More on Negotiations and Contracts: An Excerpt from My Book: A Friendly Guide to Writing and Ghostwriting
When you receive a publishing contract, congratulations. But I suggest you learn how to read and understand it so you can make educated decisions and not get blindsided. I had a period of time, close to a year, when I had no agent. During that time, I did my negotiating myself. Since I’d done so many collaborations and ghostwrites, I knew what was reasonable and what wasn’t. In order to be sure I didn't make any mistakes, I forced myself to read every word of the boring contract that was filled with legalese and I learned what it all meant. To this day, I still read every word and clause in any contract I’m about to sign and I ask the “stupid” questions that help me understand what I’m reading. If I find a clause that my agent has overlooked, it happens a lot, that doesn't necessarily mean she’s incompetent. She may be, but more often than not, it takes several pairs of eyes to make sure everything is correct. Don’t let the little stuff go. I can’t say it enough. Read every word and ask questions before you sign on the dotted line.
One of my clients, a successful producer, gave me the sage advice to never go to a meeting without a strategy. That means you have to know what you want up front. You may face a little give and take but don't allow anyone to bully you into making agreements that feel wrong. You should never be that desperate. If the other side is being petty, cheap, arrogant or unreasonable, you might need to break the deal. You’ll be dodging a bullet. Just try to be flexible and make sure you’re not selling yourself short. If you know the payments and the terms you want, have your agent ask for a little more so there’s room left for negotiating. Just make sure you don’t price yourself out of a good job.
I caution you here to never discuss money with your client. That’s a hotbed of possible clashes and you want your relationship with your client to be smooth and harmonious. If you defy this rule (I did it once) and you mention anything monetary to the client, the two of you will inevitably start resenting each other. This is a death knell for any collaboration and no matter how much you're getting paid, it won't be enough. Let the agents do the dirty work and earn their percentages. Then the two of you, the creative parties, can place your focus on writing a wonderful book that will make you both proud.
Here is some guidance for signing a contract:
• It may take time (it often feels glacial) for the publisher to write the publishing contract and run it by an in-house lawyer. Be patient and don't tell yourself stories about why it's taking so long. If payments are being withheld, your agent should warn the other agent that you won’t keep writing until they uphold their part of the bargain.
• When you get the contract, make sure the payment amounts and deadlines match the agreements you made. Unless there’s a reason for a firm deadline, you get to decide how long it will take you and then ask for an extra month or two. If you get the book in early, you’ll be a hero.
• Confidentiality is of the utmost importance to any celebrity. Boiler plate publishing contracts contain strict confidentiality clauses and you have to abide by them. They are written to last a lifetime so don't get comfortable after a while and ignore them or you’ll be seeing the inside of a courtroom. In this book, I’ve left out names and talked about clients generically for that very reason.
• Make sure you are legally and financially covered if the other side decides to terminate the project for any reason. Customarily, you get to keep the payments that were already made and the client gets to keep the material you wrote.
• Insist on double indemnity. That means you are demanding equal rights for arbitration as you and your partner agree to hold each other harmless in the rare case of unexpected legal issues. The other side may try to sneak this by and slant the rights in their favor, so don't let it happen.
• Be clear about who is responsible for any expenses that may arise, such as flights, hotel accommodations, or anything else. Typically, the client covers them.
• The client holds the copyright to the work and you cannot use the material for any personal reason. The contract will make this clear and that’s non-negotiable. Here is an example of a phrase in a boiler plate contract that the other side writes for the ghostwriter:
You hereby acknowledge and agree that we are and will be the author, owner and proprietor, exclusively, perpetually and throughout the universe, of all rights of every kind and character whatsoever, (including without limitation, all copyrights in all jurisdictions and all extensions thereof.) You will have NO RIGHT to use the Material for any purpose whatsoever, including without limitation, in a magazine article or a book without our prior written consent which we may withhold.
No confusion there. Are you getting the picture?
• Determine if your name will appear on the cover. If so, establish whether you will be a “with,” an “and,” or “as told to.” If you are contracted to receive no credit, ask for a shout out on the acknowledgment page. You may not get it but it never hurts to ask.
When you embark on a book contract negotiation, remember that in most cases, no one is trying to trick or one-up anyone else. It they are, don’t take it personally. This is business, plain and simple. There are no victims here. In most cases, the participating agents or lawyers will do their best to come up with agreements and solutions, so leave it up to them to play bad cop. Once this phase is over, you and your client can start writing a good book with no resentments or confusion to muck up the process.