Rayner Unwin wrote to Tolkien to say that the firm would like to publish The Lord of the Rings under a profit-sharing agreement. This meant that Tolkien would not receive conventional royalty payments on a percentage basis. Instead he would be paid ‘half profits’ that is, he would receive nothing until the sales of the book had been sufficient to cover its costs, but thenceforward he would share equally with the publisher in any profits that might accrue. This method, which had once been common practice but was by this time little used by other firms, was still favoured by Sir Stanley Unwin
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