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An author publisher agreement is a legally binding contract between an author and a publisher, where the author grants the publisher exclusive rights to publish their work in exchange for royalties. Royalties are typically a fixed percentage, around 7.5% to 8%, of the book's cover price, meaning authors earn more as book sales increase. Experienced and bestselling authors may receive higher royalty rates. The video addresses concerns about misleading practices by some publishers, who may provide incomplete or inaccurate royalty information, impacting the authors’ earnings.
