Dear O'Abby: Does this contract clause sound okay to you?

 Dear O'Abby,

A small press has accepted my novel for publication!  I was over the moon to finally be on my way with the writing career I've dreamed about since I was a little kid. But then the contract arrived and now I'm not so sure.

Most of the contract looks pretty standard and nothing stood out to me as being a red flag.  Until I reached the termination clause and found that should I wish to terminate my contract with the publisher, they will charge me a termination fee.  Plus, they will charge me for any editing, cover design, formatting and marketing they have done to date.  And any other "title-related costs".

Is this standard in publishing contracts?  Or is it something I should be wary of and run as far as I can from this publisher?  I'm obviously not planning to terminate my contract early, but you never know what might happen in the future...

Kind regards,

Future Uncertain

Dear Future Uncertain,

A termination fee is not always a red flag.  Sure, it's hard on an author who wants out of their contract, but if a publisher does a good job publishing a book and invests time, money and effort into editing, design and marketing, they probably do have a right to try and make some of that cost back if an author decides to walk before the book has earned back the cost of producing it.

Where termination clauses cause issues, is when publishers use them as a tool to punish authors, or to hold them in house even when they are unhappy with the way the publisher has handled their book(s).  And to me, that very vague "title-related costs" does sound somewhat ominous.  Unless a publisher can outline exactly what costs you will you will be liable for, I'd be uncomfortable.

Ideally a publisher will work with an author if they are unhappy and try to resolve any issues without invoking a termination clause.  Generally speaking, if the contract period is for a reasonable length of time, a clause stating an author can terminate after a certain period is more fair in that it gives the author a way out, yet also gives the publisher time to earn back some of the money they spent on producing the book.  Do check that part of the contract too - a life-of-copyright contract with no clause to terminate once sales drop below a certain level is also a big red flag.

I'm not a lawyer or an expert in publishing contract language, so I would suggest getting someone with real experience in this area to look over the contract if you're worried.  I know it will cost you some money, but potentially less than if you get caught in a bad contract you may want to get out of later.

And for some more information, here's an article I found about publishing contracts and clauses to look out for.  Please check to make sure your contract doesn't have any of these clauses as well. 

Best of luck!  I really hope this isn't a bad contract and that your publishing dreams will come true.

X O'Abby

9 Questions to Ask Before You Sign a Publishing Contract

Writers wait, many times years, for that big breakthrough in their career—a publishing contract.

When the call or email finally comes, it’s a moment of disbelief, excitement, and dreams come true. While it may be tempting to sign whatever contract they send you—after all, who knows if it will ever happen again—there’s a few questions you need to ask first because no contract is better than a bad contract.

 Every writer has different standards in terms of what they’re willing to sign, however I’ve spoken with more than a few authors who have deeply regretted signing bad contracts. Nowadays, there are too many options out there to allow yourself to be taken advantage of. While the following list may sound like an interrogation, if it’s all done politely and in conversation, it will help you and the publisher to align your expectations and get to know each other better.

1.       Marketing

Here’s the thing about marketing—the author needs to market! The days of the reclusive author clacking away at a keyboard from their writing shed are over. You need to plan on getting out there and working your butt off to sell your novel. But, your publisher should be your partner in this work. Ask how they plan to market your book.

2.       Terms

View this contract as a mini-marriage. Once you sign, you’re going have a relationship with this publisher for however long their contract states. These terms rang from a couple years to a lifetime right to publish. Ask how long they retain the right to publish. Are you comfortable with relinquishing your rights for the period of time they’re asking for?

3.       Advance

Personally, I’m not hung up on advances because it’s an advance on royalties, not bonus money.

You’ll get your royalties one way or another before or after publication. However, it’s a question to ask if it’s something you want. Also, ask what happens if you don’t earn out your royalties. I know one author who didn’t earn out his royalties and ended up with a bill in the mail for $500.

4.       Royalties

What percentage of royalties will you be paid? Is the percentage based on gross sales or net sales? How often will you receive a royalty statement?

5.       Rights

Never, ever sign anything that requires you to give up your copyright! Never! The copyright should always be yours. When you sign a publishing contract, you are giving the publisher exclusive rights to publish your book, not relinquishing your copyright. But, what exactly are they asking for—print rights? Electronic book rights? Audio book rights? Movie rights? Merchandising rights? Serial rights? Translation rights? You need to ask.

6.       Editorial process

Are they going to require revisions? If so, what is their editorial process? How many editors will work on your book?

7.       Business background

How long has the publisher been in business? Do an online search and make sure to check editorsandpredators.com to see what their clients have to say. Do they have a good reputation in the writing community? Don’t be afraid to ask to speak with one or two of their authors for references. Again, this is a long term relationship. Don’t go into it blindly.

8.       Termination clause

What if things go poorly with this publisher? Ask about their termination clause. Will you be able to get your rights back if something unexpected happens? What happens to your rights when the book is considered out of print?

9.       Obligation to publish

Ask if there is a publish-by date. Without an obligation to publish with a deadline, the publisher can sit on your book for years. You won’t be able to publish it yourself or be able to seek out another publisher.

Always read any contract carefully and seek legal advice. If you can’t afford a lawyer, many writers’ organizations have resources available to their members. Know what you’re signing, and if you don’t understand something, ask. Remember: most publishers aren’t out to take advantage of you. Most want what you want—a profitable partnership and a great book. It’s up to you to sort the good from the bad and to decide what’s best for your book and your career.

Do you have any contract advice? If so, leave a comment below.