Book Advances and Royalties Explained – What Authors Really Earn
- David Salariya
- 4 days ago
- 4 min read
"A six-figure deal? Ahhh - That elusive, six-figure deal!
Strikes six-figure deal for three more picture books!
In a six-figure, two-book deal!.
If we take these ranges at face value, then a good book publishing deal means that the author is granted an advance of between £100,000 and £250,000.
Writing for a living often sits somewhere between myth and misunderstanding. The truth is both more sobering and more interesting. Behind every headline about big advances lies a story of patience, percentages, and paperwork.
Let’s open the accounting ledger.
What Is a Book Advance?
Imagine this: you’ve signed your first book deal. The publisher offers you a “book advance” – a lump sum paid up front, before a single copy is sold. Sounds generous? Think of it more as a loan.
Your advance is paid in instalments (usually on signing, manuscript delivery, and publication) and is set against your future royalties. Until the book earns back that amount, you won’t see another penny.
Typical debut UK advance? Between £2,000 and £10,000. This could be for picture books or novels.
What Do Royalties Really Mean?
Royalties are your share of each book sale. They vary:
Paperback: 7–10% of the retail price
Hardback: 10–12.5%
Ebook: 25% of net receipts (what the publisher actually receives)
But you must realise and understand you don’t start earning royalties until your advance has been “earned out”.
If your advance was £10,000, and your royalty on each paperback is £0.52, you’d need to sell nearly 20,000 copies before receiving anything beyond that advance.
The Reality of a “Six-Figure Deal”
Let’s break down a headline like “Author Signs £100,000 Deal!”
It might be for two books, so that’s £50,000 each
Paid over three years in chunks
Subtract 15% for your agent
Divide by tax and time
You could be looking at less than £10,000 in the first year.
Subsidiary Rights – Hidden Gold (Or Not)
Rights sold beyond your core book – foreign editions, audiobooks, TV/film options – can offer extra income. These are often split 50/50 between you and the publisher after the advance is earned out.
Some agents negotiate to retain rights and sell them separately. Done well, this can transform a modest advance into a steady, international income stream.
But again: it takes time.
A Real Statement Breakdown: Meet Jane Quill
Jane is a debut author–illustrator. Her picture book, Beastly Brains, has been sold in 23 languages and over 600,000 copies moved globally.
The reality:
Total advance: £10,000UK royalties to date: £8,720Rights income: ~£40,000 (split with publisher) Earnings after deductions: £35,000–£50,000 (over 3–5 years)
Understanding Your Royalties
You’ll receive a royalty statement twice a year. It lists formats, sales, regions, and income (or lack of it).
Expect:
Long lags between sales and payment
Complex codes you didn’t study at school
Occasional surprise payments...
...And sometimes, silence.
Let’s break it down: this example is based on a fully illustrated children’s picture book, created by a single author–illustrator, published in English and translated into 23 languages, with over 600,000 copies sold worldwide via co-edition deals.
These are the kinds of deals that look glamorous in headlines – but let’s see what the creator actually earns.
The Setup
Format: Full-colour picture book (24–32 pages)Created by: Author–illustrator (writing and illustrating done by the same person)Publisher model: World rights licensed, co-editions managed by publisherPrint runs: Vary by market – 5,000 to 50,000 copies per language
Earnings Estimate (Author–Illustrator Receiving 100% Creator Share)
Source | Estimate |
Advance (UK/US) | £10,000–£15,000 upfront |
Domestic royalties | £10,000–£12,000 (after earning out) |
Co-edition rights income | £30,000–£50,000 from 23 markets |
Total (before deductions) | £50,000–£77,000 across 3–5 years |
No need to split royalties with a separate illustrator or author – the creator gets the full share.
But all promotional/artwork effort sits with the author–illustrator – often unpaid.
After Deductions
Deduction | Amount |
Agent’s commission (15%) | ~£7,500–£11,500 |
Tax & NI (approx 20%) | ~£8,000–£12,000 |
Net income | £30,000–£50,000 |
That’s your take-home pay for a global hit with more than half a million copies sold.
Picture Book Economics – A Special Case
Because picture books are so heavily illustrated (and expensive to produce), royalty rates are lower than prose books – often 5%–7% on net receipts, rather than 10%+.
But if you’re both the writer and illustrator, you usually receive the full royalty (rather than a 50/50 split between author and artist). That gives you a better earning chance if the book travels well, as in this case.
Glossary
Advance – Upfront payment against royalties
Royalties – Your share per book sale
Net Receipts – What the publisher earns, not the retail price
Earning Out – When sales match your advance
Subsidiary Rights – Additional rights sold (e.g. translation)
Export Sales – Books sold abroad at reduced rates
Option Clause – Publisher gets first look at your next book
Reserves Against Returns – Publisher holds back royalties just in case
One more thing...on Book Advances
Writing is work. It’s creative, almost always underpaid work.
So next time you hear about a “six-figure deal”, remember: the number might be true.
But the story behind it is always more complicated.
And often, more human.
Disclaimer
The financial figures and publishing details in this blog "Book Advances and Royalties Explained – What Authors Really Earn" were accurate as of March 2025 and are based on typical UK publishing practices. As with all financial matters, information should be independently verified, and professional advice sought where appropriate.
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