January 10, 2015 in 

Since publishers usually calculate royalty statements within six months after publication, sometimes returns will lag behind the statements. Since an author is paid based on net copies sold, this creates a conundrum since publishers don’t really know what the “net” will be for quite some time after a book is published. In order to account for this publishers hold a “reserve against returns” for the first couple of royalty statements after a book’s publication, which means they hold back a certain amount of money in anticipation of returns. The reserve should be a reasonable amount (talk to your agent) and they should not hold a reserve forever. (see also “returns,” “net copies,” and “royalty statements”)

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About the author 

CJ McDaniel

CJ grew up admiring books. His family owned a small bookstore throughout his early childhood, and he would spend weekends flipping through book after book, always sure to read the ones that looked the most interesting. Not much has changed since then, except now some of those interesting books he picks off the shelf were designed by his company!

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