# Earned out!



## Hugh Howey (Feb 11, 2012)

I am stunned and amazed by this development. When I sign a publishing contract, I assume the advance is all I will ever see, especially if it's a large advance. Against all odds, my agent just received a royalty payment from one of my overseas publishers. It's like having the traditional publishing's version of a BBOS disappear!

Now, if there's a flood of books returned, do I have to give it back?

Also: If you're in Helsinki, Finland and you can meet me out tonight, the drinks are on me!


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## K. D. (Jun 6, 2013)

This is great! Congrats


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## Lydniz (May 2, 2013)

Congratulations!


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## Lisa Grace (Jul 3, 2011)

Fantastic!


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## Anne Frasier (Oct 22, 2009)

nice!!!!!


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## Taking my troll a$$ outta here (Apr 8, 2013)

What the what?! How cool is that! Congrats 

(Edited cause the stoopid kindle spell checker is bonk)


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## Mark E. Cooper (May 29, 2011)

Wooohooo! That's great news, mate.


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## RM Prioleau (Mar 18, 2011)

Can you educate me, Hugh? What does "earn out" mean?


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## Sarah Stimson (Oct 9, 2013)

Wow, that's pretty impressive!  Well done!


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## Silly Writer (Jul 15, 2013)

Awesome  . Thanks for blazing new trails for us!


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## Marti talbott (Apr 19, 2011)

It means you actually have to keep the advance. That's too bad. (just kidding.)


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## Speaker-To-Animals (Feb 21, 2012)

> What does "earn out" mean?


When you sign they pay you an "advance" which is a lump sum that you get to keep regardless of whether or not it sells well. However, it's technically prepaid royalties so until you sell enough books to cover the advance, you don't get anything additional. "Earning out" is when you reach the level that covers your advance and they start to send you royalty checks.


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## Jerri Kay Lincoln (Jun 18, 2011)

Wow, Hugh!  Very cool!


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## 68564 (Mar 17, 2013)

Hugh Howey said:


> Also: If you're in Helsinki, Finland and you can meet me out tonight, the drinks are on me!


Dang it! That is a bit far to walk from here. Ah well.. CONGRATS!!!!


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## 10105 (Feb 16, 2010)

Hugh Howey said:


> Now, if there's a flood of books returned, do I have to give it back?


Depends, of course, on your contract. Typically, you do not (based on the two-dozen or so contracts I've had). Royalties paid are like an advance. Publishers often hold some of the royalties in reserve as insurance against returns, and that amount should appear on the royalty statement. Eventually, they owe the author those reserves if returns do not offset them.


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## RM Prioleau (Mar 18, 2011)

Katie Elle said:


> When you sign they pay you an "advance" which is a lump sum that you get to keep regardless of whether or not it sells well. However, it's technically prepaid royalties so until you sell enough books to cover the advance, you don't get anything additional. "Earning out" is when you reach the level that covers your advance and they start to send you royalty checks.


oooh nice! Thanks for explaining!
Congrats, Hugh!


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## TexasGirl (Dec 21, 2011)

Al Stevens is right. You don't have to pay anything back. If there are too many returns they will go against your next royalty check, but usually they are fairly good at holding a reserve so that each check is more or less correct.

Congrats!


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## Scott Daniel (Feb 1, 2011)

It couldn't happen to a nicer person. I hope you continue to earn out on all of your deals, Hugh.


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## Vivi_Anna (Feb 12, 2011)

Sweet!!


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## MindyWilde (Oct 2, 2013)

Congrats Hugh, you deserve it.  Wool is still my favorite book of all time and I have enjoyed the rest of your catalog as well.  I am shocked that it happened so quickly though.  Nice!


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## 71089 (Jul 12, 2013)

Awesome! Congratz


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## Nikki Pink (Jan 23, 2013)

Congratulations!

If you ever get sent to (South) Korea by your publishers I'll buy you a beer/coffee/dinner!


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## ElHawk (Aug 13, 2012)

Yay, congratulations!

Wish I was in Helsinki.  It's on my list of places to visit.

Keep on rockin' in the free world, Hugh.


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## Kay Bratt (Dec 28, 2011)

Whoo hoo, Hugh! Celebrate because that's awesome. Congrats.


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## Chris Northern (Jan 20, 2011)

That is seriously good news. A key event. Congrats.


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## Izzy Hammerstein (Jul 6, 2011)

Take the Money and Run, I say.


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## Ardin (Nov 1, 2012)

You're unstoppable, Hugh!!! Well done.


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## Christopher Bunn (Oct 26, 2010)

Ah, Helsinki. Revel in the lutefisk! It is so tasty.


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## ktashbury (Oct 10, 2013)

I also purchased it a few days ago. Congratulations! You're awfully inspiring. 

Also, "Take the money and run" reminds me of Woody Allen playing cello in a marching band and now I'm laughing softly to myself like an idiot.


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## Riley Graham (Sep 1, 2013)

Congratulations! You've been such an inspiration and your success is truly well-deserved.


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## JRTomlin (Jan 18, 2011)

Hugh Howey said:


> I am stunned and amazed by this development. When I sign a publishing contract, I assume the advance is all I will ever see, especially if it's a large advance. Against all odds, my agent just received a royalty payment from one of my overseas publishers. It's like having the traditional publishing's version of a BBOS disappear!
> 
> Now, if there's a flood of books returned, do I have to give it back?
> 
> Also: If you're in Helsinki, Finland and you can meet me out tonight, the drinks are on me!


Most contracts used to call for a reserve for returns but I haven't seen one for a while.

Anyway, CONGRATULATIONS!!! That is fantastic news.


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## AgnesWebb (Jan 13, 2013)

Marvelous! You are such an inspiration. And have fun in Helsinki—sounds amazing!


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## Gennita Low (Dec 13, 2012)

Nice!

Congrats over and over .


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## LG Castillo (Jun 28, 2012)

awesome! Congrats!


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## Gertie Kindle (Nov 6, 2008)

Keep the good news coming, Hugh!


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## Susanne O (Feb 8, 2010)

Are you going to Stockholm, or have you already been there?


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## Zelah Meyer (Jun 15, 2011)

Congratulations, Hugh!


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## Shayne Parkinson (Mar 19, 2010)

What a great milestone! I foresee similar ones yet to come from many other territories.


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## Tamara Rose Blodgett (Apr 1, 2011)

*


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## Sam Kates (Aug 28, 2012)

And now you're back to having a regular income. Congrats - must be a fantastic feeling.


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## Hugh Howey (Feb 11, 2012)

Susanne OLeary said:


> Are you going to Stockholm, or have you already been there?


Haven't been but dying to go.


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## CoraBuhlert (Aug 7, 2011)

Congrats, Hugh! Alas, Helsinki is a bit far from here, though at least on the same continent. But as far as I recall, we used to have a Finnish poster here.


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## WG McCabe (Oct 13, 2012)

tkkenyon said:


> Awesome, Hugh! That's fantastic!
> 
> ::Raises coffee, because it's a little early here in the US for a drink.::
> 
> TK aka BB


That's why Sunkist is all I drink. Good anytime, day or night. 

Way to go, Hugh. That's awesome.


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## Susanne O (Feb 8, 2010)

Hugh Howey said:


> Haven't been but dying to go.


That's my hometown. Let me know if you go there and I'll get them to roll out the red carpet and fire up the sauna.


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## B.A. Spangler (Jan 25, 2012)

HUGE!!  Congrats!


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## Blerch (Oct 17, 2013)

Drinks on Hugh!


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## MitchHogan (May 17, 2013)

Congratulations! Well deserved.


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## Vera Nazarian (Jul 1, 2011)

Fantastic!!!


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## MarchMarg (Oct 26, 2013)

Congrats Hugh!


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## ruecole (Jun 13, 2012)

Wish I was in Helsinki!  Congrats, Hugh!

Rue


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## Carradee (Aug 21, 2010)

Congratulations! That's fantastic.


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## David Adams (Jan 2, 2012)

Grats dude, you (pardon the pun) earned it.


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## JohnHindmarsh (Jun 3, 2011)

Hugh - well done. Congrats.


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## A.A (Mar 30, 2012)

And so quickly!!
Congrats!


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## Shalini Boland (Nov 29, 2010)

What an incredible feeling that must be! Congratulations


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## Lisa Scott (Apr 4, 2011)

That was fast! Congrats.  I'm sure there are many more earn outs to come your way.  And Finland?  Now that's just not fair.


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## Theresaragan (Jul 1, 2011)

What a fun surprise! Congratulations!


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## Susan Kaye Quinn (Aug 8, 2011)

Nice!!


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## LBrent (Jul 1, 2013)

Congratulations. Have fun in Helsinki.


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## donnajherren (Mar 7, 2013)

Congratulations!


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## Jan Thompson (May 25, 2013)

Congratulations! Most authors don't earn out their advances, so now we know that your books are GREAT!


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## Katherine Roberts (Apr 4, 2013)

That's brilliant news!

Normally the reserve against returns is only active for the first two or three royalty statements, and after that the publisher foots the bill for them. But it depends on your contract - your agent will know. If they have paid you royalties above the advance, then they will already have taken their reserve out of that. If they got it wrong, then that might mean fewer royalties next time round, but I can't see why you'd have to pay any back unless there is a clause in the contract saying you do.


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## 48306 (Jul 6, 2011)

Go Hugh, go! Congrats!


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## Cherise (May 13, 2012)

Way to go, Hugh!


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## JumpingShip (Jun 3, 2010)

Congrats, Hugh!


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## AmberDa1 (Jul 23, 2012)

Way to go, Hugh! Wish I was there to share a toast to you with a fine shot of warm whiskey. Congrats


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## Cheryl Douglas (Dec 7, 2011)

That's awesome, Hugh. Congratulations!


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## ChrisWard (Mar 10, 2012)

Brilliant, congrats!

I spend Christmas Day in Helsinki once during a stopover from Tokyo to London. Fascinating place. Great pizzeria not far from the opera house (it was actually the only place I could find that was open on Christmas Day haha).


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## Lady TL Jennings (Dec 8, 2011)

Congratulations! Well done and well deserved!

(...Is there anyone else here who thinks that Hugh should celebrate this fantastic milestone with a new dancing clip on youtube…?)


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## AworkInProgress (Sep 5, 2013)

Wow congrats.


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## Adrian Howell (Feb 24, 2013)

Didn't even know what "earned out" meant till I read this thread. 

Absolutely congrats!


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## Hugh Howey (Feb 11, 2012)

I figured this announcement would get 4 replies, not four pages of them! And without even mentioning the size of the advance.  

Since there weren't any takers in Helsinki, I'm postponing the drinks-on-me until the first annual Writers' Cafe Meet-Up. Get on it, Harvey!













(The advance was pretty damn big. Ya'll gonna be some drunk writers.)


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## 54706 (Dec 19, 2011)

Congrats!!! That is so awesome.  And I'm totally jealous you're in Finland too.


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## Hugh Howey (Feb 11, 2012)

ellecasey said:


> Congrats!!! That is so awesome. And I'm totally jealous you're in Finland too.


It's raining here.

Feel better?


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## Susanne O (Feb 8, 2010)

I'm in Stockholm.It's raining here too.


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## Randirogue (Apr 25, 2011)

You deserve it.  Recently finished "Dust" and loved it, the whole series.  Wish there was more of it coming because I'd live to read about their experiences as they entrench themselves in their new lives.


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## P.A. Woodburn (May 22, 2010)

Congratulations, Hugh! If I ever got that famous I don't know what I'd do--I have to take my Saint Bernard everywhere I go!
At least the climate in Finland would suit him.


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