Understanding Book Advances

If you have been reading about becoming an author, then you've probably come across the subject of advances, which are the lump sums paid by publishers to authors. When you negotiate a contract for a book deal, the publisher will usually offer an advance "against royalties", after which you will be paid a percentage of your book sales.

You've probably also heard about the elusive six-figure advances that authors are given for exceptional books, but these are hardly the norm. It is impossible to know the "average advance" for new authors because most writers are private about that information, but a previously unpublished author isn't likely to receive more than $10,000 for a first book.

The advance is usually calculated by the publisher based on the projected sales of the book. If the publisher believes that the book will sell well immediately, it might offer a larger advance to the author. However, if the projections are low or unknown, the publisher isn't going to part with six figures on the hope that the book will sell.

One of the main reasons why new authors need literary agents is for help with negotiating the advance. If you've never had experience with the publishing industry, it can be difficult to know how publishers work and you might wind up negotiating yourself out of a publishing contract. Most editors of publishing companies prefer to work with agents for that very reason.

The second thing you need to know about book advances is the concept of "earning back" your advance. As mentioned above, the publisher looks at a book advance as an investment. If the author is able to earn back his or her advance and begin earning royalties, he or she is more likely to receive a subsequent book contract.

All new authors are hoping for that enormous advance to launch their writing careers, but even though it isn't likely to happen, there are good things about receiving a small advance. Even if you are able to earn back a large advance, it will still be a long time before you start receiving royalty checks. If you are offered a lower advance, however, you'll start earning royalty checks much more quickly.

Further, even if your book advance is on the low side, your next advance can be much higher. An author that proves him or herself on the first book contract will receive larger advances in the future for subsequent publications.

Another reason why low first book advances are a good thing is you'll be more likely to earn back the advance in the first place. A previously unpublished author is difficult to market and it doesn't matter if you earn back a $5,000 advance or a $500,000 advance. Publishers will be far more likely to work with you if you have made them a profit.