The primary function of a literary agent is to place an author with a publisher. Literary agencies tend to represent certain kinds of authors based on their literary tastes, track record with certain kinds of work and existing relationships with editors. The agency may have a history of collaborating with some editors repeatedly. The agent should always be a champion for the author and representing the author's best interests. He should listen to the author's wishes and try to secure the best publishing deal possible.
An important function of the literary agent, one that has made agents useful to publishers, is the reading of unsolicited manuscripts. Agents read query letters submitted by authors and agree to read their manuscripts. The agent then reads through the "slush pile" of manuscripts from hopeful writers. An agent chooses to represent an author who she thinks has the most commercial potential. Most fiction manuscripts -- even if they've been rewritten several times before submission to a literary agency -- need further work. Agents will offer editorial advice and suggestions for improving the story, the writing or plot ideas. Nonfiction projects may be sold before the manuscript is completed, based on the credentials of the author and the content of the book proposal and its sample chapters.
After the manuscript or proposal has been prepared to the satisfaction of both writer and literary agent, the agent proceeds to market it. The agent suggests strategies for approaching publishers, and explains to the author which publishers and editors will be targeted. The literary agent acts as the intermediary and does all the negotiations. He prepares or vets contracts and advises the author as to the best commercial terms. The agent may also secure rights with foreign publishers. Some may handle film, television and other rights, although these areas are often the preserve of specialists, such as dramatic agents.
After securing rights, the author should be able to depend on the literary agent for regular, ongoing reporting and administration functions. The agent channels advances, fees, royalties and all accounting and sales statements to the author. She monitors the marketing activities of the publisher or other license holders, and ensures that the best interests of the author are observed. She also keeps an eye out for further opportunities for the author's work.