Wednesday, April 11, 2012

A Gang of Swindlers: Advances


You often hear about authors being paid an "advance," but just what is it? An advance is a pre-payment on your future royalties. This is the publisher’s swag on how many copies they think you’ll sell for a book title. You won’t get another royalty check until you exceed the sales forecasted in the advance. For many authors, the advance is the only money they’ll ever see. Most books only sell a few thousand copies. 

Read that again: most books sell only a few thousand copies. At most.

For first-time writers, your advance will be small, unless you are a major public figure. Bill Clinton got $10 million for My Life. His wife Hillary was paid $8 million for Living History. Alan Greenspan got $8.5 million for The Age of Turbulence. Senator Ted Kennedy received $8 million for True Compass (published posthumously). Tony Blair, former prime minister of Great Britain, got $9 million to pen his memoirs A Journey: My Political Life. Sarah Palin got $5 million for Going Rogue. How’d their agents get the advances so high? They sold the books via an auction until one bidder finally emerged as the winner. But unless you’ve been the head of state, you won’t see an advance anywhere near what these people made. 

The major publishers throw immense resources at books they hope will be blockbusters. The Wall Street Journal reported, “With such high stakes and money tied up in a few big projects in the pipeline, the need to score big with a next project becomes more pressing, and the process repeats itself. The result is a spiral of ever-increasing bets on the most promising concepts, creating a ‘blockbuster trap.’” (Anita Elberse, “Blockbuster or Bust,” WSJ, January 3–4, 2009). Publishing, like major league sports, has become a winner-take-all game, where a few authors get much of the publisher’s attention (and marketing dollars), while the vast majority of books are simply distributed with little fanfare or support.

I remember seeing a full-page, color ad in The Washington Post for David Plouffe’s The Audacity to Win: The Inside Story and Lessons of Barack Obama’s Historic Victory (2009). Plouffe was Obama’s campaign manager, and the publisher purchased this tremendously expensive advertisement. It must have cost them tens of thousands of dollars. It was an example of how high the stakes are – and how much the publishers need these expensive books to pay off.

Journalist and literary critic H.L. Mencken didn’t think too highly of the advance system, and he was a man who wrote some thirty books. He wrote in his memoirs:

"I have always refused to take advances on my books, and I have urged Knopf to cease giving them to other authors. More than once, sitting at the board table of Alfred A. Knopf, Inc., I have heard him report substantial payments to frauds who have made off without producing anything printable – payments that have swelled unpleasantly the profit-and-loss account of the company. He insists, however, that he must follow the trade practice, or lose good books. As for me, I’d rather lose them than pay tribute to a gang of swindlers. Very few really competent and worthwhile writers, I am convinced, would go away if advances were suspended – and the money now wasted upon them might be used to increase the royalties of men and women who produce profit for the house. But the publishing business, like every other American business, is burdened with many evil precedents and traditions, and such vain expenditures are among them."
H.L. Mencken, My Life as Author and Editor* 

Mencken had a way with words, didn’t he? A “gang of swindlers”… that’s us writers!

Publishers for years have been talking about reforming the advance system, and advance payments are getting smaller for rank-and-file writers. Yet they haven’t been able to make a clean break from this system: whenever a big name author throws a book into the ring, the major publishers all bid on it, sending the advance price higher and higher.

I’m no public figure, though I have published three books. So what kind of advances have I been paid? Well, my first book, The Prohibition Hangover, got a four-figure advance. My next two books earned no advances at all: the History Press simply doesn’t pay them. I make it up with royalties on the back end. 

*Mencken’s memoirs weren’t published until 1992. He stipulated in his will that the memoirs were to be embargoed for thirty-five years, and that way all the people he wrote about would be dead. Jonathan Yardley, a book reviewer for The Washington Post, edited the memoirs. In that tome I also found Mencken’s recipe for the “Coffin Varnish,” a boozy martini, and included this in Prohibition in Washington, D.C.

"Some time before the Thirteen Awful Years [Prohibition] began, we had acquired in Del Pezzo’s restaurant, then in 33rd Street opposite the Pennsylvania Station, the formula of a cocktail that we called the Coffin Varnish – one-third vermouth, two-thirds gin, and a dash of the Italian bitters, Fernet Branca – and this we served to our guests." 


Cheers!

Garrett Peck

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