Madeline McIntosh is the co-founder and CEO of Authors Equity, a new kind of publishing house built on a majority profit-share model that puts authors at the center of every decision. Before that, she spent decades within traditional publishing—including a run as CEO of Penguin Random House US—where she saw firsthand the frustrations and limitations of the industry’s standard playbook. Now she’s using that insider knowledge to rewrite the rules, from contract terms to cover design, and to create a model where publisher and author incentives actually align.
In our recent AMA, Madeline spoke with refreshing candor about what she’s trying to change in publishing, what authors often misunderstand about the business, and why the real work starts after your book hits the shelves. Here are nine of the smartest, most actionable takeaways from our conversation, each one worth bookmarking if you’re thinking about your next (or first) book deal.
1. Advances aren’t always the win they seem
“If the publisher is writing you a check [for an advance], they get exclusive rights to your copyright—often forever—and they make the key marketing decisions. That can create tension when you go to market.”
An advance feels like a victory: validation, security, and the freedom to focus on your book without financial panic. But the check isn’t free money; it comes with strings attached. Accepting an advance often means signing away your copyright for the life of the work and granting the publisher final say over key decisions, from marketing budgets to cover design.
That arrangement might be fine when everything goes smoothly, but when visions diverge—as they often do—the author has little leverage. Madeline’s point wasn’t “don’t take an advance,” but rather “understand what you’re trading for it, and decide if it’s worth the control you give up.”
2. The Authors Equity model keeps math—and incentives—simple
“Every dollar that comes in, we divide the same way between us. It’s worked out even better than I thought, because there’s no finger-pointing. We’re all in it together to sell the book.”
Madeline designed Authors Equity to avoid the endless wait for an advance to “earn out” and the opaque royalty statements that follow. Instead of locking authors into a system where the publisher is trying to recoup a big upfront payment, they split profits transparently after subtracting direct costs. The majority of those profits go to the author (distributed monthly).
This creates an incentive structure where both parties are equally invested in the book’s success. And because there’s no complicated royalty math, conversations can focus on creative strategy rather than accounting battles.
3. Control can—and should—extend to design
“I didn’t know you were ‘supposed’ to exclude authors from the design process. So we bring authors in from the start. The first time an agent saw us tweak fonts together on a live call, he said he’d never experienced that in his career.”
In big publishing, “consultation” on a cover often means being shown three versions, all of which you dislike, and being told to pick one. Madeline flipped that approach, inviting authors and agents into live design sessions from day one. This way, everyone sees the comps at the same time and can make changes collaboratively, whether it’s a font tweak or a color shift.
The process removes the secrecy that fuels tension between marketing, editorial, and the author. For nonfiction writers, especially those in business, self-help, or idea-driven markets, where a cover can make or break sales, having a say can be critical.
4. Define your audience, and the problem you solve
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