If you ask the average bookwriter how they will make money from the book, most will tell you they expect it to come from the fees. In my 27th edition and marketing, I found that few authors and even fewer authors had an understanding of how bookkeeping fees really work. I want to teach you the basics about it now.
The sad truth is that royalties are only important if you stop writing the best seller … but very few authors always happen. Indeed, the average first run in a book today is approximately 3,000 copies and most books never print another run.
The average king paid by the traditional publisher at the start of the day is between 6 and 10% of net income. Net receipts mean what buyers pay, but what it costs is often misunderstood by the authors of the books.
For example, most authors who expect their income to come from royalties also expect to rely on business bookstore for their book. In other words, they expect to spread their book through the network of wholesalers and bookstores. Here's how mathematical net income actually works in that state. This is the key to your fees.
Say your book is for sale is $ 20 to make it easy. If an publisher wants the book to be distributed with a commercial bookshop, using a network of wholesalers and bookstores, the publisher shall provide a wholesaler average discount of 55%. It's $ 11 out of 20, so the net receipt to the publisher is 20 minus 11 or $ 9. Now, assume that the author gets 8% of royalty, which is actually high for the initial author. In this case, the author makes $ 0.72. The math is $ 9 net receipts times 8% royalty, which equals $ 0.72 per book. That's it.
So if you want to earn $ 100,000 a year from your book, at $ 0.72 royalty, you should sell more than 138,000 copies of your book each year, year after year. As I hope you can see, if you hope to rely on royalties alone, then it's a very strong way to hoe.
I'll share you some well-known publishing statistics that show what I mean. Of every 1,000 writers who contact literary materials to help them find a publisher, only 10 ends with the publisher – only 1%. Of the 10 that will be published, only 1 of the money writers will be released from the publication of the book. In other words, every 1,000 writers who contact literary materials get only one out and make some real money from the book. The 999 do not.
Why are these numbers so bad? In part, it has to do with the fact that the traditional version is a mature industry with a large number of writers who want to trade with a significantly diminishing number of large publishers. The main reason is that these writers do not know that there are other big methods for earning money with a book apart from royalties. As the numbers show, 999 times 1000, it just does not work.
My friend Mark Victor Hansen likes to remind authors who write your book is only 10% of the work. He emphasizes that the 90% of the job is marketing the book. Most authors never get this perspective from their publisher or anyone else. If 999 out of 1,000 writers knew and applied some other temporary methods, most of them would probably be successful.
Source by John Eggen