Do ghostwriters get royalties?
Even prolific authors find time to moonlight as a “ghost” because they acknowledge the money to be made from it.
However, most ghostwriters don’t get paid royalties. But that’s not necessarily a deal-breaker should you plan to become one.
What’s a Ghostwriters’ Royalty?
A royalty is a payment to authors based on how many copies of their work are sold.
It’s typically expressed as a percentage or a flat rate, depending on the writer’s and publisher’s contracts.
Royalties are paid in addition to the writer’s initial fee and are considered passive income since they don’t require additional labour.
The concept of royalties is born out of copyright laws.
Authors have the right to be compensated for their work and receive a share of its profits even after it’s been sold several times.
For instance, if an author wrote a book that sold 100,000 copies and received a 10-percent royalty rate, they’d earn $10,000 in addition to their initial payment.
Royalties are a tradition in the publishing world and are often used to incentivize authors to write more books.
Publishing houses may stand to lose money at first, but they’re gambling on making a profit through the royalties they collect after their books become bestsellers.
Why Aren’t Ghostwriters Entitled to Royalties?
By signing off on the ghostwriting contract, you’re transferring all rights to your work to the client.
As such, you no longer own the copyright and can’t claim any future royalties it may generate.
It’s also worth noting that the traditional arrangement between an author and the “ghost” leans away from the royalty payment model.
The reason is that you essentially don’t own the book or the rights to its profits – even if you wrote it.
In most cases, the client pays an upfront fee that’s proportionate to the complexity of the project and the ghostwriter’s credentials.
This benefits both parties by allowing them to agree on a realistic budget before starting work.
The arrangement also makes it easier for authors to secure financing from publishers as they know they won’t have to suffer through any additional “cut.”
A flat fee makes perfect sense for a “ghost.”
You get paid for your work without worrying about how well or poorly it does in the market.
Along with it is a relief of not having to pitch the book or market it, which can be a long and frustrating process for authors.
But it doesn’t mean you don’t need to put a premium on high-quality work.
Because if you establish a good reputation, you may eventually transition to a royalty-based arrangement with the same author or a different client.
The truth is being a ghostwriter means you renounce your rights to royalties.
But that doesn’t mean you have to settle for less money. You can always negotiate a higher upfront fee or request that the client give you credit as the work’s author.
Likewise, your express renunciation works to your advantage because there’ll be fewer risks associated with income generation.
Remember, most (if not all) ghostwriters do this stuff to make money, while authors are all for prestige first and money second.
So, if you, as a ghostwriter, agree to royalty payments instead of an upfront fee, you risk getting nothing if the book doesn’t sell.
How Ghostwriters Are Paid Instead
As previously mentioned, ghostwriters receive a one-time payment for their services.
The amount varies greatly depending on the scope of the project and the client’s budget, but it ranges anywhere from several hundred to over a thousand dollars.
Sometimes, a ghostwriter may negotiate a royalty arrangement with their client.
The client would receive a percentage of every sale related to the project and then share it with the ghostwriter. However, this doesn’t come about often because several factors need to be considered.
The biggest factor is the risk involved in working as a ghostwriter.
The publisher takes most of the risks regarding marketing, printing costs and other expenses.
But when ghostwriters receive royalties, they’re taking on more risk because they will only get paid if the book sells.
This is why it’s rare for clients to offer a royalty rate unless the writer has already been established or is heavily invested in the project.
In most scenarios, ghostwriters are paid a flat fee for their services.
If you’re thinking of becoming a ghostwriter, consider if you’re willing to work without the added security of royalties.
Even though there is no guaranteed return on your investment, most ghostwriters find great satisfaction in knowing that they helped bring another person’s story to life.
The “Writing Relationship” Factor
When getting paid for ghostwriting, the relationship between you and your client is also important. Clients are often more likely to agree to royalties if they trust and respect the writer.
As a ghostwriter, you must foster a great relationship with your client to increase the likelihood of receiving additional revenue.
Many publishers recognize that it’s advantageous to keep the ghostwriter involved to maintain the quality of their work.
Ghostwriters could potentially receive additional compensation if their book is successful and has continued sales.
This could be in royalties or a percentage of each sale.
Not many people realize that some of history’s bestselling authors chose to credit their ghostwriters.
It’s a testament to how valuable these collaborations can be to both parties involved.
Money isn’t everything when it comes to ghostwriting; it’s worth considering other perks like access to new contacts, professional advice, and the satisfaction of seeing your name on the cover.
Further Reading
Hiring An Editor For Your Book
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Joel Mark Harris graduated from the Langara School of Journalism in 2007. Joel is an award-winning journalist, novelist, screenwriter and producer.
He has ghostwritten numerous books in all types of genres including true life crime, business, memoir, and self help. With over 1,000 blog posts to his name, he has helped hundreds of business owners scale their business and increase their visibility. You can email him at info@ghostwritersandco.com
