Today we are going to talk about royalties because as authors you understand the concept of royalties and it is how others get paid in the traditional model of publishing.
However, we always have our doubts regarding ghostwriting and how ghostwriters get paid when it comes to writing a book.
These are important questions regarding how they are able to sustain themselves and how they are able to get paid.
The simple answer to this is that almost most of the time, they never get royalties because it is not part of the agreement.
However, there can be exceptions and we are also going to talk about that.
So, let us get on with this very interesting blog where we will talk about the concept of royalties as well as the payment model for ghostwriting and much more.
Grab yourself a coffee and enjoy.
What Are Royalties? The Concept
The concept of book royalties is very simple to understand and it is when authors get into contact with publishers for an agreement of profit share.
There are primarily two kinds of models for royalty share and the first model is the traditional publishing model where the publisher gets to keep the majority of the royalty. The second kind is the self-publishing model where the author gets to keep the majority of the royalty.
Traditional Publishing Royalties
In the traditional publishing model, the publisher is the primary investor and they are actually paying for the printing and the promotion and marketing as well as distribution.
In a situation like that, they agree with the author to share book sales proceeds in the form of percentages with the author.
These royalty percentages can be anywhere between something below 5% to something close to 10% with a 10% royalty share being very common.
This is a very straightforward model.
Self-Publishing Royalties
When it comes to royalty for self-publishing, the author is basically the publisher because, in the situation of self-publishing, the author does all the investing whether it is in the printing or editing as well as the promotion and distribution.
In a situation like that, the author can get to keep the entire profit in a perfect situation where they distribute the books to the physical bookstores etc.
However, most self-published authors have self-publishers who are there for their assistance and sometimes this can be in the form of major platforms like Amazon.
In an arrangement like that, the self-publisher can get to keep 20% of the profit sharing and the author gets to keep the majority of the book’s sale price.
Ghostwriters And Royalties
Ghostwriters do not get royalties because that is part of the entire service agreement which they have to sign before the start of any project.
This is because ghostwriting is a service with an up-front payment model which ensures that the ghostwriter is only providing a service in the form of their writing skills.
The contract can be created with multiple clauses but the primary clause of that contract is that the ghostwriter can never claim credit for the work they are doing.
Additionally, the ghostwriter can never mention their project to the public because there is the exact reason why they are hired and it is confidential.
There are multiple reasons why ghostwriters agree to this kind of arrangement.
Profession
The first reason is that this is a well-regulated standardised industry and this is their profession which is to write as a condifentially as a ghost for someone else without asking for any kind of credit.
This is something taken for granted and accepted by both parties before the start of the contract and most contracts have Non-Disclosure Agreements (NDAs) regarding the work.
Late Remuneration
The second reason why ghostwriters agree to this kind of model is because getting payments in the form of royalties can take months or even years.
However, the ghostwriter or the ghostwriting company cannot simply rely on this kind of model in the hopes that the book is going to be successful someday and they will receive a share.
This is just not possible in a professional setting where a project-based up-front payment model makes much more sense where the ghostwriter gets paid up-front and the contract is closed.
Writing As a Skill
The other thing you need to keep in mind is that a ghostwriter is hired for writing the content and they are not hired for doing the marketing and doing the author branding and everything else that is associated with the book.
If someone is hired to do everything then they might be more willing to talk about a different kind of arrangement where royalty is involved.
However, the ghostwriter is only there to do that job and it is just to write the content. It is the same as any other kind of professional providing their skills as a service.
This Is How Ghostwriters Are Paid
Before the start of every ghostwriting contract, the ghostwriter goes into a mutual agreement with the client about a set figure of payment.
This set amount of payment is determined by multiple things such as the type of ghostwriting and the length of the project as well as the deadline for the project.
It also depends on other factors such as the experience level of the ghostwriter and the quality of the service they provide.
Before the start of the work, the ghostwriter and the client usually sign a contract that guarantees the ghostwriter payment. That contract contains all project details and payment breakdowns and details.
Sometimes the ghostwriter is paid something in advance before the start of the work and sometimes they are only paid after the client is completely satisfied with the outcome of the project.
In rare cases they might also be paid not in cash but in other forms of payment for example if the ghostwriter is writing for a company, then the company might choose to pay the ghostwriter in company stocks but this is very rare.
Similarly, ghostwriters can get paid in other kinds of modes like services and products but that is also a rare exception.
However, that is still different from the royalty model of payment as long as the book sells because even if the ghostwriter is paid with two bags of rice, it is an upfront payment as opposed to royalties.
Exceptions When Ghostwriters Are Paid Royalties
When Both Parties Agree to It
One of the most common exceptions and how it is usually done is when both parties agree to the ghostwriter getting paid with the help of royalties.
If this is the case and both of them agree to it then there is nothing more to be said about it but it usually does not happen.
When The Ghostwriter Is a Co-Author
The second case of exception where the ghostwriters get royalty shares is when they are not just ghostwriters but they are also co-authors in the project.
This means that the ghostwriter might be probably well acquainted with the author and they might also have their names in the credits as contributors to the project.
However, if such an agreement is reached then we can’t really call the contract a ghostwriting contract because the ghostwriter is acting as a co-author in this situation.
They are also having the option of getting credits and when that happens we can’t really call it a ghostwriting contract because the fundamental prerequisite of a ghostwriting contract is anonymity.
Then The Book Has a High Chance of Success
If you visit your nearest bookstore and pick up any book from any famous personality whether it is an athlete or an actor then chances are that it was written by a ghostwriter.
When a ghostwriter signs a contract with someone popular meaning that the book is definitely going to be successful then the ghostwriter can ask the client for a royalty model rather than an up-front fee.
This is usually the case when the ghostwriter can predict the success of the book and rather than asking for a fixed payment, they decide to choose royalties, which can be more profitable in the long run.
When The Client Isn’t Able to Pay Upfront
One of the other situations in which the ghostwriter agrees to a royalty model of payment rather than a service fee is when the client is not able to pay them an upfront fee.
This is really the case with clients who might be having financial problems and ghostwriters agreeing to it at some risk because they might be new to the industry and just want to build up their portfolios.
The client might not even have financial troubles and they might not want to liquidate cash and just agree to and royalty fee.
When The Client Is Happy with The Writer
While this generally does not happen a lot but sometimes the client can be very satisfied with the results and can even add a royalty agreement to the upfront fee as a reward.
This usually happens when the project has high sentimental value for the client such as their autobiography or a book on their family history.
In a situation like that, the client can be very happy with the results and can decide to add the ghostwriter to the royalty payments list.
This Is Why Ghostwriters Do Not Choose Royalties as A Form of Payment
Unpredictable Industry
The book publishing industry is unpredictable which means there is basically no guarantee of any kind of success or failure.
This is a bad thing for a professional such as a ghostwriter who needs to operate their business in a periodic table manner with regular guaranteed payments.
This means that any kind of professional who has to provide services cannot rely on luck alone for future payments.
Up-front makes much more sense to professionals.
Payment Delays
The second thing we need to understand about royalty payments is that they are not instantaneous and they are not even regular and continuous.
If your client decides to publish the book traditionally then the royalty payments might even take months or years to start arriving.
The thing about royalty payments is that they are so unpredictable and they come in so late and in so small increments that it is just not logical for any service provisional to opt for this kind of payment.
That is why although royalty payments can equate to more than up-front payment, it is just not worth it to wait for years for these small payments to add up.
Payment Tracking
The other reason why choosing royalty payments is not the best option for any kind of professional is because it is difficult to track royalty payments.
The process of royalty payments involves calculations and can lead to legal disputes as well as disagreements and your client might not be completely transparent with you regarding book sales.
If you are a professional ghostwriter then you simply do not have the time to deal with all these problems and to go after every single penny of the royalty payment.
So, Is Ghostwriting Just About Content? A Deeper Look
Ghostwriting is not just about content and it is not just about being a tool for your client because it is about understanding your client.
Ghostwriting is about understanding the exact needs of the clients and it is about finding a unique tone and voice to showcase and transform the vision your client has in mind into reality.
It is also about being an expert in various topics about anything the clients ask you to write about.
That is why ghostwriting is a service but it is a very specialised service where a ghostwriter needs to be an expert at multiple levels.
This Is Why Ghostwriters Work Without Credit
Networking Opportunity
Ghostwriters are professional writers themselves which means they also have their own projects and their own books to look after.
This is why working professionally in an industry like this provides them with a lot of networking opportunities.
They can then use these opportunities to connect with authors and connect with more publishers and this helps them with their own projects.
Career Advancement
There is a lot of freedom associated with ghostwriting because sometimes professional writers and published authors go into ghostwriting just for the fun of it because they like the added experience.
The reason why this is excellent for career advancement is simply because you are going to gain a lot of writing experience when you are working for diverse clients and projects.
Working on diverse projects will allow you to improve your writing skills and improve your knowledge collection and categorization skills.
Collaboration Experience
When it comes to professional writing, a writer does not always work alone because they might sometimes work in collaboration with other authors on a project and co-author that project.
In a situation like that a professional writer can find it very difficult to collaborate and coordinate with other people unless they have extensive experience in working with people.
But writing is a lonely profession and that is exactly why professional writers choose ghostwriting because this is a unique opportunity for them to work with others and gain collaborative experience.
We hope this blog helps you understand everything about ghostwriters and how royalties actually work in the industry of ghostwriting.
If you would like to know more about payment plans and ghostwriting contracts and if you are looking for professional ghostwriters for your next book then we are here for you.
We are Ghostwriting India and we are professional ghostwriters and we would love to help you with your next book-writing project.
We do every kind of ghostwriting and we would love to help you with our extensive experience.
