You’ve written the book, polished the manuscript, and now you’re on the brink of getting published. Congratulations! Now, you’re preparing for that next big step. Before you move forward, though, it’s essential to understand publishing contracts to know exactly what you’re signing up for.
Publishing contracts are packed with legal terminology that can feel overwhelming at first. But don’t worry—we’re here to decode the most common terms so you can navigate your agreement with clarity and confidence.
1. Advance – Your Upfront Payment
An advance is the payment you receive from a publisher before your book even hits the shelves. It’s essentially an advance against your future royalties. While it may feel like a bonus, remember that you won’t earn additional royalties until your book sales have paid back that advance amount.
Example: If your advance is $5,000 and you earn $2 per book sold, you’ll need to sell 2,500 copies before you begin receiving additional royalty payments.
2. Royalties – Earnings From Book Sales
Royalties are the percentage of sales revenue you receive for each book sold. These percentages vary by format and publisher:
- Hardcover: Typically 10–15% of the retail price
- Paperback: Around 5–8%
- Ebooks: Often 25–50%, thanks to lower production costs
Note: You won’t receive royalties until your advance has been “earned out.”
Need more info? Check out Aziza Redpath’s article in Understanding Book Royalties Calculation for Self-Publishers
3. Subsidiary Rights – Extra Avenues of Income
Subsidiary rights refer to additional uses of your book—think audiobooks, film adaptations, translations, and merchandise. Your contract will outline who retains these rights: you or the publisher.
If you believe your story has screen or audio potential, it’s worth negotiating to keep certain rights. To understand publishing contracts, you need to have a great hand in negotiations.
4. Out of Print Clause – Reclaiming Your Rights
This clause defines when your book is considered “out of print.” Once that happens, you may be able to request that publishing rights revert to you. However, some contracts use vague language that could keep your book in “print” indefinitely—especially if it’s technically available online somewhere. Always clarify this clause.
5. Non-Compete Clause – Restrictions on Similar Works
A non-compete clause prevents you from publishing another book that competes with your current one. While the intent is fair, overly broad wording can limit your ability to write in similar genres or topics for the duration of your contract. Make sure the restrictions are clearly defined.
Example: If you’re publishing a YA fantasy, this clause could unintentionally prevent you from publishing another fantasy novel—even a different series.
6. First Right of Refusal – Publisher Gets First Look
This clause gives your publisher the right to review (and potentially acquire) your next manuscript before you offer it to others. If you enjoy working with your current publisher, this can be beneficial. However, it can also lead to delays if the publisher passes and you have to shop your work elsewhere.
7. Termination Clause – Ending the Agreement
The termination clause outlines how and when either party can end the publishing contract. It’s crucial to understand what happens to your rights and royalties if the agreement ends. A clear, fair termination clause is a must.
8. Moral Rights Clause – Protecting Publisher Reputation
This clause allows a publisher to terminate the agreement if the author engages in behavior that could damage the publisher’s brand. While understandable in extreme cases, vague definitions of misconduct can pose risks. If this clause is included, request specific examples or tighter language.
Final Thoughts on Understanding Publishing Contracts
Publishing contracts may not be the most glamorous part of the writing process, but understanding them is essential to protecting your work and your career. If you’re ever unsure about a clause or term, don’t hesitate to ask questions—or better yet, consult a publishing-savvy attorney or literary agent.
Remember, every bestselling author was once in your shoes, facing their first contract with a mix of excitement and uncertainty. You’re not alone.
Got questions or need further help to understand publishing contracts or curious about how to spot a red flag? Drop your thoughts or experiences in the comments below. We’re here to help!
P.S.
Check out some tips on launching your books: The Book Launch: 3 Things To Expect & 3 Things To Do
