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4. Since self-publishing's so easy, everybody's doing it.
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Having agreed on the scope of the publication and the formats, the parties in a book agreement must then agree on royalty rates , the percentage of the gross retail price that will be paid to the author, and the advance payment . The publisher must estimate the potential sales in each market and balance projected revenue against production costs. Royalties usually range between 10–12% of recommended retail price. An advance is usually 1/3 of the first print run total royalties. For example, if a book has a print run of 5000 copies and will be sold at $ and the author is to receive 10% royalties, the total sum payable to the author if all copies are sold is $7475 (10% x $ x 5000). The advance in this instance would roughly be $2490. Advances vary greatly between books, with established authors commanding larger advances.