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An author-publisher agreement is a legally binding contract between an author and a publisher, where the author grants exclusive rights to publish their work in exchange for royalties. Royalties, typically set at 7.5% to 8% of the book's cover price for paperback and hardcover editions, increase with higher sales. Established authors or bestsellers may negotiate for higher royalties. However, many publishers may mislead authors by providing incomplete or inaccurate royalty information, often delaying royalty payments after the publishing process. This video provides detailed insights regarding royalty structures and potential pitfalls in author-publisher agreements.