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is an older post and although you might find some useful tips, any technical or publishing information is likely to be out of date.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
Shaquanda Dalton says
I think all of this is great, Joanna. I love when you talk about your life as a business woman because it show how I can one day do the same thing.
I would love to not have to work for anybody but myself by quitting my day job. and what you said about saving half a year’s income at least is a must!
How all is well in your search for a publisher with your agent.
Joanna Penn says
Thanks Shaquanda – although my husband thinks my boss these days is much harder than my old one -my hours are longer and I get paid less 🙂 I have to remind him of the long term benefits – and a happy wife!
Gene Markland says
Hello Joanna!
Excellent article and advice that you are sharing. I am so proud of your achievements thus far. I know that there is much more to come. You have taken nothing…and made something fabulous from it for all to enjoy. What a gift you have. Be blessed!
Gene
Joanna Penn says
Creating something from nothing is what authors do – right 🙂
Spike Pedersen says
Thanks for sharing! I’m a couple years behind you. I have my first novel, At First Light, on Amazon as a soft launch, but will gear up as my launch party nears, and marketing alignment comes together. I also have been working the email address gathering and do social media. Sound familiar? That’s because I bought your course.
Thanks again, you are inspirational.
Spike.
Joanna Penn says
I’m so glad you found the course useful Spike and marvelous that you are putting it into action as well (as so many don’!)
Jennifer Fitzgerald says
Thanks, Joanna, as ever, for your honesty which is really helpful.
Laura Pep Wu says
Joanna!! I had tears in my eyes reading this. Thank you so much for your honesty,
I felt as though I were reading my own words.
Working for yourself isn’t easy and it’s definitely a lifestyle not a job. I have my ARGGG days on occasion, but for 99% of the time I wouldn’t change it for the world. At a time when so many factors have converged to make this a reality (technology, self-publishing, co-working spaces etc) we are very, very lucky. I applaud all that you do, you’re an inspiration to me and everyone who reads your blog. I can’t wait to see your year 2!
Joanna Penn says
Thanks Laura – I’m so glad it touched you as I am always a little nervous about this honest, personal posts! We are indeed lucky to be able to use the internet to make an income, and also I’m always massively grateful to Amazon for enabling authors to make a living so much more easily. It’s a wonderful world!
patrick says
it sounds like lower prices and more frequent releases are the ways to go in e-books. thanks for making that point because i am prepared to do it, but was thinking along more traditional publishing lines. say $8.99 on amazon and one book a year. like you, i also quit a good-paying job as a reporter for the boston globe to do my own stuff. i have concentrated on the writing more than the marketing, but this year i am getting into selling the books, on places like amazon and book baby, through distributors and stores, etc. i am fortunate to have two friends who take care of editing and financing hard copy publishings and some media friends who have given my first novel great reviews, including TIME MAGAZINE. i hope that i can accomplish what you did your first year by book sales and readings. i know that most readings are free or have been free, but it seems to me that the author is going above and beyond in exposing himself and giving time to strangers. i want them to pay for my gas!
Joanna Penn says
Hi Patrick, yes, I think authors who do 1 book a year struggle in general, especially at the beginning – but we all have our writing speed – and perhaps you can get paid for speaking as you say. I don’t do readings, at least, not at the moment – I actually teach people about marketing etc which is paid professional speaking. I find online methods of marketing are more effective than physical appearances right now – but I know many authors enjoy that time with readers. All the best with your publishing experiments!
Christopher Wills says
Congratulations on your success Jo and I really hope you keep going onwards and upwards. I have followed you for a couple of years and you are a classic example of how to succeed in writing; I pinched this theory from business.
One needs 3 things to succeed at anything; hard work, luck and talent. When one is successful observers often attribute the success to luck and sometimes talent but they ignore the fact that one has to create that luck and to hone that talent and that’s where the hard work comes in. One creates luck by hard work and one improves talent by hard work. And I think you are a shining example of this theory and you deserve your success. I hope you become even more successful and one day soon exceed your consultant’s wages by doing the thing you love.
Joanna Penn says
Thanks Christopher and I definitely see a point where I can exceed my consultant’s salary, mainly because of the scalable effect of books – plus, at some point, I hope the luck kicks in and one of my books shoots to the top of the charts 🙂 But I’m not building my career on hope – just hard work 🙂 which I hope improves the talent!
Thanks for your support.
Lynn Dean says
Joanna, your blog remains one of the most practical, helpful things I read. Thank you so much for your honesty and openness. I tend to use my “creative” brain more than my “organized planning” side, so your model of balancing the two pulls me back to a healthier center.
I can confirm what you said about business start-ups taking 3-5 years to show a profit. That was definitely the case with my first venture. By watching expenses carefully, I managed not to get into too much trouble at the start, but it wasn’t until around Year 5 that the completed project took off. Now it requires only bookkeeping and an annual update to produces a tidy income. That is the lovely thing about writing–the original creation is labor intensive, but you sell the finished product any number of times.
Now that I’m making the jump to fiction, I’m making fewer mistakes and learning better methods. Your blog has been a big part of the learning curve, so thanks for that.
Joanna Penn says
Thanks Lynn and I’ve been using the organizational side of my brain for much longer, it’s only in the last few years that my creative side has been given some wings! But we definitely need to have a balance. Happy jump into fiction 🙂
Sally says
Wow! Joanna I really enjoyed reading this piece. I’ve just started as an ‘author-entrepreneur’ with a full time job as well and it is hard work to balance both (and have a life!) Thanks for such an inspirational post for us newbies 🙂
Adam Alexander Haviaras says
I think, Joanna, that if ever you feel you are not helping people in a big way you can just review all the positive comments above and those that accompany your other posts.
You are doing an amazing, honest job of providing advice, helpful tips and strategies. I’m a new author-entrepreneur also (with two great kids and, well, the day job thing). My wife is a budding entrepreneur too for her tutoring business so we are gleaning much wisdom from your experiences.
If you believe in karma, you’re likely racking up loads of the good kind! Thanks for sharing.
Joanna Penn says
Thanks so much Adam, I know there are lots more people reading than commenting, so its great to hear that the site is helpful for you. I definitely do believe in karma – or you get what you give – so I’m happy to hear you’re sending positive energy in this direction! All the best with your writing and also your wife’s entrepreneurial business – I think that’s also teaching your kids a great way to live.
Celia says
Joanna, you are an inspiration. Thanks for sharing and I love the name ‘author-entrepreneur’ 🙂
Chris Allen says
Hi Joanna,
Great timing, as usual! I’m going through the process of transitioning from full time work to full time thriller writing, and while it’s terrifying as hell, reading experiences such as yours help to reinforce that it’s possible, and other people are out giving it their best shot – and succeeding.
One of the things we talk about at home is the importance of ‘backing yourself’ if in order to realise our dreams, and also how hard it is to regain momentum on projects like these once it has been lost. That’s two big reasons we are continuing to venture into the unknown… a thrilling rollercoaster ride.
Let’s hope it works out for us both!
Best,
Chris Allen
http://momentumbooks.com.au/authors/chris-allen/
Joanna Penn says
Chris – I do wish you all the best in your new writing career – and I absolutely recommend the Alliance of Independent Authors http://allianceindependentauthors.org/a/88
It’s a really great network, particularly on the active Facebook page where we all share our lessons learned and people from all over the world help you with things, plus some mutual back-scratching promotion-wise. A positive support group of writers is critical in my opinion!
Mark Tier says
Great thoughts, especially on scalability.
One way I’ve found to “scale” talks is to use them test a new book/article idea, then (have someone else!) transcribe the talk. Aside from getting feedback, you end up with the basic outline a book.
I’ve done that about 4 times so far, tho I must admit I haven’t written the books yet :-).
Works for non-fiction; don’t how how (or even if) you could use it for fiction tho.
Joanna Penn says
Hi Mark – yes, this is exactly how I encourage speakers and non-fiction authors to get to a first draft. It works really well – but you do have to turn it into the book 🙂
Mark Tier says
Indeed!!
I wrote a couple of other books instead.
Turndog Millionaire says
Congrats, Joanna. It sounds like it has been an amazing year.
Here’s for an even better second one 🙂
I hope to join you in the good times in 2013. Here’s to the future!
Matthew (Turndog Millionaire)
D. Miles Martin says
Joanna,
I have an email folder called “Resources.” It’s specific to my writing, and it’s where I keep anything that I might want to reference later. Ideas, future plans, links, lessons learned, professional services, etc. Mostly it’s blogs that I’ve subscribed to. I just took a quick look, and I’d sat that at least 50% of what’s in there is from The Creative Penn.
Thanks so much for all the information and inspiration you’ve given me (any many others) over the past year! As a current IT consultant, your journey is especially inspiring to me.
Keep up the great work!
All my best,
D. Miles Martin
Joanna Penn says
I’m very happy to hear that, thanks Miles 🙂 and yes, time to plan your own escape from the rat race that is IT consulting!
Paul FitzSimons says
Hi Joanna,
A great piece and a fantastic model you have created for a writing career. You show the rest of us that, with a bit of hard work (or a lot of hard work), it is possible to make a life as a writer.
Best of luck with year 2 of the plan.
Regards
Paul
Heather says
Joanna, you are inspirational. Thanks for being so honest in your work and what it means to transition. I remember doing that during my design thesis (2 years). It took a year to get a productive schedule going (mornings were writing; afternoons/evenings were designing) but once I got into it, I felt so much better. I think once I get to the point where I can do that now with my job, I’ll be in a better state. Thanks again!
Joanna Penn says
Thanks Heather – the importance of routine is under-rated for creative work – but we all work better under constraints. All the best with your own work.
Dixie Goode says
Joanna,
I have not commented on your blog for a long time, but I used to a lot and I still subscribe to it and read it often. Congratulations on this year and on your dedication. I know it isn’t easy, I have published three books with createspace, but still have to teach to bring in the living wage.
I bought the paperback version of Pentecost when it first came out, and loved the characters and story but realized it needed more editing. When Prophecy came out on kindle I bought it but never read it. I started it two days ago and am 65% of the way trough. I love it too, but I’m really amaze at how professional and polished the editing is. Your improvement is fantastic and your storytelling is, as always, a delight.
Dixie Goode
Joanna Penn says
Thanks Dixie and I agree with you – I definitely improved between the books in terms of my own writing ability but I also now employ 2 editors – a structural one and then a final line editor to weed out those final issues. I also fixed the ebook version of Pentecost but the print has now been withdrawn – maybe when I am rich and famous one day, the few copies that are out there will be worth something 🙂 Thanks for your support!