Authors who write for a traditional publishing house typically receive an advance against royalties, which is a lump sum of money paid to the author when the book is first published. The advance can range from a few thousand dollars to several hundred thousand dollars, depending on the author's experience, popularity, and the projected sales of the book. In addition to the advance, authors also earn royalties based on the sales of their books. Royalties are typically a percentage of the cover price, and the rate varies from publisher to publisher. The most common royalty rate is 10%, which means the author earns ten cents for every dollar the book is sold for.
In addition to advances and royalties, authors may also earn money from other sources, such as foreign rights, movie adaptations, and audio/e-book rights.
Illustrator
Illustrators who work for a traditional publishing house typically receive a flat fee for their work, which is paid in full upon delivery of the illustrations. The fee can range from a few hundred dollars to several thousand dollars, depending on the complexity and number of illustrations required, and the illustrator's experience and popularity. In addition to the flat fee, illustrators may also receive royalties based on the sales of the book, although this is less common than it is for authors.
Illustrators may also earn money from other sources, such as freelance work, selling prints of their illustrations, and teaching illustration workshops.
It is important to note that the vast majority of authors and illustrators do not make a full-time living from their work. Most authors and illustrators have to supplement their income with other jobs, such as teaching, freelance writing, or working in the corporate world.