How Do Authors Get Paid?

Janice Jacobson asks: “In this new world of mixed publishing - print or ebook or whatever combination thereof - how do authors get paid?  Do they get paid more promptly?  Are they getting as much as they might have received in the print-only days?  How do they track all this stuff?  Is it enough to make a living?”

Given that this is tax season and writing income is on all wenchly minds, this was a timely question, Janice, thank you! For the historical perspective of publishing and how writers got paid, I cannot do better than this in-depth article on Victorian publishing.  Or Anne Gracie’s lovely article on Victorian publishing in the digital age.

Basically, in the 1700s and early 1800s, there were few readers, so there was little need for expensive books, and publishing was an industry for the elite. As the number of readers grew, serialized fiction—the cheap comic book kind for the lower classes, the more Dickensian serials for the middle class—created more popular prices and expanded the audience. Pickwick Papers was Dickens first venture into serialization, and that was essentially a form of comic book with the illustrators leading the way—until Dickens took over and changed the market for good. And that’s very much what seems to be happening today—authors are now leading the publishers.

Current publishing is in a state of flux much like the Victorian era, except seemingly in reverse. We went from the heyday of inexpensive mass market paperbacks in the late 20^th century to hideously expensive print books in the 21^st.  We are starting to add advertising to our books to cover costs, just as they did in Dickens time. Worse yet, the number of authors writing traditional print books have rapidly declined—the reason you see shelves of the same names in the stores.

Make no mistake—the number of authors has not declined. As in the Victorian era, authors have jumped on a cheaper means of selling books through digital and print-on-demand publications. There are even authors currently doing serializations, although not everyone calls them that. There is a huge industry of authors producing a short book a month in a continuing series. . . Not quite the same as leaving Polly tied to the railroad tracks each week but occasionally close enough. Often, it is a group of authors creating these series because it’s not humanly possible to plot, write, produce, and market this much material by one’s self—not successfully, anyway.

In other words, authors are creative. When traditional publishing fails them, they make their own way. If you want statistics, this article has a lot of them.

But it doesn’t give us the kind of comparison I need for this blog. It does tell us that there were over 45,000 authors in 2018 and only 21% of them were earning enough to live off their writing income.

And the reason for this is shown by Bowker, the only company allowed to issue ISBNs for every book published in the US (although this article doesn’t reflect books published at Amazon without ISBNs, and there are many). Because of the digital revolution, the number of books published each year is growing at a rate of roughly 40% with no signs of declining. In 2018, “the combined total of self-published print books and e-books with registered ISBNs grew from almost 1.2 million in 2017 to more than 1.6 million in 2018.”

The US population is roughly 327 milion. Almost half of those are under the age of 18. We’re not growing at a rate of 40%. You do the math—there are fewer and fewer readers for more and more books, the reverse of the Victorian situation.

So, no, I don’t recommend writing as a full-time job unless you’re part of a consortium of self-published authors, are very good at marketing, or write in a narrow niche that appeals to traditional publishers.

Traditional publishers still pay advances, depending on the author’s reputation, skill, demand for the books, etc. A beginning author with no track record will not receive much, and only then if they have a good agent. Because the market is shrinking for individual books (once, a single mass market paperback could expect to sell 100,000 copies. Now midlist authors are lucky if they can sell 10k, if only because there are fewer outlets for print), even long-time authors with proven track records cannot demand the advances they once expected. In fact, the world’s richest author, James Patterson, has announced he’s going to Amazon, presumably because they could offer him more money. So, yes, we still have the traditional model of advances and royalties based on sales, but that money is shrinking.

And it isn’t just the shrinking money and the fewer number of traditional titles causing the explosion of self-publishing. Today, traditional publishers still use the old methods to reach readers, and expect authors to pick up the slack. Authors now have to have websites and social media accounts and do advertising on their own. (I’m here to say that even as a former accountant, the formula for advertising on Amazon and Facebook is so bizarre that you need to be math-obsessed to conquer it.)

So if authors are now doing what publishers used to do—promote books—why should we enslave ourselves to contracts that tie up our books for a lifetime?

Well, those advances were nice. <G> Self-publishing doesn’t have advances. In fact, there are substantial costs to publishing that marvelous book you’ve just finished. Professional editing is essential and not cheap. A cover is needed and depending on how fancy you want to get, not cheap either. The book then needs to be formatted into Kindle and Nook and print and so forth, requiring special software and knowledge. And then the whole mess needs to be proofed. That’s just the beginning, and it can cost into thousands of dollars.

That’s the point where it becomes impossible to explain how self-published authors are paid. Some hire companies to do all the non-writing work. These companies will pay the authors a better percentage of sales than traditional ever did—after subtracting the initial expenses. Royalties (not advances) are paid every six months just as in traditional. But they still can’t do the promotion an author can, so marketing is still a very large part of the equation. Without marketing, there will be no income. We don’t have traditional bookstores or drugstore shelves for print-on-demand books, so word of mouth is all we have to sell books.

There are brave souls who can write and produce and market books. They are paid by the on-line retailers (aka Amazon) based on sales—again, a far better percentage than traditional, close to 60% difference. The money is directly deposited into bank accounts on a monthly basis, which is lovely. If you have the ability to produce books regularly, or have an enormous backlist and well-known name like many of the wenches, it is possible to make a living this way—if you market your books. Without new books and constant promotion, even a known name will languish. With a name and a lot of books, it’s possible to pay people to do the non-writing work and not go through any company.

As you can see, there is no one answer to your questions. E-publication does pay much faster than traditional. There is still a three-month delay in payment, but those payments are received monthly—if you’re doing it yourself. There are authors making far more than they ever would have in traditional publishing simply because they can write faster than publishers can produce, and they’re more savvy about selling their books than publishers are.

The future I’m really waiting on is true print-on-demand, when a customer can walk into any store, punch a few buttons on a machine, and fifteen minutes later, hold the book in their hands. We can order print books now, online and in stores, but it takes days, if not weeks, for the books to arrive. Delayed gratification in this day and age is not a viable system. So traditional print publishers still have that market cornered.

For your question, Janice, you have earned a free Patricia Rice book of your choice. (as long as it’s an e-book, since my print copies didn’t traverse the country with me)

Thank you for asking about a subject I feel deeply about. Does anyone else have a question I might answer? How do you feel about this day and age of e-book publication? Do you still go to the store and browse for print books?

 

Comments

[Jorie]

Hallo, Hallo Ms Rice,

I spied this post via Twitter and as its a topic of interest of mine I wanted to read your thoughts. One thing surprised me a bit though? Are you saying that even Indie booksellers aren't carrying Self-Published Authors or any published book which is POD? I find that a bit shocking as aren't Indies meant to reach out to authors who are going the Indie route and are seeking to publish their stories outside of Major Trade markets? I would have thought that it would be easier to get POD books into Indies because they'd advocate for Indie authors more being the fact they are Indie themselves? So, that struck my interest. I guess I thought outside my area / region where there is a gap and void of Indies (their in the larger cities elsewhere) - I thought for sure those Indies were supplying books for readers who wanted to seek out the Indie Publishers, Indie Press, Hybrid Authors & Self Pub'd authors, too.

They can do what you said - there are book printing machines in some stores where you can have POD books printed for you the same day your in the store. I wonder though... as I know that system had some backlash a few years ago as they were getting pulled out of some Indie shoppes -- if there is a more universal way of doing this as you said - getting the books into readers hands but without the malarkey of waiting periods and having to go through distribution centres.

Ideally what would you like to see in an Indie bookstore and how would you like to see them featuring authors? I was curious your thoughts on this as I have so many of my own thoughts on the whole subject!

[Janice]

Thank you for taking up my question, Patricia.

I had expected that earning a living at writing was getting harder and harder and your reply confirms that. God bless you all, you're going to need high level help :(

Ebooks: I have read so many sucky samples that I seldom buy ebooks. I mostly have classics and old favorites on my Kindle app.

Bookstores: Yes, I still love to browse through bookstores and I usually leave with something (because it's bad luck not to). Some days it's half a dozen books, other times I struggle to find one that intrigues me. But there are only two general new bookstores left in my area - one Barnes & Noble, and one amazon factory unit where books mean as little or as much as frying pans or tablets. There are some specialty stores for sf, comics and romance, however, and it beats me how they stay open in this city (LA) of high rents.

I rely a great deal on word of mouth from other readers; I don't read reviews or even blurbs very often. Lately I've been finding that word of mouth in reader groups on Facebook. When I do find somebody I like, I get their entire backlist if I can. Ebook publishing is great for that, and I like that more of the money goes to the author.

[Mary T]

I love printed books. But given my age (75) and physical condition, I'm no longer able to browse library or book store shelves. I miss being able to do that.

So even though e-books are not my favorite, I am fortunate that I live in an age that allows me to shop on-line. I'm also looking to down size. I have even replaced many of my favorite print books with e-books because I don't know what the future holds.

Since I cannot physically shop any longer, I visit a lot of author websites to see what my favorite authors are publishing or re-publishing.

The bottom line is, I really appreciate you ladies for perservering in an industry that is becoming even more difficult.

[Patricia Rice]

Hello, Jorie--it's lovely to hit my desk first thing in the morning with such an interesting comment! First, where are you that you have access to Indie bookstores? I live in a metropolitan area with none at all. Most authors I know are unfamiliar with any indie store close by, although there are reports of them if we're willing to travel. And secondly, I come from the perspective of a long-time author accustomed to seeing my titles everywhere, including grocery and drugstores, so a few scattered Indies are a pale drop in the bucket on my scale. Sorry. In my area, I cannot see any feasible means of an Indie store surviving. But I do love the idea, and it might be more economically feasible if I could figure out how to create e-book sales with QR codes where both author and store get paid. The POD printers would have to be everywhere and readers using them regularly (and the cost of the printers would have to go down) before the scales of economy would generate profits--just as in Victorian days. I could write books on this, sorry!

[Patricia Rice]

Thank you, Janice! I'll email you privately about your prize. And your experience with ebooks is exactly why we're struggling. When anyone can publish a book, it makes it impossible for readers to find the books they want in the masses of stuff they don't want. So authors must rely on readers communicating with each other and with us. The internet is littered with FB groups to help with that, but really, there are only so many hours in the day. Do we spend them writing or trying to sell books? 'tis a conundrum.

[Patricia Rice]

I'm so glad you're willing to follow us into digital, Mary! I hear you about physical books--I can't even lay my hands on the ones I want anymore. The library doesn't stock them and the nearest store is too difficult for me to reach. Most of us are providing physical books for those who prefer them, but the stores don't carry them, so they have to be ordered. But we're stubborn. If we survived the ups and downs of this industry for 30 years, we can survive anything!

[Sue McCormick]

About the self-advertising: I can keep up with new books from the Wenches here and on their various facebook pages. You wenches also clue us in to publications from other authors, and your monthly what we are reading edition brings more authors to our attention.

I belong to some author-related Facebook groups/pages, but Facebook is so iffy about what you see, that I don't always get notice about new books.

I get newsletters via e-mail, and if I remember i go and check author sites and some general book sites. (Perhaps I should make a list of places to check?)

What I'm trying to say here is that it is also hard for the reader to learn about new books from our favorite authors. This is a sitution that helps no one. i hope we can all get it straightened out soon.

As i frequently saying, we are in the process of down-sizing our physical books. (We're giving the library books we haven't opened and re-read for 20 or thiry years.) eReaders are a huge help with book storage BUT the reader doesn't own the book. There is no way to give away a book you've accidently bought twice. There is no way to guarentee that the book you are currently reading will still be on your reader when you pick it up again. The physical copies DO belong to the reader. Perhas this situation should also be addressed at some point in time.

[LindaB]

Go buy books from Smashwords. You get a download from them.

[LindaB]

More on the business side for those who are interested:

Contracts from traditional publishers are terrible now. They take your intellectual property (that’s the book and everything associated with it) for all media, even ones that don’t exist now, for the length of the copyright, and that’s the author’s lifetime plus 70 years. And agents can cheat you, even well-known ones. Also, it’s illegal for an agent to negotiate a contract--only a lawyer can do that. A lawyer will do a better job, too, because lawyers write the contracts.

For those who still have stars in their eyes about traditional publishing, I suggest they go read Kristine Kathryn Rusch’s Business Musings every Thursday, https://www.kristinekathrynrusch.com/ She’s been around almost as long as the Wenches have, and she’s seen everything in traditional publishing, and most of it is terrible. The Wenches are probably exempt from most of the shenanigans because they’re successful and have been around for a while, but you still have to be careful.

If you want to write, indie is the only way to go. With indie, you keep your intellectual property--that’s your book and everything it entails, including things like TV, movies, action figures, games, etc. And everyone wants that, because it adds to their bottom line even if they don’t utilize it. Don’t let anyone steal from you.

[Margot]

Very interesting topic that I have been wondering about for some time. Thank you for all the information you covered Patricia Rice and the responses so far have been very informative.
I used to work in a bookshop and that was before computers and e-stuff. Sad to see bookshops disappear over these past decades as I loved bookshops and libraries. First it was to the mega stores, then to online sales. I always felt a little guilty buying books in a second hand shop or borrowing from a library as the author did not get as much that from my purchase and borrowing.
How can we as readers assist authors in their sales. (Sorry to hear that you have to advertise as well.) What can we do to help in this process? How can an individual reader make a little impact in this fast paced changing trend? I have to travel about 20 miles to get to the nearest bookshop (B&N) there are no other shops around us any longer.

[Patricia Rice]

Sigh, I just bought a book twice in error on Nook and couldn't return it. I think on Kindle you can return? I'm in the process of setting up my own store. I should investigate the return policy of the company that handles it. But this is why companies merge--economies of scale as well as being able to market on a wider platform. Authors can't do this single-handed. It's the wild wild west in many ways until organization happens.

[Patricia Rice]

Thanks, Linda. I didn't have room to explain in detail. Wench contracts can be as difficult as any other, but we have good agents who untangle a lot of the truly awful stuff. But they still tie our rights up for longer than necessary, since publishers pretty much lose interest in backlist after a while.

[Patricia Rice]

Margot, thank you for your thoughtful post. Authors are readers too and recognize your predicament all too well. We aren't rich enough to pay $25 for hardcovers by unknowns so we haunt libraries and secondhand stores, fully knowing it's hurting other authors. But we also go out and recommend those books anywhere we can. Readers can do that too. If you read a good book, let people know. Word of mouth really is better than any advertising we do!

[LindaB]

Yes, you can return books on Kindle within 7 days. On Smashwords, you can download a file, not just a link to a file, but you can't return the book, wither. I've gotten caught on Nook, too, with buying a book twice. Annoying, but not much money, and the author made a few dollars.

[LindaB]

Oops, see my comment below on returning books. Should have put it here.

[Anne Gracie]

Margot, if you want to send a little bit of love to some of your favorite authors, try "liking" their FaceBook page, or following them on Bookbub.com or Amazon. Even better, when you finish a book, leave a rating and a review — it doesn't have to be long or complicated or even glowing — just a star rating and a comment, which can be as brief as a couple of words.

These things seem quite small and easy to do, but they actually make a real difference to authors. Not just in a "feel-good" way, which is lovely, but also in a professional way, by helping other readers find us.

[Mary M.]

I'd like to know how the library system works for authors (if it even does). As a voracious reader of ordinary means, I'd bankrupt myself if I purchased most of my books, so I rely on the public and digital libraries in my large-enough metropolitan area. Mostly the digital these days to save my thumbs from further surgery and so I can click through to Google and Wikipedia for further information. I've always wondered if I should feel guilty for shorting the authors by borrowing instead of purchasing.

[Quantum]

Interesting discussion!

From a reader's perspective the flood of available books can be overwhelming and some filtering process is essential. I think that the main barrier a starting author faces is establishing a reputation and becoming known. The conventional (old fashioned?) publishing process of submitting to an agent or publisher will at least mean that some professional vetting occurs, which eliminates most of the rubbish, though it may of course also reject an occasional gem. A good publisher is some guarantee to readers that a book is worth looking at. For established authors however, I think the independent publishing route has much to commend it. Established authors become auto-buys for many and new books will be looked at by readers who are familiar with an authors work.

On e-book downloads I think that the DRM security system is outrageous (and easily overridden with suitable software). Having bought a book the reader should be free to view it for personal use in any way he chooses. I agree with LindaB that Smashwords where DRM is not used is a good place to buy.

[Patricia Rice]

Excellent question! UK libraries, I believe, actually pay a form of royalty to authors. But US libraries are simply too huge and the bookkeeping alone would break them. So they buy print books by the thousands, which helps with print sales, if not a lot with money. And e-books are a work in progress. Some traditional publishers have quit selling digital to libraries. Some are charging insane prices for a limited use of digital books. And indy authors sell to Overdrive, usually for a limited time but for a much more reasonable price. No one is getting rich. But libraries do put our names in the hands of readers and help with word of mouth sales, so no author is complaining. Read in peace and as we told Margot above--leave reviews, follow us on social media, any little bit helps.

[Patricia Rice]

Totally nailed it, as usual, Quantum. Another place to buy DRM free is Book View Cafe, the author co-op that publishes my books. They have a bookstore containing all their authors.

Many indy authors produce DRM free these days. It's the traditional publishers who seem to have this odd idea they're preventing people from sending copies of their books all over the world. If they could only see my email from all the readers who can't even figure out how to download a book that isn't on Kindle...

Pirates are certainly a problem for everyone, but DRM just makes them more interested.

[Sheri Cobb South]

I've had 2 different traditional publishers over the course of my career, and were orphaned by both when they dropped the line I wrote for. When I was traditionally published, I never earned more than a low to mid- 4-figure income per year; this year, I just missed 6 figures. I never write more than 2 books a year (yeah, I'm fairly slow), but I never spend "thousands of dollars" getting my books into print (ebooks or paperbacks, that is; audiobooks are another matter, but they're only as good--and are only going to sell as well--as your narrator, and the best narrators don't come cheap.) Sometimes I miss being able to go into a bookstore and see my books on the shelves, but then I remember how little I actually earned, and how little control I had, and the feeling quickly passes!

[Kareni]

Thank you for your informative post, Patricia.

I do indeed still browse the shelves at a book store; here it's Barnes and Noble. If there were an independent store conveniently nearby, I'd definitely visit. I'm also a frequent library user, and I request many books be purchased. I'd say that my library buys at least half the books I recommend.

I find out about books here and also on other sites such as Dear Author; Smart Bitches, Trashy Books; Joyfully Jay; Tor.com; Book Binge and more. I also participate on several sites that have book discussion opportunities and those are where I leave my reviews.

[Annette N]

OK - I am going to go where no one should go. I was wondering whether all the situations you mentioned were more difficult because y'all write romance?

There is a huge indie bookstore here in Austin. And anything to do with romance is as though one were holding a gun with a mask over your face. Disdain is their middle name.

In fact, there are many places here where reading much of anything with a happily ever after is tantamount to being an axe murderer.

A group was going to set up a neighborhood book group, the first thing out of the leader's mouth, "of course we will not be reading that (you can fill in the blank). I explained that I was no longer interested in the group. I read other things, but I really did not want to sit with a group of people who were so insensitive, snobbish and out of touch with 30% of the people who buy books.

Sorry, stepping off of my teeny soap box now.

I know readers can be treated like less than and I was wondering whether authors were also treated badly.

I find books from this group, BookBub, Amazon, Goodreads, The Romance Dish and NetGalley.

I reckon that it is pretty evident y'all want to write, 'cause otherwise you would not fight so hard to do so. And I for one, Thank You.

[LindaB]

While traditional publishers ensure that a book is well-edited, they select only certain types of books. If you like something out of the ordinary, you probably wouldn't find it in a traditional book. With indies, you probably can. Yes, you might have to wade through some unedited books, but that's the price you pay for the larger selection. Like Patricia Rice said, most authors aren't getting rich providing that wide range of topics.

[LindaB]

Ask your library to buy the books you want. Libraries pay for the books, whether paper or e-book, and that means the authors make money. Typically, the royalty rate libraries pay is less than a sale in a bookstore or online generates, but, hey, it's money.

[Patricia Rice]

Thank you! See, my mind doesn't even work that way. But indie authors in particular would be thrilled at a library ordering their books!

[Patricia Rice]

That's fabulous Sheri, I'm thrilled to hear it's making a difference. Some of us are fortunate to have editor relationships that don't require thousands of dollars, but without that, editorial is very expensive. That's what I was warning about.
I don't even miss going into a store and seeing my books because the nearest store is half an hour away!

[Patricia Rice]

this is great information, thank you! I hope other readers will see this. We don't have a filter yet for indie books, but blogs and reader discussions really help

[Patricia Rice]

Romance has formed its own community. I suppose it's fair that literary/mystery/whatever readers build theirs. I don't imagine their groups are as extensive, but that's their choice. The book shaming is as old as Adam and Eve. I will refrain from my feminist rant. We are romance readers, hear us roar!

(and there's a good chance that the stores who don't stock romance are threatened by our immense communities, poor lambs. They're not hurting romance authors, however, because we have fabulous readers)

[Teresa Broderick]

Where I live I would never get any of the books I read in my library. They just don't stock them. I love print books but buy a lot on kindle. They're cheaper and when you read as much as I do that helps a lot. Also my eyesight is not great and some of the print is too small for me. I do enjoy a good browse in my nearest bookstore but the selection isn't great. So kindle is a god send for me.

[Maryellen Webber]

I have always wondered about how authors are paid. Thanks for answering this question for all of us! I always feel guilty when I check out a book from the library,it is like I was cheating you talented Wenches out of your income. I follow Book Bub daily and it has provided me with so many new authors. It is very easy to leave a quick review also. I thank all of you Wenches for your dedication to this blog along with your own personal blogs and newsletters. This reader really appreciates you!

[Sue McCormick]

Kareni:

The list you gave is exactly the type of information i was hoping for in my response above. I am eagerly copying this and storing it in easy reach.

Thanks,
Sue

[Sue McCormick]

As many of you may have noticed I am a fan of Science Fiction/Fantasy as well as of Romance works. That community is even more subject to disdain as are romance writers. I believe the readers of Westerns meet with the same attitude. Only mystery seems somewhat free of genre disdain, and those books are not entirely free.

I have learned to ignore the attitude and to read what I like. (Which very seldom includes those "high-class" mainstream novels of limited human interest.

[Annette N]

Sue, you are my kind of girl. I have found that many of those "high class" books are so boring. And I often have gotten the impression that the authors are more impressed with their ability to use many, many words than the premise of getting ideas across to readers.

And I don't actually care about the disdain. I like a "happily ever after". And for me, when I am stressed, I have my go to authors who make me laugh and feel as though everything will eventually be OK. That is what makes me a reader of romance.

[Mary M.]

Here in Phoenix, AZ, we have a huge annual event known as the VNSA Book Sale. It's so big, it's held at the county fairgrounds. I recently queried them about picking up multiple boxes of books from me and happened to include the info that some were historical romances. I got a prompt putdown, and even when I pointed out that the rest were books they DO accept, I never heard from them again. Their (~1,500 book) loss, Goodwill's gain.

[Patricia Rice]

E-readers are a godsend for many of us, for many reasons! I understand the appeal of paper, but the cost is simply out of hand

[Patricia Rice]

as we appreciate readers! You're the reason we're still around.

[Vicki L]

This has been a fascinating discussion and I really appreciate all the input. I've been wrestling with the moral and ethical dilemma of how to support authors and still afford to eat myself.

My hybrid solution was to figure out which authors each year I would buy a paper copy of their latest book (Mass Market only mind you since I don't like the Large/Trade format or hardbacks). Occasionally I buy a kindle book when there is a sale and it is one of my favorite ones.

That way authors get some money from me and I have a kindle version to take on a trip with me. Not a perfect system.

I do follow many authors on BookBub. I've liked a number of FB pages. Guess I need to expand my efforts to into book reviews.

The library, Friend of the library book sales and used bookstores is how I've found many new to me authors at a price I was willing to pay before I said, okay. I'll actually pay. Grin.

[Kareni]

I'm glad to have helped, Sue.

I've also found some interesting boards on Reddit (which I'd never heard of until my adult daughter mentioned it a few years ago). Some I like to browse include:

www.reddit.com/r/Fantasy/

www.reddit.com/r/RomanceBooks/

www.reddit.com/r/suggestmeabook/

www.reddit.com/r/books

Here's a link to the main page: www.reddit.com

Be forewarned that it's easy to get sucked into reading page after page of threads!

[Patricia Rice]

Our reading habits are expensive. The Wenches--and all authors--appreciate absolutely anything you can do to spread the word about our books. Never feel guilty for reading!

[Patricia Rice]

And to follow up this discussion, Authors Guild just issued this info on authors' income:

https://www.authorsguild.org/industry-advocacy/authors-guild-issues-report-exploring-the-factors-leading-to-the-decline-of-the-writing-profession/