Cover vs. Net

The Otter · Mar 14, 2011

So, getting royalties on cover price is better than on net price, since cover is more...what I'm wondering is, how much more?

I ask because one of my e-publishers recently changed up its contract, and now instead of offering 35% on cover, they're offering 45% on net. I'm not sure if this works out to be less money or about the same amount. I guess it depends on the individual publisher, but would this still be considered a decent rate or not?

Sydewinder · Mar 15, 2011

The Otter said:
So, getting royalties on cover price is better than on net price, since cover is more...what I'm wondering is, how much more?

I ask because one of my e-publishers recently changed up its contract, and now instead of offering 35% on cover, they're offering 45% on net. I'm not sure if this works out to be less money or about the same amount. I guess it depends on the individual publisher, but would this still be considered a decent rate or not?

As long as they lay out exactly what they consider "Net." I had a friend who got 50% on Net and it turned out to be about 15 cents a book because the publisher was taking all kinds of expenses off the top, even the cost of gas to drive to the post office to mail out review copies.

I think industry standards vary quite a bit, but I've seen it as low as 25% and as high as 70%.

The Otter · Mar 16, 2011

Thanks, Sydewinder. I'll ask into that.

thothguard51 · Mar 16, 2011

That is the thing about net, you as a writer have no control over what is deducted. If the contract stipulates certain items, like returns, postage, handling, set up cost, phone calls, bla bla bla... the publisher can still deduct all kinds of things and claim them as falling within the contract terms.

I want cover price, at least I will know what I am getting based on books sold...

Old Hack · Mar 17, 2011

If you sign a contract based on net, then you must ensure that net is very clearly defined. Otherwise you could end up being paid nothing.

Directrice · Mar 19, 2011

Net vs list vs ???

Old Hack said:
If you sign a contract based on net, then you must ensure that net is very clearly defined. Otherwise you could end up being paid nothing.

I hear that's the core operating principle of Hollywood!

Aaron Shepard's POD for Profit has some good guidelines on pricing. We don't always have too much choice -- all those online gateway "I accept" buttons -- but the ability of distributors to apply discounts, as well as deduct expenses, makes it worth the effort to read those contracts closely.

kaitie · Mar 19, 2011

Is it possible to negotiate that aspect of the contract? Particularly if you received a better deal on a previous book?

The Otter · Mar 19, 2011

Thanks, all.

It seems like that aspect of the contract is non-negotiable, unfortunately. I normally wouldn't sign a contract with royalties based on net, but I'd already published a couple of short stories with them (under the old contract terms) and was pleased with the results. So I'll see what happens, I guess.

veinglory · Mar 19, 2011

If the net is specified as distributor fees only, that is not uncommon at least with epublishers.

Cover vs. Net

The Otter

Friendly Neighborhood Mustelid

Sydewinder

The Otter

Friendly Neighborhood Mustelid

thothguard51

A Gentleman of a refined age...

Old Hack

Such a nasty woman

Directrice

kaitie

With great power comes

The Otter

Friendly Neighborhood Mustelid

veinglory

volitare nequeo