The economics of launching a book
My costs, my publisher’s contributions, how I’m paid and why authors won’t ever stop talking about pre-orders
We’re just 10 weeks out from the launch of You Don’t Need a Budget, and book lovers know what that means: It’s pre-order season! Cue air horn p-pew pew pew!
Yes, this is another reminder to order my book, if you please. And because I know a lot of writers and book lovers read this newsletter, I’ll also get into why I’m asking yet again and won’t stop asking until Dec. 24 — plus some of the other financial pieces that come with writing a book with a traditional publisher.
Why authors are obsessed with pre-orders
You might have heard from other authors that we need pre-orders because they’re super helpful to the success of a book. Here’s why:
Best seller lists: Publications use enigmatic formulas to determine what makes a best seller list, but weekly sales are at least part of all of them. Even though we gather pre-sales over months before the book is released, they all count toward sales in the single launch week, giving a book a head start. And a book on a best seller list begets more sales, which could beget more best seller lists…
Big retailers: Stores like Barnes & Noble want to see that a book will sell before they stock it. Pre-sales can give them that proof. And these big box stores can move books, because thousands of people walk through their doors every day.
Amazon algorithm: Just like with published best seller lists, pre-sales can boost a book to best seller in an Amazon category, which gives it more visibility. Those sales also tell the algorithm things that could prompt Amazon to put the book in front of more eyes.
Bottom line: These early sales from supporters like you help get the book in front of people who, as of now, have never heard of me. Getting people to know a book exists is really tough when you’re a first-time author (who wasn’t a viral influencer first). And You Don’t Need a Budget is a book, I’m confident, that people will want to pick up if they just know it exists. So, thank you so much to everyone who’s already pre-ordered their copy!!
Author costs of launching a book
The massive benefit to working with a traditional publisher is that it covers the bulk of upfront costs to make the book. I don’t have to pay for anything out of pocket (because I’ll split royalties with my publisher down the road). But there are some not-quite-required-but-really-nice-to-have costs that fall to an author.
The author’s optional costs include:
Fact checking. Pretty astounding that publishers don’t provide this, but if you want a professional fact checker, you’ll have to hire a freelancer yourself.
Sensitivity reading. If you write about a particular identity, community or experience that’s not your own, a sensitivity reader can review for any inaccurate, biased or insensitive portrayals.
Marketing and PR. My publisher provides a marketer and publicist, but there’s always more to be done. Several PR firms have pitched me as the book release draws nearer, offering a more comprehensive book launch. One quoted me $8,000 a month — which was fair for the staff and effort they would provide but, boy, did they have no idea of my price range! Instead, I hired a VA friend to help with research and pitching, and I pay her $50 an hour for about 10 hours a month. (Yes, I know you can hire VAs for like $5 an hour, but that’s gross and everyone should stop it.)
The biggest resource an author puts into writing and launching a book is time (and, you know, her brilliance).
I saved up money and relied on my partner last year so I could reduce to very part-time paid work and spend most of my days writing something no one would see for two years. In this promotion era, my time goes toward being on podcasts, writing guest posts and articles, and creating social media content to get the word out about the book.
The work my publisher is doing
Especially among online entrepreneurs, a lot of authors opt for self-publishing and complain about the prospect of sharing money with a publisher. It’s true that publishers take a huge cut of book sales: I’ll get just 10% to 15% of the money from each book (and that’s before my agent’s cut). We could debate for hours about a more fair split, and I appreciate the people who do that.
But they do work for it, for sure. And the people who work inside publishing houses are notoriously underpaid for the talent, experience, wisdom, passion and effort they bring to their projects.
My publishing team includes a developmental editor, copy editor, publicist and marketer. The publisher handles 100% of the production, including cover and interior design, scheduling and printing; and the distribution. They make it easy for retailers to get the book. They’re printing and shipping galleys to early readers and reviewers. They reviewed the YDNAB website and have been advising on my social media “strategy.” And they have a host of big-time media contacts who wouldn’t look at me twice if I showed up in their inbox on my own.
How I get paid
No author will tell you they write books for the money. A select few can make a living just from selling books, but it’s very difficult and gets harder every year as competition grows and audiences get fractured into deeper niches.
But the book has added to my revenue and has potential to do even more in the future. Here’s how I get paid as an author:
Advance: Little, Brown Spark is an imprint of the big-five publisher Hachette. Receiving an advance is a huge benefit to going with a corporate overlord of a publisher that even indie publishers don’t offer. An advance is a chunk of money paid out at certain intervals throughout the book-making process. I had a small advance, so it was just two payments: half on signing the contract and the other half on submitting an acceptable manuscript. Bigger advances might include payments upon release of the book, release of a paperback edition and other contingent milestones.
Reading the audiobook: I’m reading my own audiobook! So I’ll get an additional payment for that, just like any other contracted voice actor would get.
Royalties: When the book sells, I’m entitled to that 10% to 15% cut. But first, the book has to sell enough copies for the publisher to recoup the advance I was paid. Most authors never earn out their advance, but with a small deal, I have a chance of actually doing it in the first year or two (pre-order your copy and help me sell those books!). Once that happens, I could get a quarterly royalty check.
Freelancing: Outside of the book, I make my living freelancing again. I’d be doing that regardless, but the book definitely gives editors an extra reason to consider me for their rosters. Coming back to freelancing with a book on the way has felt much more validating than building my freelance career from scratch the first time. I’ve landed publications that are a better fit for my approach to money, and I don’t have to hustle as hard to prove my expertise and earn a fair rate. (The book’s not doing all the heavy lifting; I do have almost 10 years of experience in the field! But the book is like a shorthand for what I can offer.)
Substack: I make around $4,500 a year in revenue from this newsletter now. Added visibility from book promotion can help grow the newsletter, too. The very cool thing about promoting a book is you don’t have to go out and do a hard sell everywhere; you can get on podcasts and in newspapers and on public radio and talk about ideas. People who like those ideas might buy the book or check out other cool work you’re doing. That’s why, even for folks who aren’t primarily writers, a book is such a valuable marketing tool for growing a business.
Speaking: Except for a few outliers, nonfiction authors who make a living “as an author” mostly make money from speaking. Keynote speaking can bring in a helluva paycheck, even if you’re not close to famous. The book gets your foot in the door, and you create a presentation that distills its best ideas. Keynote speaking is also intimidating and exhausting, but virtual events open up a world of possibilities for neurospicy authors 😃
There’s a lot more an author can spin off of a book to get paid — consulting, courses, licensing, coaching, products, conferences, get creative! But, as for me and my house, I’m consciously building a career where most of my job is writing. So I’m concentrating on making money from book royalties (and advances on future books??), Substack and freelancing.
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This was fascinating! As someone with little to no knowledge about the book publishing process, I feel like I got a glimpse of the costs and benefits of publishing a book. A lot goes into it. Still, it makes me want to write one, one day.
Thank you for the refreshing honesty Dana