SigninG a Publishing Contract

You should make sure that you receive an advance on royalties — a payment that literally gives you some of your royalties in advance. This is a non-refundable payment: you keep the advance no matter whether your game gets made, and no matter how many copies sell. This creates a financial incentive for the publisher to actually publish and market your game. 

When the game starts selling, you earn out your advance. Your first royalty statement(s) will show the royalties you’ve earned, but will also show that you were already paid in advance for some of them. Once the value of your royalties is more than your advance, you start getting royalty checks. 

Publishers do not always put an advance in their first offer, but it is absolutely reasonable for you to ask for one. Cardboard Edison reports that the most common advance amount is $1,000-$2,000. Stonemaier Games has announced that they now pay an advance of $10,000. 

Many contracts simply award the advance with no attached requirements. Some may be contingent on you handing over a copy of the game. Do not make the advance contingent on anything more than this. 

Your advance should always be non-refundable or non-recoupable -- you keep it no matter what. Keep an eye out for terms tucked into other parts of the contract that might require you to return an advance, and do not accept those terms.