Bad Contract Alert: NovelSnack/AnyStories/Readink

Header image: yellow caution tape criss-crossed on a white background (Credit: heromen30 / Shutterstock.com)

This is another in my series of posts about poor contract terms from serialized fiction apps.

A few months back, this email arrived in my Writer Beware inbox.

Email to me from Evelyn of Novelsnack, expressing interest in my "stories from Wattpad" and promoting benefits of "30% of the net-gaining plus various bonus for authors who signed exclusive contracts with us, including 50 USD Signing Bonus, 200 USD Monthly Attendance Bonus and 11,000 USD maximum Excellent Story Bonus."

I’ve never used Wattpad, so clearly they had me confused with someone else (maybe something to do with this?), but I never pass up the chance to get hold of a contract, if I can. I asked for one, and somewhat to my surprise, they sent it.

Although NovelSnack, Readink, and Anystories appear to be owned by different companies (Owego Co., Ltd in Hong Kong; Jiangxi JuwenTechnology Co., Ltd in China; and Read Asap Ltd. in Singapore, respectively) they are all part of the same group, as indicated by Evelyn’s signature, as well as the fact that the “Become a Writer” links on Readink’s and Anystories’ websites default to NovelSnack. (The contract mentions additional apps that don’t show up on a search: Xreaders, Xbooks, Rbooks, and Novelix.)

NovelSnack’s application process and “writer benefits” are pretty similar to those of other fiction apps. To apply, you create an account and upload at least 3,000 words; your submission is then reviewed and you may or may not be awarded a contract. For the exclusive contract, NovelSnack’s pay-to-read program offers the perks mentioned in Evelyn’s email as long as you can produce at least 45,000 words per month and maintain a “retention ratio” (not defined, but I’d guess it means attracting the same readers as you post updates) of 10% or greater. Non-exclusive contracts aren’t eligible for these payments. As for the “excellent story bonuses”, they are potentially substantial–but you must adhere to a very large monthly word count, and for the highest reward, produce monstrously long stories.

On to the contract. It’s exclusive; you can see it here.

The Grant of Rights is “irrevocable”, which is typical of serialized fiction apps, and usually means the author has no right of termination. Clause 2 of Article 2:

Grant of Rights: Licensor hereby grants to Licensee an exclusive, irrevocable,sub-licensable,
and transferable right and license during the Term to the entire copyright and all rights, title and
interest in and to the Work(s), to which Licensor is, or may become, entitled in any and all media
now known or hereafter devised. Without limiting the generality of the foregoing, the Granted
Rights shall include without limitation the nonexclusive, irrevocable, sub-licensable, transferable
right and license to copy, publish, communicate, broadcast, etc., perform, cause visual images to
be seen or sounds to be heard, commercialize.

Although this clause includes the “all rights, title and interest in and to the Work” language that is more typically found in contracts where the publisher takes possession of copyright, the contract does acknowledge that copyright remains with the author, and the actual term is 10 years from completion of the contracted work. A limited term is definitely better than the life-of-copyright grants I’ve seen in many fiction app contracts; however, authors need to keep in mind that the actual time they will be contracted to NovelSnack is longer than 10 years, since it includes the time it takes to finish the work–plus, the contract auto-renews for an additional 5 years unless NovelSnack is notified in writing that the author doesn’t want to continue. Additionally, if you never finish the work, the 10-year term never starts to run, which in effect makes the term indefinite.

However, there’s a contradiction in this clause. Per the first sentence, the grant of rights–which includes all rights–is exclusive, meaning that only the publisher can exploit them. That’s also stated in Clause 4 of Article 2 (Party A is the author, Party B is NovelSnack):

4. Nature of License: Exclusive License (“Exclusive License” means, during the term of this
Agreement, the right of license and sublicense hereunder can only be exercised by Party B. No
person (including Party A and other authorized parties of the Licensed Work) shall exercise the
rights granted herein or sublicense hereunder.

But the last sentence of the Grant of Rights clause, which details all the actual things Novelsnack can do with those rights–“copy, publish, communicate, broadcast…, perform, cause visual images to be seen or sounds to be heard, commercialize”–is said to be non-exclusive. Which means, or should mean, that you can utilize those rights yourself, or license them to third parties on a similar non-exclusive basis–something that’s specifically prohibited by Clause 4. That’s quite the discrepancy.

I don’t think that NovelSnack’s intent is ambiguous–it clearly wants an exclusive grant of rights. And I guess it’s possible that it means something different by “non-exclusive” from what I’m interpreting here. But based on the literal language, there is a contradiction. This may seem awfully persnickety and pedantic, but contradiction is not a good thing to find in a publishing contract. Nor should one have to twist oneself into knots to guess at what contract language means.

Despite the “irrevocable” grant of rights, there does seem to be a tiny bit of wiggle room on author termination–but it’s unpleasant and carries potentially sizeable penalties. Clause 5 of Article 5:

5. Party A shall not have the right to unilaterally terminate this Agreement if neither party
breaches the agreement. If Party A persists in terminating the Agreement, after the written
consent of Party B, Party A shall refund all fees paid by Party B (including but not limited to
revenue sharing, incentives, promotion fees, attorney fees, litigation fees, etc.), and party B shall
not pay any fees that have not been settled with Party A.

What this (very odd) clause seems to be saying is that, no, you can’t terminate the contract–but if you’re willing to really agitate and make a nuisance of yourself about it, NovelSnack may relent and let you go. Not for free, though: you have to return not just all your earnings, but a menu of NovelSnack’s own expenses.

It’s not likely that most authors (especially the young, inexperienced authors who are the main targets for fiction app recruitment) will have the resources for that–not to mention the time and determination to make whatever fuss is sufficient to motivate NovelSnack to set them free.

Authors’ share of income from pay-to-read and other monetization is low for a fiction app. Per Clause 1.A. of Article 3:

Many similar apps pay 50%.

Not only is the percentage low, it’s paid on net profit. Clause 2 of Article 3 defines “distributable income” as “net income based on the operation of the authorized works on Party B’s platform…after deducting operating costs, marketing costs, channel expenses, promotion expenses, channel fees and other expenses and taxes incurred from time to time”.

That’s not net income, it’s net profit, with multiple expenses taken out of the income generated by the author’s work before the author’s share is calculated. NovelSnack does pay better bonuses than some other apps, but as noted above, you have to meet fairly stringent requirements to qualify. For many writers, that much-reduced 30% will likely be all they can earn.

NovelSnack claims a sweeping range of subsidiary rights, but it’s not clear you’d get paid for the use of them. Subrights claimed include print and digital publication, audiobooks, translations, print serialization, sound recordings of various types, films and dramatic rights, merchandising, and adaptations (which per the wording of Clause 3.iv. of Article 2 appears to include prequels and sequels).

However, subsidiary rights aren’t mentioned at all in the contract’s discussion of remuneration. And per Clause 1.A., NovelSnack has “no obligation to pay any other proceeds” beyond distributable income, which, as noted above, is defined as “income based on the operation of the authorized work on Party B’s platform”. Does that mean that if NovelSnack exploits rights beyond its platform–publication of a print book or audiobook, for example–the author would not get paid?

NovelSnack does seem to be pursuing exploitation of subsidiary rights: see its hiring page, which is seeking screenwriters.

NovelSnack wants your butt in the chair and your hands on the keyboard: if you don’t meet word count and update requirements, it’s breach of contract and grounds for termination. Per Clause 4 of Article 4:

4. Party A shall update no less than [45,000] words per month ,no less than [2] times
updates per week and no less than [1,000] words each chapter according to Party B’s
requirements, otherwise it will be deemed as Party A’s breach of contract, and Party B has the
right to terminate this agreement at any time. The updated content of the Licensed Works is
included in the scope of license.

And that’s not all. Such termination could potentially empower NovelSnack to take possession of your work. Here’s Clause 11 of Article 4 (the yellow bolding is in the original):

11. If the sales of the Licensed Works are not satisfactory, or Party A fails to update the Licensed Works on time without proper reasons for more than 3 months, or Party A loses contact for more than 30 days, Party B has the right to terminate this agreement and suspend the
settlement. At the same time, Party B shall have the right to renew the work by itself or by entrusting others, and all the copyright and related profit rights of such renewal shall be owned by Party B.

Some interpretation is needed here, since no clear definition of “renew the work” is provided–but as I read it, NovelSnack could re-publish the work, or give it to third parties to revise or complete, and such actions would constitute a claim of copyright on the “renewed” work.

As is common with serialized fiction apps, there are financial penalties for breach of contract by the author, and a lot of things are grounds for breach. Per Clause 1 of Article 5:

1. If Party A violates any of the terms of this agreement, including but not limited to dishonest acts such as not having the authorization conditions, plagiarism (Including but not
limited to Artificial Intelligence) or infringing on the legitimate rights and interests of other third
parties, and failing to update the Licensed works as agreed, or slander Party B or Party B's
Products, make false remarks on Party B's platform, etc. Party B has the right to demand compensation from Party A for all losses (including but not limited to revenue sharing, incentives, promotion fees, attorney fees, litigation fees, etc.).

This is somewhat less draconian than similar financial punishment clauses I’ve seen from fiction apps–some of which demand double or triple damages–but it’s still pretty punitive, especially given the broad definition of loss and the lack of explanation of what “compensation” actually means. It also serves as a gag clause (the author can’t “slander” NovelSnack).

Other penalties include forcing the author to make NovelSnack whole in the event of a copyright lawsuit (Clause 2).

All in all, this is not the worst serialized fiction app contract I’ve seen (which, if you’re appalled by all of the above, should tell you something about how awful many of them are). There’s a limited term, and no claim on future unrelated works. But between the poor remuneration, questions about payment for subsidiary rights, punishing production requirements, and how easily authors can be declared in breach and the potential penalties incurred thereby, it’s definitely a “beware”.

39 Comments

  1. I put my book (one) on their site but read the contract and decided not to work with them (Novelsnack). I tried to delete my book, (they say look for the three dots (Or More) which you can’t find anywhere. I contacted them three times about deleting my book. No response…EVER. So, I tried to delete my chapters, couldn’t. They just reappear magically. So….I wrote new chapters which stated in effect ‘do not post on this site, they are scammers and I hate them’. I pasted the sentence with numbers at the end, so each chapter would be ‘different’. It worked. All the chapters say rude things now. I changed my book cover to something quite questionable…it worked. So. They have my book. They do not have the original chapters. They do not have the original cover art. And I’m happy again. I read the contract and wow…What????? I’m not Perry Mason or Denny Crane, so couldn’t make heads or tales of it. I passed it by a lawyer friend of mine and he had a good laugh over it. So, didn’t want anything to do with that site, of course. That’s when I tried to delete, not only my book but my entire account. I decided not to delete the account, for I’m having too much fun keeping them on their toes. Too much???? I don’t think so. I think every author should take the time to give the bastards the business since they don’t mind giving us the shaft. Just one woman’s opinion.

  2. I tried getting out of the exclusive contract I signed with Novelsnack a few months back but I couldn’t, not even when I got extremely pissed off at my editor. Now I’m wishing I can turn back the hands of time to unsee the email I got from her. Never would have responded.

  3. Well I signed exclusive and fell into trap. Forget about getting MAB until you write 60 chapters your book get promoted. No promotion no retention rate. Nobody tells this until and unless you sign it. Be aware. You will only get retention rate until and unless you write 60 chapters, conditions applied if your book is a hit factor otherwise gone case. If you consider 1500 words per chapter, 60 chapters would be 90,000 words. In other platform you will get 2 MABs, kf the requirements is 45k per month. I write 1.8k words+ in a chapter even more doomed, 100k gone here itself. What irked me the most was they did not say I had to write 60 chapters, until then no money, no nothing. I’ll update if I earn money, I’m currently in 48 chapters.

    1. Hi Lian,

      It’s almost a year from when you made this comment, and I’m afraid I’m in your shoes right now.
      If you don’t mind me asking, how did it later turn out for you?
      I look forward to your reply.

  4. All I can say is that THEY TAKE CARE OF THEIR AUTHORS. I’ve been writing for them for about 7 months, and my editor is more of a Fairy Godmother than a scam artist. This woman swooped into my life one day, during my YEAR of need (homelessness, destitute, the whole 9 yards) and presented me with an opportunity to save myself and my kids. Novelsnack is legitimate and they have blessed my life in ways I only ever hoped were possible. Sometimes it doesn’t even feel real. But IT IS REAL, and I’m totally there for it. Not only with 45K a month, but 90K. And this month I’m going for 135K. I have no doubts that I’ll get it done so long as I put in the work. It’s like they say – “If you want it, go and get it…”
    I’m a writer that truly LOVES to write fiction, and for they are more than just a dream come true. I couldn’t be happier with the platform.
    Then again, yes, I could be, and in that same regard, I’m pretty sure I will be.

    1. Please I’m having some issues getting my MAB bonus, did you by any chance encounter such a problem on their platform?

      1. I wrote to my editor because I hadn’t received either the Signing Bonus or the MAB. She said the Signing Bonus would be credited to me in November. She didn’t write anything more. Today – 06.11.2024 – the signing bonus is actually there. But the MAB is missing. And that’s all I care about, because $200 is a lot of money to me. But I’m afraid I’ll never get it because the “retention ratio” was not met. And how exactly they calculate that is probably known only to themselves. It was an attempt for me to earn some extra money – and the attempt failed, unfortunately. I still have to finish my work, but that’s it. I won’t publish a second book about NovelSnack. I might as well write for the drawer, at least I won’t be annoyed by big promises with loopholes.

      2. Hi
        Now another month has passed. I didn’t receive the MAB for either October or November 2024.
        And the $50 signing bonus never arrived in my bank account.
        I received no response whatsoever to my WhatsApp messages to the chief editor and my editor.
        I finished my work after around 110,000 words and I’m deeply disappointed.

        1. Funny enough, I encountered the same problem, the fifty dollars signing bonus never reached my bank account either. Although, my editor sent me images of the receipt but I didn’t get a dime! Desperation got me into this.😭

  5. How is the retention rate calculate, why can’t they pay mab for daily update as other platform does

  6. I’ve been using novelsnack and I’ve negotiated contracts a few times.. I have easily achieved the bonuses and have gotten about… $3000 in bonuses plus about $25000 in just income which is still coming in. There are a few things I don’t like but as long as I post regularly I don’t have any issues.

    1. Exactly, I’ve been writing for a while and have had no issues as yet. Especially when it comes to bonuses and income.

    2. Hi there… I am currently in the process of negotiating a contract, but nothing is set in stone yet. What happens once you finish your book while under contract/with time left? Do you just sit back and collect as they do the work for you? Are you obligated to keep adding or produce new stories? Would love to hear your feedback!

    3. You lucky thing! I had problems right from the start. But I’ve only been doing it since September 2024. Nevertheless, I hoped to get the MAB because $200 is a lot of money for me. But I don’t get it because of the undefined “retention ratio.” So I write 45,000 words, follow all the guidelines – but I don’t get the advertised MAB. Because there is one too many conditions to fulfill before you can earn it. And I can’t influence a “retention ratio”. It’s kind of like if I work in a store and I only get paid if a certain number of customers come in to shop, but if they don’t come in, I don’t get paid at all. Who would work in a store for a whole month for $0? That’s exactly how it works at NovelSnack. And I don’t believe anyone who claims to make thousands of dollars. In my opinion, these are just bait.

  7. Hello there. I have gone through all your post and blogs. Now what i want to say i hope you understand where i am coming from.
    Please is there a website or fiction paid app, that has a good contract? Because the ones that i know of all have ‘bad contract’ on your blog. II just want to know.
    Also, don’t you think it is entirely wrong to point it as ‘bad contract’ as there are people on the app who actually earn from them. So why don’t you, rather than point blank say its ‘bad’ also give out the good sides to it. Some of this apps actually try to get your books on amazon, have an actual physical book print out and stuff. So i genuinely don’t feel it is nice or {right} to only point out the bad of these apps. Also point out the good so that young writers who wish to make earnings from their books but have no way to do it, can know that there is at least hope for them to do such with fiction paying apps.

    Please this is my opinion i do not mean it the wrong way or having it come off as rude or something negative.

    1. I can’t claim to have seen contracts from all the serialized fiction apps that exist, but I have seen fourteen or fifteen, and they are all extremely author-unfriendly (albeit in different ways). My feeling is that this is the norm for this publishing segment–not the exception.

      For me, what defines a contract as “bad” is when the negative aspects of the contract outweigh any positive elements. In the case of the serialized fiction app contracts I’ve evaluated, there are few (or no) positive elements, and significant elements that are negative and/or author-unfriendly. Writers are usually able to figure out the positives (or what seem to be positives) on their own; what they may not realize or understand are the negative implications of the contract clauses discussed in this post and my other analyses of fiction app contracts.

      These contracts–always in English, and almost always couched in complicated legalese that’s not easy even for people with lots of contract experience to interpret–are being offered to inexperienced writers whose first language isn’t necessarily English. I write these posts so that writers can weigh negative contract language they may not have understood against whatever positives they believe are included in the contract, and make up their own minds.

  8. As a signed writer I can comment on a few things. The contract is completely negotiable. I ended up signing with them for 3 years, just wanted them to do the work and get my name out there. I was able to hit the 45K words a month because each of my chapters ranged 1500-2000 words and I would strive for 5 chapters a week. It took 3 months for me to complete my book with burnout. I was able to hit the monthly writing bonuses. I didn’t edit any of my work before uploading it. Once I had the book complete, I went on an editing spree. You are allowed 3 edits per chapter, but it takes them a while to process those edits… some are still processing. I never hit any of those exclusive bonuses because they swore my retention rate was just under by 1% each time I asked. I wish you could track your own retention. I had a few problems withdrawing money that I had earned. In total, I earned just over $4,600 and I currently have 411,500 views with 16,712 bookmarks. They control my cover art and my book introduction… which sucks and I have asked them to change it. My readers and I don’t like what they wrote, but they won’t change it. My book is 156.5K words. My income also includes ghostwriting I did for other authors, and editing for other authors as well. I signed in August 2022. They are contacting me about my new books, but I haven’t signed them just yet. This post is all over the place, but I am open to questions if there are any!

      1. Once your book is signed, they lock the controls on your back office that allow you to change certain things about your book. I was able to contact my editior and work out changes, I ended up needing a new editor.

    1. Please how where you able to see your ongoing views and comments on your Novel Snack account?
      Because I have signed a book with them and still yet apart from the book being in my workspace it still shows unsigned in my stories.
      Thank you

      1. I use the NovelSnack back office. So, they have tabs to check your ongoing views, library saves, and comments. I have to contact my editior to get my retention ratio. To sign a book and start making money: 1. upload a book 2. post 3,000 words 3. apply for contract 4. negotiate the contract 5. sign the contract & wait for them to sign 6. publish 30,000 words before it hits the shelf for readers 6. stay in contact with your editor and ask for promotions 7. join all the facebook groups for platforms your book is on to view your promotions or tell others about your book

    2. Please I have two signed books in novelsnack one of them is in 100k words the other is in 70k words and I want to end the stories there, I don’t know if it’s okay to end there because of the contract?
      That means I have reached the 45k words a month
      My book was signed ending of February so when will I start getting my rewards?

  9. Yup. I got contacted by one of their “editors” and it’s clearly a bait and switch. Sounds very similar to the webnovel model. I did some research on that one a while back and looked around their writers forums. All I found was a cutthroat community fighting with each other and complaining about rankings because that’s the only way they can get paid.
    Just producing the insane daily wordcount is not enough. You still have to rank. Otherwise, you’re just giving away your book for free.

    1. One of their folks contacted me billing themselves as an “editor/litagent” saying they liked the “agent’s guide” to one of my books, and would I publish it on their platform? Thank goodness for this post. I want to get paid for any work I publish, and between having a full-time day job and a small child, I’ve got no time nor patience to deal with “butt-in-seat” wordcount shenanigans for even a hope of seeing some kind of return, let alone the ranking aspect! Sounds like a terrible time.

  10. Does anyone know how the apps are calculating these expected rates? If a writer were to write exactly 45,000 words in a month and publish them in 1,000 word installments, they would need to publish 45 times. If the writer wants to publish once a day every day for the entire month, each installment would be 1500 words. NaNoWriMo asks people to write more per month, but that’s for a draft. Publishing 1500 words of high-quality work every day doesn’t seem possible.

    1. I think if you remove “high-quality” from the equation, you’ll be closer to the mark. If you sample even a few of the novels at these sites, they are mostly just awful. Part of that is that many of the writers aren’t native English-speakers. But these platforms are not about volume, not quality.

  11. Such a wonderful post and very informative. I only wish I had come across it before I signed with them. Now I’m facing the consequences of my naive young self’s decision. I haven’t heard from my editor in months and the payment is so terrible I wish I could just get out of it at the snap of my finger.

  12. Thank you for continuing to harp on bad fiction website contracts; these posts are very valuable in a world that otherwise ignores this area.

    I feel very confident that the majority of these companies are run by the same small group of people in China (working through Singapore), just repeating this broken business model because it’s what they know. These services barely make any money and barely anyone uses them, so the only thing these people can do is starting new sites and apps over and over again to milk a few young authors and their friends out of some ad money, and their story rights too I guess. Web fiction and webcomics have had dozens upon dozens of new apps and websites since the pandemic and most of them I’ve seen have already shut down or are traffic-free zombies by now.

    1. Thanks, I appreciate it. These wonky posts are among my most-visited–probably because, as you say, nobody is really looking at this sector, and the inexperienced writers who get offered these contracts don’t have a lot of options if they choose to do research.

  13. I get very nervous about things coming out of China and Singapore. My credit union even called to question me about a wire transfer to Singapore when I was working with a coach from there. I knew she was legitimate and had checked her out thoroughly before signing up with her. I have yet to find a legitimate writing offer of any kind coming out of either location.

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