It’s important to understand that the relationship between author and publisher is a business relationship. As in any business relationship, the key to ensuring that everything goes smoothly is to spell out everyone’s expectations clearly in advance.
So what should you be looking for when you peruse your contract? One of the key things to think about is rights. Which rights are you granting to the publisher? Are you granting print rights only, or are you also granting subsidiary rights, such as rights to foreign versions of the book and e-book editions? What about multimedia merchandising? You want to understand exactly what rights you’re granting and in which territories you’re granting them.
Royalties, of course, are also a major issue to negotiate with the publisher. Are you being paid based on the book’s list price or on net revenue? And how long is the contract going to last? Does the publisher have an option on any of your future works? Traditional publishing contracts usually cover the life of the work. There are some smaller companies that are changing that model by going with shorter term contracts that have to be renegotiated after a set number of years. You also want to make sure that the percentage your agent will receive conforms to industry standards. Usually that’s around 15 percent plus 20 percent for foreign rights.
Finally, you want to see a termination provision in the contract so that both parties have a way out if they’re not happy with the relationship. Make sure the contract spells out what happens to the works that particular agent represented for you. Will their interest carry through, or will it end after a certain period of time? You’re entering into a relationship, and all relationships do end eventually one way or another. When that happens, you want the contract to spell out very clearly where everyone stands. For example, you may want to include an agreement that neither party will make negative comments about the other once the business relationship has ended. That can give you some reassurance that there won’t be any negative fallout when both sides decide to move on.