Janet Reid just posted a very concise, very helpful summary of how advances and royalties work.  Well worth a read for anyone considering signing a trade publishing contract.

So, you think you’d like to make some money?

Not much to add to it other than, yep, that’s how it works.  (Although it was good to have that reminder about multi-book deals paying the on-signing portion for all books at the start of the contract. And what happens if you don’t deliver that final book or two.)