PW: Evolving Standard Deal for eBook Originals - No Advance, 50/50 Split of Net Proceeds

This is exactly how my firm, New Street Communications, is structuring things. Publishers Weekly: "Most e-book original publishers interviewed by PW do not offer advances, explaining that the rules in the e-books world are different from traditional print publishing. Waxman said that while he won't rule out offering an advance to the right author, currently Diversion is not giving advances. Angela James, executive editor of Harlequin's e-book original imprint, Carina Books, said something similar: 'Carina Press does not offer advances, because the digital-first business model works differently.' The new business model is different largely because it works more like a partnership: the author supplies the text, the publisher pays for production, and they split the return down the middle (after the publisher recoups production costs). That's exactly how Diversion works. 'We put up money for the production costs and we recoup those costs as first revenues. That seems to be the model that makes sense in the nascent business at this time,' said Waxman. Open Road, the most visible publisher of e-book originals, also works on a 50/50 profit share, offering no advances. James said that in exchange for sacrificing the advance, Carina authors get 'increased marketing support, higher digital royalties on cover price, and more frequent royalty payments.'"