OLD POST ALERT! This is an older post and although you might find some useful tips, any technical or publishing information is likely to be out of date. Please click on Start Here on the menu bar above to find links to my most useful articles, videos and podcast. Thanks and happy writing! – Joanna Penn
It's just over a year since I gave up my job as an IT contractor and became a full-time author-entrepreneur. I initially gave myself six months to meet some specific financial targets and after making those, I didn't return to the day job.
I am seriously happy in my new life, but there have been some real challenges and lessons I've learned along the way that I wanted to share, as well as some action points if you're considering making a similar move.
As ever, I just try to share honestly with you guys so I hope this helps you on your journey. I'd love to hear from you so please leave a comment at the end of the post with your thoughts and ideas.
How do I currently make a living as an author-entrepreneur?
I'm not going to share figures but suffice to say, I earn around the average wage for a UK female. It's a good start for Year 1 of business, but it is a lot less than I am used to earning, so I have some aggressive goals for Year 2. Here's the rough percentage split of my income.
50% Ebook sales and 95% of this is fiction, skewed towards the second half of the year when Prophecy came out and I had 2 books at $2.99. Ideally I want to be at 80% book sales for my income, so clearly writing more books is the main goal.
25% Speaking. I do full day and half day courses where I teach digital publishing and marketing as well as online entrepreneurial skills. I've also done multi-day events as the main speaker and I've spoken in Australia, Bali and London – and next month, in Zurich, Switzerland. Yes, I'm available for hire!
25% Courses and Consulting. From this site, I sell multi-media courses on writing, publishing and book marketing, and I also offer 1:1 consulting sessions for more targeted help.
So you can see why I describe myself as an author-entrepreneur. I could not have given up the day job based on my fiction sales alone, but with an established platform (3 years blogging, podcasting & social networking) I was able to make the jump. I share a lot more about the challenges of being an entrepreneur in my non-fiction book, How to love your job or find a new one, which is focused on career change.
Lesson 1: It's much easier to have a day job
I have to say up-front that it was easier to work for a company than it is to work full-time for myself. I was a contractor so I worked for a daily rate but I had a steady employer for years so there was little risk.
This may be the dirty little secret of being an author and an online entrepreneur!
Because the money was better, the social life was pretty fun and I was well regarded in my field. Back in Jan 2011, I wrote about the mixed blessings of the day job and how it meant I didn't have to worry about cashflow and I still stand by those words.
However, I have wanted to change my career for over 10 years because of a nagging sense inside that what I did was pointless and didn't benefit the world, let alone satisfying my creative soul. I am also aware that it takes the average company 3-5 years to make a profit, and I am in this for the long term.
I just wanted to be clear that this is not an easy option and I still have some wobbly days where I look at the contract market and think about what could be. Then I remember the stress headaches, the anger and the frustration and I smile and recommit to this path. On my wall is this quote from Steven Pressfield's ‘The War of Art‘
“On the field of the self stands a knight and a dragon. You are the knight. Resistance is the dragon. The battle must be fought anew every day.”
Action Point 1: Understand the why behind what you are doing. Weigh up the pros and cons of leaving the day job and write them down. Do a lot of research about your chosen path and get educated.
Action Point 2: Save at least 6 months income, preferably a year. Do a financial plan for the first 3 years and aim to hit specific targets every month. Both of these were important for convincing my husband that this could be a good idea, and that over time, with more books, my income should grow.
Lesson 2: Defining your own life is a huge adjustment
I was amazed how the change affected me emotionally, and I have renewed appreciation for people who are retiring after a life of work, or women putting their careers on hold for children. When you give up a structured job, the routine you have lived your life around is suddenly broken and you have emotional adjustments as well as the practical aspects that go along with this.
My self-esteem plummeted.
I went from a high status, highly paid job where I was near the top of my field after 13 years as a financials IT contractor to being the bottom of the ladder in an entirely new career. Yes, I had spent over 3 years building an audience online but that doesn't mean much to family and friends. It also doesn't pay the bills.
I also found it hard at first to sort out a working routine that produced enough material and focused on writing first, then marketing as well as creating new products. This took me ages to get sorted but I am pretty happy with how I'm working now. I rarely have a full day off though, but that's normal for new businesses and this is my passion as well as my job!
Action Point 1: Treat it like a job and set some daily routines. I diarize days when I work on fiction and others that I work on courses, consulting, blogging etc. I set deadlines for producing specific pieces of work. I have a routine around my email, twitter etc. I make sure that I have new income streams coming in at regular intervals, whether it's a book, a new course or a speaking appearance. The little trickles of income will expand over time but only if there is more product 🙂
Action Point 2: Find somewhere to work that is not your home. I find that getting out of the house and doing a form of commute into the city really helps me as I can separate from the house, leave the chores and be productive. I also get the benefit of a commute, so I can feel part of the city vibe, I can buy myself a coffee or meet writer friends. I am a paid member of the London Library which is excellent and I try to spend 1-3 days a week there in order to write in a different environment.
Lesson 3: You need support through a physical network
I love my online friends and I could not have made this change without all of you who I have never met in person. But when you have a job that is basically all virtual, you can get quite lonely so you need physical support.
My husband is my primary #1 fan/support along with my Mum but I also have a network of writer and entrepreneur friends that I meet in London for coffee and brainstorming around our challenges. It's a like a pro-author-entrepreneur-circle.
I met most of these people originally online or at networking events and cultivated friendships in the real world as I moved back to London in June 2011 after 11 years in New Zealand and Australia.
I make sure I schedule coffee/lunch at least once a week in order to break up the time spent writing and being virtual. I also go to various networking meetings to expand my circle of friends. This is crucial to my sanity!
Action Point: Make an effort to go to networking events, writing groups and conventions where you can meet people physically and build a network of like-minded supportive people. Actively aim to meet people who are going places in their career.
Lesson 4: It's absolutely worth it!
I love my new life, now I have settled into it and I can see how things will (hopefully) change in the coming years. I know from past experiences that the beginning time is often the hardest and that every year things will be different but my skills will grow and so will my number of books & products and so will my audience. When I started this site, I had nothing and a lot has changed in the last 4 years so making a start is critical.
Most of the authors making the big money have been doing this for many years, and most indies making $5000 – $10,000 a month have at least 5 books. Success in any field takes some time to achieve, as does learning the craft and the business of writing. So don't expect to make it with novel #1, but keep at it.
On the entrepreneurial side, the mega blogs making a lot of money from online products generally started on the internet back when blogging didn't exist and when geeks were not cool. Nowadays they rule the (online) world 🙂 but it has taken many of them a lot of years to make it. I particular like this video by Chris Brogan, who is an A list blogger, speaker and business author (it's at the bottom of the post). Overnight success gets up at 5am after getting to bed at midnight. Overnight success doesn't watch a lot of TV. Overnight success is gained inch by inch when no one is watching.
Action Point 1: Look at the writing careers of people you admire and see how hard it was for them at the start as well. Read Stephen King's On Writing – he was working nights in a laundry when he finally sold Carrie after trying for many years. It's not easy to make this change so go easy on yourself at the beginning.
Action Point 2: Keep writing, keep producing, keep learning – and do it for the rest of your life 🙂
My plans for Author-Entrepreneur Year 2
Often, life doesn't quite turn out the way we plan it, but it's certain that nothing happens unless you have some written goals! I also believe in stretch goals and not aiming too low.
So, in Year 2:
- I want to move into the hybrid model of publishing – with my agent helping me to get a traditional book deal for my thrillers. I will also continue to self-publish but possibly under a different brand and do some work for hire to pay the bills. This will bring in income monthly from Amazon sales but also in spikes from traditional book deals.
- I want to double my income and move my % split to be 60% fiction, with 20% digital courses and 20% speaking & consulting. My aim is to be at 80% scalable income, which means you create once and sell multiple times. So books are scalable as are online products but speaking and consulting actually take time every time you do them so they are not scalable. But I enjoy them so I do want them as part of the business – I don't think I ever want to be 100% author only because I love the business/entrepreneurial side of things and I love helping people.
OK, that's a bit of a mammoth post but this is my life nowadays and I do think sharing the journey with you honestly is important. I always want to save you time, heartache and money so lessons learned are critical!
What do you think? Any questions or lessons you have learned?
Please do leave your comments below as I'm really keen to hear what you think about this.
Images: my own, iStockphoto and Big Stock Coffee Cup
Alan says
You’re a freaking inspiration, Jo! More power to you.
Joanna Penn says
Thanks Al, there are many days I definitely don’t feel like one 🙂
Financial Samurai says
Great recap after one year! I think we are on quite similar paths where I too worked for 13 years, did well, but decided to engineer my layoff and wrote a book teaching people how to quit their jobs with money in their pockets.
Entrepreneurism is HARD! Way harder than a day job to make the same amount of money. We need to compare our first three years of entrepreneurship with the first three years of day job instead of our last years of our day job. Apples to apples as they say!
I think many of us can succeed if we don’t give up too soon. Three years is a good game plan!
Best,
Sam
The Yakezie Netowrk
Joanna Penn says
Thanks Sam, and yes, I need to compare it to when I was at the bottom of the career ladder back when I left Uni in the 90s. Unfortunately, my expectations on living standards have changed 🙂 but yes, a 3 year plan is more practical and achievable. Thanks for acknowledging how hard this is as well, I think it isn’t stressed enough in all the blogging online.
Tina says
Really great post Jo – thank you! It’s so interesting to hear about your journey so far and plans for the future. I think you’re an inspiration for many of us and I’m sure you’ll smash those 2 year goals 🙂
Nickey Teoh says
Hi Joanna,
I’ve been following your blog since last 2 years ago and I had to say that I enjoy reading about how you’ve been progressing so much since the day you started off your book writing ventures. It was exactly 2 years ago that I quitted my day job to come out and started a publishing consultancy business to help local authors in getting their books self-published in Malaysia. Of all the challenges faced by indie authors, your blog gives a message of “to all indie authors, you’re not alone in your journey and struggles…we’re walking this together”. That’s truly inspiring.
For now, I’m helping the indie authors in my country in navigating the path of self-publishing. Inspired by your blog, who knows one day I might also step out and do the same and become an author as well?
And yes, as what your blog suggests, being an author is really all about being ENTREPRENEURIAL at the same time. Keep up the good work and I hope to see you succeed even further!
Derrick says
I am currently working on my first self-published book and setting up my blog page. This is so encouraging and inspirational. Thanks.
Emma says
What a fantastic article! I love your honesty about some of the difficulties you experienced when you first started up. Many of us are in that position right now so it’s reassuring to know that others have felt the same. I love your suggestion about writing away from home. I didn’t even think about working in a different location to change my mindset. I’ll definitely give that a try!
Thanks for the article, it’s inspirational
I really hope year two is a good year for you. Keep up the hard work
Emma 🙂
Joanna Penn says
Thanks Emma, and it makes such a difference for me to get out of the house. In fact, I am writing this comment in the London Library (in one of my writing breaks of course!). I was very grumpy at home this morning and there were so many chores to do (housework) so I just decided to get out and write instead of sit there and use chores as procrastination!
This is also something I discuss with my parents who have just retired – I think it’s something everyone struggles with after they get into a specific work routine.
Stuart Ross McCallum says
Hello Joanna:
Firstly, I would like to say that you are a true inspiration for many of us. This post highlights the fact that with determination and business sense, you can break away and achieve our goals in life.
I wish you great success with your second year of this remarkable journey.
Thank you, Ross
Joanna Penn says
Thanks Ross and I know you’ve been around the blog quite a few years now 🙂 so I appreciate your support.
Dougie Brimson says
Great post. I’ve been a professional writer for over 16 years now and the last few years have been spectacular thanks to the explosion of eBooks. They really have changed everything not least the fact that finally I have control over what I write and when.
But one thing I have never done is to teach or speak about the process of writing or marketing my work. Primarily because I’ve generally been too busy writing to even think about starting but also because no one has ever asked me! This in spite of the fact that I have 14 books on my backlist (one of which has been #1 on its Amazon chart for a solid year) and wrote a multi-award winning Hollywood movie!
I must be doing something wrong although I don’t really know what!!!
Joanna Penn says
Hi Dougie, I just checked out your site – and you don’t have a Speaking page 🙂 that might help get you speaking gigs if you want them. I’ve never pitched for mine though, they have all come from social networking and initially saying yes to free speaking, before progressing to getting paid for it. It sounds like you absolutely know what you’re talking about though!
Janice Lane Palko says
Hi Joanna:
Thanks for sharing this. I found you a year ago when I was just contemplating going indie with my novel. It’s now out and I’m pleased that others are enjoying it, and your post encourages me to realize that it takes a while to become established. I work part-time as a magazine editor and then do a lot of freelance writing as well as trying to write more novels. I love any kind of writing, but I find the hardest thing is keeping writing from invading every part of my life. I’m writing during the day and then writing at night. I’m trying to carve out time to not write so that I can replenish myself. It was encouraging to see that I’m not the only one struggling with this
Joanna Penn says
definitely make sure you refill that creative well Janice – I love the Artist’s Date idea from Julia Cameron and London is awesome for it! We need to top up our creativity and ideas by imbibing from others. I love art galleries and museums for inspiration 🙂
Christine Niles says
This is such encouraging information! I’ve been blogging off and on for 6 years, taking my writing seriously for 18 months, and I just walked away from a 20-year career in the corporate world.
I have a similar 1-year plan, but your suggestion to establish longer-term plans is golden, as is sharing the income blend and strategy toward scalable products.
Thank you!
Joanna Penn says
All the best Christine – it is definitely a big move from established corporates 🙂 and I think we need to give ourselves a little space – a year seems to fly by so perhaps 3-5 years is a better plan to replace the income!
Dougie says
I hope I do!!
Good idea to add a dedicated speaking page (although it is mentioned on the media page).
Who knows?
D.
Amber J. Gardner says
Thank you for such an informative and inspiring post. I love how you don’t sugar coat reality, but still there is so much optimism!
I’m in a…confusing situation.
I’m twenty six with no college degree, no savings, no job. I have debt and a mostly informal education when it comes to writing. So basically, my confidence in my writing is pretty low. I know what I want to do , but I’m distracted by my inability to gauge my writing level and how to pay the bills. I know I need a job and I’d love to have six months worth of savings before writing full time, but it’s hard to wrap my head around the idea of getting a job and putting effort into the job I need in order to pay the bills when I know ahead of time I’m going to quit the moment I can.
I envy the writers who finished college and are successful in a day job, even if they hate it, cause they have something to work with.
What advice would you offer someone in this situation?
Joanna Penn says
Hi Amber,
I would say that you just have to knuckle down and work the day job and do your passion at nights and weekends. That’s what I did for 13 years and what most people do their whole lives. Work isn’t romantic for anyone and as per all my sharing above, being a full-time author-entrepreneur is not romantic either. There are always hard parts, boring parts and aspects we hate. Stephen King was working nights at a laundry when he found his first success, his wife worked at Dunkin Donuts (I think) and they were dirt poor, but working to pay the bills.
I think you should just do whatever work you can find to pay the bills and pursue writing in your spare time. Think of it as the day job, do the best work you can do for them but within the hours you are paid for, and then work on your passion in other times.
As I said above, this is not a get rich quick scheme!
Here’s my article on the mixed blessing of a day job and I hope that helps
http://www.thecreativepenn.com/2011/01/31/writing-and-the-mixed-blessing-of-a-day-job/
All the best with whatever you do.
Amber J. Gardner says
Thanks! You’re right, of course. Sometimes one needs reminders. I gotta remember that you can be both passionate and realistic. There’s enough time for both. Others have done it that way. I got to remember that…
Dougie Brimson says
Amber, if it helps I never had any formal writing training either. I never even attended a writers group although that’s something I would advise everyone to do!
One piece of advice I would give you is not to fixate on earning from your writing when you’re starting out. For everyone who earns a living from authorship, there are hundreds of thousands who don’t.
Just tell the stories you want to read, listen to any critical feedback you might receive and work hard to produce and improve.
The rest will come in time.
Amber J. Gardner says
Thanks! Yeah, that’s a great point. Focusing on just telling stories at this point would probably be best since thinking about making money makes it hard to write at all. Thanks for the encouragement. 🙂
Miral says
Joanna, What a fantastic post! I had no idea you were a techie! It’s such a booming field and from time to time i feel the pangs of ‘why did i leave my day job?’ But reading this just put my morning off to a good start! Thanks for the inspiration. – Miral
Joanna Penn says
I really hate to define myself as a techie 🙂 I was a Financials SAP consulting, if you are in the SAP world (FICO) – but always in consulting and not programming!
A.K.Andrew says
Wow! I am so impressed by how much you do – your energy level for projects is off the charts. But I listened to a few of your podcasts the other night and they are SO helpful for other writers.
It must have been a big change for you, and I think it’s really important, as you say, to get support in the real world too. I’d be completely lost without my Writers Group buddies.
Your first year is incredibly inspiring. Thanks so much for sharing it.:-)
Joanna Penn says
Thanks AK, I do have a lot of passion for what I do these days so I think the energy just naturally flows that way – plus, I don’t share when I’m having an off day because who wants to listen to a moaner 🙂 and I believe in social karma – you get what you give – and so I like to keep things upbeat and positive around here!
Michelle says
Hi Joanna-
Is PENN your real last name or your ‘pen’ name? Either way you were destined to be a writer. This is a great post. You’re a class act, the act to follow. I’m watching you and learning and loving your ‘image.’ I tweeted this post. Excellent.
Michelle
Random Writing Rants
Joanna Penn says
Hi Michelle – yes, I was born Penn and although I am married, I use my maiden name since it is so appropriate. Strange to think that didn’t dawn on me until I was 33 though! Thanks for sharing the post 🙂
MaAnna says
Really appreciate you sharing your journey, Joanna. What I’ve noticed all along is that you made a plan and set goals for yourself and continue to do what is necessary to meet them. Getting a book written and building a following while you still had your day job was no small task. But, it also gave you the confidence and insight to find a way to have success doing more of both given more time to devote to it. I’m glad the second book is under your belt and that you’re well on your way to meeting your next goal of moving toward a higher percentage of income from book sales. It is encouraging to see you successfully balance the creative and business sides of being an author in this way. I wish you the best!
Joanna Penn says
Thanks MaAnna – I know you’ve been a creative entrepreneur with your various income streams for much longer than I have – so I appreciate your kind words of support. It’s great for me to have role models like yourself in the creative community as well.
Geek Girl says
Hi – I’m new here. I got here via AK Andrew. I am going to subscribe just because I think we writers need to stick together. You are a step ahead of me right now. The title Full Time Writer is still in my future, but I am hoping the not-too-distant future. I hope you will stop by my diggs as well. I really loved this post! 🙂
Joanna Penn says
I’m glad you found us 🙂 we have a very happy, positive community here on TCP – and I do say I am an author-entrepreneur because not all my income is from books … but it will happen 🙂
Jodie says
Thanks so much for your post. I’m coming up on doing the author-entrepreneur thing for almost three years now but with doing it just part-time because I volunteer a lot for a local writing-centered non-profit, went back to school to get a marketing certificate, and am in the midst of an MBA program I started in January, it feels like it is going SOOO slow and I wonder if I’ll ever be able to make sufficient income. I especially related to Lesson #2 and am glad to hear I’m not the only one. Part of my battle was convincing myself I’m actually doing a real job and committing to that long haul. Now, if I can just focus my efforts, maybe I’ll accomplish something… Thanks again!
-Jodie Toohey, Author of “Missing Emily: Croatian Life Letters”
Joanna Penn says
Wow Jodie, you’re really busy! I did have to cut out a lot of extra things about 6 months in as I felt I wasn’t making enough income. I had to choose between specific things in order to focus – maybe that’s something for you to look at if it all gets overwhelming. But all the best on your journey!
Linda Runnebaum says
Joanna, Thank you so much for your words of wisdom. I’m toiling with the same types of decisions in my own life right now. Although, I’m not as far along as you are. I DO LOVE to write and want to someday be a success at it. Your words and posts really help and inspire me. Thank you! I’m a lifetime follower of your posts. I hope to be at the same level as you one day. Thanks again!
Joanna Penn says
Thanks Linda, we’re all on a journey and a teacher of mine, Robert Rabbin once explained to me about measurement against others. Instead of visualizing the measuring stick vertically, put it horizontally, so no one is above you in terms of levels, just at a different point in the journey. There’s an interview with Robert here if you’re interested:
http://www.thecreativepenn.com/2010/08/03/podcast-authenticity-robert-rabbin/
Seeley James says
As I mentioned on Facebook, you are the greatest resource for indie authors. You have provided us with the most relevant and timely information available anywhere. Everytime I’ve wondered, ‘how would this work’ or ‘has anyone tried ___’, I simply look on your site and there is a posting from you or an interview with someone who has experience doing exactly that.
I’m hoping your speaking tour brings you to this side of the pond soon!
Peace, Seeley
Joanna Penn says
Thanks as always for your support Seeley and I do try to share everything that happens so others can learn from it. The world changes so fast right now so we need to help each other to keep up!