Profitability of Self-Publishing vs Traditional Publishing: Breaking Down Earnings per Book Sold
Introduction
(Editor's Note: This article explores the financial aspects of being a book author through self-publishing and traditional publishing methods. Figuring out the earning potential for each book sold is crucial for understanding the overall profitability of these approaches.)
Traditional vs Self-Publishing
Authoring a book is a significant undertaking, and one often focuses on the potential earnings from the sales of their book. A common question by aspiring or established authors is, ‘How much would I make per book sold at 20 if I were the author?’ To answer this, we need to understand both the advantages and challenges of traditional publishing versus self-publishing.
Traditional Publishing
Traditional publishing involves authors seeking representation from literary agents and then working with commercial publishers. While this process is more complex, it can offer significant benefits. First, it often involves advance payments and higher royalties on sales. However, the upfront costs and time investment are substantial, and the marketing efforts are primarily driven by the publisher.
Self-Publishing
Self-publishing allows authors to publish their books without going through literary agents or traditional publishers. This method gives them more control over the entire process. Authors can manage their own marketing, set their own prices, and retain a larger share of the profits. However, without a publisher's marketing and distribution network, self-publishing can be incredibly competitive and challenging.
Earnings Per Book Sold at 20
Let's take a closer look at the earnings per book sold at $20 for both traditional and self-publishing approaches, using the figures provided by Matthew Hughes and adapting them for our analysis.
Traditional Publishing
According to Matthew Hughes, the cost of printing and marketing expenses for the first six months of a book's life can range from $1,000 to $2,000. After this period, the author must undertake most of the marketing on their own. Here are some profit calculations based on sales figures:
If your book sells 200 copies: $20 (200) - $1,000 (cost) $200 If your book sells 1,000 copies: $20 (1,000) - $1,000 (cost) $1,000 If your book sells 2,000 copies: $20 (2,000) - $1,000 (cost) $1,000 If your book sells 5,000 copies: $20 (5,000) - $1,000 (cost) - (5,000 - 2,000) * 0.96 * $20 $4,880 If your book sells 10,000 copies: $20 (10,000) - $1,000 (cost) - (10,000 - 2,000) * 0.96 * $20 $9,680 If your book sells 100,000 copies: $20 (100,000) - $1,000 (cost) - (100,000 - 2,000) * 0.96 * $20 $96,080Self-Publishing
Self-publishing requires upfront investments for editing, cover design, and distribution. For the sake of this analysis, we assume these costs to be around $1,000. Self-publishers often face the challenge of selling physical books, so let’s consider the virtual market. Here is a breakdown of earnings:
Amazon Earnings: With Amazon, the author receives a smaller share of the sale. Let's assume a price of $10 per ebook and a 3.50% payout (Amazon's fee).Calculations for Self-Publishing on Amazon
If you sell 200 ebooks: 3.50 * 200 $700 - $1,000 (cost) - $70 $630 (loss) If you sell 1,000 ebooks: 3.50 * 1,000 $3,500 - $1,000 (cost) - $350 $2,150 If you sell 2,000 ebooks: 3.50 * 2,000 $7,000 - $1,000 (cost) - $700 $5,300 If you sell 5,000 ebooks: 3.50 * 5,000 $17,500 - $1,000 (cost) - $1,000 $15,500 If you sell 10,000 ebooks: 3.50 * 10,000 $35,000 - $1,000 (cost) - $1,000 $33,000 If you sell 100,000 ebooks: 3.50 * 100,000 $350,000 - $1,000 (cost) - $1,000 $348,000The Price Tag of Time and Effort
The reality of the publishing world is complex. For successful mid-range authors, traditional publishing often means selling 10,000 copies within six months, while self-publishing might see steady, year-over-year sales. Here’s a breakdown of earnings over five years:
Traditional Publishing
If the book sells 10,000 copies in the first year: 9,680 * 5 $48,400 Assuming the author writes another 5 books, each earning $19,360 over 5 years, the total earnings over five years would be approximately $300,000 - $400,000.Self-Publishing
If the book sells 1,000 copies in the first year: 2150 * 5 $10,750 Assuming the author writes another 5 books, each earning $3,100 over 5 years, the total earnings over five years would be approximately $43,350.The Bottom Line
While traditional publishing offers larger advances and higher royalties initially, the pressure to sell substantial quantities can be overwhelming. On the other hand, self-publishing provides ongoing revenue streams and more control over the creative and financial aspects of book publication. The key factors in determining the success of an author's earnings are marketing, persistence, and the author's ability to adapt to the publishing landscape.
Both traditional and self-publishing have their merits. The best approach for an author often depends on their goals, resources, and market conditions. Whether one opts for traditional or self-publishing, the journey is often long and fraught with challenges. But with the right strategy and a bit of luck, the journey can be a rewarding one.