Authors to be paid £24k salary in new publishing model

[The Big Peat]

As I said, it could just be my cynicism, but it could also be my business experience smelling something off. I would encourage someone considering this to do an absolutely monstrous amount of research into the company to make sure they have a solid track record, and read through that contract, preferably with the help of an attorney, with a comb of the finest of fine teeth.

They're a brand new division of a hedge fund founded by a guy who's published fiction himself, for what it's worth. Not sure that says a huge amount either way, except at least you can be sure this isn't the idea of some bright spark with too much money and no real life experience.

 

[Brian G Turner]

Authors will receive fifty per cent after all costs are taken into account

This statement is a flag, because it's easy for creative accounting to ensure that no project is ever profitable. I'm under the impression that major film studios routinely do this so that blockbuster films technically do not make a profit for tax purposes - which would also mean no profit for royalties.

Overall, though, the idea sounds too good to be true - but all too often I've seen well-meaning people with well-intentioned ideas look to change publishing, only for it to all break down after a couple of years. We've seen that for ourselves on chrons.

 

[Joshua Jones]

Surely identical to a trad publishing house when a long term relationship with an author breaks down.

However, I agree totally to take a cynical and thorough approach. Something that applies to taking any contract.

I note that they themselves state you should get a lawyer look over the contract!

Well, that is good. At least they are giving the appearance of not wanting to take advantage of others. And, they may well be well meaning. Unfortunately, well meaning does not imply competence, and to the point made by @The Big Peat, neither does a history of being an author (though that does carry a higher probably of competence than someone with no experience in the industry). I think I would want to see some examples of books they published and the results they achieve first.

Besides, they have already made it clear that one isn't missing the boat if they aren't one of the five, as they want to hire 95 more later. If they get their five, the five are happy and prosperous, one could jump on at #24. If not, one would be glad they didn't jump on the train.

Like @Brian G Turner said, it sounds too good to be true. To be frank, it sounds like either a Nigerian Prince type scam or someone with more dollars than sense (the pun doesn't work with British currency, I am afraid). I hope I am wrong and this model takes off, but I am just too much of a skeptic to be first in line.

 

[Venusian Broon]

This statement is a flag, because it's easy for creative accounting to ensure that no project is ever profitable. I'm under the impression that major film studios routinely do this so that blockbuster films technically do not make a profit for tax purposes - which would also mean no profit for royalties.

I agree, but again we'll all seen traditional publishers push the definitions almost to breaking point as stated in a contract in order to get the most value for themselves. In fact I believe I've seen almost identical statements in discussions involving contracts with publishers.

It is related to the question of 'how many authors earn out their advance and actually start to receive royalties?' We don't have a firm figure on how many do - I've seen quotes anywhere from 'less then half' to only 2%. It's a difficult thing to get the real figure.

If the average advance today is around about 8,000 USD and if it is true that most authors never earn their advance out, then I'd suggest that getting paid 63,300 USD over two years to write the novel will mean that, unless you write a bone fide bestseller, you should realistically expect never to see any royalties!

Overall, though, the idea sounds too good to be true - but all too often I've seen well-meaning people with well-intentioned ideas look to change publishing, only for it to all break down after a couple of years. We've seen that for ourselves on chrons.

Who knows? Perhaps he is seriously loaded - I would guess if it really does work as they suggest it will, it would need a minimum of 2.4 million pounds a years just to pay the aspiring authors - and he needs a side hobby to keep him occupied after doing some hedge fund work?

 

[Venusian Broon]

Besides, they have already made it clear that one isn't missing the boat if they aren't one of the five, as they want to hire 95 more later. If they get their five, the five are happy and prosperous, one could jump on at #24. If not, one would be glad they didn't jump on the train.

I'd assume they are 'dipping their toe in the water' at first to see what happens. There is an implication that they have a strong idea of what/who they want. If it were me doing this, I'd try it out on a few initial people and see if it works.

Like @Brian G Turner said, it sounds too good to be true. To be frank, it sounds like either a Nigerian Prince type scam or someone with more dollars than sense (the pun doesn't work with British currency, I am afraid). I hope I am wrong and this model takes off, but I am just too much of a skeptic to be first in line.

With no real idea about this person/company/potential scam, I'd like to think more cash than sense and an urge to do something different. So a rich man's hobby?

Mind you, I worked for a good fifteen years in the City and around brokerages and hedge funds, so they will be razor sharp and shark-like when it comes to the financials, and I'd suggest that they less philanthropic than they seem to suggest - so bear that in mind. On the other, there is so much money sloshing about there that losing a couple of million pounds a year to a hundred budding authors with potential to perhaps earn that back and profit, can be the same order of magnitude loss as rounding errors too small to worry about in one days trading for a big fund/bank.

There's plenty of vanity presses and other dreadful publishers doing 'Nigerian scams' out there in the publishing world anyway .

 

[The Big Peat]

I'd rather have a red flag over royalties beyond my £24k a year than a red flag over my royalties beyond my £6k advance.

 

[Joshua Jones]

I'd assume they are 'dipping their toe in the water' at first to see what happens. There is an implication that they have a strong idea of what/who they want. If it were me doing this, I'd try it out on a few initial people and see if it works.



With no real idea about this person/company/potential scam, I'd like to think more cash than sense and an urge to do something different. So a rich man's hobby?

Mind you, I worked for a good fifteen years in the City and around brokerages and hedge funds, so they will be razor sharp and shark-like when it comes to the financials, and I'd suggest that they less philanthropic than they seem to suggest - so bear that in mind. On the other, there is so much money sloshing about there that losing a couple of million pounds a year to a hundred budding authors with potential to perhaps earn that back and profit, can be the same order of magnitude loss as rounding errors too small to worry about in one days trading for a big fund/bank.

There's plenty of vanity presses and other dreadful publishers doing 'Nigerian scams' out there in the publishing world anyway .

I work in non-profits; no one is just looking to do nice things for people except some religious leaders. Businesses exist to make money, so I have every expectation that this organization will turn a healthy profit from the authors it employs, one way or another. The question is if the authors will as well, which seems to me to be the difference between a healthy partnership and a scam. And, the idealist in me says this is a great idea, while the pessimist in me says it is a scam, and the realist says it is better to be in the 95 they hire later than to risk being in the initial 5. And, then the philosopher in me kicks me in the shins and says that everyone couldn't do that, or there would never be a 95, while the writer in me is just screaming for some affirmation... yeah, it is getting crowded in here...

So, anyway, color me skeptical, but if it works out for others, I may consider it.

 

[Brian G Turner]

they will be razor sharp and shark-like when it comes to the financials, and I'd suggest that they less philanthropic than they seem to suggest - so bear that in mind. On the other, there is so much money sloshing about there that losing a couple of million pounds a year to a hundred budding authors with potential to perhaps earn that back and profit, can be the same order of magnitude loss as rounding errors too small to worry about in one days trading for a big fund/bank.

Totally makes sense - this is an investment strategy, and presumably the first ones signed on will have a proven track record in fiction sales.

However, I'd love to see it take off anyway - the idea of a guaranteed income to dedicate time for writing is quite appealing.

 

[HareBrain]

I have every expectation that this organization will turn a healthy profit from the authors it employs, one way or another. The question is if the authors will as well, which seems to me to be the difference between a healthy partnership and a scam.

They're being paid a salary, so why would they need to "turn a profit"? Is a corporation that pays its staff salaries and doesn't also give them a share of its profits running a scam? Yes if you're a Marxist, but most people wouldn't think so.

This scheme is effectively buying the risk from the author. I think that's fair enough. A few of its authors might lose out compared to going it alone, but I think most will gain. As for de Montfort's motives, I'd guess he's rich enough to take the financial hit and fancies seeing if it'll work. You don't go into hedge fund management without being a gambler.

 

[The Big Peat]

I work in non-profits; no one is just looking to do nice things for people except some religious leaders. Businesses exist to make money, so I have every expectation that this organization will turn a healthy profit from the authors it employs, one way or another. The question is if the authors will as well, which seems to me to be the difference between a healthy partnership and a scam. And, the idealist in me says this is a great idea, while the pessimist in me says it is a scam, and the realist says it is better to be in the 95 they hire later than to risk being in the initial 5. And, then the philosopher in me kicks me in the shins and says that everyone couldn't do that, or there would never be a 95, while the writer in me is just screaming for some affirmation... yeah, it is getting crowded in here...

So, anyway, color me skeptical, but if it works out for others, I may consider it.

24k is more than what most authors make insofar as I'm aware. If this works, he's already ahead of the trad publishers in terms of healthy partnership.

Maybe most full time writers make more than that... but it's taken them a long way/surprise big hits to get there. Anyone on this gets a short cut to being a full time writer. Swings vs roundabouts. And either the profit sharing beyond costs work, at which point you'll probably end up ahead of the game, or it doesn't, at which point you quit to join a trad publisher once big enough after a two year gap. My guess is the profit sharing will work, because if this is profitable, if he discovers a bigshot author he needs to keep them to tentpole everything else. Either way, its not a horrible position. Maybe not as good as it could be... but, well, shortcuts are never free.

 

[Jo Zebedee]

Is take 24k to write my next novel in a year. Just sayin’

 

[Joshua Jones]

They're being paid a salary, so why would they need to "turn a profit"? Is a corporation that pays its staff salaries and doesn't also give them a share of its profits running a scam? Yes if you're a Marxist, but most people wouldn't think so.

This scheme is effectively buying the risk from the author. I think that's fair enough. A few of its authors might lose out compared to going it alone, but I think most will gain. As for de Montfort's motives, I'd guess he's rich enough to take the financial hit and fancies seeing if it'll work. You don't go into hedge fund management without being a gambler.

Well, I am certainly not a Marxist, and I am not suggesting that this or any other company shouldn't turn a profit. Profit is what makes the business world turn. Nor am I suggesting that a business which doesn't profit share is running a scam.

What I am suggesting is that a good partnership is one where everyone wins. One where the author is retained for several years at minimum, sees steady pay increases, and actually earns what is promised while the publisher makes gobs of money also is a solid arrangement. One where, for example, the author writes a first draft of a story in 3 months and is fired for "not meeting targets", only to see his/her book on the shelves 6 months later, edited and under the name of the former manager, with no realistic way of buying it back, is not. Alternatively, it isn't a good arrangement if the staff cannot market a book they asked for, and the author is held into a 5 year non-compete contract, ensuring they cannot publish anything during that time, and then gets blamed for the book not selling well.

Without looking at the contract, I have no idea what could go wrong, or if they are well meaning or not. Without looking at track record, I cannot assess how competent they are. And that is why I urge caution.

Regardless of the legitimacy or lack thereof with this organization, it seems like a great publishing model. A publisher gets an in house writer with undivided attention, and a writer gets an in house publisher who will always review manuscripts. I like the idea, even though I am cautious toward this particular version of it.

 

[The Bluestocking]

As an artyfarty type I'm skeptical about the idea of a production line, but maybe I should have an open mind.

It's been done before, I think. Mainly for ghostwriters. They did it for the Nancy Drew and Hardy Boys series (the production line tactic, not the annual salary).

 

[Phyrebrat]

As somone who worked in a (well-paid) salaried creative industry and left because of the thumbscrews, this set up sends shivers down my spine.

Just not for me.

pH