Why do authors get paid royalties on their books rather than a lump sum payment? The immediate answer that springs to mind for most people is that it is a risk-sharing agreement. Neither the author nor the publisher know how well the book will sell. Profit-sharing allows them to share in both the risk and the benefits.
What did u say? Risk sharing !!! Authors get only 6% or lower Royalty and that’s it. Which angle it is sharing. It’s a gimmick of money making publishing industry
seems like another (primary?) reason is incentives. To hedge against the author writing to only appeal to the publisher’s taste, the author has additional incentive to write a book that actually sells. Royalties also give an increased incentive for post-publishing promotion via events, tweets, book signings, etc.
What did u say? Risk sharing !!! Authors get only 6% or lower Royalty and that’s it. Which angle it is sharing. It’s a gimmick of money making publishing industry
seems like another (primary?) reason is incentives. To hedge against the author writing to only appeal to the publisher’s taste, the author has additional incentive to write a book that actually sells. Royalties also give an increased incentive for post-publishing promotion via events, tweets, book signings, etc.
can the same logic be applied to hiring > compensation packages?
If not, what's the difference?