I sincerely doubt she's getting 25% of cover price royalties on the hardback. That's unheard-of, except possibly for the Stephen Kings and Nora Robertses of the world, and maybe not even for them.
She said she's giving up 75% of the profits on the electronic version. If she's selling on Amazon, she gets 70% of the selling price, right? If she gets 25% of net on the ebooks from RH (which is about the going rate), that might be 75% less than what she gets from Amazon. I'm too derpy to do the math, but that's what I'm getting from this. (However, if RH is selling the books for more than she would charge, it might end up being the same or more overall. Rates and final numbers are two different things.)
On a $20,000 advance, $30 hardback, figure 8-10% of the cover price, so she's likely getting $2.40-3.00 per book. At the most generous rate, that's a sell-through at ~6500-7000 books. They will likely print at least 10,000. For literary fiction, yeah, that's about right.
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