No one likes to talk about money, but if you’re self-publishing, royalties and income for authors is a topic you’ll have to broach sooner or later. As a self-published writer, your earnings will largely depend on royalties. So, for better or for worse, let’s explore the intricacies of royalties and income for authors, and break down some of the informed decisions you’ll need to make on your publishing path.
Royalty Basics
Essentially, royalties are a percentage of the revenue generated from your book sales. This percentage varies based on several factors, including the publishing platform, book format, distribution channels, et cetera. Understanding the royalty structure of your individual publishing setup is the first step in assessing your venture’s financial viability.
Different Platforms, Different Rules
Major self-publishing platforms like Amazon Kindle Direct Publishing (KDP), Apple Books, and others each have their own royalty systems. Amazon KDP, for instance, offers two royalty options: 35% and 70%. While 70% may seem like an obvious choice at first, make sure you check the fine print — you must agree to several stipulations in order to get a bigger piece of the pie. Other platforms will have their own rules and restrictions, so make sure you do your homework.
Print vs. Digital
If you choose to offer print versions of your book, your royalty situation will gain a further layer of complexity. Print-on-demand services, like those offered by IngramSpark or KDP Print, impact your earnings. These services may be profitable if you’re not planning a full print run, or if you’re less concerned about freedom of distribution. On the other hand, ordering a run of books from an independent printer (Presto Page, for example!) requires only a single upfront payment, leaving you with the freedom to price and distribute your books however you choose. The choice, of course, depends wholly on your personal preferences.
Distribution Channels Matter
Expanding the reach of your book through various distribution channels is a common strategy to increase sales. However, this decision influences your royalties. Direct sales from your chosen platform might offer higher percentages, but broader distribution may expose your book to a wider audience. Again, this decision depends on your goals. Are you looking to broaden your audience and increase brand awareness, or are you specifically focused on maximizing profits? The answer to this question should dictate your distribution decisions.
Pricing Strategies
Setting the right price for your book is nothing less than an art. (Granted, it rather lacks the luster of, say, the art of writing, but it is an art nonetheless.) It involves finding the sweet spot that attracts readers while ensuring your earnings align with your goals. Factors such as genre, book length, and market trends play into this equation, requiring ongoing evaluation and adjustment. Depending on your genre, you will also want to figure in the concept of perceived value. This is especially true with literary fiction, for instance, where a high value is placed on artistic merit. For better or worse, we often associate monetary value with artistic value, so a literary novel priced too cheaply might be a paradoxically harder sell.
Diversify Your Income Streams
While book sales form the core of an author’s income, exploring additional revenue streams can bolster financial stability. This might include speaking engagements, online courses, or crowdfunding initiatives. Sell merchandise based on your stories or characters. You might even consider starting a podcast if you can come up with a strong enough hook. Whichever avenue you choose, diversification will help you weather the stormy, unpredictable nature of book sales.
Financial Planning for Longevity
Keep in mind that understanding royalties and income for authors isn’t just about immediate returns. You must also plan for sustainable income over the long term, which involves keeping careful track of your goals, budget, and wider trends within the publishing world. As you navigate this financial landscape, remember that knowledge is your most valuable asset. Stay informed, adapt to industry changes, and keep your eyes on the ultimate goal: turning your literary passion into a sustainable career.
At Presto Page, we’re here to support you every step of the way. Whether you need assistance with self-publishing, design services, or any other aspect of self-publishing, we’re your partners in success. Contact us today to see what we can do for you!
