"Luozhi, you really tricked Uncle Sun badly this time."
"Huh? Uncle Sun, when did I ever trick you?"
"Didn't you tell me that this guy is your classmate?"
"Yeah, so?"
"Then that's where you're wrong. I've always thought of you as an honest and upright student. Why would you lie like this? It's not good at all. Are you sure this guy is really your classmate, and not some university professor you happen to know?"
"University professor? Uncle Sun, what are you talking about? You're confusing me. Huang Yifan really is my classmate."
"You sure?"
"Uncle, I'm totally sure. I swear, swear to heaven, Huang Yifan is my classmate, same grade, same class."
"Alright, alright. Pretend I didn't say anything just now."
"Uh…"
…
Midnight Talk
"Editor-in-Chief, Fanchen's 'Strange Tales' has already serialized more than ten stories. I just spoke with him, he's planning to write a few more and then compile them into a volume for publication."
After speaking with Huang Yifan, editor Dong Xiaoyu brought up his intent to publish 'Strange Tales' during the company's routine meeting.
"Publishing? That's great."
Without hesitation, Midnight Talk's editor-in-chief Zhou Qing nodded with a smile. "Strange Tales is arguably the most successful work we've introduced this year. In fact, it might be the most successful in the supernatural genre in recent years. It's a fascinating and innovative piece. I believe once it's compiled into a book, it'll definitely sell."
"Exactly, Chief. I think so too. Plus, since we have a partner publishing house, as long as we secure the publishing rights, 'Strange Tales' can surely make a name for itself in the publishing world."
"Mm."
Zhou Qing nodded again. "Go ahead and tell Fanchen that we'll mobilize all our resources to fully package and promote his 'Strange Tales'."
But just as he finished speaking, editor Lin Hao interjected.
"Editor-in-Chief, we might be moving a bit too fast here. I don't think we've discussed the royalty terms with Fanchen yet."
"That's true. Xiaoyu, did Fanchen bring up any requests?"
"Not yet. He didn't mention anything."
"Alright then, let's proceed with a 9% royalty rate in the publishing contract."
Typically, new authors are offered royalties of 6–7%, that is, 6% or 7% of the book's retail price.
Yes, that's low, but it's standard across the globe.
From publishing and printing to distribution and marketing, producing a novel involves high costs and effort.
Take a novel priced at 20 yuan with a first print run of 5.000 copies. It may look like it'll earn 100.000 yuan in sales, but that's far from reality. Publishers don't sell at retail price; they wholesale to bookstores and libraries at steep discounts. While reference books might be discounted less, novels are often sold at 50% off. Bigger bookstore chains might even buy at 40% or less.
So the actual revenue is closer to 50.000 yuan.
And that's before deducting transport, utilities, labor, printing, etc. If the publisher nets even 20.000 yuan in profit, that's already incredible. On top of that, they still have to pay the author 6–7% in royalties, based not on the discounted price, but on the full retail price. Plus, they'll owe an advance, perhaps 6.000-7.000 yuan.
Once all the numbers are crunched, the profit margin is razor-thin. That's why new authors almost always get 6–7% royalties. It's the only way publishers can afford to take a risk. Sure, established authors can command 8–9% because their sales are reliable.
For Zhou Qing to offer Fanchen 9% for his debut book meant he already saw him as a top-tier writer.
To many, Fanchen might still seem like a newbie, especially in publishing, where he's practically unknown.
But not everyone agreed. Lin Hao spoke up again. "Editor-in-chief, isn't 9% a bit too high?"
"Lin Hao, what are you implying? Should we give him just 6% or 7%? You do realize, even if Fanchen is a new writer, 'Strange Tales' has already proven its appeal through our magazine. Sure, magazine and book audiences differ, but this success shows 'Strange Tales' could be a hit."
"Xiaoyu's right. I believe 'Strange Tales' could sell big. Even if 9% is high for a new author, it's within reason."
Ever since Zhou Qing had kicked San Yue out of 'Midnight Talk', he hadn't been too fond of Lin Hao. But since Lin Hao had strong ties to the parent company, Zhou Qing hadn't found a solid reason to dismiss him. Now that Lin Hao was acting up again, Zhou Qing made a mental note to bring him up with the higher-ups and recommend letting him go.
"You misunderstand, Chief."
Sensing Zhou Qing's annoyance, Lin Hao quickly tried to explain. "Exactly because we expect 'Strange Tales' to sell well, we shouldn't agree to such a high royalty."
"Your vision is too narrow, Lin Hao. If 'Strange Tales' becomes a hit, both Fanchen and we profit. It's a win-win."
"No, Xiaoyu, you're missing a better win. Instead of offering royalties, we can buy out 'Strange Tales' entirely, pay by total word count."
This caught Zhou Qing's attention.
Seeing Zhou Qing hadn't dismissed the idea, Lin Hao pressed on. "Right now, Fanchen's getting 3.000 yuan per thousand words for magazine work. So far, he's written 15 stories, each around 1.000 words. Let's estimate 4.000 yuan per story. That's 60.000 yuan total. Not a huge sum. Since we believe 'Strange Tales' will be a hit, we could offer 200.000 yuan to buy all publishing rights outright."
Editors started doing mental math.
200.000 yuan was a lot, but given how compelling 'Strange Tales' was, and how well it had performed, 10.000 copies in print seemed very achievable.
"Chief, if we sell 100.000 copies, all profits beyond that will be ours. But if we stick to the 9% royalty deal and 'Strange Tales' explodes, selling 200.000, 300.000, or even 400.000 copies, then we'd be handing over 400.000, 600.000, or even a million yuan in royalties."
"Chief, we can't do that!"
Startled by Lin Hao's figures, Dong Xiaoyu turned to Zhou Qing. "Chief, even if the buyout nets us more profit, it would be unfair to Fanchen. He'll feel like we tricked him."
"Heh, Xiaoyu, you're overthinking. Fanchen is just a newcomer. 200.000 yuan is already a huge deal. Honestly, if I suddenly got 200.000 for writing, I wouldn't even ask about royalties."
"But what about the future? Eventually, Fanchen will realize we took advantage of him."
"And when that day comes, we can spin it either way. If sales flop, we say: 'Look how much faith we had in you, we gave you 200.000 and lost money!' If sales skyrocket, we say: 'It's thanks to our packaging, marketing, and distribution. We took the risk.'"
"No, Lin Hao. We can't do this. If we pull a stunt like that, our magazine will be finished."
"Tch, Xiaoyu, it's not like the magazine's survival depends on you. Chief, what do you think?"
All eyes turned to Zhou Qing.
He sipped his tea silently, saying nothing.
That silence gave Lin Hao hope.
He knew Midnight Talk had been barely staying afloat, fluctuating between minor losses and slim gains. There had even been talk at HQ about shutting it down. Sure, 'Strange Tales' had recently surged in popularity, but literature is fickle. Today's hit could be forgotten tomorrow.
He didn't believe for a second that this guy Fanchen could keep churning out 'Strange Tales' forever.
Fifteen stories already? That was genius-level output. But in Lin Hao's experience, such writers soon run dry. They rarely write another hit. Just look at San Yue, still the same person, still called a master of the supernatural, but unable to replicate his former brilliance.
Years of gut instinct told Lin Hao: Zhou Qing would go for it.
Because Midnight Talk wasn't about literature, it was a business.
And if there's a way to earn an extra few hundred thousand, or even a few million, what sane businessman would say no?
==========
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