Tag Archives | discounts

What does “net” mean in the royalties and subsidiary rights sections?

Q. My publishing contract doesn’t define “net.” It’s used in both the royalties and subsidiary rights sections. What does it mean? A. “Net” is one of the worst terms for authors to leave undefined in a contract. “Net” – more typically, “net proceeds” or “net receipts” – is what is left after various expenses are…

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Should My Royalties Be Reduced When E-Books are Sold at Large Discounts?

Q. Should the typical provisions about reduced royalties on copies sold at high discounts apply to e-books? Answer: No. Unlike print-on-paper books, where each copy sold at a deep discount represents significant expenses incurred by the publisher which pertain specifically to the copy sold (paper, printing and binding costs and, sometimes, shipping and warehouse charges),…

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How Is “High Discount” Defined?

Q. Is there a commonly accepted definition of what kinds of publisher’s book sales are “high discount” and result in a lower royalty rate than the basic royalty rate I negotiate in my contract for sales at the publisher’s standard discount? A. No one definition is accepted by everyone in publishing. Indeed, rather than using…

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