Term and reversion: getting your book back

What is a reversion clause and why is it important? #

A reversion clause in a publishing contract allows authors to regain the rights to their book under specific conditions, most commonly when the book is no longer “in print.” This is key for authors because it ensures that their work doesn’t remain tied up with a publisher who is no longer actively selling or promoting it. The definition of “in print” can vary significantly between contracts, but it generally refers to the availability of the book through standard retail channels. For instance, if a book is not available for sale in either physical or digital formats, it may be considered out of print, thereby triggering the reversion clause.

How does the definition of “in print” affect reversion? #

The definition of “in print” is a critical component of the reversion clause. Traditionally, a book was considered “in print” if it was available in physical form. However, with the rise of digital publishing, the definition has evolved. Now, a book may be considered “in print” if it is available for sale in any format, including e-books. This shift has made it more challenging for authors to reclaim rights, as digital availability can be perpetual. Authors should carefully review the definition of “in print” in their contracts to ensure it aligns with their expectations and career goals.

What role do advances play in the publishing process? #

Advances are upfront payments made to authors by publishers, typically against future royalties. These payments are not a reflection of the book’s expected earnings but rather a projection of potential sales. Advances can vary widely, from a few thousand dollars to millions, depending on the author’s track record, the book’s market potential, and the publisher’s investment strategy. According to Publishers Marketplace, a “good” deal might range from $100,000 to $250,000, but most authors receive much smaller advances. It’s important to note that most books do not earn out their advance, meaning the book doesn’t generate enough royalties to cover the initial advance payment. This is a normal occurrence in the industry and doesn’t necessarily indicate poor sales.

How do royalties work, and what should authors know about them? #

Royalties are the payments authors receive based on the sales of their book. The royalty rate and structure can vary depending on the format of the book (hardcover, paperback, e-book, audiobook) and the terms of the contract. For example, the Authors Guild model trade contract suggests a hardcover royalty of 10% of the list price for the first 5,000 copies, 12.5% for the next 5,000, and 15% thereafter. E-book royalties are typically calculated as a percentage of the publisher’s net receipts, often around 25%, although the Authors Guild argues that 50% is a fairer rate. Understanding the difference between royalties based on list price versus net receipts is key, as the same percentage can result in significantly different earnings. For instance, a 25% royalty on net receipts, with a 50% retail discount, effectively pays half of what a 25% royalty on the list price would.

What are the typical costs associated with publishing? #

Publishing a book involves several costs, including editing, cover design, interior formatting, ISBN acquisition, and audiobook production. According to the Editorial Freelancers Association, the cost of editing can range from 2.0¢ to 7.3¢ per word, depending on the type of edit. For an 80,000-word novel, a copyedit might cost between $2,400 and $4,000. Cover design, as per Reedsy marketplace data, averages around $880 for fiction. Interior formatting can cost between $200 and $800, depending on the book’s length and complexity. An ISBN costs $125 for one or $295 for ten, and audiobook production ranges from $200 to $400 per finished hour. These costs can add up, and it’s important for authors to understand the financial implications of self-publishing versus traditional publishing.

Frequently asked questions #

What is the standard commission for literary agents?

Literary agents typically charge a standard commission of 15% on domestic deals. For foreign or translation rights, the commission is often 20%, split with a co-agent.

How do net and list royalties differ?

Royalties based on list price are calculated as a percentage of the book’s cover price. In contrast, royalties based on net receipts are calculated after the retailer’s discount, which can be as much as 40–55% off the list price. This means that the same percentage on net receipts will yield roughly half the amount of a percentage on list price.

What is the typical range for audiobook production costs?

Audiobook production costs about $200–$400 per finished hour. The Audiobook Creation Exchange (ACX) suggests that a retail-ready audiobook costs roughly $300–$400 per finished hour.

Are there reliable public data on advances per genre?

No, there is no reliable public data on advances per genre. Most publishing deals are under non-disclosure agreements (NDAs), and industry surveys often do not break down advances by genre. The data available are more general, such as the Publishers Marketplace deal bands, which categorize advances as “nice,” “very nice,” “good,” “significant,” and “major.”