Payment and Rights information for Novellas

We’ve been asked what they pay rate is for our novella series. You can find that information here, but we wanted to explain it a little more fully.

We’re buying First Worldwide English-language rights for print and digital (ebook) for novellas. The payment breaks down as follows:

  • For the individual ebooks, we’re paying 50% of net sales.
  • For the yearly ebook subscription, and the annual ebook collection, which will contain four novellas, you will get 12.5% of net sales (equal to 50% of 1/4 of the book’s net sales).
  • For the print collection, you will receive 1 cent per word.

How this works for you:

Say we buy your 25,000 word novella. It comes out January 2013 as an individual ebook. Each quarter end (March, June, September, and December) we calculate the net sales – the amount that we actually get from the sale of the book. If, for example, we sell the novella for $2 through Amazon, we might get 70% or 35% depending on the country the buyer is located in. If we get 70%, then we also have to pay a “delivery” fee. So from a $2 sale, we might net $1.20. Sixty cents of that (50%) would be yours.

Then we also sell subscriptions via our website. The $10 we charge gets buyers all four novellas delivered to them automatically throughout the year, at least a week BEFORE they’re available for sale anywhere else. The fee we pay to be able to sell that online is lower, so we might get to keep $9.00 of that. You would get $1.12 for each subscription that includes your novella.

Since all of the ebook sales are calculated quarterly, including subscriptions, you would get paid for both every three months. However, while the individual ebooks will be on sale forever, your novella will only be included in subscriptions for a 12 month period.

When the print collection comes out at the end of the year, you’ll be paid an additional 1 cent per word – or in the case of your 25,000 word story, another $250.00. You won’t get any royalties on the print collection, but you’ll keep getting your ebook royalties as long as your novella is selling.

It’s been our experience that digital books sell 10 times more than print, and we often don’t make enough to cover the cost of the print book (payments to contributors) through print sales alone, but releasing a print book helps to drive the sales of ebooks through physical presence in stores and at conventions. Also, many reviewers only want print copies of a title, so creating a print book helps to get reviews and word-of-mouth advertising for your story.

All funds payable in US funds via Paypal or US bank check. Ebook payments calculated quarterly; print payment will be sent out within 60 days of print publication. Contributors also receive 3 copies of print collection (publisher pays shipping) and 1 ebook (both .epub and .mobi/Kindle versions).

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