Comments on: If the advance doesn’t earn out, is the book unprofitable?

By: Bill Giovannetti

Bill Giovannetti — Thu, 26 Mar 2009 22:54:08 +0000

Thanks for this post. As a first time author, I’m obsessed with “earning out” and yet wasn’t sure what it meant. I appreciate you taking the time to explain it. I’m wondering… I’ve almost sold 1,000 copies myself (back of the room) and yet many people tell me that they have a hard time finding the book in stores. In fact, a local bookseller said the distributor took forever to get him books, and only could get him 15 copies (for a book signing). I wonder where the breakdown is. I’m pretty clueless about the distribution methods. Anyhow, just thinking out loud, and appreciate your blog.

Bill Giovannetti
How to Keep Your Inner Mess from Trashing Your Outer World

By: PublishingGuide

PublishingGuide — Sat, 03 Nov 2007 20:37:28 +0000

Thank you for the compliment.

The fraction of books that make money will vary widely with type of publisher. If you’re doing professional books, with a high price tag, well-defined and easily reached audience, and authors who accept very low royalties because the book is so critical for their careers, you make money almost every time.

If you’re doing trade books, you’re going to have a lower ratio (maybe 3/4 break even on direct costs, 1 in 4 do pretty well, and 1 in 15 or 20 break out ), but when you have a winner, it wins BIG.

Publishers are like bookies, insurance companies or venture capitalists: they need people who really know the risks and rewards and can consistently pick the right choices.

By: Steve Vergenz

Steve Vergenz — Sat, 03 Nov 2007 15:17:55 +0000

I just discovered your blog after reading mediabistro, and I love it so far. In particular your article on books earning out is interesting.

Just one question, in your opinion (a gut question) what percentage of books DO make money for the publisher? Just looking for your best guess.

Thanks, and keep up the good work!

Steve