Books Boost Revenue for Entrepreneurial Authors, But Not The Way Think

The biggest surprises in the recently released Comprehensive Study of Business Book ROI study?

Josh Bernoff, author of Build a Better Business Book, who helped survey nonfiction authors and wrote the report, offers five:

• 64% of books were profitable. “I would have expected that to be higher, but some people aren’t putting in the effort to promote their books enough to generate revenue,” he says.
• Hybrid-published authors have similar levels of success as traditionally published authors. “Hybrid is clearly a viable method of publishing for serious authors,” Josh notes.
• A high correlation exists between investments like ghostwriters and PR for launches and profitability.
• Most authors expect to sell a lot more books than they do. Traditionally published book authors had a median expected sales of 8,900 copies vs. actual sales of 4,600 copies.
• Book advances from traditional publishers have dropped off a cliff. The median advance among more than 100 traditionally published authors was only $5,500, and 31% got no advance.

My biggest takeaway from the well-analyzed research? Only 4% of the authors say book sales were their primary goal for publishing. The most popular reasons for publishing a book include:

• Get more paid engagements (19%)
• Elevate a topic that needs attention (18%)
• Generate leads (15%)
• Share knowledge (15%)

Fortunately, those goals are more likely to be achieved. Josh says they asked the authors to account for increases in revenue since their book was published. Here are the median new revenues gained:

• Speaking engagements – 34% of authors gained new revenue of $30K (median)
• Consulting – 31% of authors gained new revenue of $50K (median)
• Workshops – 26% of authors gained new revenue of $40K (median)

So what advice does Josh, who has written multiple nonfiction books and worked with over 60 authors, have for content entrepreneurs considering their first book? He shares these three things:

1. Don’t just pitch traditional publishers. While hybrid publishing costs more, it also allows books to come out faster (typically six to nine months vs. 15 to 24 months for traditional publishing.)
2. Be as thoughtful about book promotion as you are about writing. For example, we saw that authors who invested in launch publicity had a median revenue of $104K compared to all authors, who had a median revenue of $18.2K.
3. Don’t expect the biggest profit in self-publishing. Among self-published books, 60% were profitable, but the median profit was only $1,700. The professional services of a hybrid or traditional publisher are much more appropriate for people with bigger aspirations.

Two more things to note. Josh says the variations in results are significant. For example, 7% of authors made more than $1M, but 34% made zero profit or lost money. “The success of a book depends on many factors – the power of the idea, the quality of writing, timing, success of book promotion, and the professionalism of the author,” he notes.

And don’t think when the book is done, you’re ready for the next. It’s something Josh has seen multiple times in his work with authors. “They finish writing a book, feel exhilarated, and immediately say, ‘Hey, I have an idea on the next book and would love to start it now!’

“Big mistake. Get the book out there and promote it. That’s how you make books pay off, and the people you interact with when speaking or consulting will help you figure out what the market needs from you next,” he says.

The Business Book ROI Study is a wealth of helpful and interesting information. It dives into the authors’ audiences, goals, publishing channels, sales, spending, marketing tactics, and revenue in great detail. And it’s free – just share your email address to access the 32-page report.

Amplify Publishing, Gotham Ghostwriters, Smith Publicity, and Thought Leadership Leverage sponsored the study. 

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