Thursday, July 9, 2009
Frequently Asked Questions: Contract Terms and Marketing Plans
Not surprisingly, since announcing Quartet Press, the most popular question we’ve received from prospective authors and others is “What are your contract terms?” – we’ve decided it would be a good idea to summarize our terms here on our blog. Since the second most frequently asked question, “Marketing? Tell me you won’t throw us out there to sink or swim…,” speaks directly to the relationship we want to have with our authors, we’ve addressed that here as well. Third is “Are you hiring?”
That’s another post for another day.
Contract Summary
While we’re still doing a little “i” dotting and “t” crossing (indemnification clauses anyone? fun stuff), we thought it was time to unveil some of the basic terms of our author agreement. We’d also like to call your attention to the Submission Guidelines located here as a companion piece to this.
Pending final review from our counsel, the following are the base terms in our agreement:
- Grant of Rights: Worldwide English language rights for all digital formats; audio rights; paperback rights for traditional print or Print-on-Demand.
- Term of Contract: Five years with an option to extend under same terms and conditions for an additional five years.
- Royalties: Paid quarterly based on Quartet’s actual receipts on sale or license of the title.
- 35% Royalty based on digital sales, escalating to 40%.
- 12% Royalty based on print or audio sales.
- No initial advance to author.
- Sequels/Additional Works by Author:
Quartet gets right of first refusal on sequel but otherwise author is not obligated to submit any future work to Quartet. Authors are not obligated to submit sequels or additional works (see discussion about this change here, because we certainly hope you like working with us enough to want to consider the relationship!) - Editorial/Art/Title: Quartet will assign (at its expense) a qualified editor to work with author to assist in developing manuscript and to ensure quality. Quartet will consult with author regarding title, cover art and descriptive copy and will assign (at Quartet’s expense) artist(s) and designer(s) to develop cover and cover copy as well as any supplemental marketing materials. Quartet retains final approval of title, final manuscript, cover art, cover copy and marketing materials.
- Formatting/Distribution: Quartet will make all titles available in as many digital formats as commercially viable. Formatting and distribution to vendors is the responsibility of Quartet and will be at Quartet’s expense.
- Other: Terms concerning Delivery of Work, Promotional Rights, Copyright, Warranties and Indemnification, Out-of-Print Termination and Rights Reversion, Confidentiality, Supervening Events, Construction, Assignment, Breach, Cure, Waiver and Remedy and other matters will be substantially similar in all material respects to standard industry practice for both print and digital publishers.
We want a relationship that’s fair to both parties, provides incentives for all of us to work for success, and clearly outlines what we expect from authors and what authors can expect from us. We intend to meet our commitments to our authors by following both the letter and the spirit of the agreement.
We are guided by the principle that working with our authors to build successful, sustainable careers is in our best interest as well.
Sales/Marketing/Publicity
A huge part of our marketing philosophy is: the book itself is our most important piece of marketing collateral. We place a high value on quality and production. Our ebooks are edited, designed and formatted by experienced and talented professionals.
- Customized Approach: At Quartet Press, we do not believe in a one-size fits all approach to author and book marketing. While many of our titles will share similar markets, and our primary sales outlets will be online, our marketing staff will work with each of our authors to determine the best marketing and promotional strategies for their books, and will pursue those strategies aggressively.
- Comprehensive and Continued Marketing/PR Training and Support for All of Our Authors: Quartet is committed to empowering our authors with the tools and skills they need to actively engage with readers, book bloggers, and all other members of the online book community. Training and support will be made available to our authors, including creation and maintenance of online author presences (blogs, Facebook pages, Twitter accounts, etc.).
- Quartet’s Own Online Community Outreach and Cultivation: Quartet strongly believes cultivating the online reading community will be a powerful component of our (and our authors’) success. The QuartetPress.com site will be a hub for the book community, and will be designed to encourage community discussion about Quartet books and authors. Quartet will also maintain an active presence on all applicable social networking sites, engaging with community about our books and authors, as well as about the publishing industry in general.
- Talking About the Books: Excerpts, author interviews, live webcast author chats, Twitter book club events, book discussion podcasts, author videos, and more will be utilized in spreading the word and encouraging conversations about Quartet’s books and authors – on the Quartet Site and throughout the Web.
- Traditional and New Media Relations: Quartet’s marketing and publicity staff will actively seek editorial and review coverage of our authors and titles in traditional and online media outlets. While our business is online, we know the importance of reaching readers where they are.
- Live Event Community Outreach: Quartet will ensure representation of titles and authors at applicable industry events, conferences, book fairs and festivals. In addition, Quartet will provide event support for authors – soliciting speaking engagements, book “signings” and other relevant live promotional events.
- Retail Presence: In addition to our own online, secure shopping site, we are currently working to secure distribution through all of the major ebook retailers.
- Availability of Printed Books: As we explore print distribution options, we will offer a print-on-demand option for readers who prefer to read in print.
And, of course, we’re always in pursuit of special sales opportunities and rights’ sales opportunities where and when appropriate. We are active in the cutting-edge publishing community, always test-driving new technology and opportunities to find innovative ways to connect books and readers.
So, enough about us. What do you want to talk about?
Kindle, baby!
So. I’ve noticed that a lot of stuff gets Kindled at a very fast pace if there’s a demand for it. Will Quartet Press books be Kindled? If so, will the royalty rates change? I think some epublishers pay less to authors if a Kindle version is sold, so I’m curious.
And if that’s something we cannot discuss for a blog, just ignore me.
Jill — I would never ignore you! I’m looking forward to seeing you next week.
We are absolutely planning to be in the Kindle store. It’s great exposure to a broader reading community, Kindle sales (both reading device and actual books) are increasing, and to ignore it would be doing our authors a disservice. Our contract states we pay 35%, etc on the amounts received. That amount depends on our relationship with Amazon, which is still being worked out (ah, the wheels of commerce, they turn far more slowly than I’d like!). Because Amazon is, shall we say?, aggressive in their practices, we will also make Kindle-ready versions available via our website.
Royalties are calculated on the amounts we receive, whether it be from direct sales on our site (the so-called “cover price”) or the amount received from third party distributors.
Kassia,
I’m fascinated by your posts of setting up Quartet and I very much appreciate the business transparency you foster. It’s refreshing and educational and engaging. Hope to meet you this week in DC!
Melissa
Thank you. I know I’ll be a bit scattered (it always seems like I’m going in a thousand directions during the RWA conference), but if you see me, grab me and say hello. Kat may be organizing an impromptu tweetup, and you can always @ me via the @booksquare address or all of us via @quartepress address.
Greetings,
I’d like to ask some questions about advances. I understand that e-publishers generally don’t pay an advance on royalties, and until recently, that made sense. Books were released within a month or two of contracts’ being signed, and royalties were paid on either a monthly or quarterly basis–no point in paying an advance when the first royalty check might arrive at the same time. As e-publishers have grown, however, and their lists of titles have increased, it’s become more common for books to be released four, six, even nine months after acceptance.
Understandably, authors are distressed at having to wait as much as a year (9 months + 3-month quarter) before they receive *any* money for work they finished eighteen or more months earlier. Many writers’ organizations are currently engaged in vigorous debates about that very issue, and many authors are unwilling even to consider submission to **any** kind of publisher that doesn’t pay an advance for the simple reason that they consider such payment a sign of professionalism–not to mention, they need to eat.
I’ve heard both sides of the argument, and I believe there *must* be a middle ground–a solution that would entice multi-published authors with large fan bases (authors any reasonable publisher would love to have) to submit their work to e-publishers. Toward that end, I have several questions; to wit:
How soon after acceptance does Quartet plan to release books? Are you willing to include in the contract a clause that sets a time limit on how long you have to release the book, such limit to be appropriate to the no-advance policy (similar to standard print-publishing contracts that require publishers to publish titles, usually, within twelve to twenty-four months or revert the rights)? Later, as Quartet’s schedule fills and books have to be released months after acceptance, will you consider altering the contract to pay advances? Are you willing to consider a contract clause that stipulates a title will be released within a given amount of time (say, 3 or 4 months after acceptance of final ms.–i.e., post revision), and if it isn’t, an advance will be paid to the author?
I look forward to hearing your responses to these questions–and to any discussion about the issue that might ensue.
I’d also like to take this opportunity to offer my sincere best wishes for Quartest’s success. I, unlike many of my colleagues (multi-published authors), believe that e-publishing is not merely the future, it’s the present–and that the entire book industry may very well hang on its success.
Hi Mary, Lots of questions. Lots of responses. And (I will note for the record!) I am not speaking for other publishers. I will also note (for the record!) that things are changing rapidly in this market. Today’s answers might be different tomorrow. But I am happy to have long, detailed discussions about this. Which might be too much information about me .
Every Quartet partner is pro-advance. Right now, however, we are in start-up mode, and, as such, want to make sure we are doing right by our authors. This means making sure we invest our capital in systems (see: discussions about royalties, etc) and marketing and the myriad other things that go with starting a new business. We believe that part of being author-friendly is being fiscally responsible. We also believe that part of being author-friendly is making sure we support our books.
While the no-advance model isn’t limited to digital publishers (no or token advances are not atypical of small independent press), I’d note that many of the traditional publisher we discuss in the world of romance are long-established. They have decades of backlist supporting their cash flow, thus allowing them to leverage the sales of other authors to pay new author advances. It’s not about capital; it’s about using the capital you have in a smart way. While I cannot say for sure, I believe it takes at least five years or so before a publisher has that kind of backlist support. Once we feel we have achieved a smart balance between supporting our contracted authors and offering new authors advances, we will revisit this policy. Being smart about money is good for everyone.
So moving on, I cannot answer the question of how long between acceptance and publication with any definitiveness. Right now, we are acquiring titles to be released at launch through, oh, the first quarter of 2010. I can say I’m willing to set a time limit between contract and release, but would also note it’s a two-way street. We can set schedules, but authors need to be timely and realistic about their ability to turn around revisions, etc. As we fill out our list, it’s possible the time to publication can extend to six or more months. It’s not that we want to tie up your money (because, believe me, I get that!), but it’s that once we move into a regular release schedule, we’ll be looking further and further into the future.
If it helps you in your decision making process, in the current digital publishing environment, time from contract to release is much faster than it is the traditional publishing world. Likewise, the time you wait to get paid on sales is accelerated. Setting aside the advance (which we all know is shrinking in this current market), because we are reporting on a cash basis, we’re reporting your results in a more timely manner and paying in a more timely manner (not to mention not holding back reserves for returns, etc, which can take some time to liquidate — one of the ways traditional publishers manage their own cash flow). Having been on the liquidation of reserves side of thing, the time frame, unless very specific in the agreement, is dependent upon factors such as how long it takes for customers to report returns. You’d think this stuff would be tight, but it’s not. Those reserves are, frankly, your money being withheld from you. I’m not saying it’s wrong on the part of your publisher, but when it comes to considering the best choice for your career, consider the time these reserves are held.
I would strongly advise every author to make decisions about her (or his!) career based on factors that meet their own personal goals and career path. Digital publishing offers specific advantages, traditional publishing offers specific advantages. Sometimes there’s overlap, sometimes there are distinct differences. You note at the end of your comment that epublishing is part of the present. I agree. It’s not the future. It’s part of the mix. Authors must make decisions that work for their careers based on all available information.
As we move past our start-up phase and grow, we will be reviewing and revising our business plan. We fully anticipate Quartet being successful. We wouldn’t be doing it if we didn’t believe we have a viable business — a business that meets our core mission, a mission that includes being true to the reader, the author, and the story — in place. While I know the arguments on both sides far too well, I also know that, for our authors, being smart about how we run our business is important.
Thank you for posting so many of your contract terms.
Can you tell us more about how you would determine a book has gone out of print? I’m woefully uninformed as to how digital publishers determine OOP status and how an author would go about reverting rights when the book is (one presumes) always digitally available…
Kelly — Instead of trying to define out-of-print in our agreement, we are acquiring books for specific time periods. In the digital world, as long as a book is available, it can be defined as “in print”, so we agreed that a specific time period was the best way to put parameters around this concept. Other publishers work differently, so (ahem!) I advise authors to pay attention to how out-of-print, etc are defined in agreements. Ask lots of questions!
When an author signs a contract does the book come out simultaneously in print and ebook? Or is it based on number of ebooks sold?