Tag Archives | advances

What is an “earn-out bonus”?

Q. What is an “earn-out bonus”? A. An “earn-out bonus” is an additional advance against royalties that is paid only if the total amount of royalties and subsidiary rights income payable to the author equals or exceeds the original advance. It is generally the result of a compromise between publisher and author on the amount…

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Can My Publisher Hold Back Hardcover Royalties for Possible Paperback Returns?

Q. My book, which was published in hardcover about a year ago, earned out its advance by about $500 but the publisher has told me that it might hold back part of that money as a reserve against returns of the trade paperback edition that it is about to publish. Can the publisher do that?…

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