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What Authors Should Know About Hybrid Publishing Contracts

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The Authors Guild regularly receives requests for contract reviews from authors contemplating hybrid publishing. In our experience, these contracts are usually offered on a non-negotiable basis (with a few exceptions) so we do not provide our usual line-by-line contract review. We do, however, offer general guidance in the form of a checklist (PDF), similar to our guidance on traditional publishing contracts. And we raise any obvious red flags in the contracts, as well as answer any specific questions that the author might have about the contract.

While hybrid publishing agreements resemble traditional publishing contracts in many respects, they differ significantly in others and may contain provisions rarely found in traditional contracts—provisions that frequently lean heavily in the publisher’s favor. Any author considering a hybrid publisher should scrutinize both the publisher and their contract carefully.

Here’s what authors should know about hybrid publishers and publishing contracts, including how they differ from other contracts, which clauses to pay closest attention to, what those clauses should ideally look like, and common pitfalls to avoid.

What Is a Hybrid Publisher?

Hybrid publishers combine elements of traditional publishing and self-publishing. Like traditional publishers, they carry out the services required to publish a book—editing, design, printing, distribution, and marketing—rather than leaving those tasks to the author. But there are key differences:

  1. Hybrid publishers charge authors upfront fees, which can range from a couple thousand to tens of thousands of dollars; under this author-subsidized model, the author’s payment is meant to cover a share of the costs that a traditional publisher would absorb.
  2. Because the author is funding a significant part of publication, hybrid contracts should provide a much higher royalty percentage of sales than traditional contracts.
  3. Hybrid publishers generally give authors greater creative control over the publication process.

Initial Research

Before signing with a hybrid publisher, you should research the publisher itself. Confirm that it actually is a hybrid publisher and not a self-publishing service by evaluating it against the Independent Book Publishers Association (IBPA)’s Hybrid Publisher Criteria. Look into the services it offers and what specific activities it will commit to in terms of editing, marketing, promotion, as well as the quality of the books it has produced. Make sure it has sufficient financing; check sites like Writer Beware® for complaints against the publisher, and consider reaching out to authors who have worked with it to learn about their experiences. Guild members are also welcome to ask our legal department if it has received complaints about a particular publisher.

While a number of hybrid publishers are established, respected, honest, and successful—and some even award winning—others share none of those traits. Publishing is not easy and, unfortunately, given the low startup costs, hybrid publishing as a model sometimes attracts those who are not sufficiently funded or scrupulous and/or lack experience or sufficient knowledge. The Authors Guild receives frequent complaints about hybrid publishers that have failed to pay their authors on time (or at all) or have gone out of business. In recent years we have seen dozens of publishers find themselves in financial trouble and unable to pay out amounts due to their authors. When we have pursued them for payment on behalf of our members, we find they are penniless and the best we can do is try to get the authors rights back.

We cannot stress enough how important it is to be cautious and conduct your due diligence on hybrid publishers and their contracts before signing. Once your rights are tied up it can be hard to get them back.

Monetary Clauses

The defining feature of a hybrid contract is that the author pays a portion of the upfront publication costs that a traditional publisher would ordinarily bear: printing, design and layout, storage, advertising and marketing, and so on. In exchange, royalty percentages are usually much higher than in traditional contracts.

Royalties in traditional publishing contracts typically range from 7 to 15 percent of list price or net receipts (typically, what the publisher gets after deducting taxes, discounts, and other fees, though definitions can vary between contracts); hybrid contracts, by contrast, commonly offer upwards of 50 percent of net receipts. Bear in mind, however, that the higher the royalty percentage the larger the upfront investment generally is—making it difficult for the author to earn back what they paid up front.

Before signing, the author should understand exactly how royalties are calculated: that is, whether the percentage applies to net receipts, net profits, or, less frequently, the list price of the work. It is very important that the contract clearly and specifically defines terms like “net profits” or “net receipts.” As mentioned above, “net receipts” usually means the amount after discounts, taxes, and other fees (which should be specified on the contract), but some contracts can define it more broadly. “Net profits” typically means the amount after all the intervening costs have been paid. If the contract does not include a definition for any of these terms, the author should ask for it. What is deducted before the split can dramatically affect what the author actually receives. For instance, some presses ask to deduct printing and distribution costs from the royalty calculation notwithstanding the authors’ initial investment. Depending on the amount of up-front author contribution, this further deduction of costs from book earnings may be unwarranted.

In sum, authors should know and try to calculate precisely how much they are being asked to contribute, what that money pays for, and whether they can realistically expect to recoup the investment from sales.

Termination Clauses

Traditional publishing contracts contain various termination provisions, such as material breach clauses and mutual termination clauses. Hybrid contracts should—and often do—contain these as well. But hybrid contracts should also contain a type of termination provision rarely seen in traditional contracts: the right to terminate at will.

Because the author is paying a substantial share of publication costs, the author should be able to end the agreement at any time. (Note, however, that terminating does not necessarily mean the author will recoup monies already paid to the publisher). As with traditional contracts, termination may remain subject to any outstanding licenses that the publisher has granted, meaning the author will not recover those specific rights until the licenses expire.

Purchasing Clauses

Some hybrid contracts require the author to commit to purchasing a certain number of copies of their own book as a condition of signing. Unless you have a particular need for a large number of copies, we recommend asking to strike any such clause—and you should think hard before signing if the publisher refuses. An author should never have to buy copies of their own work to induce a publisher to sign an agreement.

Other Problematic Clauses

Authors should also ask publishers to remove other one-sided provisions, including:

  • Option clauses
  • Non-compete clauses
  • Clauses limiting the author’s remedies if the publisher breaches the agreement
  • Cross-collateralization clauses (which tie together debts and proceeds across all agreements between the parties)

These clauses often appear in traditional publishing contracts, but should be carefully considered in hybrid contracts, where the author’s upfront investment makes them even more consequential.

General Guidance

A few common pitfalls deserve special attention:

  • Be wary of promises of extraordinary results. No publisher can guarantee sales or bestseller status. If something sounds too good to be true, it usually is.
  • Be very wary of publishers that charge for marketing assistance. We have seen many instances with promises of marketing and few deliverables. Any marketing work should be specifically set out in the contract.
  • Watch out for scams. Publishing scams are proliferating, with bad actors creating hybrid presses or impersonating legitimate hybrid and even traditional publishers and agencies to coerce authors into paying money they will never see again. Authors should stay current on industry scams by checking our scams webpage.

Get Help With Your Hybrid Publishing Contract

The Authors Guild can help with your due diligence before signing any hybrid publishing contract.