How much do literary agents cost?

Literary agents are essential if you want to get traditionally published – but how much do they cost for an author? And how do they get paid?

Let me shout something from the rooftops before we begin: reputable literary agents will never charge you money upfront. They won’t ask you for fees to consider you work or to read your submission. If an “agent” ever asks you to send them money upfront like this, it’s a massive red flag! Similarly, beware of agents asking for your money in order to sign a contract with them, or directing you to publishers who charge hefty fees to publish your manuscript under the guise of offering you a traditional publishing deal.

When it comes to money, literary agents work on a commission basis. They get paid when you, the author, do!

This means if an agent likes your work and offers to represent you, they won’t earn any money until they sell your book. That could mean they work on multiple manuscripts with you before they earn anything!

What do literary agents cost in commission?

When you do sell a book through your agent (hurray!), you’ll get paid an advance from the publishing house. A book advance is basically a sum of money paid to the author in advance of publication. When your book releases, you’ll have to sell enough copies to “earn out” this advance.

For example, if your publisher pays you an advance of £10,000, you need to sell enough books to recoup that £10,000. When you do that, you’ll start earning royalties. These royalties are calculated as a percentage of the retail price of the book. (A note that if you don’t earn out your advance, it doesn’t mean you “owe” the publisher because advances tend to be non-repayable.)

Your literary agent will take a percentage of your advance and your royalties. For domestic sales, this is usually about 15%. So if you’re a UK author with a UK agent, and you sell to a UK-based publisher, this would mean the agent’s commission is 15%. If we’re using the £10,000 advance example again, the agent would take £1,500 with the rest going to you.

If your agent sells foreign rights to your book (meaning they sell it to international publishers outside of your own country), the percentage is higher, typically 20%. If a European publisher buys your book for €10,000, the agent would in that case take €2,000.

Agents will be aiming to sell other rights for you as well! So things like film and TV rights, audio rights, and so on. If they manage to sell these, they’ll once again take a commission.

When you sign with an agent, your contract should spell out all these percentages for you.

Are literary agents worth the cost?

I’m a firm believer that literary agents are absolutely worth it!

One of the major arguments I see for not pursuing literary agents or traditional publishing is that authors can earn higher royalties if they self-publish. This is true, but there are drawbacks to going that route: authors have to become the publisher, doing everything at their own expense. If an author’s books don’t take off, or they don’t have a solid business and marketing plan, they can end up losing money.

That’s not to say this happens to everyone – some authors do very well with self-publishing. It’s a personal decision dependent on your own circumstances and preferences.

Literary agents can spend years working with an author on their manuscripts, helping them develop ideas and pitch projects. Their knowledge of the industry and their connections are invaluable. An author doesn’t have to spend a penny on any of this. The job of the agent is to collaborate with the author – and both can end up making money as a result.

What’s more, agents can help you negotiate for better deals, help you with any rough patches in your career, and find you opportunities you might not have had without them.

Even for self-published authors, literary agents can be useful! Lots of successful self-published authors seek out agents to handle things like foreign rights or film/TV rights.

What’s the process like for the author?

From the author’s side, when any money is owed, it is paid direct to the literary agency first. The agent takes their cut, and the rest of the money is paid to the author directly. The author will be sent a payment notice breaking down the money paid and the agent’s commission.

The great thing for authors is that literary agent commission is a business expense, so it’s usually tax deductible (do check this with an accountant or tax advisor first – it is generally the case, but the finer details may be country/location specific).

Avoiding red flags and scams

There are people out there looking to take advantage of authors, including shady agents or “schmagents”. I highly recommend the following resources so you can avoid scams when submitting to literary agents:

• Writer Beware: Literary agents
• Writer Beware: Vanity, subsidy, and hybrid publishers
• Society of Authors: Avoiding scams

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