P&Ls and how books make (or don't) money

[alg]

Profit & Loss/Profitability & Liability: How Books Make (or Don't Make!) Money

A basic outline of what happens when an editor buys a book and wants to publish it. This is very much a basic look at publishing and publishing finance, with some explanation of terms commonly used by the marketing and sales departments.

Comments

[arador.livejournal.com]

So the author got a royalty of 8%...is that common? Seems somewhat low, since I know at least one author (relative) who gets ~18% royalties. Though the royalties probably vary based on the genre.

[alg.livejournal.com]

It is common NY big house publishing that on a mass original, the author receives 6% to 150,000 copies sold and 8% thereafter. It is just now becoming common NY big house publishing that on a mass market original, the author receives 8% to 100,000 copies sold, and 10% thereafter.

Bestselling authors receive a larger royalty.

Small press authors may or may not receive more. E-pubbed authors will often get up to 40% or 60% of the cover price -- less overhead = more profit.

[terebi-me.livejournal.com]

Damn, I wish I made 18%...