More Straight Talk about Royalties

My regular readers know I'm a fan of talking money, and sharing what I make for different types of work. So today I'm sharing more straight talk (and actual figures) about royalties. 

There's a lot of confusion from would-be authors about how advances and royalties work. In short, an advance is an advance against royalties--meaning that the publisher offers you money to write the book against your share of what the publisher expects the book to make. However, the majority of books fail to "earn out," or make enough that the author receives royalties. That's why I suggest that authors assume that the advance is all that they'll see for a book--and one of the major reasons I started doing more ghostwriting. 

So here's the scoop on my latest royalty statement for Writer for Hire, and case in point--I'm still not making royalties. Between January and June 30, 2014, Writer's Digest sold the following (the company breaks different types of sales into different categories, which I've noted below: 

Export sales       4

Dom L sales   411

Dom G sales      1

Dom M sales  172

E-books             84

POD                  29

Total Sales      701 (minus returns of 57) = 644 sales during this period, 4642 total since its publication. I've produced $4096.22 in royalties, which offset against my $5,000 advance, means I'm still $903.78 in the hole. That's the bad news. 

The good news? My sales were higher during this royalty period than the previous one, from July 1-December 31, 2013. (And the latter royalty period included back-to-school sales and holiday sales.) 

Compare: 

Export sales       69 

Dom L sales   370

Dom G sales      8

Dom M sales  113

E-books             65

POD                  14

Total Sales       639 (minus returns of 70) = 569 sales during this period. 

What does this mean? You might think "nothing." I disagree. Both the print and electronic sales are up, even though the book has been in print for more than two years, and I believe that's a good sign. It may be due to the fact that I'm constantly marketing all of my books on freelancing. It may be due to the fact that it's a great book, and that readers are recommending it to fellow writers. (I hope so.) But it may also be due to the fact that it's been around long enough to get noticed, and picked up at a bookstore, or ordered because it's been mentioned by another writer, or in one of my bylines, or at a writer's class, conference, or event. Or a combination of all of these factors. 

All that matters to me is that it's continuing to sell--and that means a year from now (sooner than that if sales really take off), I should be seeing my first royalty check for a book I wrote three years ago, and that was published two years ago. Good things come to those who wait. 

**Readers, do you have questions about royalties, publishing, book contracts, or POD? Comment here with them and I'll be happy to answer! 

More Straight Talk about Royalties: 3,429 Books = ?

I've been a full-time freelancer for 16+ years, a book author for more than a decade, and a ghostwriter/coauthor for 8+ years. While I still work with traditional publishers, I've also published books through POD companies; published stand-alone ebooks (a stand-alone is an ebook that is only published electronically, compared to an electronic version of a print book; and launched my own publishing company, Improvise Press, earlier this year.

So I've accumulated a fair amount of knowledge about the book publishing industry, at least from an author's perspective. I'm what publishers call "mid-list." A mid-list author isn't a bestseller (at least not yet) but she usually produces a profit for her publisher. A mid-list author might sell 10,000 copies of a nonfiction book--not a bad number when you consider that traditional publishers produced more than 360,000 titles in 2011 alone (and that's not counting POD and stand-alone electronic books!) 

What new and would-be authors don't realize, however, is how little most authors actually make for their books. (This is the primary reason I started ghostwriting--so that I could cut back on the time I spent promoting books and boost my hourly rate.) I've seen average advances drop, particularly over the last five years. A book that might have garnered me a $15,000 advance a few years ago? Well, I'm probably going to get offered maybe $5,000 for it.

Which sucks.

But there is one advantage to a small advance, at least in theory--you can earn out faster. But not as fast as you'd probably like.

So let's look at some real numbers. I just received my latest royalty statement from Writer's Digest for Writer for Hire: 101 Secrets to Freelance Success. (I've shared before what I make per-book.) The good news? The book is still selling, and selling steadily. The bad news? I have yet to earn out.

From January 1 until June 30, 2013, I sold a total of 802 copies of Writer for Hire, including 72 electronic versions. (This surprises me as I usually sell a higher percentage of ebooks than this.) That means that since the book was first published, I've sold a total of 3,489 books. Those 3,489 books have produced a total of $3,046.26. Do the math and you'll see I'm averaging less than $1/book--which is one reason I launched Improvise Press earlier this year.) Do more math and you'll see that I have to produce another $1,953.74 in royalties before I collect that elusive check--but I'll get there, I guarantee it. 

When Publishers Go Bad: Taking Control as an Author

One of the reasons I was drawn to writing full-time was that it allowed me to decide when I would work, what types of work I would do, and what markets I would pursue. When I was a lawyer, though, partners routinely dumped clients they didn't want to deal with and cases of questionable value on me and my fellow associates. We could never say "no." And it sucked.

As a freelancer, though, I decide which clients I work for (assuming they hire me). No one can force me to take an assignment I don't want. That's part of freelancing I appreciate; I like being able to control who I agree to work for. I've posted before about what you can control, and what you can't as a self-employed writer, but the fact is that some things are completely outside your control.

Like getting paid on time. In 16+ years of full-time freelancing, I've had several dozen clients pay me late--and in a few instances, not at all, despite me following up, using pay-or-die letters. That frustrates me, but in almost every case, I've managed to sell the piece somewhere else. I figure I have to make the best of a bad situation.

Which brings us to today's post. I have a publisher that has refused to pay me my long-overdue royalties for many months. I've repeatedly requested that the publisher honor our contract and given it  multiple opportunities to do so. In short, I've waited. And you know what? The publisher has continued to breach the contract. I still don't have my money, and I'm done with waiting.

So, what did I do? The only thing I can do--namely, rescind the contract, demand all royalties due to me along with a complete accounting--and demand that the publisher immediately stop selling my book as the breach has rendered our contract null and void.

I'll probably have to hire a lawyer to get the money that's owed to me (stay tuned) but in the meantime, I'm taking control of what I can. I just released the book on Kindle. Ready, Aim, Specialize! Create your own Writing Specialty and Make More Money, Second Edition, is a well-reviewed book that is a comprehensive guide who both new freelancers and and those who have some experience but want to take their careers to the next level. It includes more than 20 sample queries, hundreds of online resources, and advice from more than 50 established freelancers. And for a limited time, it will be priced at just $4.99, a discount of 50 percent! Pick it up, if you haven't done so already.

And readers, a question. Have you ever been screwed by a publisher? How did you handle it?

More Honest Talk about Royalties--and the Truth Hurts

I found out earlier this week that my book from last year, Writer for Hire: 101 Secrets to Freelance Success, won ASJA's 2013 Outstanding Book Award in the service/self-help category. What made it especially gratifying is that I've been a judge for the awards before, and the competition is fierce! So I have an extra reason (besides my Irish ancestors) to celebrate St. Patrick's Day this weekend. 

Coincidentally, I just received my latest royalty statement from Writer for Hire. And as a freelancer and author who believes in full disclosure, I'm sharing it here.

However, I have to say the news is pretty disappointing. During the first royalty period, I sold a total of 1,975 copies, including 92 e-books. I made about $0.83/book for the print edition and about $2.37/book for the Kindle edition, for a total of $1,776.43 in royalties. Close to 2,000 copies in the first few months isn't bad for a book like Writer for Hire, and I've been actively promoting the title since then. I expected to sell at least that many copies in the last six months of 2012. 

Well, that's not what happened. Between July 1 and December 31, I sold a total of 652 copies, including 105 e-books. That's not even a third of what I sold in the first royalty period, and it brings my total number of copies sold 2,627 for a book that was released in April, 2012. So far I've produced $2,601.79 in royalties, which still isn't enough to offset my advance--meaning I haven't earned out yet, so I'm not seeing royalty checks yet. 

I wish I had better news to share. I've been promoting the book steadily, but the fact is that no amount of promotion as an author can guarantee that your books will sell, or sell well. I'll continue to market Writer for Hire (and my latest two books, Dollars and Deadlines: Make Money Writing Articles for Print and Online Markets, and Six-Figure Freelancing: The Writer's Guide to Making More Money, Second Edition), because that's what authors do. But sometimes sales figures are downright depressing. 

**Coming next week, an excerpt from Dollars and Deadlines: Make Money Writing Articles for Print and Online Markets, and another giveaway. And if you're a fan of Six-Figure Freelancing, stay tuned--the print version will be published later this month! 

Giveaway Winner--And A Look at My Latest Royalty Statement

First, congrats to Cindy, the winner of my latest giveaway. She wins a signed copy of Writer For Hire, which I'll be mailing to her this week. Thanks to all who entered!

If you're a regular reader of my blog, you know I'm big on talking money. I've posted before about going rates for freelance work; real POD sales figures; and even shared my royalty statements. And I conduct an annual freelance income survey. I believe that information is power for both freelancers and book authors. 

I recently received my royalty statement for the first six months of the year for Writer for Hire: 101 Secrets to Freelance Success. (Typically traditional publishers send royalty statements twice a year, from two to six months after the end of the royalty reporting period.) The royalty statement tells you how many books you've sold during that time period and how much you've made in royalties, If you've made more than your advance (what's called "earning out"), you receive a check along with your statement.

I wasn't sure what to expect with sales for Writer for Hire. I knew that with Six-Figure Freelancing, I sold about 4,600 copies during the first royalty period--not bad at all. Because I had such an advance of $15,000, though, I have yet to earn out on Six-Figure. Maybe someday. But I did a lot of promotion to launch Writer for Hire, and continue to market it. That's part of my work as an author. 

So, how'd I do? My sales figures weren't as high as I would have liked, but they're not terrible, either. In the first six months of the year, I sold a total of 1,975 copies of Writer for Hire, including 92 e-books. I make about $0.83/print book and $2.37/e-book, so I've made $1776.43 in royalties. However, that's not enough to offset my advance for the book. If sales stay steady--or hopefully pick up--I estimate it will take another year or so to actually see a royalty check. 

Keep in mind that a "midlist" author may sell between 10,000 to 20,000 copies of a book over its lifetime, so nearly 2,000 sales isn't a bad start. What matters is what happens during the next few royalty statements. So stay tuned!  

Ebooks versus Print: The Ratio is Changing

Six months ago, I shared the details of my royalty statement I received in February, 2011, for Six-Figure Freelancing. My point was to demonstrate how long it can take to earn out, or make royalties, on a book, and that you should assume that when you write a book for a traditional publisher, the advance is all you're likely to see. (That's one of the primary reasons I got into ghostwriting.)

I just received my latest royalty statement, for the period from October 1 through March 31, 2011. I still have a ways to go before I earn out; so far, I've sold 11,844 copies of the book and produced $11,583.19 of royalties. Because I received a $15,000 advance, though, the book must produce another $3,416.81 in royalties before I get a check along with my royalty statement. That's my "magic number."

A closer look at my statement revealed that as sales of this book slow (not surprising as it was published in 2005), the ratio from ebook to print is changing dramatically. Here are the numbers from my last three royalty statements:

October 2009-March 2010 Ebook sales: 40 Print sales: 479 Total: 519

April 2010-September 2010 Ebook sales: 82 Print sales: 338 Total: 420

October 2010-March 2011 Ebook sales: 101 Print sales: 223 Total 324

It's clear to see that my ratio of ebooks to print is rapidly increasing. Through March 2010, ebooks represented 7.7 percent of total sales; through September 2010, 19.5 percent; and through March, 2011, 45.3 percent. I expect ebooks to make up well more than half of my print sales for my next royalty statement. And because I make considerably more--$3.88/book for the e-version versus $1.12/book for its print version, that's not bad news.

What's driving the trend? Fewer bookstores, more Kindles, greater acceptance of ebooks among readers, the convenience of e-books, you name it. The take-away for authors, though, is that while print isn't dead (nor dying, in my opinion), the sales of your ebooks are likely to grow faster than your print versions. Consider how you price and promote them to take full advantage of this trend.

The State of *One* Freelancer's Income, July, 2011

First, thank you so much to all of you who have taken my quick, confidential 2010/2011 freelance income survey; I'll post the results in a week or two. The more responses we get, the more accurate (and helpful!), the results will be, so please take a couple of minutes to take it if you haven't already--and ask fellow freelancers to do the same.

So, let's talk some more about money. I've posted before about the importance of having a daily nut, and that my income goal for 2011 is $60,000. That translates into a daily nut of $250.

Well, as of June 30, we're halfway through the year. So far, I'm on target to hit $60,000 (barely)--I've made $30,497. But where has that money come from? In addition to some syndication fees (I syndicate work of other writers for one client) and some travel reimbursements, etc, my income breaks down like this:

• $15,500 from ghostwriting projects including a book and book proposal (both of which were started in 2010);

• $4,275 from original articles for magazines;

• $3,800 from speaking gigs;

• $2,465 from reprints;
  

• $825 from royalties on traditionally-published print books like Small Changes, Big Results, and Ready, Aim, Specialize;
  

• $545 from royalties on POD and e-books
  

• $915 from "hand-sales," or copies of books I've sold at speaking gigs

I've said before that I make most of my income from ghostwriting books, but by analyzing where my money is coming from, I can see that speaking, original articles, and reprints are contributing significantly to my bottom line. As for royalties and hand-sales, they're just gravy--although I expect to see my POD and e-book royalties increase during the last six months of the year, especially since my "chick lit" novels, Did you Get the Vibe?, and White Bikini Panties, are selling well.

My point? We're halfway through the year. Where do you stand, money-wise? How are doing as far as your annual income goal? And what kinds of work are you finding the most lucrative? I'd love it if you'd comment here and let me and other blog readers know. :)

5 Questions to Ask Before you Turn Down a Small Advance

I'm back! We have successfully moved 13 years' worth of stuff (including two home offices) into our new home. Now we are unpacking, which means soon I'll be back into a good work groove.

In the meantime, I wanted to mention my latest piece in the July, 2011 ishttp://www.blogger.com/img/blank.gifsue of The Writer on small advances. One of the reasons I got into ghostwriting and coauthoring is because I found my platform didn't matter as much as my client's did when it came to first, selling the book, and second, the size of the advance we'd garner.

But when you're writing your own book (and I write books on my own, in addition to coauthoring and ghosting), you may face the question that's the heart of the piece--how low is too low? In other words, is a small advance worth it?

This is a timely question as advances are shrinking across the board--unless you have an Oprah-sized platform or a million followers on Twitter. Before you turn down a small advance, I suggest you ask the following five questions:

• How much time will the book take? A relatively straightforward service book or a collection of previously published essays will likely take less time than a book that requires months of research and dozens of interviews, for example.
  
• Will the book further your career, and if so, how? Will it help establish you as an expert in a field you write about? Will it help you transition from freelancer to book author? Will it continue to build on your platform?
  
• How small is small? Some authors would turn up their nose at an advance of anything less than mid-five-figures; others will do books for a lot less than that. In other words, what you consider insulting may be more than acceptable to another writer. Only you can determine whether a "small" advance is worth it to you.
  
• How many books do you expect to sell? No, you don't have a crystal ball, but if you can reasonably expect to sell tens of thousands of books, a small advance may be offset by royalties down the road. A book aimed at a tiny niche audience is unlikely to produce as many royalties--and remember that four out of five don't earn out, or pay any royalties.
  
• How much do you want to do the book? I've taken on tiny advances (as in $2,500) for projects I really wanted to pursue--and have gone the POD route when I couldn't sell my book to a traditional publisher.
  

For a more in-depth look at this issue, check out the July issue of The Writer. Up next, straight talk about money, and a new survey of what freelancers are making today.

More Straight Talk on Book Sales: The Power of Author Central

So, I've been talking about book sales and sharing real numbers. (Check out my earlier posts on what my latest royalty statement looked like--and what that means--and on how much I've made in the first six months on my new POD book on ghostwriting.

Here's the thing. In the past, you had to wait at least six months to receive your royalty statement to have some idea of how your traditionally-published books were selling. You didn't know how you were faring week to week.

That's no longer true with Amazon.com's Author Central. When you sign up for it (it's free), you get an inside look to how your books are doing, at least in brick-and-mortar stores. Every Thursday, the latest numbers are posted; you can see how many books sold in various markets throughout the U.S.

That's how I know that I'm selling about 60 books each week in bookstores. (While these numbers aren't huge, several of my books have earned out, which means these sales represent royalties--good news for me.) However, I was recently reminded that I do have the power to impact those numbers for the better.

Two weeks ago, I spoke at the Annual Writer's Institute in Madison, Wisconsin. A week later, I saw a huge spike in book sales. The week before, I'd sold 60 copies, including 48 of Small Changes, Big Results, 9 copies of Six-Figure Freelancing, and 3 of Goodbye Byline. That week, I sold 174 copies, including 34 of Small Changes, 58 copies of Six-Figure Freelancing, 36 copies of Goodbye Byline--and 43 copies of my book for new magazine freelancers, Ready, Aim, Specialize. That's a dramatic difference.

Of course not every event I do will produce similar sales, but these sales numbers were a reminder that:
1. One of the best ways to sell more books is to connect face-to-face with your readers.
2. Keeping tabs on your sales will help reveal what works for you as an author, and what doesn't.

Authors, what do you think? Are you tracking your traditionally-published books on Author Central--and why or why not?

Six Months of POD Sales: An In-Depth Look

Last year I made the leap from a traditionally published girl to POD. I had strong reasons for doing so, but had no idea of what to expect in terms of actual sales. (For point of comparison, I sold about 4,600 copies of Six-Figure Freelancing the first six months after it was published--not bad at all. However, sales after that first six-month period slackened, and I have yet to earn out--though I think I will in the next three years or so.)

After considering a number of possible POD options, I chose CreateSpace for several reasons, including the overall cost, the services it provides, and its ability to turn my book around on an expedited schedule. I spent about $650 upfront (not including the cost of a proofreader, who I hired on my own) for layout, cover and interior design, and limited distribution of Goodbye Byline, Hello Big Bucks: The Writer's Guide to Making Money Ghostwriting and Coauthoring Books. Obviously I want to recoup my investment, make a profit on the book, and eventually attract more ghostwriting clients as well.

And how do I do that? By selling the book to readers. But I admit that the first six months fell a bit short of my expectations. In the first six months since the book was published in October, 2010, I've sold the following:

October, 2010 24 print copies/5 Kindle editions (including one at 35%)
November, 2010 12 print copies/3 Kindle editions
December, 2010 12 print copies/3 Kindle editions
January, 2011 1 print copy/5 Kindle editions
February, 2011 15 print copies (including 3 expanded distribution)/4 Kindle editions
March, 2011 19 print copies (including 4 expanded edition)/6 Kindle editions

That makes 83 print copies (including those sold through expanded distribution) and 26 Kindle editions, for a total of 109 copies in the first six months. Not quite the numbers I was hoping for, but considering that most POD books average this number of total sales, I'm considering it just the beginning.

Now that we have sales numbers, let's talk money. Goodbye Byline is priced at $14.95, the same price as Six-Figure Freelancing, my traditionally-published book with Random House. But what I actually make per book sale depends on what edition was sold, and another factor--how and where it was distributed. Here are the hard numbers:

For each print copy sold through amazon.com or Createspace.com, I make a "royalty" (though it's not a true royalty) of $5.32.

For each print copy sold through what CreateSpace calls "expanded distribution" (e.g., your local brick-and-mortar bookstore), I make a royalty of $2.33.

For each Kindle edition sold in the US, UK, or Canada, I make 70% of the cover price, which is $9.99--that's a royalty of $6.95.

And for a Kindle edition sold outside of those three countries, I made 35% of the Kindle price of $9.99, or $3.49.

(Oh, and if I choose to purchase print copies of the book directly from CreateSpace for my own "hand sales," they cost me $3.65/each. )

So, in the first six months, I've made $408.67 in print book sales through CreateSpace, and 178.33 in Kindle sales, for a total of $587. Yet I've actually made more than that thanks to the book--and next post I'll tell you why.

Readers, what do you think? Is seeing specific numbers for a POD publisher helpful to you? If so, let me know or share this post with other authors, both budding and experienced.

Advances, Royalties, and a Closer Look at My Latest Royalty Statement

I’ve posted before about why I got into ghostwriting, and how eliminating the need to market and promote a book after it’s published increases my hourly rate. That being said, I have authored—and continue to author—my own books, both for traditional and POD publishers. So I’m always interested in issues like the size of advances, royalty percentages, and the like.

Today, average advances are shrinking, in part due to the economy (publishing’s a business like any other) and to the ghe glut of “celebrity” books hitting the shelves. When Snooki and The Situation (both of Jersey Shore “fame”) get book deals, that’s bad news for midlist authors like me. The more money publishers shell out for these kinds of titles, the less they have to spend on non-celebrity authors like myself.

Forget the idea of getting rich on royalties. That typically doesn’t happen as 4 out of 5 books don’t "earn out," or make back their advance, which is technically an advance against royalties. Until your book earns out, you won't receive another penny from your publisher--regardless of how hard you work to sell it to potential readers.

To understand how this works, let's take Six-Figure Freelancing as an example. When it sold in 2003, it garnered a $15,000 advance. (Alas, a book on six-figure freelancing doesn’t assure a six-figure advance.) I have an “escalation” clause, which means that my royalty works out to be $.89/book for the first 10,000 sold, $1.12/book for every book thereafter. (I make considerably more, $3.88/book, for its e-version.)

Every six months I receive a royalty statement from Random House that tells me how many copies I sold in a specific six-month period, and how quickly (or slowly) I’m approaching that magic “earning out” figure. Six-Figure Freelancing sold about 4,600 copies in 2005, the first year it was published, and about 1,200 copies annually since then.

Let's take a look at my most recent royalty statement for Six-Figure, which covers the six-month period ending September 30,2010. During that time, I sold 82 e-books (a total of $318.49), and 338 trade paperbacks (for a total of $372.29). Total copies sold during this period? 420. This is the lowest amount of sales I've ever had in a six-month period, but the highest number of e-book sales. (For comparison, during the previous six months, I had sold 40 e-books and 478 trade paperbacks, for a total of 519 copies.)

More importantly, so far, my cumulative sales equal 142 e-books and 11,378 trade paperbacks, a total of 11,520 copies. That's not bad at all. My total royalties are $10,939.83, which includes $273.68 of subsidiary rights income from licensing rights to a book club. But the most important figure to my mind is $4,060.17, or the difference between my earned royalties and my advance. Once the book produces that amount of royalties, I'll start earning additional royalties--but until that happens, it's Random House that's making money right now, not me.

This doesn't mean I'll give up on the book; it's an excellent guide for writers, continues to build my platform as a writing expert, and helps me reach more readers. But realistically I won't see any royalty checks for it for another four to five years...which means I'd better keep making money in other ways in the meantime!

Readers, what do you think? Did this post help you understand advances and royalties better?

Coming Soon: Free Freelancing Teleclasses

Recently I wrapped up two big projects--a book for a ghosting client, and a book proposal of my own and am finishing a proposal for another ghosting client this week. As a result, I've had some time to think about this blog and how I can give my readers more tools and techniques to help them make more money as freelancers (in addition to the blog and my books, of course). So, next month I'll launch a series of teleclasses on freelancing topics. If you have a particular subject you'd love to learn more about, drop me a comment below and I'll keep your suggestions in mind.

Also coming soon: a look at my latest royalty statement and what it means, and a giveaway for readers when I hit the 200 followers mark! So stay tuned!

Royalty Rules: Two Facts Every Author Should Know

At a writers' conference years ago, I had the unexpected pleasure of spotting someone reading one of my books. I was sitting across from her, and couldn't help smiling to myself--it was the first time I'd spotted a reader "in the wild." When she looked up and recognized me, she waved the book, calling, "Oh my gosh! I just bought your book!"

I thanked her and signed her copy, but when I tell this story at conferences, I tell the audience that I was tempted to say, "Oh my gosh! That's great--I just bought a Snickers!"

Why? Because despite her paying $14.95 (plus tax) for my book, what I would eventually see in royalties for that one sale was about enough for a Snickers bar (albeit a king-sized one).

As a book author, you can't count on royalties anyway--the majority of traditionally published titles fail to "earn out," or pay royalties. So when you write a book, you should write it for the advance--and look at royalties as something you hope for and aspire to, not something you count on.

That being said, half of my books have earned out and pay royalties. Here's the breakdown on one title--the trade paperback retails for $14.95, with a royalty percentage of 7.5 percent. That translates to $1.12/book. However, the e-book version pays a royalty of 50% of the sale price (about $7.76/book), which translates into $3.88. Even though the e-book is cheaper for the reader, the latter produces a royalty that's more than 300% higher than the print version.

The lesson? As a book author, I promote my books all the time. But I'm going to promote the e-versions of my books over the print ones. It's a better deal for my readers--and a better deal for me.

Why Invisible Authors Can Make More Money

Writers Digest publisher Jane Friedman recently tweeted an eye-catching stat from Book Expo America, or BEA. According to a recent Publishers Weekly article, 7 percent of traditionally-published books generate 87 percent of book sales, and 93 percent of all published books sold less than 1,000 copies.

For a midlist author like me, that’s pretty scary. But here’s the thing—despite sales projections, marketing plans, big-name endorsements, a kick-butt social media presence, thousands of Facebook fans and Twitter followers, and oh yeah, a compelling book, you simply don’t know how many copies of a book you’ll sell. That’s why as an author, you should assume the advance (the money you’re paid upfront to write the book) is the only money you’re going to see for the book.

The vast majority of books (more than 80 percent) fail to “earn out,” or pay royalties. But you still want your book to sell, right? You want royalties. You want big sales. Let's admit it, you want a bestseller. So you spend months both before and after it’s published securing blurbs, getting reviews, writing articles, blogging, speaking, printing up postcards, visiting bookstores, you name it…all to help sell your book. And it may pay off—or it may not.

Because there's an essential conundrum every book author faces:

1. To sell your book, you must commit substantial time to marketing it.

2. The time you spend marketing will not make you money (unless you eventually earn out and receive royalties), forcing you to either work more to make up the difference in lost time and income or take a cut in what you're making (which most of us freelancers can't afford to do) … or both.

That's why I started ghostwriting and collaborating on books as opposed to only writing my own. As a ghostwriter or coauthor, when the book is done, I'm done. I’m not “stuck” spending my limited, precious time promoting the book and going broke in the meantime--that's my client or coauthor's responsibility.

And ghostwriting can be lucrative, even while the average advances given by traditional publishers stagnate and fall. Here’s what I've made on some recent ghosting and coauthoring projects:

• $20,000 for a 60,000-word book for a nonprofit organization.

• $15,000 for a 40,000-word book for a book packager (the author already had 14,000 words written).

• $12,000 for a 55,000-word book; while this was a “ghost” project, I actually worked more as a developmental editor as much of the book was already written but needed expanding, editing, and rewriting for voice and flow.

• $25,000 for an 80,000-word manuscript for an expert who had a contract with a major publisher; my client wrote one-third of the manuscript while I wrote the rest of it and edited her section for voice and consistency.

These numbers aren't huge advances, true. But I'm being paid for the writing of the book, not its promotion, and that more than makes it worthwhile.

What about you? Are you ghosting, or considering it? What do you want to know about this niche?

In future posts, I’ll report more on the lucrative field of ghostwriting, how to break in, and how to determine whether it’s right for you. In the meantime, for an insider’s look at ghosting, check out http://ghostwritingrevealed.blogspot.com/, an excellent blog hosted by two smart, successful ghostwriters.