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>Advances tend to be very small and are a loan from the publisher to the author. No, not a loan. An advance does not normally get paid back if it doesn't earn
by Finnucane 7y ago
>Advances tend to be very small and are a loan from the publisher to the author.
No, not a loan. An advance does not normally get paid back if it doesn't earn out.
- thaumasiotes 7y agoBut it does get paid back if it does earn out. The payout profile looks basically the same as a non-recourse loan.
- munificent 7y agoThat just means it's a forgiven loan. The point is that the advance does not add to the money the author makes on top of royalties. Advances are not an additional cost to the publisher. They are an investment with some risk, but they control that risk by choosing the size of the advance.