publishing (www.evolvedpub.com) breaks their royalties down as such: Publisher (15%); Editor (8-10% based on book length and amount of editing needed for the individual project); Cover Artist (10%); and Interior Design/Illustrations (percentage is broken down per project as per the needs of the author). This is an unusual business plan, because the publisher makes so much less than most other publishers*.
Advances are another method publishers can use to draw in potential authors, because it's not just the author bidding to find a publisher--once an author has a bite, more are likely to come, and the publishers want to make their deal as irresistible to the author as possible. Advances are, as the article describes, "paid against expected royalties." This means that the publisher isn't tossing money to the author for no reason. They expect that money to be made back, and if the sales don't match the advance, though it is rare, some authors do have to return the royalty money to the publisher. This is rather common practice in larger publishing companies; smaller companies often don't have the cushion in their accounts to offer large advances, or even offer advances at all.
The author of this piece touches on something that most entering the self-publishing world don't quite understand, and his wording is so concise that it must be repeated in bold:
"You are the author. If you are a true self-publisher, then you are also the registered publisher of origin. Authors get royalties. Publishers don’t!"
This means that, as a publisher or self-published author (again, differing from the Indie author or one who has signed with a small or Indie publisher), a self-published author doesn't receive royalties. Now, this does not mean that the author doesn't get paid. It just means the term is known as something other than "royalty". This is a rather neat tidbit to point out, and as the author continues to discuss, there are a huge number of vanity publishers and small publishers who toss around the word "royalty" like it's, well, royal. The origin of the word isn't as important as understanding the difference between how an author is paid in the traditional publishing world vs. the small press or Indie publishing world.
A royalty for a traditionally published author is more likely to be less per copy sale than a royalty paid to an Indie author per copy sale--however one must always keep in mind that each company is different. It's up to the author to do their research in order to determine which company will work best for the author's needs and desires. Just because a company might pay back less per sale does not mean they aren't worth the investment. And, as the author of the article notes, beware of the math involved when calculating the potential royalties paid to an author. There are a great number of small things, such as stocking on a shelf or transport, that will eat away at the overall royalty paid to the author. When signing any contract, it's worth reading the fine print--and really, all of the print.
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* Please note these percentages are an example only, and do not reflect entirely upon a potential contract with Evolved Publishing. Evolved Publishing retains its rights to change and adjust percentages per contract as they see fit. This is only an example used to contrast and further discuss the article itself.
