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An author-publisher agreement is a legal contract in which the author grants a publisher exclusive rights to publish their work in exchange for royalties. The author, as the first party, earns a percentage of book sales based on the printed cover price, typically around 7.5% to 8% for paperback and hardcover editions. However, experienced or bestselling authors may negotiate higher royalty rates. The video highlights that many publishers mislead authors with incomplete or false royalty information, sometimes delaying or incorrectly calculating royalty payments. Understanding royalty structures is crucial for authors to ensure fairness in their earnings.
