“It often takes longer than you think to turn an idea into a money-making business.” Elaine Pofeldt, The Million Dollar, One-Person Business
Many non-fiction authors have creative or income goals that go beyond the book, so it’s important to cover the various business models up front so you can incorporate them into your process as you write.
This article is for you if you want to make money around your book. It is less relevant for those writing more personal stories like memoir or academic books, or where the author is not concerned about making money at all.
This is an excerpt from How to Write Non-Fiction: Turn Your Knowledge into Words by Joanna Penn. Available in ebook, print, audiobook and workbook formats.
Here are the most common business models for non-fiction authors.
1. Make money from book sales and licensing only
You can make a full-time income from just book sales, but you need to have a high production model with multiple books aimed at a hungry audience so you can sell lots of them. Because, let's face it, a book is a low-priced product and you have to sell in high volumes to make decent money.
A great example of this model is Joseph Alexander, who has a series of books on playing the guitar. It's a great niche, combining his passion and skill with an audience who want to learn to play. He has books on types of music, like rock, jazz or blues; then books aimed at beginners, e.g. First Chord Progressions moving through to advanced topics like Sightreading Mastery. In this way, he can dominate the niche and readers who find one of his books are likely to go on and buy more.
Another example is S.J.Scott, who writes multiple books in the self-help habits niche. Both these writers are independent and make a full-time living from book sales.
This model includes expanding formats into ebooks, print, workbooks, audiobooks, and bundling, as well as translation, licensing international territories, and exploiting subsidiary rights like film/TV/media/gaming. It also means selling direct from your website, as well as through the distributors.
2. Book as lead-generation for physical products, courses, consulting, services, webinars, software or affiliate products
In this business model, the book leads people into the author's ecosystem and results in sales of higher priced products and services. These may be the author’s own, or link to affiliate products where the author receives a commission on the sale. This is the most common strategy for non-fiction authors in the self-help/business/marketing niches and why some consider the book more as a marketing tool than as income.
One mega example would be Tony Robbins, who started out with books, audio programs and live events and now runs a multi-million dollar self-help empire. I recommend the Netflix documentary I Am Not Your Guru if you want to see behind the scenes of his live events. His books lead into products, experiences and services.
Other examples include Russell Brunson, who used DotCom Secrets to sell his software. Sophia Amoruso used her book, GirlBoss, as PR for her online store, Nasty Gal, and Netflix did a series based on her story. Mark McGuinness, poet and creative coach, writes books on productivity and resilience as a way into his free email course, podcast and premium coaching for creative entrepreneurs.
A single book can be the basis for a business that lasts a long time. Look at Julia Cameron, who wrote The Artist’s Way over 25 years ago. She spun that off into variations on the original book, plus she has video courses, events, and workbooks.
For services, look at Bryan Cohen’s book, How to Write a Sizzling Synopsis, which is a super-useful book for authors who want to write their own back-of-the-book blurbs, but also acts as a way into Best Page Forward, Bryan’s synopsis writing business.
I use this model, too. My free ebook, Successful Self-Publishing, has affiliate links to products and services that I promote, and this book also leads into a multi-media course on how to write non-fiction.
Even if you give away the farm in your book, people will want to hire you to do it for them or buy your other books, products or services.
3. Book as the basis of a speaking career
Most speakers have one or more books, and they often base their speaking topics around the book. It acts as credibility that they know their topic and also as a business card to get more speaking work.
In terms of income, a speaker might include copies of their book as part of their speaking fee, or sell them at the back of the room as a lower priced product with courses and consulting and other events as an up-sell.
Robert McKee performs his non-fiction book Story at multi-day events aimed at writers and filmmakers. He also has Storynomics, a class and now a book aimed at corporates who want to integrate story into marketing.
Amy Schmittauer, author of Vlog Like a Boss, speaks on video marketing. Chris Ducker, author of Rise of the Youpreneur, speaks on how to build a business around a personal brand.
There are also introvert speakers who have used books as part of their talks. Examples include Malcolm Gladwell, Brené Brown, and Susan Cain who wrote the brilliant Quiet: The Power of Introverts in a World That Can't Stop Talking.
Whatever your personality type, you can use your book/s as part of a speaking career. If you do identify as an introvert and want to be a speaker, then check out my book, Public Speaking for Authors, Creatives and Other Introverts.
4. Bulk sales and special sales
“These cash mines are all around you, but until now you have probably overlooked them, because unlike bookstores, they do not have canyons of bookshelves. Instead, these non-trade sales outlets are disguised as corporations, associations, home shopping networks, book clubs, schools, catalogs, gift shops, retail stores, government agencies, military bases, supermarkets, drug stores, and so many more.” Brian Jud, How to Make Real Money Selling Books (Without Worrying About Returns)
This is one of those business models that you don't hear about much, because books sold in bulk are not measured by any of the bestseller lists. So a book might sell millions of copies and never make the bestseller lists, but the author will be doing very well indeed!
The aim of this model is to write a book that appeals to a certain market, for example, a book on looking after your dog might sell to pet stores, or a pet food company. Then develop relationships with your target market, pitching your book to bulk buy or use in a special promotion. They might even do a branded print run with the name of their company on it.
Business book Who Moved My Cheese, by Spencer Johnson and Kenneth Blanchard was bought in bulk by companies all over the US to give to employees and still remains a classic.
Author and executive coach, Honorée Corder, does this with her book, The Successful Single Mom, which she licenses to attorneys to give to their clients when going through a divorce.
“One of the ways that I sell my books is I let companies and firms do … custom printing where they take the back cover and make it a brochure about their business. It's really a marketing tool for law firms and certified divorce, financial advisors, those types of people. They'll buy the book in quantity and put their information on the back.”
Combine all the models to create multiple streams of income
These are the most common business models for author-entrepreneurs and you can, of course, mix and match between them. I use aspects of the first three in my business, which I cover in more detail in How to Make a Living with your Writing.
As an overview, my non-fiction income streams include:
- Book sales income from ebook, print, audiobook, workbook formats, from multiple stores, and from 89 countries (mostly in English).
- Sales of my own multi-media courses
- Affiliate income from referring products and services I use and recommend
- Sponsorship and advertising based on my podcast and YouTube channel, which started out as a way to market my books but have now turned into income streams
- Professional speaking income
Design your ecosystem around the book
If you consider your business model up front, you can design an eco-system around the book in advance to maximize your revenue and opportunities.
Of course, you do need to think of the book with a business mindset. There are some who use the ‘book as baby’ metaphor, but I much prefer the ‘book as employee.’ You’re going to have an initial period of growing, nurturing and development, but once that book is out in the world, then it should earn its keep, and designing an ecosystem around it will help do that for the long term.
A ‘funnel’ is a way to direct your readers through a journey with you, preferably through your books, services and other products, so that they are a happy customer and you make a decent return. The book acts as a way into the funnel, an entry point into your ecosystem.
An example might be a non-fiction book, which acts as your authority for a speaking platform, a small income stream and lead-generation for other products. The book offers readers a specific audio/video/ebook download if they sign up for an email list on your website.
Within the useful series of emails, there are video tutorials which lead into a premium multi-media course, and/or a monthly membership site for recurring revenue. There are also emails within the series that offer other products and services that the author uses personally and is an affiliate for, as well as premium one-on-one consulting. The book also leads to professional speaking engagements at premium rates. Hence, multiple income streams from one product.
This is an excerpt from How to Write Non-Fiction: Turn Your Knowledge into Words by Joanna Penn. Available in ebook, print, audiobook and workbook formats.
Need more help?
If you'd like some more help on your author journey, check out:
- My Books for Authors, including How to Write Non-Fiction
- My Courses for Authors, including How to Write Non-Fiction, and How to Write a Novel
- The Creative Penn Podcast, interviews, inspiration and information on writing, publishing, book marketing and creative entrepreneurship every Monday
- My videos at YouTube.com/thecreativepenn
