A literary agency is an agency which has literary agents working for them. A literary agent is an agent who represents writers and their written works to publishers and film producers and assists in the sale and deal negotiation of the same. Literary agencies represent novelists, screenwriters and major non-fiction writers. They are paid a fixed 10 to 20% of the proceeds of sales they negotiate on behalf of their clients.
Literary agencies can vary in size. Some are of the size of a single agent who will represent more than 12 authors at any time, and even a good firm with sub agents, senior partners and more.
Most agencies, especially the smaller ones, will specialize to some degree, representing authors who (for example) write science fiction, or mainstream thrillers and mysteries, children’s books, or highly topical nonfiction.