What Is an Option Clause

Glossary > Option Clause

How does an option clause work?

An option clause, also known as the "right of first refusal" clause, gives the publisher the first opportunity to consider and offer the author's future work. If the publisher decides not to publish the next work, the author is then free to offer it to other publishers.

Does an option clause get included in the author-publisher contract?

Yes, option clauses can be included in publishing contracts as a way for publishers to maintain an ongoing relationship with an author and to have a pipeline of future books from that author. 

Is an option clause beneficial to authors?

Whether an option clause is beneficial to an author depends on the specific terms of the clause and the author.

An option clause can benefit authors because it can help establish a long-term relationship with a publisher. It can also provide financial security for both parties. If a publisher wants to sign an option clause with an author, it means they believe in their writing, and authors can know where their next paycheck comes from.

If that's the case, and the publisher wants to sign an option clause, the publisher may even offer a higher advance or better terms in exchange for the option clause.

An option clause also ensures continuity in a series or a particular author's works. This helps publishers who want to build a loyal readership and authors who wish to establish their brand and reputation.

If a publisher is interested in publishing an author's next book, they will likely invest more in marketing and promotion, which can lead to a larger audience for the author.

On the other hand, an option clause can limit an author's ability to go to other publishers and potentially receive better offers. That is why authors should be careful and limit the option clause timeframe so they wouldn't be tied to a publisher for longer than they want to.