Author funded publication

24.07.19

Have you received an offer of publication from a ‘contributory’ or ‘partnership’ publisher? Before you break out the bubbly, the ASA encourages you to understand their offer. Over the last year particularly, many ASA members have contacted us confused as to what a contributory offer entails. We interviewed our contract assessor, Olivia Lanchester, to get her views on author-funded publishing.

OL: We’re seeing a growing number of author-funded publishing contracts. If the terms are clear, this model might be attractive to some authors. I’m concerned about the lack of transparency, lack of author input and control and hugely variable quality of services which I see. It always pays to do your homework before paying for publication.

I understand why authors see the words ‘Publishing Agreement’ and break open the champagne. The word ‘publisher’ carries a weighty, impressive promise. From speaking to many of our members, I have concluded that they often have the same expectations from author-funded publishing as traditional publishing. They are two completely different models. Where authors are funding publication, I would prefer the contract to be titled ‘Publishing Services Agreement’ or the publisher to call themselves a ‘service provider’. This would help manage expectations from the outset.

I encourage authors to exercise caution in relation to any arrangement where the publishing service provider is making money out of you rather than out of book sales. Is your manuscript being critically assessed with the commercial eye of a traditional publisher? Or is your manuscript being accepted in order to collect the publishing fee?

OL: In the offers we’ve seen, the services are typically not detailed, the overall cost is not broken down and the financial risk to the author is almost never adequately explained.

I have yet to see a single offer through our Contract Assessment Service that explained to the author their ‘break even’ point. Rarely is the information necessary for the author to be able to calculate their break even-point provided. I routinely recommend that authors seek more information. If you are funding the costs of production, shouldn’t you know the cost of editing the book, the cost of designing the book, the size of the print run and, in fact, whether any stock will be printed at all, the proposed marketing activities, the recommended retail price of the book, the print cost, the revenue per unit sold, how many units must be sold to break even? In what other business would you put up the money but be kept in the dark? 

Many of our members have expressed confusion about print on demand (POD), which is common in author-funded publishing. POD allows the publisher to avoid the significant cost of a large print run but means that your book won’t be stocked in bookstores. It’s crucial to understand this. Does POD work for your genre? If you are a children’s author or illustrator relying on print sales of your picture books from browsing customers, then POD may be totally inappropriate.

OL: Authors are expressed to be ‘partners’ or ‘contributors’ in author-funded publishing but typically have very little control. In the contracts I’ve seen, they will not have editorial control, can’t veto the book cover, set the price or make any production choices. They just put up the money.

Don’t forget that the book will be branded with the publisher’s imprint or trade mark, and the publisher will own the IP (intellectual property) in the design and lay-out, and any physical stock is owned by them. You may have paid for publishing services but if things go wrong and the agreement comes to an end, what will you walk away this? Not a finished file, not the physical stock. Can you afford to make a loss? Make sure your expectations are realistic.

OL: In my view, traditional publishers who bear the cost of publication ought to be granted a reasonably long licence by the author which gives them the opportunity to recoup their costs and reward the risk they’ve taken on the book.

A service provider, however, has not assumed the risk of publication and therefore it would be reasonable to grant a far shorter term; perhaps two to three years. That way, if the book is not selling, you can walk away after a relatively short period of time.

OL: Inspect books previously published by that publisher. What is the final quality like? We’ve received complaints from members who have used overseas service providers and found their services to be extremely disappointing: little or no editing, basic book cover, poor lay-out and limited marketing. Speak to other authors. Read reviews. Shop around. Don’t rush in. Get advice through the ASA’s Contract Assessment Service.

I have no objection to profit share arrangements where the terms are transparent. If an author can afford to invest in an opportunity to get their work to market and understands the risks, that’s great. In Australia, Impact Press does a great job of breaking down its costs to authors and producing quality books; there is true transparency and the author can therefore make an informed decision.

An ethical profit share arrangement, in my view, is one which takes into account the risk and investment borne by both parties and sets corresponding returns. And corrects the information asymmetry seen so often in publishing where authors simply don’t have the same level of understanding when they negotiate and sign. 

If in doubt, get help. The ASA is here for our members or you can seek advice from a copyright lawyer or from Arts Law. 

Read more about our contract assessment service here.