Earlier this year, we reported on the closure of Booktrope, a hybrid publisher established in 2010 that raised millions of dollars and published more than 1,000 titles—but never became profitable. While Booktrope largely had a good reputation, the mess that’s now left behind offers a cautionary tale for anyone considering hybrid arrangements.
The main dilemma for erstwhile Booktrope authors lies in the financial arrangement used to facilitate publication: the creative team that worked on the book receives a percentage of the book’s royalties. While Booktrope remained in business, they took responsibility for paying the team members, including the author. Now that Booktrope is out of the picture, that responsibility falls on the authors’ shoulders should they self-publish or go to another house.
The boilerplate contract stipulates, “The Author’s obligations to editor and designer … shall not be affected by termination of Author’s agreement with Booktrope.” So apparently authors—at least those who signed the boilerplate—are on the hook to their creative team in perpetuity. However, it remains to be seen if Booktrope’s contracts would hold up under legal scrutiny. As Kristine Rusch points out at her blog, the contracts are badly written.
To be fair, some Booktrope authors have publicly stated that they have continuing professional relationships with the editors and designers they worked with through Booktrope, and they have been able to negotiate workable terms. And some team members are releasing authors from any further financial obligation, writing off the whole thing as a learning experience.
Bottom line: Hybrid publishers may use boilerplate contracts that grab rights and money not even a traditional publisher would take and—perhaps most importantly—may leave the author confused, exposed, or dead in the water once the company goes out of business. Any time you’re dealing with an “innovative” or “revolutionary” business model, especially one that’s funded by venture capital, make sure you have a clear understanding of the endgame and what happens if and when the company goes out of business. The stakes are as high as in any traditional deal—these nonstandard contracts may affect your work’s entire life-of-copyright. Therefore, if you’re going to work with a hybrid publisher, hire an attorney familiar with publishing contracts or find an agent willing to work on an hourly basis to review the terms and point out problem areas before you sign. For a more in-depth analysis of the Booktrope situation, visit Kristine Rusch’s blog.
Jane Friedman has spent her entire career working in the publishing industry, with a focus on business reporting and author education. Established in 2015, her newsletter The Bottom Line provides nuanced market intelligence to thousands of authors and industry professionals; in 2023, she was named Publishing Commentator of the Year by Digital Book World.
Jane’s expertise regularly features in major media outlets such as The New York Times, The Atlantic, NPR, The Today Show, Wired, The Guardian, Fox News, and BBC. Her book, The Business of Being a Writer, Second Edition (The University of Chicago Press), is used as a classroom text by many writing and publishing degree programs. She reaches thousands through speaking engagements and workshops at diverse venues worldwide, including NYU’s Advanced Publishing Institute, Frankfurt Book Fair, and numerous MFA programs.
