Question 19 of 117

What should I look for in a publishing contract?

A publishing contract is a legal document that controls the fate of your intellectual property for years -- sometimes for the rest of your life. Do not sign one without understanding every clause, and ideally, without a literary agent or publishing attorney reviewing it on your behalf.

I'm not a lawyer. What follows is practical guidance, not legal advice. But these are the clauses that trip up the most authors, and knowing what to look for can save you from a deal you'll regret.

The royalty structure.

Standard royalty rates in traditional publishing haven't changed much in decades. Expect roughly 7.5-10% of list price for hardcovers, 7.5% for paperbacks, and 25% of net receipts for ebooks (which works out to about 17.5% of list price). These rates are negotiable, especially the ebook rate -- some agents have pushed it to 30% or higher. Know what you're getting and do the math on what each sale actually puts in your pocket.

The advance.

Your advance is not free money. It's a loan against future royalties. If you receive a $20,000 advance, you won't see another royalty check until your book has earned $20,000 in royalties at the rates specified in your contract. Most books don't "earn out" their advance, which means most traditionally published authors never receive a royalty check beyond that initial payment.

This isn't necessarily bad -- a non-returnable advance is guaranteed income regardless of sales. But understand what it means: if your book underperforms, the publisher takes the loss, not you. If it overperforms, you might wish you'd negotiated differently.

The rights grant -- this is where the real money lives.

Your book has multiple rights: print, ebook, audiobook, foreign language, film/TV, merchandise, and more. These are called subsidiary rights, and they can be worth far more than the book itself. Traditional publishers will try to acquire as many of these rights as possible. Your job (or your agent's job) is to retain as many as you can.

Non-negotiables to fight for: Reversion clauses. These specify the conditions under which you get your rights back. The industry standard is that rights revert to you when the book goes "out of print" -- but with print-on-demand, books technically never go out of print. Push for a reversion clause tied to minimum sales thresholds: "If the book sells fewer than 250 copies in any 12-month period, all rights revert to the author." Without this, your book could be trapped in a publisher's catalog forever, generating $50 a year that you can't escape. Term limits. Avoid "life of copyright" deals if you can. "Life of copyright" means the publisher controls your book for 70 years after your death. Some publishers are moving toward 7-10 year terms with renewal options, which is far more author-friendly. Subsidiary rights. Try to retain film/TV rights, foreign rights, and audio rights. If the publisher insists on foreign rights, make sure the contract includes "use it or lose it" clauses -- if they don't actively sell those rights within a specified period (usually 2-3 years), they revert to you. Ebook rights. If you have a strong self-publishing platform, consider keeping your ebook rights entirely and only signing away print and audio. This is unusual but increasingly possible for authors with proven digital sales. The option clause.

Most contracts include an "option" on your next book, which means the publisher gets first look at your next manuscript before you can show it to anyone else. This isn't inherently bad, but make sure it's narrowly defined -- "your next book in the same genre" is fine; "your next book on any subject" is a trap that locks up your entire creative output.

Red flags in contracts:

Any contract that asks for "life of copyright" on all rights with no reversion clause is a trap. Walk away. Any contract with a "non-compete" clause that prevents you from publishing other books (even in different genres) is too restrictive for most authors. Any contract that doesn't specify exactly what the publisher will do for marketing is promising nothing -- "the publisher will use its best efforts to promote the Work" is legal language for "we'll do whatever we feel like."

The non-negotiable: Never sign a contract without an agent or publishing attorney. If you can't afford an attorney, the Authors Guild offers contract review services for members ($125/year for membership). The Alliance of Independent Authors is another excellent resource for contract guidance. A few hundred dollars in legal review can save you from signing away tens of thousands of dollars in rights. Think of it this way: you're not paying for legal advice. You're paying for the right to say "my attorney flagged this clause," which immediately changes the power dynamic in the negotiation.

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Resources Mentioned in This Chapter

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## Chapter 4 Checklist: Your Publishing Path

For the contrarian case for why self-publishing is the smarter business model for most authors, see Book Marketing Is Dead.

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# Chapter 5: Distribution & Sales

Getting your book into every reader's hands — and getting paid for it.

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The uncomfortable truth about distribution: most indie authors upload their book to Amazon, pick three random categories, and call it a day. Then they wonder why nobody is buying.

That is not a distribution strategy. That is a prayer.

Distribution is about more than "being on Amazon." Yes, Amazon is still the 800-pound gorilla — roughly 70% of all ebook sales in the US happen on the Kindle store. But the other 30% represents millions of readers on Apple Books, Kobo, Google Play, and library apps like Libby. Those readers exist. They have money. And most indie authors are completely invisible to them.

Your job as a publisher — and yes, if you are reading this book, you are a publisher — is to be frictionless. Make it as easy as possible for a reader to give you money, wherever they happen to be standing when they decide they want your book. That means being on every platform, in every format, in every country where someone might search for a book like yours. It means understanding how Amazon's algorithm actually works (not how the gurus on YouTube say it works). And it means building a direct sales channel that you own, so you are never fully dependent on any single platform's rules.

This chapter covers the nine decisions that determine whether your book reaches ten readers or ten thousand. We will start with the biggest one: should you go exclusive with Amazon, or distribute everywhere?

I have watched hundreds of authors go through this process, and the ones who get distribution right tend to share a common trait: they stop thinking like writers and start thinking like retailers. A bookstore owner does not stock one shelf and hope for the best. They think about foot traffic, shelf placement, window displays, and the path a customer walks from the door to the register. Your distribution strategy is the digital equivalent of that thinking.

The good news is that distribution is cheaper and easier than it has ever been. Draft2Digital will get you onto Apple Books, Kobo, and into libraries for free. IngramSpark has eliminated their setup fees. Shopify and Payhip let you run a direct sales operation from your laptop for less than the cost of a daily coffee. The tools exist. The platforms are waiting. The only thing standing between your book and global availability is you making the decisions in this chapter and executing on them.

Fair warning: there is no single right answer to the big questions in this chapter. But there is a framework for making each decision intelligently, and I am going to give it to you.

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