Showing posts with label Business Overhead. Show all posts
Showing posts with label Business Overhead. Show all posts

Wednesday, September 18, 2019

Promotion and Advertising Shock

It's been several years since I've actively promoted my books, much less bought advertising. I feel like I'm swimming in a sea of information with waves washing over me in their efforts to drown my tiny little books.

Back when I started publishing in 2011, e-books were the red-headed stepchild of the publishing world. So I didn't have to do a lot. People with e-readers were starving for content because the bigger publishers couldn't deign to put their products out in e-book formats. Print was king!

I sold a shit-ton of books simply by uploading them, then listing them on social media. Maybe a few friends would mention my work on their blogs. Blog tours were big back then. Or someone would put an excerpt in the back of their book. E-book promo sites were in their infancy, and there were a plethora to choose from. You had to have your ear out with those who worked and those who were looking to make a quick buck from writers.

Nearly nine years later, none of the things I did back in 2011 will work today. Plus, the big publishers have woken up. They now like to undercut indies by putting their backlists on sale. (Seriously, I picked up the first nine books of Diana Gabaldon's Outlander series for $1.99.) So the competition has stepped up.

What does this all mean? We indies are now competing with the big fish on ad spend. Especially with ads on Facebook, Amazon, and Bookbub.

There's still e-book promo sites, though they are fewer, and the ones that survived have become bigger. Bookbub has become a monster in its own right. No longer is it just a daily e-mail newsletter, but paid ads on both its website and the newsletter. The bigger publishers realize what a difference a BB newsletter makes, and they now run regular promos with their backlists.

I'm tentatively dipping my toes in the new ad/promo pool. It's more expensive than it used to be. But I'm being selective about which companies I use, and I'm keeping a strict accounting of the money I spend. I've heard too many stories of people spending $25K to make $30K. That's way too much overhead for my tastes.

I've got some things lined up for the rest of the year. Hopefully, I'll have some good data of what works and what doesn't in January.

Monday, July 20, 2015

Why You Need to Learn the Aspects of Self-Publishing Before Hiring Someone

Are you a writer? Have you noticed certain accounts following you on Twitter and/or Facebook after you've announced your intent to self-published? Or after you've announced the release of your latest book?

Then there's other spam. I keep getting e-mails from a company calling themselves Publish Wholesale. They will publish format my print book and create for ONLY $959! And for ONLY AN ADDITIONAL $200, they'll format my ebook!

I can't begin to tell you how many of these scam artists are popping up to prey on naïve writers. The incredible David Gaughran has made it his mission in life to document the worst of these abusers, Penguin Random House's Author Solutions.

Yep, that 's right, ladies and gentlemen. The absolute scammiest of the scam artist belongs to one of the U.S.'s Big Five publishing houses.

But I'm not jumping on David's bandwagon. I'm advocating a radical change in a writer's thought process.

Learn how to format and create covers yourself.

Now, someone out there is going to see this and start screaming either "I don't know how!" or "How dare you can't tell me what to do!" Let's break both of these down.

1) I don't know how!

This comes from a place in your head where fear resides. Maybe you're computer phobic. Maybe you think you can't learn new things. Maybe you are sure you'll screw up, and no one will ever buy your book again.

Now shove that fear aside. Research conversion software. There's a lot of freeware and low cost packages available. And by low cost, I mean less than $50, but personally, my cheap ass self prefers freeware.

Take a short story you've written and spend a few hours practicing on it. Start simple. No fancy fonts, pictures, graphics or whatever.

Now find some graphics freeware. I use Paint.Net for my erotica covers. If you're not a fabulous artist, there's a ton of stock photo sites. I generally buy a small package, so the cost comes out to less than $10 per photo. Also, there's fonts you can purchase if you don't have any on your computer that are appropriate.

I'm not talking out of my butt here. This exactly what I did with Seasons of Magic: Spring back in 2011.

By practicing, you'll also figure out what you are good at doing yourself and what you suck at. There's nothing wrong with that either. Every good businessperson needs to know where to cut costs and when to hire out work.

2) You can't tell me what to do!

I'm not telling anyone anything.

I'm making a suggestion based on a business need, so if you decide to hire somebody to do these things, you've got a rough idea of the time and effort involved. There're some incredible editors, formatters, and graphic artists who price their services reasonably. By learning the tools of the trade, you'll have a better idea if you're getting a good deal or getting screwed over.

For the record, I've started hiring out some of my covers and some of my formatting. Why? More demands on my personal time since our niece moved in with us are cutting into my writing time. And I was seriously juggling my writing time before that since I'm writing under two different names.


Now, if you just won the lottery or have a trust fund, none of this means anything to you. But for those of us building a career, a thousand dollars can mean rent, groceries, and doctor's bills. That's why I advocate making decisions that don't result in you living on the streets.

Wednesday, December 10, 2014

Writing Is a Business; Treat It Like One

The title of this post has been my mantra since I decided to indie publish. I emphasized it when I wrote a few guest posts for other bloggers on developing a business plan for indie publishing. I was reminded of it during a discussion on the comments on Monday's post (definitely one of those cases where comments went off on a side tangent).

Regardless of whether you go the trad-published, indie published, or hybrid routes, you are self-employed. You are operating a small business.

I think that's where a lot of writers make their mistakes. Writing is not a business. To them, it's art. It's a dream. It's the lottery.

Which it may be all those things to you. But when you are offering your writing for money, it has now become a business, too

And like any business, you, as the owner, have to keep a handle on your overhead. Otherwise, your business is going to failure.

Statistics on business success/failure vary. Under some outdated information, the U.S. Small Business Administration estimated over fifty percent of new businesses failed in the first year. With the widespread use of computers and access to relevant information through the internet, the failure rate is probably much closer to Canada's four percent failure rate in the first year.

When it comes to a new business failing, the two biggest reasons are lack of adequate planning and lack of adequate capital. And believe me, the two go hand in hand.

So going back to Monday's discussion, here's part of how I planned for adequate capital. I don't NEED caffeine while I write, but my work habits are deeply ingrained from my days in IT. That means my brain goes into work mode if I have a caffeinated beverage sitting next to my computer, like the black tea sitting next to me right now. (Even with electric for the microwave and dishwasher, the cost of the mug of tea is less than $0.05.)

From a business point of view, it's not worth the time necessary to retrain my habits. (I generally assign $10/hr to my time because it's easy to calculate.) Therefore, I've added caffeine into my business budget.

Generally, I buy soda, tea and coffee from the grocery store. I search out sales and add in coupons to keep that budget under control. For example, even if I buy Starbucks coffee and sugar-free peppermint mocha creamer at the grocery store, it still comes out less than $0.20 per cup.

But I also budget for the occasional trip to a restaurant or café. Occasionally changing my work environment can trigger additional productivity. (YMMV on that one.)

However, there's the question of drinkability when I venture outside of the house, which is why I don't go to McDonald's. I swear the only time I've ever tossed a full cup of coffee in the trash, it was a McDonald's peppermint mocha. I shudder at the memory even now. Blech!

And if I'm not in walking distance, which I never am, I have to factor in gas money.

So in Houston in December, I would go to one of the closest Starbucks (2 miles away so roundtrip is 4 miles) and get a venti peppermint mocha. That's $5.25 for the coffee, $0.50 for the tip, plus gas at $3.00/gallon and a car that gets 20 miles/gallon.

$5.25 + $0.50 + $0.80 = $6.55

Lost writing time is only 10 minutes or $1.67.

$6.55 + 1.67 = $ 8.22

In Ohio in December, the cost would remain the same except for gas. Bowling Green, and the closest Starbucks, is twenty miles away. That adds an extra $6.00 to my overhead compared to the $0.80 for gas in Houston.

$5.25 + $0.50 + $6.00 = $11.75

Oh, and I lost an hour of writing time on the drive to and from Bowling Green.

$11.75 + $10.00 - $21.75

So my overhead has now nearly tripled for the sake of my peccadillo. Not good business, folks. Not good business at all.

To put it another way, I'd have to sell eleven books to cover my trip to Bowling Green compared to the sale of four books covering one trip in Houston.

This is exactly where most business people lose their way. These little costs add up. If you're not selling enough to cover your costs, your business will go under.

It's why I dreaded seeing statements from new writers about how much they spent on cover art, editing, etc., back when I put out by business planning series in 2012. So many of these folks are having to go back to their day jobs now because they spent way more money than they had coming in.

This is not to disparage one of DH's mantras, "You have to spend money to make money." However, I do believe it's in your best interests to find the best quality at the lowest price.

Remember, selling your stories means you are now in commerce, not art. If you want to keep writing full-time, you've got to keep that overhead under control. Writing is a business. Treat it like one.