I hope you will forgive me for postponing this post while I talked about other things. 🙂 I didn’t drop it entirely, and here it is!
From my writing conference notes, there were way too many classes to include all of them in one post, so I separated out the business ones. If you’re not interested in the business side of being an author, I recommend you skip this one. For the rest of you, here you go, in rough notes. Disclaimer: NOT LEGAL ADVICE. If you need legal advice, get a lawyer! Or maybe an accountant, if more applicable.
How to self-publish
Read contracts carefully.
Don’t spend more than you expect to make.
First-free doesn’t work. (If you query this, you’ll see a huge controversy.)
Cover images might be searchable in the future.
Covers will be more important.
To profit on Amazon ads, must have 1000 keywords.
Check best-selling in category
Keep cover promises
Make sure element that defines your book the best is visible on thumbnail
Use a release for copyright / contract
Pay artists to have legal standing to their work
If you can’t judge book by cover, time is wasted
Covers need to intrigue readers
Purpose of book cover is to attract matching reader
Amazon is changing rules: must be able to read title in thumbnail
Covers are identifiers.
Pay for a professional
Need to have contrast, boldness to draw eyes
Put tropes on cover to convey story
What gives zing factor?
Update every 5-10 years to stay current
To see what people are buying, go to www.yasiv.com (Visual map, compare to comp titles)
Does your cover convey tone, etc of story?
Sometimes cover doesn’t convey scene, but something else.
Cover should change for foreign countries
Pay attention to composition
Give 6 examples of covers you like to designer
How to avoid rookie mistakes
Get an editor
Learn from your mistakes
Go 3 days without responding to flames
Don’t mortgage your house
Remember your family
Backup your work
Ask dumb questions
You have never “arrived”
Marketing can’t copy word of mouth
Keep improving craft
You are your agent’s boss
Fight for your work /dream /etc
Take ownership of your business
Don’t say yes to the first opportunity unless it is right for you
Take advice with a grain of salt
Accept that you are a creative being and will be better when you are creating
Taxes for Authors
Writers will be audited by 2 types of auditors: those who want to be writers, and those who want to catch you red-handed.
Several gray areas: income from books is passive income, so some auditors want you to account for it as rent/royalties up to $65K (no SE tax).
Hire an accountant.
Be aware of state taxes & regulations.
Book advance is same as rent/royalties.
You will receive 1099s for each short story published and from each distributor.
PayPal is not rent/royalty. It’s regular royalty on schedule C, including teaching/presenting.
Offset income with expenses.
Tax deductions: Conference fees, mileage, meals at certain percentages, hotel, computer & software (if you replace regularly, takes 3 years to deduct), office space outside home or part of home used exclusively for work (percentage), phone (get separate phone/plan), internet, research (books, movies, travel, Netflix).
You are a professional writer if you can show you’re actively writing & working toward pro.
Use one credit card for business only. Keep receipts (or make own).
Itemize expenses & income.
Make sure to overpay taxes by few hundred dollars to prevent audit of prior years.
If auditor says you can only have loss for 3 years, ask them to show you the law (no federal law).
Take trip to do research but be careful it’s applicable.
Get an LLC to protect copyrights.
LLC can hire spouse in business (give 1099).
If you get income from other countries, you might have to pay tax there.
Quarterly taxes: don’t worry about <$10K? (Disagreement–some say worry about anything.) Always estimate your best.
Write it first, fix it later.
Treat it like a job, not a hobby
Trad pub: 99.9% rejection rate
Indie: you vs 100K authors. How do you get audience?
Use your business background in your business.
Be prolific: the more you do, the better you get; the better you get, the more people will like you.
Always create more products.
You make money off your backlist. Longer is better. New books remind people to look up other books & keep you on the lists. Need 10 books for backlist to be productive.
Agents take 15% of what you make. Don’t need one.
Always review contracts with contract attorney, $2-300.
Contracts: read & understand! A lot of publishers are predators. What rights are they getting, for how long, non-compete clauses & right of first refusal.
Sublets: to publish in other languages (do not sell UNLESS they specialize in other language)
Dramatic rights: movies, tv, etc. (do not sell without good reason)
Audio: don’t sell rights unless publisher does it well (research on Audible)
How long will they hold rights? Maker sure rights will revert. If publisher goes out of business, you lose the right to publish.
Ebooks: rights might never revert.
Taxes: pay! Talk to attorney re: S-corp or LLC. In Utah, most writers are S-corps.
Deduct reasonable business item.
Pay quarterly taxes once you start making good amounts of money. Work with CPA.
Work out schedule for new books. Schedule your time appropriately for you.
When you lose money by going to work instead of writing, it’s time to quit your day job.
Branding: create one for yourself so fans will follow you. Be yourself.
Marketing: What’s your product for? Success breeds success.
Advances: come from future royalties, paid in thirds.
1 book out is okay, 5 is good, 10+ is really good.
Should family member be employee? Probably not.
Quarterly reporting: min $600 income
Backlist sales: series vs stand alone: make sure 1st book has solid happy ending
Series is where the money is. Give 1st book satisfying conclusion.
Epic fantasy series: people won’t start until it’s finished. Do in timely manner for next book.
Business taxes change all the time.
Indie cover sells the book. Spend $300-500.
Go to bookstores to promote yourself. Be positive! Promote other writers books, too
Ancillary products: related to business & brand: games, comic books, kickstarters
If you ever get the chance to attend a writing conference yourself, I recommend you do. 🙂
M. C. Lee
© 2020 M. C. Lee LLC. All rights reserved.