From Nothing to Full Book

I'm guesting at Magical Musings: http://magicalmusings.com with a tale of how last year I had a looming deadline, a blank screen, and no story. From blocked to book. It might be inspiring. :-)

How Authors Make Money

With a lot going around the net about ebooks, piracy, advances vs. royalties and things of that nature, I thought it would be a good idea to lay out exactly how authors earn money and how much (or little). From what I've seen around and surveys I've read, there's a bit of confusion among authors and readers both.

Basically authors earn money BY THE SALES OF NEW BOOKS IN RETAIL OUTLETS (Borders, B&N, Walmart) OR IN RETAIL EBOOK STORES (e.g., Kindle, Fictionwise, B&N, Sony, etc..). With possible income supplements I outline below.

Period.

I could end my post here. But I like to talk so I'll do more explaining.

Here's where you can find print books and ebooks for sale and what each means to the author:

1. Retailers who carry NEW books ordered from the publisher (sometimes via wholesalers/distributors like Ingrams, Baker & Taylor, Anderson Merch, Levy, among others). These include: Borders, B&N, independent booksellers who stock new books (not just used), Target, Walmart, drug chains, grocery stores, and the like.

Authors make: Royalties on the cover price, anywhere from 4% to 8% on mass markets, 7.5% on trades, 10% or so on hardbacks.

Sales: Mass markets: anywhere from a couple thousand to a couple hundred thousand; Trades: anywhere from a couple thousand to 50K; Hardbacks: Anywhere from a couple thousand to 50-75K. (This is the average author. Huge blockbuster authors like Nora Roberts or Stephanie Meyer sell much more, but most authors never become blockbusters and sell more moderately.)
Benefits to author: Author gets paid royalties. (twice a year or yearly)

Drawbacks to author: Books, esp. hardback and trade are expensive for readers. Distribution might be spotty--her/his books might only make it to a few chain bookstores and indies, in which case the number of sales will be drastically lower.

2. Ebook retailers who order directly from the publisher: Amazon Kindle, B&N's new e-store, Fictionwise, Sony, and others.

Authors make: Well, there's a bit of fluctuation going on. About half the publishers right now are giving authors royalties on the cover price (percent varies wildly; I do mean wildly, not widely); about half publishers are trying to give authors royalties on the "net proceeds" (which means after all expenses are subtracted, authors get paid. Bad, bad, bad for authors. What if there's nothing left after expenses are subtracted?)

Sales: At this point, the percentage of ebook sales to print sales (from major print publishers) is small.

Benefit to author: Another area of distribution, and author gets paid royalties. (Twice a year or yearly)

Drawback to author: Ebook readers are expensive, not all readers are comfortable with the technology, readers dependent on the site having no glitches at the time they want to purchase. Not all publishers are making their books available as ebooks.

3. Ebook publishers selling new ebook originals directly from their websites (e.g., Ellora's Cave, Samhain, LooseId).

Authors make: Again, varies by publisher. Royalties are about 35-40 percent of cover price, but some try to pull that net proceeds thing.

Sales: In one month, anywhere from a handful (at the smallest pubs) to several thousand (at the larger epubs). Sales can continue at a lesser rate (from a handful to a couple hundred a month) for years.

Benefit to author: Author gets paid royalties, usually quarterly or monthly.

Drawback to author: Readers must go directly to publisher website. Again, glitches when reader tries to purchase will send reader elsewhere.

4. Print publishers (Penguin, Dorchester, Kensington, St. Martins, eHarlequin) selling directly from their website.
Authors make: Royalties on cover price (usually 4-8% on mass markets; 7.5 on trades; 10 and up on hardbacks.

Benefit to author: Author gets paid royalties.

Drawback to author: Print publishers don't get very many direct sales (from my royalty statements, I get only a handful.) Most readers purchase from larger online retailers or bricks and mortar retailers.

5. Book clubs (i.e., Doubleday, Rhapsody, publisher's own book clubs).

Authors make:
a) From their own publisher's book club, a royalty on cover price (usually a reduced royalty; 4% of price is common)

b) From big book clubs (e.g., Doubleday): A flat fee (usually small) that the big book club pays directly to the publisher.

Sales: Varies depending on book club, etc. If you sell the book club rights for a flat fee, that means NO royalties, and you don't always know the sales figures. Publisher-owned book club: varies depending on publisher.

Benefits to author: Another distribution point to find new readers.

Drawback to author: Flat fee is usually small / smaller royalty percentage.

6. Secondary rights (movie options, foreign rights /translation sales)

Authors make: Fee, which is often split 50/50 with the publisher (unless the contract specifies otherwise). Fees can range anywhere from $1500 to five and six figures (but the top end is rare, even for movie options). Sometimes authors get royalties, depending on how contract is written.

Sales: Who knows? Much of this is flat-fee based--you are selling the rights to someone else to do with your book what they wish (within certain parameters spelled out in the contract).

Benefit to author: Income plus more distribution.

Drawback to author: Fees are usually smaller than you think. Even movie options can be $10K or less. (An "option" is an agreement for you to take the movie/TV rights for the book off the market. No guarantee the movie/show will ever be made. If movie/show is made, what authors make is dependent on how that contract reads.) Translation rights can be purchased but the book might never be published. Waters tricky to navigate without an agent.

7. Libraries: Public and school libraries that purchase books directly from the publisher or wholesaler (e.g., Baker & Taylor).

Authors make: Royalties on cover price of LIBRARY's purchase. Authors do NOT make royalties when the book is checked out. (E.g., if a library buys five books and each book is checked out 100 times (500 checkouts total), author gets royalties for FIVE sales only.)

Sales: Varies from library to library based on library budgets.

Benefit to author: Readers might "discover" an author in the library and then buy that author's books new. If books are popular, libraries will buy more copies of the author's next book.

Drawback to author: Not all libraries order an author's book (depending on genre, author popularity, and library budget). Potential loss of income.

8. Used book stores (including eBay): Stores that mainly sell books acquired through customers who bring in books for trade and from purchasing from other used book sellers.

Authors make: Zero (no royalties are paid to authors because bookstores do not pay publishers.)

Sales: ??

Benefits to author: Readers might "discover" an author in the UBS and then buy that author's books new. UBS owners are usually avid readers and can be incredibly supportive to authors.

Drawback to author: Books might be difficult for readers to find. Loss of income when the book is still available new, and more copies are bought used than new.

9. Remainder bookstores: Publishers sell off remaining copies of new books from their warehouse to free up space.

Authors make: Zero

Sales: ??

Benefits to author: Readers might "discover" an author and then buy that author's books new.

Drawback to author: Loss of income, loss of face (books are remaindered if they're not selling well), possible loss of career.

10. Pirate ebooks sites: Readers scan or decode ebooks/files and post them free on sites.

Authors make: Zero

Benefit to author: Possible that reader will read book free and "discover" the author.

Sales: None. Some sites post how many times the book has been downloaded.

Drawback to author: Files can be downloaded hundreds and thousands of times (one author reported 100,000 downloads of one of her books from one site). Loss of income. Copyright infringement.

As you can see, from the many places books are available authors make income from about half of them. Authors can make extra money from secondary rights sales, but many authors never get offered secondary sales.

Authors make most of their money ONLY from royalties on new book sales. Advances aren't salaries; they are advances against SALES. If a publisher offers an author 100K for 3 books (about 33K a book), then they are expecting the author to make enough sales to earn back $33K before the authors sees another penny in royalties.

(Note that an offer of $100K does not mean the publisher hands the author $100K. It means the author gets a little bit on signing the contract, another little bit each time she hands in a manuscript (which might be a year later), depending on the publisher, another little bit when the book is published. This whole process might take two years, three and more to finish the contract. So that's $100K that has to last the author for three years. Plus she has to pay her agent (if she has one) and income tax.)

I'm not here to whine about how little the average author makes or to whine about UBSs and pirate sites.

This post is meant to lay out pretty much where authors make money and how much. It does vary from author to author; each person's experience is going to be unique.

I like to say: The most consistent part of the publishing business is its inconsistency!!

Small Press, Epress, Vanity--what are they?

There's been a great deal of controversy lately at RWA concerning "recognition" for publishers as well as what kind of books can be entered in the RITA contest.

While I'm not going into the controversy (I have my opinion, but it's being discussed very well elsewhere), it occurred to me that newer authors might not know what the heck they're talking about. What is meant by "non-vanity, non-subsidy" press? What's an e-publisher? What's the difference between small press and e-press, and what does it mean when people talk about "New York"?

Vanity press: Vanity publishing is different from self-publishing. In vanity publishing, you send your ms. and a sum of money to the publisher, who then does all the editing (if any), creates the cover, prints the book, and sends you back a carton or twenty of published, bound books. There is no "acquisition" process--anyone can publish at these presses as long as you pay (some are fairly inexpensive; some can run into thousands and thousands of dollars.) Vanity press can be useful if you want to publish your great-grandmother's diary or your child's picture book as a gift for family members (some presses specialize in "gift books"). If you dream of becoming a big-name, NYT novelist, this is not the way to go.

Subsidy press: Subsidy is much like vanity publishing although the press might pick up some of the costs (e.g., it pays an editor but you pay for the cover and the printing.)

Self-publishing: Self-publishing differs from vanity press because you are essentially becoming a publishing company. You pay for everything, yes, but it's in your hands to hire an editor, hire a proofreader, hire a printer, design the cover or hire a cover artist, and decide how to market it. Self-publishing works well with books that will sell to niche audiences--regional cookbooks, regional histories, how-tos, etc. (mostly nonfiction). Self-published authors have been quite successful, although I think it's a rare author who is successful in self-published fiction. It can be done, but it's rare. Most readers looking for fiction hit Walmart or B&N.

In these three types of publishing, self-publishing is the most respected. Tip: If you have vanity-published a book, never mention that in a query letter to an agent or editor, unless it's become an NYT bestseller (which is not very likely).

Note also that with these types of publishing options, you must distribute, market, and sell the book yourself. If you are fantastic at hand-selling, love to get out with the public and press your book into as many hands as you can, you go for it. It's not for me, but some people are good at it.

E-press: E-publishing has been around for ten or so years now, and now every major publisher has started putting out their list in e-. When someone talks about an e-publisher or e-pub, they mean publishing houses who release e-book originals, bringing a print copy out months later in a secondary process. They sell the e-books from their own website or partner with distribution points like Fictionwise, Sony, Kindle, and the like.

Examples of highly successful e-book publishers are Ellora's Cave, Samhain, and Loose ID (pronounced "Lucid"). I submitted a ms. to an e-publisher about five years ago to see what it was all about, and was pleasantly surprised at both the income and the quality of the press. (The submitted book is still selling, btw). Please note that all e-presses are not created equal. Before you submit to e-presses, purchase their books, look over their website, talk to authors who write for them, ask questions about their contracts. Object strenuously to contracts that pay royalties on "Net Receipts". Or get an agent and let her object strenuously for you. Stick to your guns on this or don't be surprised if you get ripped off.

Small Press: When most people say "small press," they mean presses that print a limited run of nicely bound hardback books. Small presses can be quite prestigious. Poisoned Pen press, a mystery publisher, has produced novels that win top mystery awards and have been optioned for TV mini-series. Avalon press and Walker are well-known in the library industry, and produce quality titles. Small presses don't pay very high advances ($1000 is typical), nor are their print runs large (2000-10,000 is typical). However, small presses can then sell mass market rights to a larger house, getting you more distribution and more $$. Small presses usually cater to a niche market (e.g., the mystery genre; library market; nonfiction only; etc.). I've not published with small press, but authors tell me they have a homey, intimate atmosphere.

NY House: When people refer to a "NY House" or simply "New York," they mean the big dogs of the publishing industry with big offices in New York City: Random House, Penguin, HarperCollins, HQ/Sil, Simon & Schuster, as well as a few independent houses like Dorchester and Kensington. NY pubs can pay million dollar advances and get your book shelved in every supermarket, bookstore, library, and mass merchandiser in the country and around the world. Note that they can also pay you $1000 and send 20,000 books to a few bookstores only. The NY House is where the big distribution happens, where the big money rolls around, and where authors get famous. My biggest advice about NY: Get an agent. You can sell a book without one, but please have someone by your side after that!

Another thing to remember: While small press and e-press (and even self-publishing) can be a stepping stone to a NY House, please realize that vanity/subsidy press is not. It's a rare, rare, rare, rare occurrence for a vanity author to make it. I'm sure everyone can point to one instance where it's happened (that's what "rare" means). Point to twenty or thirty, and I might start believing.

And one more thing:

It's perfectly fine to want a career in small press or e-press! I know authors who are happy as clams writing for two or three e-presses or sticking with their small press. Writing isn't always about money and glamour. And you can make money at an e-press (Hint: The key is backlist.)

I think I've covered the bases here--if not, or you have questions, let me know!

Writing for Multiple Publishers

Hey all. Sorry for the weeks with no posting--I was writing and revising a novel due July 1, and since turning it in have been trying to find my head.

Alexis asked: "2)How do you juggle multiple publishing houses? Not in regards to getting the books written, but on the relationship side? Do you keep it to one genre or sub-genre per each house? Does one of them ever try to get you exclusively? How does that all work?"

I am amazed at the number of authors who write for two, even three, houses nowadays. I know authors who write for Dorchester and HQ/Sil; Dorchester and Kensington; Berkley and HQ/Sil; Berkley and St. Martin's; Berkley and Dorchester. And that's just off the top of my head early in the morning.

It has become increasingly common not to be "exclusive" to one publisher. This is especially true in the midlist, where advances and print runs can be low, and authors want to gain the most exposure they possibly can.

Things to keep in mind:

1. Be very careful about the language in your contract. Publishers have an "option" clause, which means that you must submit your next work to them before offering it to others. Now, this option clause can be worded to your liking. The standard wording is "Next book-length work" (meaning anything you write, even a cookbook). Your agent can get that changed to: "Next book-length historical romance by Alexis ..."

For example, I submitted my historical mystery series to Berkley even though I'd been picked up for romances at Dorchester, because Dorchester didn't publish cozy historical mysteries (at that time), and Berkley had the Prime Crime line which specialized in it. Likewise, I submitted my erotic romance to Berkley, because again, they had the line, and Dorchester didn't. Both times I took a different name (Ashley Gardner and Allyson James), both because I was asked to, and because to me, it signals to readers better what kind of book they're going to get. Also, I published with an e-publisher, doing category length erotic romance, when no one in NY was doing it. (Note: e-publishers too have started putting option clauses in their contracts, which weren't there when I started.)

I know of an author who has her option clauses written very carefully so she can publish different subgenres at different houses of her choice, under one name. In fact, most of the authors I know who write for more than one house don't take psuedonyms. When I started, I was rather naive, and I didn't know I could have my option clause so tightly worded that I could take my name elsewhere.

So, if you do wish to publish at more than one house, make sure you read your option clause carefully, and tell your agent exactly how you want it worded. Change option clauses to your advantage, as much as you can. (But be flexible--give and take is better than rigid demands).

2. At some point, a publisher will want you exclusively. A couple of authors I know of who published at two different houses are now exclusive to one. If the publisher wants that, in my opinion, they need to pay for it. It is not to your advantage to write for one house exclusively if you're still getting $5K to $10K advances. You will be tied to their scheduling, and if your books come out too far apart, your income will not be good, and in this reading climate, readers will forget about you!

Now, when a publisher "wants" you, they might be signalling a willingness to publish you well (i.e., good advances, scheduling your books fairly rapidly, good marketing push for your books). They might be investing in growing you. (Or not! You have to be careful. :-) )

It can be an advantage to be exclusive at one house (the "investment" in you). But until you're a guaranteed lead with guaranteed big print runs, in my opinion, it's a good idea to try different arenas.

3. That all said--if you don't think you can juggle two publishers, DON'T! You will find yourself on a crazy schedule, tying to finish two books at once, trying not to make what you write for each house too similar so you don't violate your option clauses, being bombarded with revisions on two books at once. It can be a nightmare.

I hope that answers your questions. In my humble opinion, writing for multiple houses is a great advantage for the midlist and beginning author. You have more exposure to more audiences, and can build a strong base, so that when you are asked to be exclusive (and paid well to be), then your audience is established, and you can move up well. That's the theory, anyway! :-)

Character creation

I received some good questions on my request for blog topis, and I'll answer each one. I'll start with Laura's on characterization:

Laura wrote: "That leads me to wonder how you go about creating a character. Do you sit down before writing a book and write profiles of each character and how he or she would react to certain situations?"

I'm sure every author has a different technique of character development--what works for some authors doesn't work for others. For instance, some writers use character charts or index cards to keep track of who their characters are and what they look like.

That doesn't work for me, because I lose charts or forget to look at them. That's just my special style. :-)

My answer to the question is two-part:

1. Do I write profiles of each character: Yes, but...

2. Do I write out how he or she would react to certain situations? No.

Character Profiles

I do write down notes about my characters, but I don't have anything so organized as a notebook or charts or whatnot.

I find it helps enormously for me to write autobiographies for certain characters either before I start or shortly thereafter (I start the book when when I emotionally *need* to start it--the idea grips me so hard I have to write it before I explode. And, um, deadlines creeping up on me force the issue as well.)

I write biographies or autobiographies of my main characters: in romance, the hero and heroine. In mystery, the main protagonist.

I like to start with when they were born and who their parents were. What kind of people were their parents? Rich? Poor? Prominent? Nobodies? Were they happy people or miserable? Does he have good memories of his childhood or only terrible ones?

What were some events in the hero's childhood that marked him? In the case of Madness of Lord Ian, of course, it was his father's abuse that bordered on violence, and being shut away for being "different," plus what he suffered as experimental "treatments" in the asylum. But also he had memories of his oldest brother, Hart, who always looked after him, and no matter what their later differences, the oldest and youngest brothers of the Mackenzie family share a special bond.

As another example, I had a pirate character in an earlier book with several life-shaping moments--when he watched his father be killed, and when he decided to take charge of bringing up his illegitimate half-sister.

Those events will make the character become who he is, as will his social and economic background.

I'm brainstorming a novella right now in which I'm not sure who the heroine "is." The hero was mentioned in another book (his brother was the hero), so I know a lot about him already, but the heroine is an enigma. I haven't even decided whether she will be a "normal" or supernatural character.

I'm mostly visualizing these characters in my head, which is how I always start the characterization process, not writing anything down until I've replayed things in my brain several times. But soon I will start writing out the heroine's biography, and the decisions I make about her will shape the plot. Her decisions (and the hero's) will drive the story.

2. Do I write out how he or she would react to certain situations? No.

I say no to this question because I'm not a big pre-plotter/planner. I wait for the situations to come up in the book, then I channel my character and basically record what he/she says and does, plus of course the reactions of the other characters to them.

This is where the character bio comes in handy, because it's already made me get deep inside the character so I can channel him or her.

That doesn't always mean I get it right the first time! I always read through my drafts two or three times, and I'll think: "That character would never say that," or "She would never use that expression." I make changes accordingly.

The draft gets out the bare bones of my story and characterization, then the second draft fleshes it out and establishes the characters more firmly.

That's not to say that I don't think writing out how a character will react to situations is a bad idea. It might be a great way to get to know them. A similar method is a "character interview" I've seen some writers use, to ask their characters all kinds of pointed and difficult to answer questions. Not only are their answers telling, but also whether or not the character is comfortable answering.

Whatever method you choose, I believe it's very important to get deep into your characters' heads, know where he/she came from and what happened to them earlier in life. Think about them, daydream them, live with them, dream about them, let them blog, grill them... Whatever it takes. :-)

All right....any requests?

I need to post here again, and I am drawing a blank on topics. I'm contemplating writing about what "being published" means (more than having a book in print), professional jealousy (how to keep it from destroying you, and even how to make it help you), and... I either have too many things to say or nothing at all.

Any requests? Any questions? Feel free to post in the comments and I'll see if I can come up with a post about it!!

It's All About Control

Oh my goodness gracious. I haven't posted a while here, because my life suddenly went berserk.

Not only did I have a book release this May, but it generated all kinds of amazing buzz, plus I've been trying to market it a bit (writing blogs right and left).

Plus there have been icky distribution problems (Madness of Lord Ian Mackenzie is well stocked at B&N and Wal-mart! Please support them!)

And on top of that.... Page proofs, then copy edits, then more page proofs, plus a ms. or two to finish and submit.

I never knew being an author was this crazed.

I feel like Yoda saying: If you're not afraid now... you will be.

Anyway, it's been an exercise in learning what an author can control, and what she/he can't.

What you can control:

1. Writing your book.

2. Being professional (doing your job; whether that means turning around your copyedits on time, doing market research to find a publisher/agent; showing up to promote your book, etc.)

3. Taking care of yourself.


What you can't control:

1. Distribution (see "icky" above)

2. Print run of your book (despite the happy articles of the romance market going up; still there are problems with orders and returns, and booksellers are ordering fewer books).

3. Where your book is placed and in what stores.

4. Your cover. (Authors have some say in covers; but more and more publishers are refusing to give authors cover approval.)

5. Reviews. Ya sends out the review copies, and ya takes your chances.

6. Word of mouth. Either readers will like it and tell their friends... or they will not (and tell their friends).

7. Distributors going out of business. Anderson News closing their doors in February was a huge blow to the publishing industry.

8. Bookstore returns. Almost all bookstores decided, at the same time, to get rid of excess inventory, which meant massive returns to publishers. What will this do to authors' sell through (percentage of sales to books printed)? I shudder to think.

As you can see, there is a lot in the publishing industry authors can't control at all. I am not going to pretend it doesn't suck. It truly does suck!

What can we do?

1. It comes back one more time, to writing the best book you can. Cream does rise even with all the many, many problems that have suddenly cropped up in the industry.

2. Get a team of people on your side to get you through. Writing really doesn't happen alone. We like to think we're individual geniuses, but the truth is, it takes a village to become happily published.

A good team can consist of: a great agent; a supportive critique partner or group; an assistant (I don't have a full-time one; though I do have a part-time long-distance assistant who helps with my website and reminds me to enter contests and so forth). Friends--both authors who get what you're going through, and non-writers, who can pull you out of your mad obsession for a few minutes.

Gather your team and give them chocolate.

Take care of yourself and feed your creativity.

Pay attention to what's going on in the marketplace, and don't walk blindly into publication ("I got published; my career is now perfect.")

Stay sane.

I can't say "you'll be fine," but you might just survive. :-)

What a Writer Really Does to Celebrate a Release

I'm slacking here (I know), but I tell a bit about why, and how I get to celebrate my fabulous release week here:

http://www.thechatelaines.blogspot.com

How many books does a NYT bestseller sell?

I plan to do another post on Monday, but for now, I'll turn you over to Lynn Veihl who reveals the numbers of her NYT bestseller from last July.

http://www.genreality.net/the-reality-of-a-times-bestseller

In the interest of full disclosure, her print and sales numbers look much like mine have for several of my recent books. Which tells me that making the NYT list is not so much about the number of copies sold but at the velocity at which they're sold and reordered.

Amazon: Egg on Face

Read about the whole Amazon kerfluffle here:

http://www.publishersweekly.com/article/CA6651080.html?desc=topstory