economics of literature

from The Guardian’s profile of Andrew Wylie:

Later in their conversation, the editor worried about what to do with the latest novel by an award-winning British writer. “The modest offer you are waiting to make will be accepted, maybe with a small improvement,” Wylie told her. He suggested €6,000.

“It’s not going to work, since he only sold 900 copies of his last book,” the editor replied.

“This is the weakest argument I’ve ever heard in my life,” Wylie teased. “The flaws are transparent and resonant.” He pointed out that a publisher’s greatest profitability comes before an author earns back their advance, then he suggested €5,000.

“More like €4,000,” the editor said.

“Forty-five hundred? Done.” Wylie announced, pleased but not triumphant.

As meagre as that amount was, if the agency could make 20 such deals around the world for a writer, and earn a similar amount just in North America, a writer might, after the 15% agency fee and another 30% or so in taxes, afford to pay rent on a two-bedroom Manhattan apartment for a couple of years. How they would eat, or pay rent after two years if it took them longer than that to write their next book, was another question.