The author or illustrator is paid one lump sum for their work, and receives no royalties. Both trade and mass market books can have institutional sales. Children's book publishers rely on institutions for a large portion of their sales. Most mass market publishers are not looking for award-winning books or a strong backlist, but rather titles that fit current market needs. Some publishers base the royalty paid to the author or illustrator on net price.
Most larger publishers pay royalties based on the cover price.
Authors and illustrators are both paid in royalties unless a flat fee arrangement has been made. Society of Children's Book Writers and Illustrators, the leading membership organization for children's writers. If the publisher sells the sub. If the agent sells the rights, the author keeps all the proceeds minus the agent's commission.