Authors

Traditional publishing

Authors may be compensated through a percentage of a book's wholesale or specific price, or by receiving a fixed amount per copy sold. To minimize risk, publishers sometimes defer such payments until a certain number of copies have been sold. In Canada, this approach appeared in the 1890s but did not become widespread until the 1920s. Established authors may be offered advance payments against future royalties, though this practice has become less common. Most independent publishers now pay royalties as a percentage of net receipts though how net receipts are calculated can vary by publisher. Under these agreements, the author is not responsible for any publication costs; the financial burden is borne entirely by the publisher, who typically retains the largest share of the revenue. See also Compensation.