OLD POST ALERT! This is an older post and although you might find some useful tips, any technical or publishing information is likely to be out of date. Please click on Start Here on the menu bar above to find links to my most useful articles, videos and podcast. Thanks and happy writing! – Joanna Penn
Three years ago, I gave up a career as an IT business consultant for large corporates, earning a six-figure income, to become a full-time author-entrepreneur.
Over the last few years, I have shared my income split, business model and my lessons learned from year 1, as well as lessons learned from year 2. Here's the latest installment at the end of year 3.
How do I currently make a living as an author-entrepreneur?
I didn't double my income from last year as planned, but my overall income increased by 24% which isn't bad. I'm not doing a full income disclosure like some brave souls, but I did make over double the average income for a man in the UK in the last tax year.
The income split changed as I intended, which is great, as I am moving away from online courses to focus on book-based products, because they are more evergreen and don't need updating.
In the last year, the split has been:
• 40% book royalties
• 25% course sales and consulting
• 20% commission/affiliate sales/sponsorship
• 15% professional speaking
I have followed the plan to write more books and create more products in the world. I currently have five books in the ARKANE action-adventure thriller series, and two in the London Psychic series. The books are available in ebook, print and audio formats.
I also have books in German, Spanish and Italian. I've sold books in 58 countries (as itemized by the Kobo Writing Life reporting map right.) I also have four non-fiction books, available in print and ebook formats, and coming soon in audio.
There are new revenue streams from audiobooks since ACX launched, and direct payments from Apple and Nook, as well as Kobo and Amazon, plus podcast sponsorship. I'm pleased about that as I have a lot of issues being dependent on one income source – put that down to being laid off during the GFC!
One of my books was in a box-set that hit the New York Times and USA Today bestseller lists in March, and I have my first traditional deal with Ullstein-Midnight, a German imprint, for Desecration-Verletzung.
I continue to sell some multimedia courses, although those will mostly be phased out in the next year. The blog, podcast and my email list earn me affiliate commission as well as sponsorship and occasional advertising revenue. I do some occasional, exclusive consulting. I also continue to speak professionally both in the UK and abroad. I was on a panel at Thrillerfest in New York in July, and am speaking in Stockholm and Frankfurt in the next few weeks.
Here are my lessons learned from the last year.
Lesson 1: The industry changes but the fundamentals of what we do doesn't change
There have been a number of changes in the publishing eco-system in the last year which have created a ‘disturbance in the force,' and distracted me and others. But these ups and downs will continue over our lifetimes.
Change is certain but we can't let every little spat distract us from our task.
We write books. We get them into the world using one of many available publishing options. We connect with readers. We receive payment and use that money to live well and experience everything that feeds back into our books.
The tools, the companies, the technology that allows us to do these things may well change, but our job remains the same. Remaining agile is one key to managing the change, so being indie continues to suit me well.
Lesson 2: “If it's just about the cashflow, go back to your day job”
So said my husband when I reviewed the income projections for my books and lamented missing my targets. He's right. I earned three times as much money as a business consultant, but I was so unhappy, I could never have sustained it. I was at the point of crying most days because I hated it so much.
I love this author life. I couldn't imagine living any other way now, but although cash-flow is important, it's not my driving force. Freedom is.
Freedom to create, to live how I want to, to travel, to help people, to control my time, to build my own brand and my own assets.
I've had a number of opportunities this year that I've turned down, even though taking them would have earned me more money.
Strategy is about what we don't do, as well as what we do.
With a finite amount of time and energy, we have to focus on the true reasons why we live this life. My recent novel, Delirium, may have a smaller audience than a happy-ending-romance but it's what I am drawn to write. Like Stephen King says about writing horror, “What makes you think I have a choice?”
Lesson 3: It takes time to let go of self-censorship and find your true voice
Desecration was the first book where I finally let my true self out, and Delirium continues in that vein with a very personal author's note at the end. I love my ARKANE series but these are the first books where I feel my true voice shines through.
Both books are supernatural suspense/ crime thrillers that tackle underlying themes I've been wrestling with all my life. Many authors struggle with the fear of judgement and I have let that hold me back for a long time.
I really am this happy, jolly, smiley girl you see at TheCreativePenn.com … but my shadow side is now revealed in J.F.Penn. I'm finally at peace with letting this other side out … but it's taken many years to get here. I'm ready to let it out now!
Lesson 4: It all comes back to creativity
I'm in a transition phase right now, which means a lot of turmoil and journaling! I have spent the last few years learning how this industry works, learning my craft as a fiction writer, learning about marketing and speaking … and the result of that has been this blog, the podcast and my non-fiction books.
As stated above, my last few fiction books have felt like a shift, as I have found my voice. Plus, I'm 40 next year, and unsurprisingly, I do find myself taking stock. What I am discovering is that this quote from T.S.Eliot is true:
“We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time.”
I find myself drawn back to creativity, back to exploring what's in my mind, trying to understand how I can delve deeper into my creativity and learn more 
about releasing it from the critic that tries to destroy every idea.
Way back in 2007, I made a little card with an affirmation on: “I am creative. I am an author.”
I couldn't even say it out loud back then, but I read it in my head until I could say it. And then I read it out loud every day until I believed it. And then I took action to make it happen. In some ways, I have achieved that affirmation – in other ways, I am only just beginning to understand what it means.
I look forward to exploring this and sharing the journey with you!
My plans for Author-Entrepreneur Year 4
My plans and focus for the next year include:
- Big focus on primarily fiction. I have a LOT of ideas, I just need to get them on the page. I have a number of stand-alones as well as (working titles) Inquisition and Kali in the ARKANE series, and a new one in the London Psychic series. I also want to write a psychology for writers book. I will continue to focus on exploiting the rights per book, as well as recording more of my own audio.
- Taking more risks and learning how to keep my critic quiet. My critic is a ‘good girl,' she wants universal adoration. She doesn't like annoying people or going too far to the edge. It's time for her to know her place. I just have to work out how to shut her down in the first draft. I'm definitely intending to do some Improv training, learning how to say ‘yes' to any impulse.
- Speak internationally on creative entrepreneurship, focusing on fewer, more highly paid events, that support my goals around travel and personal development.
- Continue to serve the audience of TheCreativePenn.com through blogging and podcasting as well as social media.
- Increase my income by 30% and change my income split to 50% book royalties, 10% course sales and consulting, 20% commission/affiliate sales/sponsorship, 20% professional speaking.
I look forward to sharing the next year with you!
Please do leave your comments below and join the conversation – I value each and every one!
Top image: Flickr Creative Commons champagne by Andrea Parrish, handwriting by Dave King,
Congratulations, Joanna! I’ve been following your blog since before Pentecost came out so it’s wonderful to see your ‘check in’ posts every year. May your success continue 🙂
Thanks Icy, and I do enjoy hearing from people I’ve known online for many years – I know you have also done so much with your creativity (which has a dark edge like mine!)
Well done! I have learned so much from your experience. You are a gift to all of us writers who are navigating our way through this author life. And I absolutely agree – if less money means freedom from being in a job you don’t like, I’ll take freedom any day. Keep up the amazing work. Thanks for being such a huge inspiration!
Agreed Simone – life is way too short to be miserable every day 🙂
I only recently discovered your work, but I so appreciate these types of year end reviews. Great work, and thank you!
Thanks Mallie – I do this one in September and then another end of year review in December – the time speeds by so fast, it’s good to reflect 🙂
I’m so proud of you, Joanna! It’s crazy to see how far you’ve come in just three years of being a full-time author. Clearly your hard work has paid off.
I’m so happy to see your shift toward fiction is working out, and I’m certain you’ll see the trend continue into year 4.
You inspire so many people and show them a different life is possible. Keep up the great work!
Thanks Paris – and it was good to share inspirations at LBF this year 🙂
I am glad I was led into your blog and website from Pinterest. You have some practical tips and a clear way of expressing ideas and meaning, thank you for doing that! I am just starting out with writing my first non-fiction book, and your experiences and tips will be helpful for me to reference. I will also read some of your books. I wish you continued success, they way you like it!
It’s a privilege to be acquainted with you, Joanna. Not only have you accomplished so much in a short time, you’ve inspired many people (including me 🙂
I once listened to a commencement speech titled ‘Chase your passion, not your pension’ and it never left my head. You’re the poster girl for that and it’s paying off for you. Keep believing in yourself and keep shipping the great products.
Thanks Garry 🙂 and thanks for understanding my dark side as well 🙂
Despite chasing my passion, I am still a responsible girl, so I do pay into my pension every month … however, I believe that as a writer, I am more likely to earn more money over time as the assets proliferate 🙂
So happy for you, Joanna! Things are moving along and you learn from every glitch. You offer your readers so much inspiration. The opportunity to do what you do gives all creatives hope. I’ve shifted my own creative thinking this year. It was a little unsettling…the inner critic kept yelling in my ear. But your example shines for me…trying to follow in your footsteps! Congrats on all you’ve accomplished and learned. So grateful you choose to share your process with us.
Thanks for your support Marcia, I always love to hear from you 🙂
Having a little ‘unsettling’ is probably good for us – but try to keep that inner critic under control! x
Wonderful post! I can relate to having a “good girl” inner critic that needs to be silenced. Also, really intrigued by the idea of a psychology for writers book and look forward to learning more.
Great 🙂 I have a feeling that the mindset / psychology book will take another year of my own soul searching … so watch out for it this time next year!
Congratulations, Joanna. It’s easy to forget how far we’ve come when we get fixed on the things we’re aiming for, but you’ve proved you can get the life you want and get to do what you love, even if it takes thinking outside the box, and what’s greater than that? A shining example and encouragement to all of us to keep going.
Thanks Ol, and I do keep moving my own goalposts, but blogging is GREAT for reflecting on the journey as we travel it 🙂
Okay, this isn’t my usual style, but I just have to say how much I admire you. I came across your blog through a list of recommended blogs for writers/authors to follow, and immediately loved it. I listen to the podcast regularly, and find I am reading more and more of your posts on the blog as well.
I am right at the beginning of my author journey, and would love to be where you are in 10 years time. (Guess my age from that comment 🙂 ) Well done on everything you have achieved, and keep pushing forward. Keep inspiring all of us that are still at the start. 🙂
Thanks so much Phoenix, and congrats for knowing what you want at 30 (I presume!) I was still milling around attempting so many other options 🙂 I’m glad you’re enjoying the podcast and the site – if I’m still writing here in 10 years, things will definitely have moved on 🙂
What a wonderful, transparent post. As an author who benefits from your wisdom throuh Twitter and your blog, I say thanks and congratulations!
Awesome, Joanna. Your example is inspiring. Keep on keepin’ on. The road to success is paved with a million little failures – attempts and failures.
I’m absolutely thrilled to hear about your successes, Joanna. I love your blog and your podcasts. They’re such a source of information and inspiration on so many levels and in so many different areas. Your positive approach and your generosity are invaluable. I’m sure – and I hope – that Year 4 will bring you much further on your journey. Well done!
Congratulations!
There’s a big difference in tone between your Arkane series and the London Psychic series, it’s great to see you stepping out and really showing your voice. I’ve been trying to do the same thing myself these past few months, shrugging off the persona I feel I’m supposed to present and being honest and who and what I am. It’s scary and not everyone approves, but such is life 🙂
I’d be interested to read your psychology for writers book given my own fascination with psychology.
Best of luck with all future endeavours.
Hi Shen,
“not everyone approves” – exactly!!!! It’s amazing how stepping outside the norm makes you a target for judgmental comments from others. Hang in there 🙂
Congratulations Joanna! Well done for all your hard work and achievements in just three years. You inspire me, but you already know that 🙂
Here’s wishing you more success in the years to come.
Your insight into writing, publishing, and making a career in the trade has been so valuable! I am earnestly indebted and appreciative that you have shared your knowledge.
It has been these trinkets of knowledge that has inspired me to speak on my book and writing as well as stretch my writing to different areas.
I feel as if we are strolling through a forest. Though I can’t see you, as you started long before me, I find all the notes of wisdom and encouragement you’ve left for me to find.
Best wishes for a continued successful career!
~Richard
Great metaphor, Richard! There are people I am following in the forest as well, and we’re all leaving signs for each other – it’s marvelous!
Joanna, Once again I am grateful for your open and forthright post. You give voice to the feelings that many writers experience but are hesitant to share and I know that isn’t easy! With the volatile changes in the publishing world, writers need more than ever to rethink their definition of success. I am so glad that you are pursuing your own true voice in your fiction. I am confident that you will continue to succeed.
You also have Kobo sales in Uruguay! Not on your map.
Probably because I use a US IP address and my US postal address when buying, due to better pricing and promotions on Kobo US than Kobo International. But a few of your ebooks were purchased (actual USD, not free promos) from down here!
Inspiring post. I gotta get back to writing my two incomplete books. Oh, there’s the unread-as-yet latest Penn – no, gotta read!
I loved the detailed analysis of the numbers (I’m an ex-database administrator, i.e. “nerdy-pedant”) – you can’t hided from that kind of spotlight. The Lessons are well stated, and so true – particularly Lesson 2. In fact, I haven’t yet been able to take a sabbatical from the day job, but I still made the time to complete 2 novels. Why? Because, as you so clearly set out, if you’re a writer you always make the time!
The only Lesson I would humbly put forward is “Never give up. Not now, not ever.” And when you’ve really just had enough of it all and are ready to throw in the towel, take a deep breath, look hard in the mirror, and don’t give up then either! Keep writing, keep hammering on those doors!
As always, Joanna, thank you for all that you do, and for all that you’ve taught me, as a fellow author-entrepreneur. I wish you continued success!