New Book Publisher Promises Authors Creative Control, Profit-Sharing

Etan Vlessing
·2 min read
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A new book publishing startup, Authors Equity, plans to give popular writers more creative control and a larger slice of profits.

The venture, launched by industry veterans Madeline McIntosh, Don Weisberg, and Nina von Moltke, has an author-centric model that puts a priority on backend compensation typical of the indie film industry.

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“Authors Equity has taken the best elements of traditional publishing and combined them with a fresh approach that works perfectly for authors who want to succeed in today’s market,” Atomic Habits writer James Clear, who is investing in the startup, said in a statement on Tuesday. Louise Penny, author of the bestselling Inspector Gamache book series, is also investing in the company.

The principle of “aligned incentives” underpins the new profit-sharing model for authors who may want to forego traditional publisher advances or other fixed contract payments like a percentage paid from each book’s sale price. Instead, authors would take a bet on downstream earnings after initial production costs are recouped.

“Publishing doesn’t need to be a zero-sum game,” McIntosh, co-founder, CEO and publisher, said in a statement. Profit participation in book publishing has mostly been done by indie or smaller players, and the launch of Authors Equity underlines how the model is being adopted by bigger publishing players serving best-selling authors.

“Authors, publishers, and readers alike benefit when there’s a variety of approaches in the market. Our approach won’t be right for everyone, but each author deserves a chance to find the right creative partnership and financial model that will give them the very best publishing experience,” McIntosh, a former CEO of Penguin Random House U.S., added about the collaboration behind the Authors Equity book publishing model.

Weisberg, former CEO of Macmillan Publishers, is senior advisor in the startup, while Nina von Moltke, former president, strategic development at Penguin Random House U.S., will serve as president. And Authors Equity will be distributed by Simon & Schuster, which will also offer production support for some titles.

The company has agreements in place for a slate of fiction and nonfiction books, and its first titles are set to be announced in the coming months, Authors Equity said.

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