Traditional Publishing

In a traditional publishing model (through major publishers), money flows towards the writer. A traditional publisher invests their staff and resources into your book, and only makes money when your book sells, so it is in their best interest for it to do well.

This is a typical breakdown of where the money might go when selling a book produced by a traditional publisher:

·      Author royalties: 10%
·      Bookstore: 30%
·      Publisher: 50%
·      Taxes (GST): 10%

This may vary—some small independent bookstores may only get a 35% cut, while Big W or a major chain might get closer to 50%. The publisher’s cut also includes distribution costs, which may be their own service or may be owned by a different company.

While it may seem that publishers get a large percentage, it is important to remember that they are investing a lot of money into each title. They generally invest multiple edits, cover design, marketing and publicity, production design, printing and distribution into each title. They also often have extensive market research data and information about how similar titles have sold. This means that many staff members, infrastructure costs and services need to be paid for.

What is the difference between a major publisher and a small press?

In Australia, there are six major publishers:

·      Penguin Random House
·      Simon & Schuster
·      Pan Macmillan
·      Hachette
·      HarperCollins
·      Allen & Unwin (Australian only)  

Each of these publishers also have imprints of different names, which are sections of the publishing house. These target specific audiences or types of book. An example of this is Penguin Random House’s ‘Vintage’, which is an imprint that specialises in literary fiction and nonfiction.

‘Small’ or ‘independent’ publishers come in a variety of sizes. Established presses such as Text Publishing, Scribe, Affirm Press or Transit Lounge offer many of the same benefits as the major publishers, but publish primarily Australian books, and may have a larger budget per title. At some small publishers, authors will have greater control over the publishing process, but will receive a smaller advance (or not receive one at all).

There are also specialty publishers for some genres and markets. The major publishers may produce limited poetry books, but Pitt Street Poetry and Recent Work Press publish many respected poets including Prime Minister’s Literary Award winners. Similarly, Tor is an overseas mid-sized press which only publishes science fiction and fantasy.

A ‘partner press’ may ask for a financial contribution from the author to cover some of the costs relating to publishing. To ensure that you are protected from predatory businesses, read our publishing scams and vanity presses resource sheet. If you are considering an arrangement like this.

Finally, there is a newer model for publication that some small publishers such as Pantera Press are using. In this model, profit is split 50/50 between the author and publisher. However, the author does not see any profit until the publisher does. This means that all production and marketing costs, including reprints, must be paid back before the author receives any money. This can be a great model for some authors and some publishers, but may not work for all titles. We suggest seeking advice on your specific project, and talking to other authors who have worked with this publisher, before making a decision.

How can I know if a publisher is right for me?

Go to a bookstore and see if you can find any of their titles. If not, how would you buy their titles as a consumer? Are they easy to find? Do their titles seem successful? Source one of their books. Is it professionally produced? Are there any differences between it and what you would consider a typical book? Have you had a chance to talk to the publisher at length? Have they answered all your questions? Do you get on with them well on a personal level? Is their model traditional? Does their contract seem fair?

Traditional Publishing Pros & Cons

Pros

·      Publisher bears costs relating to book production
·      A team of experienced and trained industry professionals working to make your book as successful as possible
·      Established lines of distribution
·      Established networks for publicity
·      Look of legitimacy

Cons

·      Can be easier for people with agents to find publishers. Check out our resource on literary agents.
·      Can be difficult to find a traditional publisher
·      Publishers will want creative input and control over marketing
·      Publishers have small marketing budgets for most titles. Writers may be asked to assist with marketing and publicity, either financially or with time.