The Truth About Author Incomes

The more I visit with literacy gatekeepers, readers, and new children’s book writers, the more I hear the assumption that authors are wealthy.  In reality, after spending years honing their craft, often accumulating student loans for advanced degrees along the way, authors rarely make a living from the sale of their books—creations that take months to years before a publishing contract. Writing is both an art and a profession that requires deep expertise, financial sacrifice, a touch of magic, and a leap of faith. We don’t like to talk about the money side of authorship. It’s more fun to talk about the magic of creation and craft. But our silence perpetuates misconceptions, so let’s pull back the curtain, shall we?

The Financial Reality of Trade Picture Book Incomes (note that I’m skipping nuances like subrights)

The average picture book advance is $1,000-$8,000 for authors (pre-agent-commission and pre-tax), varying greatly by publishing experience and sales records, and by the size of the publisher. Extreme outliers earn from zero advance to a six-digit (extremely rare) advance. Picture book illustrators can earn a higher advance than the author but generally earn the same royalty percentages. Rather than a lump sum, most advances for picture books are divided into halves or thirds and paid at specified stages of the two-to-four-year editing and publishing process (depending on the publishing contract). The final portion of an advance often arrives as the book lands on store shelves. That’s a long time to wait for a small chunk of money.

Once a book is published and on shelves, the author won’t see a penny of royalties until her advance “earns out.” Those future sales tied to the advance payment now must come to fruition. Put another way, no royalties are paid until enough copies of the book are sold that the author’s contracted royalty earnings exceed the amount already paid as advance. The higher the advance, the longer it takes for a book to earn out. It can take years for an author to see royalties, assuming the book doesn’t go out of print first. If it does go out of print, the book is dead and the author’s potential income stream from it dies with it.

A royalty is a negotiated percentage of sales that is paid to the author twice per year after the advance earns out. Yep. Twice. Per. Year! Novelists may earn up to 10% royalty, but picture book authors earn an average 3%-6% on either the net or retail sale price of each book (depending on the publisher contract). For an $18 hardcover picture book, the author earns between ~30¢-~$1 per copy sold. If the book is sold at a discount, the math changes. And, remember, that’s gross royalties.

Just for grins, let’s pretend that Debut Picture Book Author A’s advance has earned out. Now, after her agent’s well-deserved 15% commission, the author is due a 50¢ royalty per sold copy. If my math is correct, she would need to sell 120,000 copies PER YEAR to eek out a $60,000 gross annual income. And then she must pay taxes on that money each year, bringing the annual fantasy income to ~$40k—45k net income (depending on tax bracket). And, friends, we haven’t even considered the author’s operating expenses, promotional expenses, research expenses, and living expenses (you know, rent, food, health insurance, chocolate). I think it’s a fair assumption that very few picture books or novels sell 120,000 copies in their lifetime. Realistically, an average book’s sales are a tiny fraction of that number. The goal, then, is to produce many commercially successful books that each one earns an advance and royalties. Even then, it’s almost impossible to make a living from book sales.

An aside: Publishers usually gift 10-20 copies of the book to the author who often doles them out to family members, meaningful sources, and as promotional giveaways. Beyond those author copies, she must buy her own books, which, depending on the publisher’s contract, may or may not count toward her overall book sales.

I have frequently heard that the average children’s book author earns about $10,000 per year, which aligns with what author Hannah Holt shares here. Legendary author Philip Pullman, along with other UK authors, rang the alarm bell for The Guardian in 2018 about the damage that underpaying authors has on the “diversity and quality of literary culture in the UK.” The same damage pervades American interests, too. Among the concerns about low author incomes is overall sustainability and the resulting loss of diverse voices. But I digress. Even full-time authors have no guarantee that their current work-in-progress will be acquired unless it was contracted in advance (rare with picture books). There’s no way to predict future sales but we do know that a well-crafted and meaningful book takes an exceptional amount of time, energy, and skill.

Here’s the skinny: publishers pay for a product, not for an author’s time. Our bills arrive while we are crafting new books or promoting existing books…on our own dime. Since it is unlikely that our book sales will support us, we must find creative alternatives.

 

Authors Earn their Living in Other Ways

Unless they are living off of inheritance, most authors either hold day jobs, they have the financial support of a spouse or partner, or they cobble together freelance writing, editing, teaching, speaking gigs, and/or school visits for their primary income. For more about average school visit honorariums, which vary by region and by author experience, check out this great survey by Michelle Cusolito and Jeanette Bradley.

Here’s Where it Gets Awkward——Authors are Often Asked to Donate 

Every children’s author I know has a Texas-sized heart. We adore young readers and the educators who nurture them, and we know that our works and our presence can make a difference. At our core, we are people pleasers. We all donate a certain number of outreach efforts for meaningful causes. And when crisis hits or voices are under attack, children’s authors step up and speak out. Except when it comes to our own financial solvency.

Though nobody would ask a lawyer, a plumber, an educator, or other professional to provide services for free, authors are frequently asked to prepare and donate presentations, often with the promise of book sales as remuneration. There is no malice or insult intended. The requesters simply don’t know that an author earning 50¢ per book would need sales of 2,000 copies to replace a $1,000 honorarium and that, even if the event did sell that many books (unlikely!), the author wouldn’t see their royalties for up to a year, assuming their advance had earned out. We don’t like to say no, but there’s only so much we can give when time and resources are so limited.

Publishing is a Nonsensical Career Choice, but…

Children’s authors are called to this vocation because we know the power of literacy to reflect, inspire, and transform young readers. We endure the financial sacrifices that authorship entails because we know that empathy and change begin in the space where hearts and minds meet creativity.  Hope can always be found in books that provide windows and mirrors. We authors are hopeful creators of those windows and mirrors. As professionals, it’s important that we occasionally pull back the curtain so that others can better understand our fragile work.

If you are a budding author, don’t despair. Write with passion. Share a piece of your soul with the world. Lose yourself in the words. But don’t quit your day job.

If you are a gatekeeper or literacy champion, I hope this article has been enlightening. I welcome your feedback and questions.

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Contact me with questions or comments or check out my page dedicated to school visit presentations and writing workshops.

Need help paying for an author visit? Click here for a list of grants and other fundraising ideas.

Donna Janell Bowman is a central Texas speaker, writing coach, and author of award-winning books for young readers, including Step Right Up: How Doc and Jim Key Taught the World About Kindness, illustrated by Daniel Minter; Abraham Lincoln’s Dueling Words, illustrated by S.D. Schindler; and King of the Tightrope: When The Great Blondin Ruled Niagara, illustrated by Adam Gustavson. Donna has an MFA in Writing for Children and Young Adults and enjoys connecting with readers and writers of all ages.

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13 thoughts on “The Truth About Author Incomes

  1. Thanks for this column. I particularly loved this line “Writing for children is a financially-nonsensical career choice.” You absolutely nailed it. Thanks!

    1. Thank you! This business is CRAZY, but none of us can stomach the thought of NOT writing, right?
      Carry on and help to inform readers and gatekeepers.

  2. Thanks, Donna Janell Bowman, for writing this insightful post! I’m reposting on my FB page (tagged you). I can’t tell you how many schools want FREE events (and I’m not talking about low-income regions). I’ve explained all the reasons why this is unfair to us hard-working writers and either get paid or bumped. I already do pro-bono book festivals, library readings, and bookstore events, plus I’m a steady volunteer @ my SPCA…can’t live on air!

    1. Oh, Nancy, I hear ya! We all do pro-bono work to promote books that pay us pennies. It’s important that we debunk financial myths so that readers and gatekeepers are more informed and empathetic.

    1. Indeed, Kathy! Our value is definitely not reflected in our monetary compensation. What does it say about us? That we are starving artists, I suppose.

  3. Thank you for this excellent, utterly clear explanation! Especially this: “Nobody would ask a lawyer, a plumber, an accountant, or other professional to provide a service for free, yet authors are frequently asked to prepare and donate presentations, sometimes with the assumption that book sales should suffice as remuneration for time and travel.”

    Beyond the matter of fair compensation, we need to be respected as professionals — like that lawyer, plumber, or accountant that you would NEVER ask to work for free just “to get their name out there.”

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