Most people think that authors lead glamorous lives, making millions from best-selling books. But what is the reality? How much money does an author make? Is it far from that ideal goal, or do they truly earn millions in royalties?

It’s easy to envision a writer living comfortably from their best-selling book. Many new authors hope to create captivating stories that attract readers and generate income. As the saying goes, “If you do what you love, you will never work a day in your life!”

However, the question of “How much do authors make?” is like asking, “How long is a string?” Numerous factors influence an author’s earnings, including their publishing route, book genre, and whether they write full-time or part-time.

But is it possible to turn your passion for writing into a viable career? Just as not every author becomes a bestseller, not every artist is starving. You don’t need to be Stephen King to make a substantial income from your writing! Your dream of becoming a successful author is totally achievable.

However, we understand that words of encouragement are never enough! So, let’s consider this topic more rationally.

Key Takeaways

1. Median Income: The median yearly salary for authors depends upon various factors, and many of them require additional funding from other sources.
2. Top Earners Are Outliers: The majority of writers make much less money than well-known authors like Stephen King and J.K. Rowling.
3. Book Advances: Due to low sales, many first-time authors never make more than their advance.
4. Self-publication vs. Traditional Publishing: Traditional authors receive lesser royalties but benefit from publisher support, whereas self-published authors receive larger royalties but are responsible for all publication expenses.
5. Genre Matters: Revenue varies greatly by genre. Authors of romance typically make more money than those of literary literature, which has fewer sales.
6. Diversifying Revenue: Rather than depending exclusively on book sales, successful authors often diversify their revenue streams through audiobooks, overseas rights, and adaptations.

An Overview of the Publishing Industry

Let’s talk about the publishing industry first, which exceptionally made a boom, especially during COVID-19. The world was familiarized with a lot of new and highly talented authors, each with a different writing style and perspective, and some even left the industry. Let’s discuss numbers from the very beginning.

In 2020, there were around 44,240 authors in the United States, an 8% rise since 2011. It’s interesting to note that this represents the lowest number of writers since 2015, with 1,620 fewer writers than in 2019. Surprising, right?

Given that the COVID-19 pandemic caused widespread layoffs by news media outlets, which impacted both journalists and freelance writers, it is likely safe to say that it has played a role in the decline in the number of authors.

The U.S. Bureau of Labor Statistics reports that the typical salary for authors and writers was $32.27 per hour, or $67,120 annually, last year.

The average novelist and writer made just $401 less than the average household in that same year when the median household income was $67,521.

But before we get too excited, let’s keep in mind that there is no such thing as a meaningful average because writer wages follow a long tail distribution. Why?

This is because the average is so distorted by extreme outliers that it loses all relevance.

For instance, James Patterson, the “average” writer in a sample of three writers, will be a billionaire despite being detached from reality if two of them are entirely broke and one of them is wealthy.

To put it another way, it’s probably safe to assume that writers’ salaries follow the Pareto distribution, sometimes known as the 80/20 rule, in which 20% of writers earn 80% of the total revenue. On the other hand, the remaining 20% is shared by the remaining 80% of writers. 

Despite this, the occupation of writers is predicted to rise by 5% in the United States between 2023 and 2033, which is roughly as fast as the average for all occupations.

Thus, if you are thinking of being a part of this industry, now might be the best time to do it. The career outlook for writer’s projects is that there will be 15,100 new job openings in the United States.

How Much Do Writers Get Paid?

The overview of the writing industry may have amazed you. And now you have made up your mind to become an author. But how will you get paid? Simply put, how much do you get for publishing a book?

The answer is that it is different, just like everything else in publishing. It is a common misconception among readers that all writers are well off, but this is not the case.

Stephen King is an exception, even though it’s likely that he has more money than he needs. The majority of writers don’t even profit from their writing.

Since there is a lot of misunderstanding regarding the salary of professional book writers, we completely realize that you need to be aware of these figures, so let’s clarify how the author gets paid in the publishing sector before going into the actual figures.

How Writers Earn Money?

A royalty prepayment is typically negotiated by the author or his representative when the writer signs a publication contract. The money is prepaid rather than a flat purchase price if the press release or article claims that the book was “sold” for that sum.

Three installments of prepaid payments are due at the time of contract signing, upon manuscript acceptance by the publisher, and book publishing.

The author earns a share of each book sold during the publication process. In actuality, it is “royalty.” However, they are effectively making the money they have already earned because they received a royalty prepayment.

However, the publishers will reimburse the author after royalties exceed the initial payment.

Prepaying for book publication can take any amount of time. The authors start receiving more royalties after the book indicates how many royalties have been advanced.

Extra royalties turn into “revenue.” Unless the contract is broken or expires, the author is not required to reimburse the publisher for any excess money if the book publisher does not return the prepayment.

Specifically, it is a broad overview of the procedure, with as many variants as necessary.

For instance, many authors who work for well-known intellectual property companies receive lump sum payments rather than royalties, and some authors may not receive any money upfront.

It implies that while some traditional writers may never earn more than this first sum, others can continue to earn money from their books until the day they pass away. Additionally, some authors lose money when their marketing, advertising, and other expenses exceed their revenue.

How Much Are Royalty Checks?

Royalties are the author’s portion of book sales. For getting your act together and finishing that fantastic book of yours, you will receive these commissions.

The following royalties are often expected to be paid to authors:

The first 5,000 copies of the hardback edition will receive 10% of the retail price; the following 5,000 copies will receive 12.5%, and the remaining copies will receive 15%.

Paperback: 10% once the first 150,000 copies are sold, then 8% of the retail price.

Sales to warehouse clubs (such as Costco or Sam’s Club), book clubs, and special orders are exceptions to the rule; in these cases, the royalty percentages can be half of the amounts mentioned above.

So, are they always in your favor? Well, it depends directly upon the sales your book has made. Did you know that F. Scott Fitzgerald received an unfortunate $13.13 in royalties for his books in the final year of his life?

The selling price of a book can generate 40% to 60% royalties for self-published authors, compared to 10% to 12% for professionally published authors.

First-time writers who agree to traditional publishing will be paid in advance. Typically, this is $10,000; first-time authors may find this to be less. However, unless a book valued at $10,000 is sold at the license pricing, traditional publishing does not begin licensing. Before receiving a licensing check from the publisher, you must receive that $10,000 back.

Additionally, a lot of publishers work with authors who claim that selling X books improves customer loyalty and has an impact. However, established, seasoned, and conventionally published writers can bargain for greater licensing fees.

As a result, self-published authors rarely receive 15%. Instead, they can receive an average license fee of 60% from the initial sale, including each subsequent book sale.

How Much Money Does An Author Make For Each Book?

If an author has several novels in progress, is skilled at marketing them, and has a devoted and active fan base, they can hope to make book authoring their only source of income.

Book sales, royalties, and printing expenses are only a few of the many variables that affect an author’s annual income. So it’s quite clear that if two writers write in different ways, they cannot earn the same amount of money. Moreover, the path you choose for your publication, i.e., traditional or self-published, also determines the revenue.

The average author payments for both routes are as follows:

Revenue	Traditional Published Author Earnings	Self-Published Author Earnings
Book retail price	$14.99	$14.99
Initial Royalty Rate	10%	60%
Income per book	$1.49	$8.99
Books Sold	6000	6000
Earnings in total	$8,940	$53,940

 

As you can see, self-published authors and traditionally published authors differ by more than $45,000 for the same quantity of sold copies.

Because of the success of authors like Stephen King and George R. R. Martin, most people believe that conventionally published writers are more than vanity presses. However, that isn’t accurate.

Writer’s Share vs. Publisher’s Share: How the Earnings Are Split?

When authors first enter the publishing industry, one of their main concerns is how much of the sales of their books they will keep and how much the publisher will keep. Depending on the type of publication model they select, the profit sharing can vary.

Traditional Publishing: Who Gets What?

The majority of the financial risks, including those related to marketing, distribution, printing, and editing, are taken by the publisher in the traditional publishing model. They thereby keep a large amount of the book’s profits. The earnings are typically split as follows:

Advance

Authors receive an advance when they sign with a traditional publisher. This is a one-time payment made before the book is even released. The advance amount can vary substantially. While experienced authors can obtain payments in the six or seven figures, new authors may receive advances ranging from $1,000 to $10,000. Thus, it is important to remember that authors will not get royalties until they have “earned out” their advance, which means that before they begin to get further payments, the advance must be covered by book sales.

Royalties

Authors begin receiving royalties on every sale after the book earns back the advance. In traditional publishing, royalties for paperbacks are normally between 7% and 10% of the book’s retail price, whereas royalties for hardcovers often vary between 10% and 15%. An author might earn between $2.50 and $3.75 for each hardback book sold, for instance, if it sells for $25.

EBook Royalties

Although royalties for eBooks are typically greater, publishers still keep a significant portion of the sales. Usually, the publisher keeps 70% to 75% of the eBook’s retail price, while authors receive the remaining 25%. For example, if an eBook sells for $10, the publisher may keep $7 to $7.50, and the author may receive $2.50 to $3.

Self-Publishing: Keeping the Larger Share?

As authors themselves handle the financial risks themselves, self-published authors are entitled to a far higher portion of the revenues. They pay for marketing, cover design, and editing, but they also keep a larger portion of their profits.

Royalties on Amazon KDP

There are two royalty levels available on Amazon Kindle Direct Publishing (KDP), the most widely used self-publishing platform. 70% of the sale price of eBooks priced between $2.99 and $9.99 can be earned by authors. The royalty rate decreases to 35% for works that are priced outside of that range. Accordingly, under the 70% royalty model, an author can earn $3.50 for each $5 eBook sold, with Amazon keeping the remaining $1.50.

Print-on-Demand

Self-published authors can also use print-on-demand services, such as IngramSpark or Amazon’s KDP, for print books. The production costs and selling price of the book determine the author’s income. Usually, after subtracting printing expenses, authors receive between 40 and 60 percent of the list price.

A Quick Comparison

Publishing Route	Writer’s Share	Publisher’s Share
Traditional Publishing	0% to 15% on print books, 25% to 30% on eBooks	The rest (70% to 90%)
Self-Publishing	35% to 70% (depending on platform and pricing)	No publisher involved

 

In traditional publishing, the publisher assumes the financial risk and pays for production, while authors usually receive a lesser portion of each book’s sales. However, authors who self-publish can keep a larger portion of the earnings, but they are responsible for their distribution, editing, and marketing.

Examples of Writers Making a Respectable Salary

To boost your motivation and to give a scenario for how much money an author makes and how far these earnings can go, here are some examples.

• Roxane Gay’s fourth book and memoir, “Hunger,” brought in $100,000.
• Scott Westerfeld’s fifteenth YA sci-fi novel, “Extras,” brought in $175k.
• Viet Thanh Nguyen received $250k for his third book, The Refugees, which is a collection of short stories.
• For author Gillian Flynn, the third thriller in her career, “Gone Girl,” brought about $400k.
• For her first book, “You Know You Want This,” a short story featuring the Cat Person, Kristen Roupenian received $1,200k.

Top Selling Genres

Some genres are more well-liked than others, like:

• Romance and Erotica: The $1.5 billion industry of romance and erotica has numerous sub-disciplines, including historical romance and paranormal romance.
• Mystery and Crime: The $730 million mystery and crime genre includes several recent best-selling crime novels.
• Science Fiction and Fantasy: The industry of science fiction and fantasy is worth $590 million.
• Horror and Thriller: Authors like Stephen King and Dean Koontz control the $80 million thriller and horror market.

Factors That Influence the Author’s Salary

We don’t want you to make dream castles in your mind, imagining overnight success or fortune. For example, the more books you sell, the higher your earnings, right? Unfortunately, it isn’t that simple. Here are some of the factors that impact an author’s income. Be sure to be aware of them at all costs.

Elements Impacting Your Profits

Numerous things will influence your earnings, including: 

• The amount of money made from each sale
• Advances that are paid in advance (only for conventional publishers)
• Volume of marketing 
• Reach of the audience 
• Total number of books released 
• Regularity of book sales

Hidden Benefits Beyond Earnings

Although you might feel earning money from writing can be challenging. However, there are benefits to being an author that goes beyond financial gain. 

• Creative Fulfillment 

It is one of the most significant advantages. Authors can communicate their views, ideas, and stories to the world through writing. The fulfillment that comes from finishing a book or interacting with readers is invaluable to many. Undoubtedly, the opportunity to portray your dream and attain that sense of achievement cannot be purchased with money.

• Recognition 

This is an additional benefit. Being well-known for one’s writing might lead to new opportunities, even if one is not a wealthy author. In addition to increasing their profile, authors are often asked to speak at conferences, workshops, and book clubs. This might open up paid options for them, such as teaching or speaking engagements.

How to Earn More as an Author?

There are a few things you can do to improve your earning potential if you want to pursue writing as a full-time career. 

• Identify your specialty: Authors who identify a specific subgenre and devote themselves fully to it tend to be the most successful. 
• Write for the market: Find out what today’s readers are interested in, then write for them. 
• Discipline: You must treat writing like a genuine profession if you want to pursue it as a career. Set aside a certain amount of time each day to write. 
• Compose more novels: Before you start making a lot of money, you will need to publish multiple books.

Beyond the Book

It takes more than just earning money from your actual job and published books, as the majority of authors struggle to make minimum wage. Your reputation as an author is important and a major deciding factor. 

What is the real approach to becoming a successful author and not simply relying on your books? 

But it’s about establishing connections through your work! Make use of it as a networking area. Increase reader interaction and build a larger platform than your work could accomplish on its own. Essentially, it’s about making the most of everything related to you as a writer, not simply selling books. 

Many authors accomplish this by making their works into movies and television shows, giving out free e-books to readers in exchange for their email addresses (so they may receive author newsletters), and using supplementary content to attract readers’ interest in their other offers.

Conclusion

So, coming back to the question, “How much do writers get paid?” Countless factors influence the earnings of an author.

However, with so many variables and influences to take into account, beginning a career as an author may initially seem overwhelming. What do we advise? Your efforts will eventually pay off if you concentrate on writing the greatest and the most readable book you can.

Nonetheless, it is possible to earn a living, if not usually a fortune, from writing for people who are enthusiastic about what they do and are prepared to deal with the challenges of the publishing industry. However, before doing that, it is important to understand industry realities, expand sources of income, and maintain reader engagement.

FAQs

• How Much Do You Get for Publishing A Book?

Depending on the success of the book and whether you decide to self-publish or go the standard route, the profits from publishing a book might differ greatly.

• What Elements Affect an Author’s Income?

An author’s income is influenced by many things, such as genre, book sales, marketing initiatives, and other sources of income.

• How Much Money Do Book Writers Make?

There is a wide range of possible revenue for book writers, depending on several things, such as the demand for their genre and the publication technique they use.

• How Do Publishing Advances Operate?

Publishers give advances upfront, and authors don’t get royalties until their book sales exceed the advance amount.

• Which Sources Of Income Are Typical For Authors?

Authors can make money from speaking engagements, audiobooks, international rights sales, and film or TV adaptations in addition to book sales.