Agent's dead, what happens to my money!

What happens if you part ways with the agent, or they quit the field? Do you arrange payment directly from the publisher and then wrangle with them over errors? It seems as though the old agent would still have a stake in whether the statement is accurate, since their 15% depends on it, but can they still intercept the checks at that point?

If you secure a new agent, are they generally willing to help look over statements for your prior books, or do they only deal with the ones they've negotiated? (My head is swimming with complications, especially all the different potential sources for subrights money).

Related thought, though perhaps this is a different topic: what happens when an agent dies? Can somebody 'inherit' their income, the way authors' rights can go to their estates?

The way you describe this--"intercept checks"--makes me wonder if you suspect tomfoolery. I don't intercept checks from publishers. They're actually addressed to me, and there is a full time, highly competent bookkeeper here at New Leaf who makes sure you get your money in a timely fashion and correctly accounted. Every single agent in the world is REQUIRED to handle your money properly. If you suspect that is not happening, please email me for private guidance.

To your more general question:

The agent who sold the book is, in theory, responsible for explaining the royalty statement and handling any problems. More often than not, the default agent who fields question about statements from previous sales will be your current agent. My authors are used to asking me first. Sometimes they'll preface it with "I'm not sure I should ask you" but my stance is: my client, ask me first.

If your agent parts ways with you via death, the commission proceeds are part of her estate. The publisher can split the money and pay the estate directly, and pay you directly. You can request the split without the agent's consent if you need to. (It's your money.) Generally most agents have plans for what happens when they kick the bucket.  (Mine involve a large Viking funeral, professional mourners who wail and rend their garments, some sort of whisky bucket brigade led by Jeff Somers, and the lovely people at New Leaf seamlessly taking over my list.)

D&A(TE)

 My contract states that my advance is "payable upon the Publisher's acceptance for publication of the complete and final manuscript for the Work." We are now past all stages of editing (including copyediting) and the editor has stated that the book is ready for design. However, they've now pushed back the publication date significantly (I suspect it's because the press is struggling), and I still have not received my advance. Is there a standard definition of "final manuscript," or is this language as subjective as I fear? Until they formally accept THIS book, the 30-day window for my next book's "first look option" doesn't even begin. For that matter, neither does the 18-month publication window for my current book.

If they don't pay my advance in a timely manner, is this leverage for me to beg out of the contract? 

ah yes, the lovely D&A payment.

Delivery and Acceptance means you've delivered the manuscript and they've accepted it.
They've accepted it if they've sent it to production (ie sent off to be designed.)

However, absent language that says D&A is assumed 45 days after X event unless otherwise notified, it can be a chore to collect.

I'm assuming since you're writing to me that you do not have an agent.
(If you do have an agent, you should be discussing this with her not moi) 

What you do is write a firm, but polite, letter to the editor. You will say that since the manuscript has now been copyedited and put into production, you'd like to know when you'll receive your D&A payment.

Most likely this is NOT in the editor's hands, or under her control, so be gentle with her.

If she gives you a date, you confirm that date with her.
(Confirm means you email her back with "confirming that May 1, 2017 is the date to expect D&A payment.")

Most likely you'll hear "that's up to Accounting, I'll forward your email to them."

And that's when you say "I'd be glad to email directly, please let me know who to contact."
OR you scout around on their website, or in their catalog for a name.

You also need to check your contract for a clause that says if they don't pay you, rights revert to you. Most likely you'll know if it's there, cause it's one we always have to put in. Very few publishers start out offering that in their boilerplate.

If you hear nothing from the editor, there should be a name in your contract, and an address for legal notices.  Get in touch with the publisher. Again, polite but direct. Do NOT apologize for asking for your money.  This is a legal contract, and they owe you this money. 

If they can't pay their bills in a timely fashion, that's not your problem, and they shouldn't be balancing their books on your back.  You fulfilled your part of the contract. Time for them to fulfill theirs.

At some point you might need an attorney to write a sterner letter. Let me know if you need names. 

Funds remit clause

A new agent from a very respectable agency offered me rep last week. Like you suggested, I asked for the author/agency agreement and went through it. There's one thing that you suggest is essential in the agreement but is missing from mine: "Time frame in which the agency must remit funds." I know you said that the author should ask to have this put in, but the head of the agency is a member of AAR, and she also acts as a mentor to the new agent who offered. Should I still be insistent on adding this?

Yes.
AAR membership does not have the same force as a contract. It's good the agent is a member, but it's not the same as having this spelled out in a contract.

Our author/agency agreement specifies we remit funds no later than five days after the funds clear the bank. This is an absolutely normal clause in an agreement.

A contract sets out what to expect (or not) in terms of agency performance. Adding this clause does not mean you think they're going to stiff you, or be lax with your payments. Not at all. It simply sets out that they don't have to remit the check instantly but they also can't sit on it till the end of the month for convenience sake. (Some publishers "run checks" once a month which really plays merry hell with advance payments.)

Asking that this be included in the agreement is not a sign you'll be a troublesome client. Quite the contrary. It's a sign you pay attention to detail.

If the agent pushes back on this, watch for how they say it.  If it's akin to "how dare you" that's a problem.  If it's "our bookkeeper only comes in twice a month" then you simply adjust the time frame.

So, you think you'd like to make some money?

A recent comment on an earlier blog post about how money flows to writers prompted this blog post.  This is a refresher course in how that "big book deal" actually translates to your finances.

For the ease of discussion, I'm going to use ball park, round numbers as the advance amount.

When your brilliant and sharkly agent sells your book she calls you up and you both whoop with joy. Then you get down to brass tacks on how much that offer is for:

$10,000 per book for a two book deal.  That means the offer is for $20,000 (2 books x $10k each)

When the contract is negotiated and signed, you'll get a check for a partial amount of that. Depending on how the payout is structured on the contract it could be:

1. 1/2 on signing, 1/2 on delivery
2. 1/2 on signing, 1/2 on publication

3. 1/3 on signing, 1/3 on delivery, 1/3 on publication

4. 1/4 on signing, 1/4 on delivery, 1/4 on publication, 1/4 on paperback pub.

The HIGHER the advance amount for each book, the more splits you're likely to have.

Using our $10K book, here are the numbers:

1. If it's half on signing, half on something else:
 $10,000 divided by two payments =$5,000 for the on signing payment.
Less: 15% for your brilliant, sharkly agent is minus $750.

Total to you for for Book One on signing is $5000 minus $750 which is $4250.

BUT, there's more!  You ALSO receive the on-singing payment for Book#2.

Thus the check you get for on signing is $8500.  ($4250 for each of two books!)
Wheee!

The next payment you see is $4250 (Book 1, less commission) either on delivery or on pub
depending how your contract payout is set up.

The next payment is on delivery or on pub of Book 2, and that's another $4250.  And this is where things get tight. If D&A is delayed, or publication is moved, you might go a year between these payments.

I've seen all those things, and other calamities as well, happen.


Here are some other things that can muck up the works:

You sign a three book deal, but you can't deliver the third book for some reason.

In this case, you have to return that on-signing payment you got for Book#3, way back when you signed the contract.

And here's the kicker: we don't return the commission. You're on the hook for the entire amount.

Generally we can negotiate with the publisher about this, but this is something to remember when you're planning your finances.  Don't spend the money received on a book you haven't written. Better to drop that in a savings account or a interest bearing instrument until you know for sure you get to keep it.

Obviously this is more important for big ass deals of $100K/book than it is for $10K/book.

This also applies to translation and audio deals. 

(Generally, you don't have to give the money back if the publisher cancels the book.)

Here's another thing to remember: the advance money may be the only money you see on a book. The higher the advance, the more that has to be earned before royalties are paid. Royalties are paid to the author ONLY when the book has earned back the money paid out on the advance. I rep books that have never earned out, and some that earned out within weeks.  You might guess that the lower advance ones earned out faster--that's not always the case.


The next thing to remember is that the money from the publisher is all taxable. When you start your writing career, you're esssentially starting a small business.  You'll need to file a Schedule C with your income tax forms, showing how much you earned and how much you spent. It's entirely possible you'll spend more than you earned. That's one (of many!) reasons you keep very good records and don't get cutesy with your deductions.  The IRS looks askance at people who deduct their living room couch as "home office" even if that's where you do your writing. Also deducting trips to France as "research"is a really good way to get a second set of eyeballs on your tax return.  You want to be careful, and follow the law scrupulously here. A good tax preparer is essential.

And you'll pay tax on the money as you receive it, so that first big chunk o'advance: you'll pay tax on all of that, even though it's income on a book that isn't written yet.

Very few writers are living on what they make publishing books.

Any questions? Fire away in the comments column.