what authors earn

May 2014 Author Earnings Report

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This post originally appeared on Author Earnings on 5/19/14.

Three months ago, we released our first full report on Amazon e-book sales and author earnings. Our goal was to look at unit sales and earnings by various publishing paths in order to help authors make informed decisions in this rapidly changing publishing environment. The results were eye-opening, but it was merely our first data point. Our long term goal has been to pull data every quarter to see if we can spot developing trends.

A quick recap on our methodology: Using a custom software spider, we can crawl every Amazon bestseller list and pull info from each book’s product page html. This data goes into a spreadsheet, which gives us the price, ranking, average review, and much more for every ranked e-book on Amazon. Using established ranking-to-sales data from numerous bestselling authors (including our own works), we are able to present author earnings by title and publishing type. As with our past reports, all the data has been anonymized and is available for download at the end of this report. And just like with past reports, any reasonable numbers entered for the power curve of the product rank-to-sales ratio reveals the same overall picture. That is, our conclusions are not dependent on our estimates but are borne out of the freely available data.

The exciting thing about pulling this data is that we have no idea what we’re going to find. Our conclusions since the last report might need rethinking. Our advice on what an author might want to do with a manuscript today could very well change as the publishing industry takes another swerve. My partner and I debated what we expected to see from this second round of data. We both predicted no more than a 2%-3% swing from any one publishing path to the other over such a short period of time. I wagered we’d see a 2% drop in self-publishing titles, offset by an increase in Amazon imprints, as the latter continues to snatch up high performing e-books and put more marketing muscle behind their own authors. My partner thought we’d see a 2% hike in self-publishing at the expense of traditional publishing. We bet a dollar on the outcome.

 

Click here to read the full post on Author Earnings.

 

A Life Beyond ‘Do What You Love’

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This editorial by Gordon Marino originally appeared on The New York Times Opinionator on 5/17/14. Authors and writers often struggle with the choice between quitting their day jobs to follow their passion fulltime, and maintaining a toehold on financial stability. This piece speaks to the practical limitations and societal downsides of pursuing one’s passion to the exclusion of all else.

Student advisees often come to my office, rubbing their hands together, furrowing their brows and asking me to walk along with them as they ponder life after graduation. Just the other day, a sophomore made an appointment because he was worrying about whether he should become a doctor or a philosophy professor. A few minutes later, he nervously confessed that he had also thought of giving stand-up comedy a whirl.

As an occupational counselor, my kneejerk reaction has always been, “What are you most passionate about?” Sometimes I‘d even go into a sermonette about how it is important to distinguish between what we think we are supposed to love and what we really love.

But is “do what you love” wisdom or malarkey?

In a much discussed article in Jacobin magazine early this year, the writer Miya Tokumitsu argued that the “do what you love” ethos so ubiquitous in our culture is in fact elitist because it degrades work that is not done from love. It also ignores the idea that work itself possesses an inherent value, and most importantly, severs the traditional connection between work, talent and duty.

 

Click here to read the full editorial on The New York Times Opinionator.

 

Making Money As A Writer

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This post by Alexander M. Zoltai originally appeared on his Notes From An Alien site on 5/13/14.

I’ve written many posts about writers and money.

Some folks think that only the journalist-type or the non-fiction writer should think about making money…

Some folks think that fiction writers shouldn’t consider money and only write for the love of the art…

Some folks think the new self-publishing juggernaut can slam them into the mega-sales bracket…

Thing is, there’s a bit of truth in all those ways of thinking—a bit…

The full truth about any individual’s chance of making money with their writing involves, at least, the following factors:

* How strong their desire is to make money

* How much money they can spare to help them make money

* How much time they have to spend working toward making money

* The choice of venues in which they’re willing to try to make money

From my experience, I’d recommend a writer soberly consider those factors; then, based on their deliberations, make a sound judgement about one more factor:

 

Click here to read the full post on Notes From An Alien.

 

How to Write

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This post by Heather Havrilesky originally appeared on The Awl on 5/5/14.

I teach a Popular Criticism class to MFA students. I don’t actually have an MFA, but I am a professional, full-time writer who has been in this business for almost two decades, and I’ve written for a wide range of impressive print and online publications, the names of which you will hear and think, “Oh fuck, she’s the real deal.” Because I am the real deal. I tell my students that a lot, like when they interrupt me or roll their eyes at something I say because they’re young and only listen when old hippies are digressing about Gilles Deleuze’s notions of high capitalism’s infantilizing commodifications or some such horse shit.

Anyway, since Friday is our last class, and since I’m one of the only writers my students know who earns actual legal tender from her writing—instead of say, free copies of Ploughshares—they’re all dying to know how I do it. In fact, one of my students just sent me an email to that effect: “For the last class, I was wondering if you could give us a breakdown of your day-to-day schedule. How do you juggle all of your contracted assignments with your freelance stuff and everything else you do?”

Now, I’m not going to lie. It’s annoying, to have to take time out of my incredibly busy writing schedule in order to spell it all out for young people, just because they spend most of their daylight hours being urged by hoary old theorists in threadbare sweaters to write experimental fiction that will never sell. But I care deeply about the young—all of them, the world’s young—so of course I am humbled and honored to share the trade secrets embedded in my rigorous daily work schedule. Here we go:

 

Click here to read the full post on The Awl.

 

The Great E-book Pricing Question

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This post by David Gaughran originally appeared on his Let’s Get Visible site on 4/17/14.

There’s more guff written about pricing than almost anything else, resulting in an extremely confusing situation for new self-publishers. I often see them pricing too low or too high, and the decision is rarely made the right way, i.e. ascertaining their goals and pricing accordingly.

 

Price/value confusion

Before we get to the nuts-and-bolts, it’s time to slay a zombie meme. Much of the noise on this issue springs from conflating two concepts, namely price and value.

Authors often say something like, “My book is worth more than a coffee.” Or publishers might say, “A movie costs $10 and provides two hours of entertainment. Novels provide several times that and should cost more than $9.99.”

Price and value are two different things. From Wikipedia:

Economic value is not the same as market price. If a consumer is willing to buy a good, it implies that the customer places a higher value on the good than the market price.

The price is something we, as self-publishers, attach to the product. The value is the worth the consumer places on it (not the author or publisher). In simple terms, unless your price is lower than the value a reader places on your book, they won’t purchase.

Marketing isn’t simply about reaching consumers but also about convincing them to place a value on the product higher than the price-tag. The higher the price, the harder that job will be.

In other words, it’s a lot easier to sell a book at $2.99 than $9.99.

 

Doesn’t price influence value?

 

Click here to read the full post on Let’s Get Digital.

 

Appeals Court Reinstates Lawsuit Against Harlequin

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This post originally appeared on The Passive Voice on 5/1/14.

Keiler v. Harlequin is a proposed class-action lawsuit by Harlequin authors against Harlequin for actions by the publisher that resulted in massive underpayment of royalties to authors for ebooks. Some authors report receiving as little as six cents in royalties for sales of each of their ebooks by Harlequin. PG has posted about the case previously here, here and here.

The trial court ended up giving HQ a win, but the authors appealed. Today, the Second Circuit Court of Appeals reversed the trial court on one count, allowing the HQ authors a chance to move forward with their case at the trial level. Here’s the appellate court’s summary of its decision:

 

Click here to read the full post on The Passive Voice.

Also see this coverage, from The Hollywood Reporter site – Appeals Court: Book Publisher Must Face Self-Dealing Lawsuit “Suing romance novelists believe that Harlequin used foreign subsidiaries to create artificially low net receipts on eBooks”

Click here to visit the Harlequin class action lawsuit website.

 

Balancing Productivity and Art

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This post by David Farland originally appeared on David Farland’s site on 4/21/14.

If you are producing anything—toy dolls, bread, vacuum cleaners, or novels—there are some variables that you have to work with. Ideally, a publisher would like you to bring them in 1) quickly, 2) beautifully written, 3) and at a low price.

If you are producing anything—toy dolls, bread, vacuum cleaners, or novels—there are some variables that you have to work with. Ideally, a publisher would like you to bring them in 1) quickly, 2) beautifully written, 3) and at a low price.

But buyers will almost always be willing to make tradeoffs. Your goal is to provide two of the three. For example, I used to know an editor who handled a series of novels based on a major television series. A couple of times he asked me, “Could you write a novel for me in two weeks? I’ll pay you twice what I normally do for it.” In other words, he wanted a good novel quickly, and he was willing to pay through the nose. He wanted two out of three.

I told him “No” every time. The reason was that I felt that writing a novel that quickly would hurt the quality of my work, and ultimately a sub-standard novel would damage my reputation. In the short term, I might make some good money, but in the long term it would hurt my career. I’d rather write one great novel than ten bad ones. (Besides, I wasn’t a fan of that particular series, so it seemed a distraction.)

Yet more and more, it seems, this career demands that you be productive, that you up your word count. For many writers, that might seem frightening. They might feel that they are being pushed to write too quickly.

 

Click here to read the full post on David Farland’s site.

 

Thank Goodness For The Fairer Sex

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This post by Michael W. Sherer originally appeared on The Crime Fiction Collective blog on 4/23/14.

There are hundreds of reasons I love women, but one of the most important is how much smarter they are than men. (Unfortunately, too many women don’t give themselves credit for it, and more unfortunately most men will never admit it.) I believe one of the reasons they’re smarter is because they read more than men do.

The statistics are out for 2013, and once again women surpassed men in the number of books they read. According to Pew Research, 76 percent of all adult Americans (18 and over) read at least one book last year. But that breaks down to about 69 percent of men and 82 percent of women.

Not only are more women reading than men, they also read at greater rates than men do. The average number of books read by all adults last year was 12, and the median number was five (meaning half of all adults read more than five and half read less). Both numbers are higher if you include only adults who read at least one book—a mean of 16 books and a median of 7. But here again, women outpaced men by a substantial margin. Women read an average of 14 books, compared to 10 for men.
– See more at: http://crimefictioncollective.blogspot.com/2014/04/thank-goodness-for-fairer-sex.html#sthash.WQM33fDw.dpuf

 

Click here to read the full post, which includes some informative charts, on The Crime Fiction Collective blog.

 

MacAdam Cage Authors Look to Resolve E-book Dispute

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This article by Calvin Reid originally appeared on Publishers Weekly on 4/23/14.

Despite complaints from former MacAdam Cage authors that they have not received e-book royalties or regular statements for years, Mark Pearce, publisher of MP Publishing, the publisher and e-book distributor that controls their e-book rights, claims all royalties have been paid and all statements are up to date. Pearce blames the legacy of problems at MacAdam Cage on its late publisher, David Poindexter, although he is urging former MacAdam Cage authors to contact him to resolve disputes over post-bankruptcy e-book rights to their titles.

At the same time, Jan Constantine, general counsel at the Authors Guild, who has examined the e-book agreement, told PW that the e-book rights agreement negotiated between Poindexter and Pearce in 2009—Pearce purchased the e-book rights to the bulk of the MC list for the life of copyright—is legitimate and survives the MacAdam Cage bankruptcy. All print rights reverted to former MC authors in March of this year, 60 days after MC filed for bankruptcy.

However, she also emphasized that Pearce must “comply with the agreements in the contract. If he doesn’t then he’s in breach and the authors can reclaim the rights to their books.” Constantine urged former MacAdam Cage authors to immediately demand “back dated and current royalty statements” from Pearce and to “make sure he is in compliance.” The Authors Guild is also circulating copies of the original MC/MP Publishing e-book agreement and amendment to authors and urging them to examine the licensing agreements. The Authors Guild will monitor the situation.

 

Click here to read the full article on Publishers Weekly.

 

The Full-Time Writer

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This post by Chuck Wendig originally appeared on his terribleminds site on 4/22/14.

This is one of the questions most frequently asked of me.

How do you become a full-time writer?

I am, and have been, a full-time writer (on and off) for the last ten years. The most recent “off” period, many moons ago, was simply because I was trying to get a mortgage on a first home, and the bank was like, “OH YOU’RE A FREELANCE WRITER SURE, SURE, WE KNOW WHAT THAT IS, EXCEPT THERE’S NO BUTTON ON MY COMPUTER THAT SAYS ‘GIVE FREELANCER A MORTGAGE NO MATTER HOW MUCH HE EARNS,’ OH WELL, SO SORRY, GOOD LUCK.” *toilet flushing sound*

This past year, 2013, was my most financially successful year yet.

You want to know how you become me.

In the loosey-goosey full-time sense, of course. To actually become me means cutting clippings of my beard, dipping them in a saucer of my heartsblood, reciting a thousand words of vulgarity that haven’t been heard by human ears since Caligula was prancing about, then eating the bloody beard puffs. With milk. Whole milk, not two percent, c’mon.

And it’s gotta be velociraptor milk.

Whatever.

Point is, full-time writer status: you want it.

But, I want you to slow down, hoss. Ease off the stick, chief.

You want to jump off the ledge and land in the pool 20 floors below. But it doesn’t work like that. I mean, it can — you might get lucky, you might survive the jump. Or, you might crash into some portly lad bobbing about on an inflatable Spongebob raft and kill the both of you.

Do not quit your day job.

I know. Your butthole just clenched hard enough to snap a mop handle. You hate your day job. The fact you call it a “day job” is a sign that you basically despise it as a grim, necessary evil.

But I’ll repeat:

Do not quit your day job.

Not yet.

If you’re going to become a full-time writer Cylon, you need a plan.

 

Click here to read the full post on terribleminds.

 

The Best Time NOT To Self Publish Is…(Never)

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This post by Marcy Goldman originally appeared on Joe Wikert’s Digital Content Strategies on 4/9/14.

There are so many op-eds these days on when or if to self-publish but more so, features on the inferiority of self-published works just by virtue of fact they are self-published. This premise is applied even if the self-publishing author has the budget, foresight and professionalism to engage all manner of expert editors, proof readers, formatters, designers and thoroughly research the distributing and promotion of his/her work, the resultant book will be very bad. Worse, it will be amateur in content and looks.

There’s also an assumption (somewhat fear, vs. empirically based) that without sufficient social media or platform, books (even great ones) won’t get noticed. I’ve seen a zillion writerly blogs with this headline: If you publish it who will find it/you? This suggests that Shakespeare (et al, Dan Brown, Elizabeth Gilbert, JD Salinger, James Patterson, Ayn Rand) without benefit of Twitter, Facebook and Instragram or a YouTube book trailer of Othello, would never have been discovered. This is to further suggest that we as authors, creators, publishers and readers actually believe form trumps content. That means greatness, is a deux et machninas/medium-is-the-message is a fail from the get-go and a Pulitzer would never percolate to a deserved level of consciousness and find a collective of readers who know a good thing (or alternatively, what they want) when they find it – however they find it. But trust me (and the author of 50 Shades of Grey), they do and will find it.

What astounds me in the vast acreage of articulated opinions on these issues is a few-fold.

For one thing, there’s a passion, even a nervous derision or tempered contempt or dismissiveness offered to self-published authors in most of the opinion pieces I’ve read. Although I am Canadian, it is a divide akin to Tea Party-ers and Democrats, i.e. it’s a visceral thing.

 

Click here to read the full post on Joe Wikert’s Digital Content Strategies.

 

Tom Weldon: 'Some say publishing is in trouble. They are completely wrong'

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This post by Jennifer Rankin originally appeared on The Guardian UK / The Observer site on 4/5/14.

Ahead of the London Book Fair, the UK head of Penguin Random House insists his industry has coped with the digital revolution better than any other

The indie booksellers are shutting up shop, authors struggle to make a living, and more than 60% of 18-to-30-year-olds would rather watch a DVD than get their nose in a book. But as the publishing world gathers at the annual London Book Fair this week, one of the UK’s leading publishers thinks the notion of the book industry in crisis is just a cliched old story.

“Some commentators say the publishing industry is in enormous trouble today. They are completely wrong, and I don’t understand that view at all,” says Tom Weldon, UK chief executive of Penguin Random House, one of the biggest players in Britain’s book world.

As an up-and-coming publisher, he persuaded a teenage chef called Jamie Oliver to sign a book contract. He gets to edit Jeremy Paxman‘s prose and read the latest Ian McEwan manuscript. And since last July he has been at the helm of the UK division of the world’s biggest publishing house, after a mega-merger brought together Penguin, Random House and their 15,000 writers.

While a recent Booktrust survey showing that reading for pleasure is declining among young people might lead some execs to reach for the chablis, Weldon is convinced book publishers are doing better than other creative industries in adapting to a digital world.

“In the last four years, Penguin and Random House have had the best years in their financial history,” he says. “Book publishers have managed the digital transition better than any other media or entertainment industry. I don’t understand the cultural cringe around books.”

 

Click here to read the full post on The Guardian UK / The Observer.

 

The Self-Publishing Debate: A Social Scientist Separates Fact from Fiction (Part 2 of 3)

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This post by Dana Beth Weinberg originally appeared on Digital Book World on 12/4/13. Click here to begin with Part 1 in the same series, by the same author, also on Digital Book World (post will open in a new window or tab).

In the writers’ groups I attend, self-publishing is a touchy issue. I know a number of writers who served their time in the trenches, writing and submitting and rewriting and resubmitting their work over and over again to agents and publishers before that one magical “yes.” It’s not unusual to meet a writer who tried to get published for ten years or more before winning a publishing contract. These writers have overcome significant odds, and they are rightly proud of their achievements. In the same group, there are a number of writers who haven’t yet broken into traditional publishing or haven’t even tried but who have decided to self-publish. Some don’t have the war stories and battle scars from trying to break in, while others do. Despite not having the traditional publisher’s stamp of approval, all of them are also proud of their achievements and expect equal consideration as published authors. It might be easy for the traditionally published authors to maintain their sense of superiority over self-published authors (and, thus, their sense of comfort that they had done the right thing all those years that they waited and tried) were it not also for the token members of the group who have self-published and made a lot of money at it.

Is self-publishing an amateurish endeavor, a means of sharing stories, a strategic move in a writing career, or an entrepreneurial activity? In Part 1 of this blog, I examined the top priorities of the nearly 5,000 authors who responded to the 2013 Digital Book World and Writer’s Digest Author Survey in relation to whether and how they have published their work. Now I turn my attention to the differences in writing productivity for the four different types of authors identified in the survey: aspiring authors, self-published authors, traditionally published authors, and hybrid authors with a combination of self-published and traditionally published works.

The necessary ingredient to success in a writing career is actually writing. So how do our various types of authors stack up in terms of manuscripts completed, whether published or unpublished?

 

Click here to read the full post on Digital Book World.

Click here to read part 3 in the same series, by the same author, also on Digital Book World. (post will open in a new window or tab).

 

Scribd.com: Opt-in, Turn-on, Opt-out?

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This post by Rich Meyer originally appeared on Indies Unlimited on 3/7/14.

For those of you who may have missed the news, Smashwords.com is now distributing their books to Scribd.com, an online e-book subscription service. If you’re not familiar with Scribd, think of them as the Spotify or Netflix Streaming of e-publishing: Subscribers pay a monthly fee and then can download and read as many books as they want. Authors will get a percentage of that, depending on how much of their book was read by the end consumer.

Here comes the first kick-in-the-pants for authors. If you compare things to, say, Spotify, the popular on-line music service, you’ll easily find references on the Internet to popular performers having their songs played millions of times and getting royalty checks in whole TENS of dollars. Supposedly, if Scribd is anything like the Oyster service, Smashwords authors will be getting 60% of the price of a book borrowed by a reader, as long as nearly 20% of the book is read. So unlike the great deal where an author using Amazon’s Kindle lending library through KDP might get $2 per lend for a 99-cent e-book, a Scribd book will net a writer 59 cents. And that’s only if the person reads 20% of it. Which is something I will come back to in a bit.

Scribd has actually said things will work out fine “if most readers read in moderation.” Umm … a reader who would consider a subscription service for books is more than likely not one that would read in normal “moderation,” whatever the hell that is. I consider myself to be a slightly-above average reader, and I’ve already read over sixty books since the first of the year. Imagine how many some of the power readers could do? Of course, if they read the whole book, then at least the author gets a bit o’ dosh for it. Unless … well, again, more later.

 

Click here to read the full post on Indies Unlimited.

Then, to get Smashwords’ side of the situation, please also see this post from Smashwords founder Mark Coker announcing the Scribd distribution deal and explaining the particulars.

 

Books, Just Like You Wanted

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This post by David Streitfeld originally appeared on The New York Times Bits blog on 1/3/14.

Anyone can publish a book these days, and just about everyone does. But if the supply of writers is increasing at a velocity unknown in literary history, the supply of readers is not. That is making competition for attention rather fierce. One result: ceaseless self-promotion by eager beginners.

Another consequence is writers’ thirst for more data on how they are being read, so they can shape their books to please their readers more. This is something novelists have always done, using sources like fan mail, personal appearances, reviews and sales. Technology is starting to give them data that is much more precise, and thus potentially more helpful.

“If you write as a business, you have to sell books,” said Quinn Loftis, a very successful self-published writer for teenagers. “To do that, you have to cater to the market. I don’t want to write a novel because I want to write it. I want to write it because people will enjoy it.”

But my article last week outlining how the digital book subscription services Oyster and Scribd plan to collect and share data with writers like Ms. Loftis resulted in little enthusiasm, at least among potential readers. Nearly all the comments on the article expressed dismay about where the trend could go.

 

Click here to read the full article on The New York Times Bits blog.