Background

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Philippa Gregory is a renowned historical novelist, best known for her Tudor Court novels. "The Other Boleyn Girl," published in 2001, became her breakout hit and was later adapted into a major Hollywood film.

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The Initial Deal

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• Gregory signed a contract with HarperCollins for "The Other Boleyn Girl" before it became a bestseller.
• The initial royalty rate was reportedly around 7.5% of the cover price for paperback sales.
• This rate was relatively standard for an author who, at the time, was not considered a major commercial draw.

The Book's Success

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• "The Other Boleyn Girl" became an unexpected hit, selling millions of copies worldwide.
• The book's popularity led to increased interest in Gregory's other works and established her as a leading historical novelist.

The Royalty Rate Issue

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• Despite the book's massive success, Gregory's royalty rate reportedly remained at the initial 7.5% for paperback sales.
• In contrast, bestselling authors often negotiate rates of 10-15% or higher for paperback sales.
• The difference in royalty rates meant that Gregory potentially earned significantly less than she might have with a more favorable contract.

The Lesson

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1. Negotiate for Success: Authors should try to negotiate contracts that include escalator clauses, which increase royalty rates as sales reach certain milestones.
2. Consider Future Potential: While it's hard to predict a breakout success, authors and agents should consider the potential for a book to become a major hit when negotiating terms.
3. Renegotiation: Successful authors can sometimes renegotiate terms for future books or editions based on proven sales records.
4. Balance Advance vs. Royalties: Sometimes, a larger advance might come with a lower royalty rate. Authors need to weigh these factors carefully.

Impact on Gregory's Career

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• While the lower royalty rate on her breakout hit was disadvantageous, Gregory's subsequent success allowed her to negotiate better terms for future books.
• The experience likely informed her approach to contract negotiations throughout her career.

This case underscores the importance of careful contract negotiation and the potential long-term impact of royalty rates, especially when a book exceeds initial sales expectations.

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