What are Book Royalties and Book Advances?

Book publishers compensate writers for their work through the use of book royalties and book advances. The following is a concise explanation of what and how book royalties and book advances function.

Book Royalty

The copyright holder (writer) contracts with a book publisher to publish a book. This sum is referred to as royalty and is calculated as a ratio of sales. Majority of the trade book publishers, it is customary to pay royalties on the book list price.

As with other contract provisions, the royalty rates are specified in the book contract. Royalties for numerous editions of a work are standardized by book publishers, such as paperback, hardcover, etc.