Advance and earn-out clause
This clause states that the publisher will pay you a lump sum, called an advance, before your book is published. This advance is a prepayment of the royalt
In plain English
This clause states that the publisher will pay you a lump sum, called an advance, before your book is published. This advance is a prepayment of the royalties you will earn from book sales. You won't receive additional royalty payments until your book has earned back the amount of the advance through sales.
What it means in practice
In practice, this means you receive a portion of the advance when you sign the contract, another portion when you submit your finished manuscript, and the final portion when your book is published. You won't see any additional money from book sales until the total royalties from those sales exceed the advance you've already received.
What's standard
It is standard for the advance to be paid in installments tied to specific milestones, such as signing, manuscript delivery, and publication.
Red flags
Vague language about the timing or conditions of advance payments
Lack of clarity on what constitutes "acceptance" of the manuscript
No clear definition of how royalties are calculated or when they are paid
What to ask for instead
Ask for the advance to be divided into three equal payments tied to signing, manuscript delivery, and publication. Ensure the contract specifies that "acceptance" of the manuscript is based on objective criteria, such as adherence to an agreed-upon outline or style guide.
This is information, not legal advice. Contracts turn on their exact wording and your circumstances — before you sign, have a publishing lawyer or a body like the Society of Authors or the Authors Guild review the actual document.