In this course, we’ll explore how to make a living as an author. If you’re seeking a get-rich-quick scheme, publishing isn’t for you. However, with the right knowledge, you can build a sustainable career. This course will guide you through the process. First, let’s look at three fictitious authors to illustrate the challenges authors face in earning a living.

Bestseller Betty

After years of writing, Bestseller Betty hit the bestseller list, earning $50,000 from her book. Despite this success, she struggled to replicate it. Without her husband’s income, she couldn’t have written full-time. When her husband lost his job, she faced bankruptcy, despite her bestseller status.

Self-Published Sam

Self-Published Sam bypassed traditional publishing by using print-on-demand technology and creating an ebook. However, he gave away most of his paper copies, and his book failed to gain traction, resulting in minimal earnings.

Business-Minded Brandon

Business-Minded Brandon treated his writing like a business, blending self-publishing and traditional publishing. This approach established his credibility as a speaker and ensured strong profit margins on his books. He leveraged his author platform to create additional products and services for his readers, generating enough income to fund his children’s college education and build a family legacy.

How can you emulate Business-Minded Brandon?

Understanding the Publishing Market

Numbers may not be thrilling, but they’re essential for understanding the market. For traditionally published authors, the typical royalty is about $0.85 per book, though this varies based on the book’s price (sometimes closer to $1). The typical advance is $5,000. It’s an advance on royalties, meaning you earn no additional royalties until the advance is “earned out.” This advance is like an interest-free loan you don’t repay if your book doesn’t sell.

However, the $5,000 figure varies. Authors with agents typically receive closer to $6,000, while those without agents average $3,500. Only three out of ten books sell enough to earn beyond their advance, meaning 70% of authors earn only the money from their advance. Publishing a book costs a traditional publisher around $50,000, and the advance is only a small part of that figure. Publishers take significant risks, hoping one or two books become bestsellers to offset losses on others, much like venture capitalists.

Indie Publishing Numbers

Indie publishing offers different economics. Indie authors earn about $5 per paper book sold, compared to $0.85–$1 for traditionally published authors. Print-on-demand books typically sell 50–200 copies, with authors often buying 80 copies themselves to give away.

The real money in indie publishing lies in ebooks. For example, through Amazon’s KDP program (if exclusive), authors earn a 70% royalty. A $5 ebook yields $3.50 in profit, and prices can range from $2.99 to $9.99 while maintaining that 70% rate. Top indie authors can earn $10,000 to over $100,000 monthly from ebook sales, though most earn far less.

Four Ways to Make Money as an Author

Most authors who make a living do so beyond book sales. This course will explore four key revenue streams, with dedicated sessions on maximizing each.

1. Your Book

We’ll discuss how to maximize earnings from your existing book, focusing on practical strategies to boost revenue.

2. Your Skills

Your writing skills are a valuable asset. We’ll explore ways to monetize them, including opportunities you may not have considered.

3. Your Knowledge

Nonfiction authors, in particular, can profit from their expertise. We’ll cover how to leverage your knowledge for income.

4. Your Celebrity

Surprisingly, many authors earn their primary income through their platform. You don’t need millions of fans. Even 1,000 true fans can help you earn a living. We’ll explore how to build and monetize your audience.

Up Next

Before diving into these strategies, we need to understand how money works. The next session is critical and lays the foundation for the rest of the course.