Hopefully, you didn’t arrive here thinking that I was going to tell you what self-publishing is all about. As the title of my post indicates, I’m asking the question. I’ve been in the publishing business for over 18 years now, but I’ve worked exclusively with traditional publishers and am completely clueless when it comes to do-it-yourself publishing.
Self-publishing is something I’ve been thinking about for quite awhile, so I decided to look into it. After all, when I write for publishers, I’m earning 10% – 15% in royalties. Why not explore the opportunity to earn in excess of 50% by doing it myself?
Most people who aren’t in the publishing biz (and some people who are) have an exaggerated notion of how much money most “authors” earn.
The percentages are often deceiving. With the books I write, I normally earn about 10% to 15% in royalties if I am the sole author (not sharing with co-authors). Unfortunately, that’s based on the wholesale price – the price the publisher charges the retailer. On a $20 book at 10%, I’m earning $20 x .5 x .10 = $1 per book. If I co-author the book, I split that amount 50/50 with my co-author, so I’m earning $.50 per book. That’s on a good day.
Most publishers I’ve worked with slash the royalty percentage in half on high-discount sales, such as sales to Amazon.com. If they sell the book at a higher than 50% to 55% discount, instead of paying a 10% royalty, they pay 5%. What a rip, but that’s how it’s done.
What’s the bottom line? Well, a couple years ago, I co-authored a fairly successful book. So far, over 40,000 copies have been sold. My take: a little over $12K. In other words, I effectively earned about 3% per copy or 1.5% if the percentage were based on the retail cost of the book ($19.99). Heck, the government earns more than that in sales tax!
In a future post, I’ll discuss how some authors use books to generate additional revenue – the real reason most of the people I work with want to get published.
I emailed two companies to find out more about self-publishing:
- Jenkins Group, Inc.: The Jenkins Group is sort of the caviar of self-publishing – a custom book packager that prides itself on producing books that have the look and feel of something produced by a leading traditional publishing company. Most clients spend $15,000 or more to produce a few thousand copies of a book.
- Author Solutions: Author Solutions offers a more affordable solution via print on demand. If you need to get a book out in a hurry or simply want to have your name in print without going through a traditional publisher, this may be the perfect solutions for you. Packages start at about $1,000.
Within an hour, I received a phone call from a sales rep at Jenkins Group, Inc. He’s the one who filled me in on the basic differences between outfits like his and those like Author Solutions. His recommendation was that if you’re looking to print and sell maybe 500 copies of a book and you don’t need something that’s super high quality, then print on demand is probably the option for you. If, on the other hand, you want a high-quality publication with a nice cover or you’re going to need in excess of 3,000 units, then a custom book publisher is probably a better choice. (The more books you can sell, the less you pay in terms of cost per book.)
I had the mistaken idea that these self-publishing companies took care of everything. You simply delivered a manuscript, and they did the rest – design, page layout, printing, binding, distributing the book to retailers, collecting the money, and then issuing you checks when your book sold tens or hundreds of thousands of copies. Unfortunately, that’s not exactly how it works.
The self-publishing company produces the book, and that’s about all. You then have to hire a distributor to get your book into the various channels where it can be sold. The distributor issues your checks… assuming, of course, people buy the book.
Tip: Before you even think of self-publishing, consider how you’re going to market the book. This is not an “If you build it, they will come” proposition. You need to have a marketing machine in place to get the word out about your book. For more about the factors that go in to making a successful book, check out my previous post “Publishing a Best Seller.”
I’m just starting to learn about this self-publishing thing and have yet to talk with someone from Author Solutions. As I learn more about it, I’ll let you know what I discover. Stay tuned.
If you’re in the self-publishing business or are self-published, please share your insights.
{ 2 comments… read them below or add one }
Hi Joe,
There’s a part of the picture related to self-publishing that you may be missing here. Self-publishing does not necessarily mean that one must engage a company like Jenkins, nor does it mean that the only other alternative is a POD (print on demand) provider.
I’m an editor who works almost exclusively with self-publishing authors. All my clients work in non-fiction, and their topics are mostly business-related. I’m a consultant, and I offer them options related to marketing plans (#1), editorial development, printing, distribution, publicity, fulfillment, and even rich media content development like video and audio. I’ve been involved with self-publishing since 1994, and plenty has changed in that time.
There are really only two ways to make money in self-publishing;
1) Treat your book as a small business. (Which is definitely is.) This means that you have a product to market just like anything else. Professionalism in design, printing, and presentation are key. These are easy to come by, and don’t cost a fortune. Margins can be excellent, especially as compared to many other small business ventures.
2) Treat your book as a promotional tool. If you have a large organization that you want to promote, augment, or add value to, a book is a great way to do that. I’ve had clients that just wanted to use their book as a business card – they gave away most copies. Or, they sold them at the back of the room when they gave lectures, or they offered the book as one of a variety of offerings, etc.
After talking with many, many people about self-publishing for a long time, I have confirmed that everyone – I repeat – EVERYONE has a book in them. It is my belief that if one has developed a special skill or knowledge, it is our obligation to pass that on. Teaching is great, mentoring is better, but you can reach a lot more people with a well-crafted book than any other way.
Don’t let anyone tell you that self-publishing is too much work, not profitable, or that it’s all an uphill battle. None of these things are true, and it’s an extremely rewarding venture.
Good luck – Peggy Richardson of TheEditorsBlog.com
Hi, Peggy-
You make some excellent points. I co-author books with some of the top experts in their fields. I always feel that we exchange things of value. I assist them in producing a book and getting it published, which helps them establish credibility. This gives them a tangible product to use to promote whatever goal they have – grow their business, achieve a higher profile, pursue other opportunities, whatever. In return, I receive top-notch content on topics I know little or nothing about and income from advances and royalties.
Most of the specialists I work with earn far more performing their “day jobs” than they ever hope to earn on the meager advances and royalties from the books we do. One guy I work with spends far more money promoting our books than he earns on them. The books function as catalysts for pursuing other revenue-generating opportunities. As you say, the books function as calling cards.