| Self publishing contracts are not created equal. | | | | Third, do you have a say in the pricing of the |
| When deciding on a POD company to publish your | | | | book? The price of the book is important for two |
| book, consider the following: | | | | reasons. Cover price affects the marketability of |
| Royalties. This is the percentage that an author is | | | | a book and, depending on the contract, |
| paid after a book is sold. Royalties can be based | | | | determines the cost of author copies. The cover |
| on the gross sale (cover price) or the net sale | | | | price is best set by the author. Subsidy publishers |
| (after trade discount, printing, tax, shipping, | | | | often overprice books so that they can overprice |
| handling, or whatever charges are specified in the | | | | author copies. When a subsidy publisher refuses |
| contract). Some publishers rave about royalties | | | | to tell you the cover price of your book before |
| that are 20% of net. They claim this generous | | | | you sign the contract, don’t sign. Some |
| royalty is over three times higher than a royalty | | | | publishers will not be so obvious, and instead say |
| paid out by a traditional publisher, which is around | | | | that it depends on the number of pages. Again, |
| 6%. But they are comparing apples and trucks. A | | | | don’t settle for a non-answer. They’re in |
| traditional publisher pays 6% royalties because | | | | the publishing industry and should be able to look |
| they are paying for everything else, i.e., printing, | | | | at a manuscript and come up with the number of |
| editing, marketing and advances. Now what is a | | | | pages with a fair amount of accuracy. To be |
| subsidy publisher paying? Zero. Royalty payments | | | | competitive, a cover price must be comparable |
| can be paid quarterly or monthly. To illustrate, | | | | with traditionally published books. |
| here are a few computations. All books are the | | | | Lastly, it is important to find out who distributes |
| same price with the same number of pages. | | | | the book (i.e., Ingram Book Group, Baker & |
| Taxes, shipping and handling charges are not | | | | Taylor), and how much of a trade discount the |
| included. | | | | subsidy publisher is offering. A discount of 55% |
| On Gross Sales | | | | off the cover price is generous and is an incentive |
| Company 1. Offers a 10% royalty on the gross | | | | for retailers to sell books. A hefty trade discount |
| sales of a $15.00 book. $15.00 x .10 = $1.50 | | | | is one reason why some books on Amazon sell |
| royalty. | | | | for less than retail. Again, when you review books |
| On Net Sales, | | | | on Amazon, check the cover prices. If they are |
| Company 2. Offers a 20% royalty on net sales. | | | | discounted, you may sell more books. |
| $15.00 (book) - $8.25 (55% trade discount) - | | | | Rights. Rights are ownership of your work. There |
| $3.90 (printing cost) = $2.85 (net) x 20% = $.57 | | | | are different kinds of rights – to name a few: |
| royalty. | | | | print, electronic, foreign, movie – that can be |
| Company 3. Offers an 80% royalty on net sales. | | | | passed from author to publisher. Nonexclusive |
| $15.00 (book) - $8.25 (55% trade discount)- $3.90 | | | | rights are rights that remain with the author and |
| (printing cost) = $2.85 (net) x 80% = $2.28 | | | | are not given to the publisher. Exclusive rights are |
| royalty. | | | | granted by the author to the publisher. It’s |
| The computations show the difference in royalty | | | | important to read the entire contract. Rights may |
| rates. A 10% royalty on a gross sale ($1.50) is | | | | be granted in more than one area of the contract. |
| less than an 80% royalty on a net sale ($2.28). | | | | An advantage of self-publishing is that you |
| And the worst deal is a 20% royalty on a net | | | | maintain all rights, at all times. |
| sale ($.57). | | | | Cancellation. Also known as Termination. |
| In contract speak, understand that gross may be | | | | Cancellation can be requested by either party. |
| written as retail or cover, and net may be written | | | | Read carefully for stipulations that may extend |
| as what the publisher actually receives from which | | | | beyond the cancellation period. |
| the trade discount, shipping/handling, printing and | | | | Yearly Fee. Also called a maintenance fee. This |
| returns costs are deducted. Royalties can also be | | | | fee, according to one contract, is based on the |
| computed from wholesale (after trade discount) | | | | current information displayed, at the time of the |
| or from invoice (after shipping and handling). | | | | charge, on the publisher’s web site. In other |
| When evaluating a contract ask: Are royalties paid | | | | words the fee is in payment for the book space |
| on gross, wholesale, invoice or net sales? What | | | | provided on the subsidy publisher’s web site. |
| are the specific deductions? What percentage | | | | This is a fee that pays for their marketing. Avoid |
| rate does the author receive? How often are | | | | this charge. |
| royalty payments paid? | | | | Return Policy. Accepting returns are offered by |
| Author Copies. This is the cost of a book when | | | | some subsidy publishers. Not having a return policy |
| an author orders it. Author copies are used for | | | | is one reason why many retail outlets do not |
| marketing purposes, to send out for review and | | | | stock POD books. Return policy, if offered, should |
| for resale. The cost of author copies can be | | | | be clear. |
| figured down from the cover price or up from | | | | Submission Cost. In the excitement of getting |
| the printing expense. It is more advantageous to | | | | published, you may throw all caution to the wind |
| purchase author copies that are priced up from | | | | and spend more money than is necessary. |
| the printing cost. This is similar to going into a car | | | | Assuming you keep start-up costs reasonable and |
| dealership and negotiating up from the dealer cost | | | | select a company that has an author friendly |
| rather than down from the inflated sticker price. | | | | contract, breaking even is doable, especially when |
| This is a difference that matters. The cost of | | | | you sell directly to readers. However, if your main |
| author copies is very important since selling books | | | | selling outlet is retail, you’ll have to sell a lot of |
| directly to the reader has the best return rate. | | | | books. To figure out how many books you’ll |
| Publication Format. Delineates who’s | | | | have to sell to break even, take your royalty per |
| responsible for the appearance, price, production | | | | book then divide this into the amount you’re |
| and manufacturing of the book. After you’ve | | | | spending to publish. Let’s say you publish for |
| written the darn thing, these aspects may be of | | | | $1000 and your royalty is .57 (20% of net shown |
| little interest to you, but take the extra time to | | | | earlier on a $15.00 book). To recoup you’d |
| consider them. These facets make a huge | | | | have to sell more than 1754 books (1000/.57). |
| difference. Here are four areas to evaluate. | | | | And that’s a lot of books. |
| First, check out their books. Go to Amazon and | | | | Related Fees. Unspecified related fees located |
| search the publishing company. Click on Books and | | | | anywhere in the contract need to spelled out. |
| type the company’s name into the Search | | | | Galley edits, those changes done after the book is |
| field. Review them. How do they look, both inside | | | | laid out, may be a type of related fee. |
| and out? What are the cover prices? If the books | | | | In summary, the ideal contract will allow you to: |
| appear lackluster or are overpriced, don’t give | | | | set the cover price, have a royalty rate of 80% |
| this subsidy publisher your business. Also, if you | | | | or better on net sales, keep all rights |
| can’t find any of their books on Amazon, this | | | | (nonexclusive), have input into the size of book |
| may spell trouble. You’ll need to check further | | | | and number of pages, cancel at any time with no |
| to see how their books are distributed. | | | | stipulations, have your book distributed and |
| Second, do you have input into the interior layout | | | | available to retail stores with a trade discount of |
| and size of the book? Besides text, a book’s | | | | 50% or more, purchase author copies that are |
| layout – chapter headings, margins, line | | | | priced from printing costs, not incur any yearly |
| spacing, font size, overall measurement – | | | | maintenance fees, and accept returns. |
| determines the number of pages in a book. If | | | | Beyond the ideal contract, there’s one more |
| author copies are based on printing costs, fewer | | | | thing: the ideal subsidy publisher. This company will |
| pages equals lower printing charges, and lower | | | | answer your questions, work with you, be |
| printing charges increase the profit margin. Also, | | | | available and give proper counsel. A writer should |
| POD books, to stay competitive, should not be | | | | ask for no less. |
| more than 300 pages. This can be problematic if | | | | Linda's Website |
| you have a manuscript over 100K words. | | | | Linda is the author of Composition: A Fiction |
| However, if you have input into the book’s | | | | Writer's Guide for the 21st Century Download |
| formatting, layout adjustments can be made to | | | | for $3. |
| accommodate more text. | | | | |