The Beginner's Guide to An Author's Financials 

I believe that was intended to be merely an example. As each book is priced differently and, I'd assume, each contract would stipulate a different percentage of royalties recieved, etc.

The most I've heard you get from the sale of a book, even established authors, is around 12% from the pricing of the book... so don't expect that much.

That was just an example! It depends on the publisher, the royalty rates, the list price (or amount received) etc.

You could make less then a buck per book. Imagine if your book is heavily discounted. What they do. Get it market ready. Editor, proofreader, cover art, and distribution, at the least. Plus they collect the money, and then give it to you. Or you can literally do all that yourself and share none. But it is expensive, even if your just doing it on Amazon. You Get all the reward, but you now assume all the risk as well. Actually it's the digital sharing that is where you are getting took. Of the 70% that Amazon gives you of the sale price, if you have a publisher, they take like 75%, or more! Makes no sense to me. And remember, they don't really promote you. They do have generic marketing, but its still on you to get the word out to try and generate sales. Which then does bring back the reality of, well then why not self publish? At the end of the day, it's probably better for most to give it a try on there first book. Most are not making it rich anyway in this game, so at least you will have a physical copy to show off.

@@Reggie2000 I understand where you are coming from but I think authors should do their research before self-publishing. With the first book I wrote, I went the self-publishing route. But I didn't have a clue how to properly promote. I spent thousands going to conventions to promote and sell a book that I did not get properly edited or an adequate cover design made for. Personally, I'd rather make a little and have an agent and publisher helping me than make little, spend a lot, and feel completely overwhelmed by the whole process. That's not to say I am against self-publishing; it's just not for me. 🤭

Great!

I’m wondering the same thing. Thanks for asking the question

Many authors do choose to do this! This is something that would be highly based on individual circumstance, and probably best discussed with a financial advisor!

Each deal is different. Some deals we can retain audio, some translation, some both. A deal will always be at least North American English.

@@BookEndsLiterary Thanks for the reply. I've got a long way to go, but your videos have let me know there's a light at the end of this tunnel.

If your in the UK and publishing in the UK then yes, similar, but if your in the UK but publishing in US directly (through submissions to US agents) then no idea.

No, you don't.

You don't have to pay it back, but it also won't look great when you go to sell the next book.

@@dragonfireink139 This is not necessarily true. A book can still make a profit before the advance earns out because the publishers pay themselves at a higher rate than they pay the writer. So, they recoup their investment (including the money paid for the advance) faster.

@@cherie182 Thank you for the clarification. I was thinking more of a book with high advance that might really undersell.

@@dragonfireink139 Yes, in that case, if your book tanks, you could be screwed when it comes time to sell a second book (which is hard to sell anyway)!

Typically the publisher sends the money to your agent. Your agent takes their cut and sends it to your bank account.

Maybe..... maybe you're not watching close enough. Ha!

Hi there! Sorry for the confusion, hopefully I can help clarify! The advance is an advance against royalties that the publisher pays to the author up front for the book. This just means that they are paying a chunk of the royalties that they expect the book to earn before the book has actually earned those royalties. Unlike a loan, though, no portion of the advance ever has to be paid back to the publisher (unless the author breaks contract), even if the book never earns enough royalties to cover the advance. The advance is just a check or a direct deposit to the author that is contractually the author's money regardless of the performance of the book after it publishes. So, taxes must be paid on the advance once it's received, yes, but the advance is just a lump sum that is not dependent on the royalty earnings, and therefore will be money in the author's bank account before tax time rolls around. The author should not be paying taxes on money that they have not earned and received, from my understanding (although I'll emphasize that we are not financial advisors or accountants and specifics should be left up to the experts; you can also ask your agent if you have concerns about taking an advance for whatever reason). The only way that royalties and the advance are related is that, once the book earns enough royalties to cover the advance (this is called earning out) the author starts to receive the royalties beyond that threshold. So, if you receive a $10,000 advance, and you make less than $10,000 in royalties selling your book, you will have only received the $10,000 advance in the end. If you receive a $10,000 advance and your book makes $15,000 in royalties, you will have received the $10,000 as an advance, plus you will receive $5,000 in royalties. All of this will be money that taxes get paid on. Hope this answers your concerns!

@@BookEndsLiterary Wow, thanks so much the thorough reply. You fully helped me understand what I was confused by. I really appreciate it!