Each book and author is different so the financial arrangements vary from situation to situation:
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I am paid a non-refundable flat fee for creating a viable book proposal.
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Once the book is sold, the author and I split the proceeds in a way that we all deem fair. I have received 50% of the advance and royalties as well as 33%. Despite these percentages, I have also commanded a minimum fee per book regardless of what the publisher pays in advance. In some cases I get no royalties at all but a flat fee, producing a “work-for-hire.”
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This variability can depend on how famous my co-authors are – their media presence – and what I bring to the table–how much my reputation and connections help to make the sale. It can also depend on whether I step into a book already in progress or begin building the book from the ground up with my partner.
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I may be willing to trade away cover credit if my cut of the proceeds is sufficiently generous. In this case, I would be acting as a “ghostwriter.”
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I do not write on spec – creating a proposal and/or book and hoping to get paid once it is sold.