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Improbability is in the Details
Abra Staffin-Wiebe's Journal
A Few Notes on the Business of Writing 
21st-Nov-2013 04:42 pm
Contracts

In a contract, make sure there is language saying they "cannot take reserve against returns" for ebooks/audio.

Should stop taking reserve after 4 periods and should justify the reserve if you ask them to. What are they basing their reserve on? First year sales (much higher) or sales on current year?

Look at the contract to see what the advance is based on.

When published

Not earning out the advance doesn't mean the publisher couldn't give you a higher advance or that the publisher isn't profitable. And vice versa.

Always check royalty reports; try double-checking using Amazon rankings.

If a book is very successful, the best option may be to incorporate.
* Can give you a car and write it off.
* Less liability.
* Corporation is immortal, you just need to transfer stock.
* Make sure writer is a corporation Director, not a work-for-hire employee.

After your death

When you get a literary executor for your estate, make sure the executor divides the proceeds (not the agent, unless the agent is also the executor), which gives an incentive to keep books in print.

Set up a trust to handle money--also need a trustee to handle the money.
Comments 
21st-Nov-2013 11:07 pm (UTC)
One of the huge benefits of incorporation, especially for a writer who also has another means of making a living, is the ability to dump massive amounts of money into retirement funds pre-tax.
23rd-Nov-2013 12:18 am (UTC)
That's a...pretty nice addition that I was unaware of.
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