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

Questions and Thanks!

[(Anonymous)]

First, THANK YOU for shedding a little light on the problems you face. As an unpublished author, these are the problems I face, too. And, now that I know more about them, it helps me understand the why (or, perhaps more importantly, why not.)

I have a question, though.

What if I offered my $5,000 advance back to the publisher as an investment in marketing?

Obviously, I believe in my book. Why not let me put my money where my mouth is? Even if I don't break even with whatever royalties I earn, my goal is to build an audience and warrant a second and third book. That's where the money is going to be made anyway, eventually.

It seems unfair that it should still be so hard to get published by a major house when I'm willing to share the financial risk. Even beyond the advance, why not open a door for authors who are willing to fund some of the other expenses in return for your brand and expertise?

Jeff

Re: Questions and Thanks!

[alg.livejournal.com]

Authors "willing to share the financial risk" are not actually sharing the financial risk. It only seems that way. The advance is actually shorthand for "advance against royalties" -- the publishing company still bears 100% of the financial burden.