Publishing models
Two ways to publish, both transparent
Inspired by platform economics.
The Creator 80/20 Model
Approved direct production and sales costs are deducted first. The remaining distributable income is divided 80 percent to the author and 20 percent to The Premium Editions.
The contract defines whether development costs are paid by the author, paid by the publisher and recouped, shared, or deducted from project receipts before the split — the site does not claim “the author receives 80 percent of revenue” on its own, since that would be misleading before costs are accounted for.
A private-equity-inspired publishing model.
The Growth Partnership
The Premium Editions receives 2 percent of gross receipts before book-specific costs. After approved costs are recovered, the author receives the remaining surplus up to an agreed hurdle. Above that hurdle, additional surplus is divided 80 percent to the author and 20 percent to The Premium Editions.
Investor-style protections
A clearly agreed hurdle
Set per book and author before work begins.
Loss carryforward
Losses are carried forward before any performance share is charged.
High-water mark
No performance share is charged twice on the same surplus.
Gross receipts, defined
Cash actually received from retailers, distributors and direct customers, excluding VAT, sales tax, refunds and chargebacks, but before printing, editorial, marketing and other agreed book costs. The 2 percent participation is never calculated from theoretical list-price sales if the retailer retains part of that money.
Which model fits which author?
The Creator 80/20 Model
- Author has an established audience.
- Sales are reasonably predictable.
- The project requires standard publishing services.
- Author prefers simple economics.
The Growth Partnership
- Publisher is making a larger strategic contribution.
- The book has uncertain but meaningful upside.
- Publisher and author want a lower fixed share and performance-based economics.
- A measurable hurdle can be agreed.