Friday afternoon, I ran a letter from an anonymous agent who accused publishers of delaying their royalty payments to publishers on a regular basis, suggesting they might be “reacting to all of the books that did not sell.” That allegation prompted a response from a veteran editor:
“…Is she taking into account the reserve for returns that all publishers withhold? That is, in fact, why we withhold money—to cover the books that didn’t sell or that we have printed but don’t think will sell in the next 24 months. Publishers have become a lot more cautious given the high return rates in the business.
“Also, frankly, you can’t just rule out sheer incompetence. The house I work for routinely takes weeks and even months to get out checks, and often screws them up. When I first started working here, I was shocked by how often our royalty department screwed up routine stuff, like advance payments, but after working here for a while I realized it was just confusion and rank incompetence on the part of the people in our royalties office. So while this agent may have problems, my guess it that it’s probably just employee error and an antiquated accounting system rather than a conspiracy to fleece her clients.”
Another reader points out that if this agent is complaining that payments from book publishers are 90 to 120 days late, well, that’s “not any different from major magazines.” Of course, that doesn’t make it right, either, if that’s what’s happening. I’m sure you have more to say, anonymously or on the record as you see fit.