© 2020 Lisa Greer

That first contract from a publisher is exciting. Aside from not giving up rights to your work, you’ll want to address three key areas as you review the contract:

(1) What’s not in the contract is as important as what is.
(2) What should I do if the relationship doesn’t work?
(3) How do I terminate?

Think about your contract as the prenuptial agreement of the business world. It is the framework for your relationship, including what happens if the relationship ends.  

I was teaching a workshop on contracts at a writers conference, and one attendee approached me with a publishing contract she’d signed three years prior. The publisher was acquired by another, and she wasn’t happy with the new publisher. In the contract, the original publisher could assign her contract to the new company. She had no termination rights unless the publisher breached the terms. She was at the mercy of the publisher to let her out of the deal. They refused. The seasonal book still generated revenue. Pursuing the issue through an attorney would have been expensive with a slim chance she would prevail. This writer was stuck in a never-ending agreement.

Another author, Hank, signed with a publisher for a book series. Five years into the contract, the publisher’s marketing strategy changed. They now offered a book club subscription that included monthly free downloads, thus cutting into author royalties. The terms of Hank’s contract only focused on royalties from book sales and not on book club subscriptions. The termination language was tricky and had an ambiguity that would have to be dealt with. Hank met with an attorney but decided not to pursue litigation since the ambiguity was one that could result in a favorable ruling for the publisher. He was bound for another five years in this relationship.

Before you sign, think about all the things that can go wrong and how you expect to get out of the contract. It’s a good idea not to exceed five years. Anything longer should have a midpoint evaluation that would allow the writer to terminate if the relationship isn’t working. Consider asking the publisher to warrant performance for good faith marketing of the book and include that marketing campaigns shall not provide the author’s book for sale below the agreed upon retail price without the express written consent of the author. Remember that most things are open for negotiation, and if not, you may want to reconsider entering into a contract with that publisher.
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Lisa Greer is a contract manager for a fortune 250 company and a subject matter expert on contract terms and risks. She has published more than 300 articles, and her most recent book is Advocating for Yourself: The Laypersons Guide to Contracts, Scams & Overcharging. She is president of Olive Tree Enterprises LLC, and her blog can be found on her website. Connect with Lisa on her Facebook author page. Email Lisa for book contract review services.

Ed. Note: Join Tracy Crump Jan. 7 at 1 pm ET/2 pm CT  on Marketers on a Mission for a FB Live workshop about writers’ rights, information you need “before you sign.”