On hardcovers, authors earn 30% of the publisher’s gross revenue. This equals 42.5% of the total margin, which is defined as the amount the author and publisher earn combined.
On ebooks, the author earns 25% of gross revenue. For now, most publishers are holding that number steady and will not negotiate higher percentages unless the author is very well-known or the author has a strong agent advocating for them.
This tells us two things. First, publishers are fairly compensating authors for hardcovers. Second, the debate over the fairness of the author’s share of digital revenue is valid. People should be asking why publishers are withholding a larger portion of the profits when the author is the creator of the content on which publishers make money.