Hybrid Publishers with Fair Royalty Terms for Writers

One of the most attractive benefits of hybrid publishing for authors, particularly when compared to traditional publishing, is the promise of fairer royalty terms. In exchange for an author’s upfront financial investment in their book’s production, reputable hybrid publishers typically offer a significantly higher share of the profits. This makes the royalty structure a critical element to scrutinize when choosing a top hybrid publisher partner.

Understanding Royalty Structures: Traditional vs. Hybrid

To appreciate the “fairness” of hybrid royalty terms, it’s helpful to compare them to traditional publishing:

• Traditional Publishing: Authors typically receive a royalty rate of 5% to 15% of the book’s net price (the price the publisher receives from retailers after discounts, not the list price). E-book royalties might be slightly higher, often around 25% of net. While authors don’t pay upfront costs, the publisher takes the vast majority of the sales revenue to recoup their investment in production, marketing, and overhead. Authors also receive an advance, which is then “earned out” by sales before royalties begin to be paid.
• Hybrid Publishing: Because authors contribute financially to the production costs, the royalty structure shifts significantly in their favor. Reputable hybrid publishers typically offer royalty rates ranging from 50% to even 100% of net sales. This substantial increase reflects the shared investment model. Authors do not receive an advance, as they are already contributing to the initial costs.

What Defines “Fair” Royalty Terms in Hybrid Publishing?

When evaluating a hybrid publisher’s royalty terms, look for these indicators of fairness:

1. High Percentage of Net Sales:
   • 50% or more of net sales: This is generally considered the industry standard for a fair hybrid royalty. “Net sales” means the revenue the publisher receives after distributor and retailer discounts.
   • Watch out for “list price” royalties: Some less transparent publishers might quote royalties based on the “list price” (the price printed on the book), which sounds higher but is misleading, as the actual revenue received by the publisher is much lower after wholesale discounts. Always clarify if royalties are based on net or list.
   • Consider 100% royalties (rare but exists): Some innovative hybrid models, like Manhattan Book Group, claim to offer 100% royalties directly to the author for print and ebook sales, effectively acting as a service provider who sets up the author’s account with the printer/distributor. This is the most author-favorable model if the service quality is also high.
2. Clear and Understandable Calculation:
   • The contract should explicitly define “net sales” and clearly show how your royalty percentage is calculated. There should be no ambiguity.
   • It should detail how revenue from different formats (print, ebook, audiobook, foreign rights) is accounted for.
3. Regular and Transparent Reporting:
   • Quarterly Statements: Expect to receive detailed royalty statements at least quarterly. These statements should show sales figures for each format, returns, net revenue, and your calculated royalty.
   • Timely Payments: Payments should follow shortly after the reporting period.
   • Access to Data: Some hybrids provide authors with direct access to sales dashboards from their distributors (like IngramSpark or KDP Print), offering real-time or near real-time sales data. This level of transparency is highly desirable.
4. No Hidden Fees Deducted from Royalties:
   • The contract should explicitly state what, if anything, is deducted from royalties before they are paid to you. Be wary of hidden “marketing fees” or “administrative costs” that eat into your share.
   • Your upfront investment should cover the production costs, not ongoing deductions from your sales.
5. Clear Rights Reversion:
   • While not directly a royalty term, a fair contract includes clear conditions under which your rights can revert to you. This protects your long-term earning potential if the book doesn’t sell well through that specific publisher, or if you wish to take it elsewhere after a reasonable period.

Hybrid Publishers Known for Author-Friendly Royalty Terms:

While specific percentages can vary based on package and individual negotiation, some hybrid publishers are often praised for their transparency and commitment to high author royalties:

• Manhattan Book Group: They are notable for often offering 100% royalties directly to the author, with their service fee covering the setup and production. This means all sales revenue goes directly into the author’s account from the distributor.
• She Writes Press: Known for their ethical practices and author-centric approach, they offer competitive royalty rates that are significantly higher than traditional publishing.
• Greenleaf Book Group: While they work with a diverse set of authors, their model is designed to provide fair returns, especially for authors who use their books as a cornerstone for their brand and business.
• Atmosphere Press: They pride themselves on transparent, author-friendly contracts and often highlight very favorable royalty terms as part of their value proposition.
• MindStir Media: They generally offer strong royalty rates, emphasizing that authors retain a large percentage of their book’s earnings.

The Trade-Off: Investment for Higher Returns

The fairness of hybrid royalty terms is directly linked to the author’s upfront financial investment. Authors are essentially buying into a more direct profit share model. This means that while your per-book earnings will be much higher than with a traditional publisher, you carry the initial financial risk.

For authors who believe in their book, are willing to invest in its professional production, and are prepared to actively participate in its marketing, the higher royalty rates offered by reputable hybrid publishers make it a financially compelling and fair path to getting published. Always read the fine print, ask questions, and ensure complete clarity before sign.