jeseymour:
Is there anything in that contract that raises a red flag?
It's not a red flag, but the sample contract is for worldwide rights (Clause 1), when at most they should be taking US and Canada. If they can't sell you in those territories, then they're not going to be able to anywhere else.
Clause 2 states that the agreement will only last 3 years. Given that it's POD, I'd be more relaxed about having some kind of time limit on the contract, but if the only person doing active marketing is you, then I'd be tempted to ask for a lower period because if it should happen that your efforts secures the interest of a commercial publisher (and without wishing to cause offence, the chances are low), then you're better off getting out sooner rather than later.
Clause 3 - the Publisher's termination rights are widely drafted and I don't see why they need a reference to "excessive returns" given that they're POD.
In Clause 3, the provision requiring you to pay £400 in the event that you require early termination should be struck out. It's a POD operation, so there shouldn't be any costs.
Clause 4 - I'd want clarification as to how this relates to the term of the contract. It seems to me that the Contract commences for a period of 3 years from the date of signature, but they don't have to publish anything for 18 months from the date of approval and acceptance of your final manuscript. I'd clarify when that is intended to be because otherwise, they could dick you around for 2 years and then not be obliged to publish until after the 3 year term has already expired.
Clause 6 - like everyone else said, royalties shouldn't be on net, they should be on gross and again, it's POD so I don't see how the returns model applies.
Watch the provision that says you don't get royalties on copies that you buy yourself. In practice if this "publisher" has no distribution, you're going to have to buy copies yourself and hawk it. The only way for you to make money in that situation is to sell for more than the cover price and if the cover price is high, then you're going to have problems sustaining a margin.
Clause 7 - royalties won't be paid until the amount reached $25. Given that this is POD, and given that you'll most likely be doing the selling, I'd want that reduced to $5.
Clause 9 - for the reasons set out above, I'd want that threshold lowered to $25.
Clause 11 - you shouldn't be required to provide cover art at your own expense.
Clause 12 - failure to return galleys within 20 days should not trigger termination.
Clause 14 - you shouldn't have to pay for author copies if you want to submit your book to competition or contests. Also, there's no mention in there of what the Publisher is going to do to promote your book.
Personally, I'd counsel against signing with this company for the same reasons set out by other people above (i.e. no apparent track record, plus they're not paying an advance), but it's your choice.
MM
