To generate enough revenue or royalties to cover a previously paid advance.
To make enough money from sales so that you pay back all of the money you were given upfront.
2 meanings, ordered from most common to least. Color-coded by CEFR level.
(Publishing/Music) For a book, album, or creative work to generate enough royalties to cover the advance payment made to the author or artist.
"Her debut novel sold well but didn't earn out until the paperback edition was released."
(Business/M&A) For a business acquisition deal to reach the point where additional payments are triggered by the seller meeting agreed performance targets.
"The founders stood to receive a bonus of five million dollars if the company earned out within three years of the merger."
To earn your way out of a financial obligation — to generate enough income to clear a debt or advance.
To make enough money from sales so that you pay back all of the money you were given upfront.
Common in publishing, music, and business acquisition contexts. An 'earn-out' (noun/adjective) is also a standard contract term in mergers and acquisitions, where part of the purchase price depends on the business meeting future performance targets.
Natural word combinations native speakers use most often.
The five tense forms you'll use most often.
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