The majority of manuscripts accepted by book publishers are submitted by literary agents. Since the agent represents other authors, he or she is familiar with many publishing houses. This puts the agent in the position of knowing where best to place a work.
A good literary agent reads the author's manuscript, makes suggestions on its presentation and content, submits it to a number of publishing houses, and ultimately negotiates the contract, which includes the advance and royalty rate paid by the publisher on behalf of the author.
Although hardcover royalties are somewhat standard-about 10 percent of the cover price of the book, with ascending rates based on the number of copies sold-an agent may be in the position to improve these terms, particularly in the area of increased royalties or bonuses if a book becomes a best-seller. Paperback royalties start at 6 or 7.5 percent. Almost all advances paid to an author are nonreturnable. If a book's sales do not reach the level advanced, the publisher takes the loss.
The agent also negotiates the author's share of subsidiary rights; that is, paperback, book club, broadcast and film, foreign, electronic, and serial rights. He or she also collects the author's royalties when they are due.
From the publisher's standpoint, the literary agent performs another function. The agent screens manuscripts before their submission, and presumably sends only the best proposals that fit the publisher's program, thus saving the publisher time and money. The literary agent can almost always reach the top acquisitions level at a publishing house. When a reliable agent calls the editor-in-chief at a major house and says, "I have discovered a brilliant new writing talent," the editor will almost always respond positively, since editors know that agents are placing their reputations on the line when making such a pitch.
How to Find a Literary Agent
Prominent literary agent Georges Borchardt has been in publishing almost fifty years. One of his earliest sales was Samuel Beckett's Waiting for Godot (to Grove Press for a $200 advance). Borchardt sums up the role of the literary agent:
We find, nurture, and produce the very things without which the industry could not function at all. Without agents, publishers would have to develop totally new departments within their firms, which would be very costly. It takes time to find the right writers, and to explain to writers what they can realistically expect- so that the relationship isn't always one of tension. Of course, we're always trying to get the best possible deal for the author, but we also act as a buffer.
Reliability is always a consideration when dealing with an agent. Agents listed in LMP are among the most active in the field and must submit references to be included.
Many agents insist upon a fee before reading a manuscript. Others will not charge a fee but require a written description of the proposed book before a manuscript is submitted. One agent in New York, for example, charges $45 as a reading fee and asks for an outline and three sample chapters. The prestigious New York-based Janklow and Nesbit Associates does not charge a reading fee and requests only an outline and one sample chapter.
Another New York agent, Betsy Nolan, returns unsolicited manuscripts unread. She asks that authors first outline a project in writing; then, if she's interested in seeing more, submit the required elements. The Betsy Nolan Literary Agency does not charge for reading manuscripts.
Some agents specialize in fiction, others in nonfiction, and some both. Most of the larger literary agencies handle foreign markets, as well as film and TV rights.
The three largest Hollywood entertainment agencies are CAA, International Creative Management (ICM), and the William Morris Agency. They maintain substantial staffs of literary agents on both coasts.
Once an agent agrees to represent a writer, he or she will usually work on the entire presentation to make it as persuasive as possible to a publisher. An agent is more likely to become enthusiastic about an author if he or she thinks that there is a potential for additional works beyond the one submitted.
An agent and new client will usually sign an agreement establishing a commission rate, usually 10 percent (some agents receive 15 percent). The commission is payable on the author's advance, as well as on any additional royalties. It is also payable on all subsidiary rights transactions.
An agent may submit an author's manuscript to one publisher at a time or as a multiple submission. The agent may also conduct an auction when a property is sought by many publishers.
For an insight into the role of a literary agent, I talked to Betsy Nolan, a woman who has been active in this field for many years. Her comments:
Interview
After majoring in college in drama, philosophy, and English, I began work in the book business as a press agent The years of rejection there made the pain of rejection as a literary agent a piece of cake.
My public relations background makes me look at a literary property in terms of how to sell it to the media. Since the whole thing is sales, sales, sales, this training proved very valuable.
As an agent, I have to sell the manuscript to the editor first. The editor then has to sell it to an editorial board, which has to sell it to the sales department, which has to sell it to the wholesalers and chains, which have to sell it to the bookstores.
The bookstores have to sell it to the retail customers, who, it is hoped, have been sold by seeing an ad or an interview set up by the marketing department of the publisher, which also has to have been sold on spending its budget for the book.
A new agent can expect to starve unless a Tom Clancy walks in and says, need you. "Barring this, even when an agent does sell something to a publisher, there is a wait to get paid. There is some money on signing, some money on completion, some money on publication, and then forever between royalty payments.
Often, though, the only money an agent sees is the commission on the advance. The agent needs a lot of clients and some larger ones to make ends meet Overhead needs to be kept at a minimum. I support my literary agency by doing public relations.
We agents sustain ourselves by thinking of Morton Janklow. This famous agent is reported to earn over $1 million a year from his literary clients-among them Sidney Sheldon, Judith Krantz, Jackie Collins, Shirley Conran, Danielle Steel, and William Safire. Clearly, 99 percent of all literary agents are not in his league.
Many East Coast agents now charge 15 percent instead of the 10 percent that exists in the entertainment business. When an agent negotiates a movie deal, the prices are usually high, and the commissions may vary.
Literary Agents of North America Marketplace, Fifth Edition, is an excellent reference book available from Research Associates International, Box 7263-L, FDR Station, New York, NY 10150-1910; the price is $33 plus $3.50 for shipping. The publication profiles a thousand agencies, including dramatic agents. A special introductory essay explains the do's and don'ts of dealing with agents.
We also recommend Insider's Guide to Book Editors, Publishers, and Literary Agents! Who They Are! What They Want! and How to Win Them Over!, an excellent book for would-be authors that gives contact names at many publishers as well as a list of literary agents. Each listing gives background of agent, his/her recent titles sold, the best way for a writer to initiate contact, commission rate, reading fee policy, and approximate number of previously unpublished writers signed during the past year. The book also contains model book proposals and a sample query letter.
