Could Publishers and Agents Agree on a Flat Royalty Rate?
Insiders say the problem is still e-book royalties
By Rachel Deahl
Since e-books became a crucial source of revenue for publishers six years ago, the royalty rate on the format has been an ongoing bone of contention between authors (and their agents) and publishers. While authors and agents have stood firm on their position that the standard rate of 25% (which refers to the percentage of net profits authors receive on e-books sold) must change, publishers haven’t budged. Could a flat royalty system, in which one rate is used across formats, be a solution? Though some industry members believe a single rate could simplify a complicated royalty structure, agents said the move wouldn’t address the real problem: authors being shortchanged on the profits from their e-books.