Recently, I heard some scary tales of option clauses gone wrong that really made my hair stand on end.
First, in case you don’t know what that is, an option clause is often found in publishing contracts. It gives the current publisher the right to look at the author’s next work first, before any other publishers see the proposal. The publisher then has so many days (typically about 60) to make an offer on that next work.
Ideally, you don’t want an option clause in your contract. Because it limits your, well, options for the next book. But most publishers do have an option clause in their contract, so it’s not always avoidable. Good agents know to limit the option clause as much as possible. For example, you can limit the option to be for your next work of “contemporary romantic suspense” instead of just your next work. That leaves you free to write historical romantic suspense, or just contemporary suspense (no romance), or any other type of novel for another publisher.
But I’ve heard tales of small publishers (possibly vanity presses) using right of last refusal language in their contracts, and worse. Right of last refusal sucks because it means you have to go back to the original publisher after getting offers from other publishers and let them make a counteroffer. This is pretty much waste of everyone’s time. Right of first refusal (your typical option language that allows the original publisher to have the first look and make the first offer) is limiting enough, without you having to go back to someone who wasn’t interested enough to begin with, and try to make them jealous or whatever with your new suitor.
In the immortal words of the philosopher Beyonce Knowles, “you had your turn / And now you gonna learn / What it really feels like to miss me / Cause if you liked it then you should have put a ring on it.”
If a publisher likes a book, they should just make an offer to begin with! And not put the author & the other publisher through all that nonsense.
And worse, I’ve also heard rumors of some publishers doing options that last for years or for several books. The option should be for the next book, not every book you ever write in the future. If they don’t want that book, it’s over. There should also be a limited time period in which the publisher can make an offer–weeks not years. It shouldn’t extend indefinitely and tie you up forever. That’s just unscrupulous.
So if you have to negotiate your own publishing agreement, try to remove any option language. If that’s not possible, limit it as much as you can. And beware of these traps!
Here are some links to more about option clauses:
Agent Jane Dystel on Option Clauses
