I'm late posting a blog today. I thought about not posting one at all because I'm at that lovely stage--the middle of writing a book where it feels like I'm slogging through a waist-high swamp, and I'm beginning to hate the damn thing.
And I wouldn't have posted at all if a few things hadn't happened this week that built into a crescendo when other acquaintances have asked for non-writing business advice.
Over the course of my life, I've been an IT project manager. I had to put together time and budget estimates for completing software. I've acting as a sounding board when my husband and his partners bought a software consulting firm. I've owned my own law firm.
Now, I own my own publishing company. I write up and spreadsheet sales and forecasts and projections and budgets.
And apparently, I'm the only one.
Or at least, I haven't anyone who truly treats writing and publishing as a business.
Let's talk about ROI again, that is a return on investment.
(If you want to see my rants concerning ROI in
2014 and again in
2015, feel free to do so.)
To review:
The return on an investment is when you divide the gain of the investment minus the cost of the investment by the cost of the investment. Or
ROI = (GOI - COI)/COI
I published my first novel
Blood Magick in April of 2011. From then until August of 2016, I sold a grand total of 202 copies at $2.99/e-book across multiple platforms. To make the math easier, let's say I earned $2 per book. Therefore, my GOI is $404.
It's approximately 90K words. At the time, I wrote about 500 words per hour, so it took me approximately180 hours to write the story. Let's say I, the publisher, paid me, the writer, $10 an hour.
DH did the photography for free. I bought food coloring, corn syrup, a dozen white roses, and a pewter pentacle. My costs were approximately $45. Plus it took me a couple of hours to play with Paint.net to create alter the cover picture and add the text, so add another $20 for my time
A friend and I edited each other's novels over coffee, so throw in $10 for my Starbucks card.
I know just enough HTML to be dangerous so I formatted this myself using freeware.
My costs of investment? $1800 + $45 + $20 + $10 + $0 = $1875
Therefore, my ROI for this book is ($404 - $1875)/$1875 =
- $0.78
Not good, right? What did I do wrong?
Well, it's an obviously homemade cover, and the formatting, while adequate, wasn't pretty. Competition grew over those five years. I undercut myself on pricing. Add to that a bunch of personal shit so I didn't pay enough attention to my business from the end of 2013 to 2016.
I took down the entire series from all retailers but Amazon in 2016. I hired a cover artist and a formatter. The additional cost for both was $240. (See? Sometimes cheaper isn't better.)
Then I uploaded the new version to Amazon about a year ago for a test run. I'll compile sales in January of 2018 so I have a healthy year's worth of data.
If you've noticed, I haven't added any numbers for advertising. Why?
Because advertising has been budgeted for 2018 once I have all the Bloodlines books released. Frankly, I'll treat advertising as a separate ROI calculation as well as a production cost ROI.
I see too many indie writers through good money with absolutely no fucking clue of what their ROI is. How do I know this? Because I ask.
So one more time--writing is a business. Treat it like one!