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Old 08-28-2010, 01:49 PM   #108
DMcCunney
New York Editor
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Quote:
Originally Posted by AnemicOak View Post
Here are a couple example P&L's that may be of interest (these are, or should be, done for every title a publisher puts out)...

http://www.bizmark.net/publishing.htm

http://www.ibpa-online.org/articles/...s.aspx?id=2463
Every book has a budget. The ones presented above need to be taken with large grains of salt.

For instance, the Bizmark P&L lists the author royalty, but does not list the advance paid to get the rights to publish the book, and that advance can be a very significant number. The advance should be a line in development costs. The question for the publisher is whether the book will "earn out" - sell enough copies to cover the advance and generate additional royalties the author will see in royalty statements. The vast majority of books do not earn out. (The goal of an agent negotiating a book deal with a publisher will be to get an advance high enough it isn't likely to earn out.)

And Bizmarks estimate of printing/binding costs as a percentage of the total is high for the majority of books published by a major publisher. It's probably closer to 15% - 20%.

The IBPA numbers are decent, but assume you are looking at publishing yourself, and are only partially applicable to a book from a major publisher. Again, it doesn't include the advance.
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