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is an older post and although you might find some useful tips, any technical or publishing information is likely to be out of date.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
E.S. Ivy says
Thanks for the informative post! I just started following your blog and already I am so impressed. Seeing what you have built, it is really hard to see where you started. Since I have just started down this path, it is so helpful for your to share your advice and experiences.
Joanna Penn says
Hi ES, welcome to the journey 🙂
In terms of where I started – it was with nothing, like everyone who follows this route online. This post talks a bit more about that – back in 2008 I had no blog, no books, no social networks, no email list, no nothing at all really, just a will to begin, and I’ve just been working every day since then on this career I am passionate about!
http://www.thecreativepenn.com/2012/08/11/measuring-achievement-by-olympics/
so definitely get started, and stay consistent and over time, everything grows 🙂 Unfortunately, this is not a get rich quick scheme … but fortunately, this is a journey that rewards at every step of the way! All the best!
E.S. Ivy says
Thanks! I will definitely check out this post. I have four years before we need an influx in income for my oldest to go to college, so maybe 4 years isn’t a bad goal. 🙂
Anne Trager - LeFrenchBook says
What a great post, Joanna. It’s honest and gives great advice. Good work! I love the way you are so focused.
Joanna Penn says
Hi Anne – thanks for dropping by! I think I am focused – most of the time! Of course, I haven’t shared all the really bad days 🙂 a yearly round-up can be well edited …
Anne Trager - LeFrenchBook says
Hey, editing is a great thing. In fact, if my mind didn’t edit out all the tough times, I wouldn’t be doing anything entrepreneurial at all. I think selective amnesia is a wonderful thing when it comes to running a business of any kind.
Alexis Grant says
Big congrats, J! And great post with solid takeaways. Cheers to Year 2!
RD Meyer says
Very nice. I’m working towards what you’ve achieved, but I’m still a little ways from being able to do it full time. I agree with having both a business and financial plan – too many writers forsake those, and that’s where they get into trouble.
John Mountford says
Joanna,
Thank you for the brutally honest post – as always. It’s a rare and most attractive quality. I am currently reading Pentacost on my kindle. Who edited it for you and to what degree ie. proof, copy or full content? Would you recommend them again? This might be tough to answer honestly.
John.
Joanna Penn says
Hi John, you might find the second book Prophecy is better edited in general 🙂 I also learned a lot from the first book, and in fact I have just done a pretty big edit on Pentecost again for submission to publishers. I did have a structural editor on that but didn’t pay a copy editor at the end. For Prophecy, I had a structural edit and a copy edit – I have a list of articles and people I recommend here http://www.thecreativepenn.com/editors/
Steve Vernon says
Great post, Joanna.
I’m just a newbie in this world of digital publishing.
Each month I watch as a few more dollars dribble into my bank account.
Each month I try and take a few more steps into transforming that dribble into a torrent.
Alas, so far it is nothing more than a wet dream.
Anyone know any good steps to a rain dance?
Joanna Penn says
Hi Steve, I’ve been sharing everything here for 4 years 🙂 so you can find everything I know here – there’s a lot on my marketing page http://www.thecreativepenn.com/marketing/ and my friend CJ Lyons (who has just passed 1 million indie books sold) and I have a course on book marketing here http://www.thecreativepenn.com/marketyourbook/
but basically it’s 1) write more books to a professional standard 2) get them out there to the masses and do something to get a small tribe of followers so you get initial reviews and word of mouth 3) wait for the amazon algorithms to kick in 🙂
I wouldn’t say my trickles are a flood just yet – but I know increasing numbers of authors who are seeing a lot of success – but they all have a lot of books.
R.E. McDermott says
Joanna,
A great and inspiring post. Thanks for sharing. As a RTG (Retired Old Guy) cum writer, with more good luck than he deserves, I offer the following. I was a serial entrepreneur for over 30 years and crashed and burned multiple times. No matter what happens, keep trying. You only have to get it right once.
Joanna Penn says
Thanks RE, and in my non-fiction book, I do share the number of times I crashed and burned 🙂 This is my 5th entrepreneurial venture, and I am hoping the one that will succeed! On retirement, writers never retire! I saw PD James speak last year – she’s 92 and still writing 🙂 I love the idea that we can continue to earn after everyone else leaves their day job!
Amber Dane says
Thanks for sharing such an inspiring post. I wrote a business plan when I posted my 1st novel for sale and have plans to tweak it this weekend. Your post reminded me of myself, minus the teaching and speaking. I walked away from my job in May and although it was a frightening leap,it was the right choice. Still not as open online as I’d like to be,especially on my blog,but maybe that will change one day. Appreciate the tips 🙂
Joanna Penn says
It probably took me about 2 years before I felt happier sharing deep & meaningful thoughts online 🙂 so don’t worry about that – we all have our boundaries. There are plenty of things I don’t share on here, but my business also depends on the readers of this blog, so I want to be honest about it. All the best with your leap 🙂
Morelos Barros says
Hi Joanna. First time reader. I am a freelance graphic designer and a writer and I have published a small book about Buddhism.
Breaking free from the corporate chains is rather difficult, but the rewards are huge.
Maybe one little tip I’d include is to lower your needs and expenses to the bare minimum when you begin as a full time writer. You can’t simply keep expending the same amount of precious cash as you used.
This is the one action that has kept me on business and gives me the freedom to be a writer.
All you say here is so true! Thank you very much for your tips.
Cheers from Mexico!
Joanna Penn says
Thanks Morelos – it’s great to hear from Mexico!
and of course, I am a year in so I did lower my expenses before taking the leap – we moved from a 4 bed house to a 1 bed flat for a start 🙂 I’m actually happier living more simply anyway.
Karen Fisher-Alaniz says
Joanne – This is such a great rundown of what your year was like. Thank you for your honesty. My debut memoir came out on 11/1/11. I think I could write a book about the book coming out and everything I’ve learned about the publishing and marketing process. It is just crazy. I had no idea. The misconceptions are rampant.
Even with some decent success, I couldn’t live on my wages for a month, let alone a year! But like you, I’m in this for the long haul. I have goals and creating multiple streams of income is one of them. Thank you for the great reminder that creating goals is imperative in this business.
On a side note, I just celebrated my 49th birthday in an unusual way. I spent two nights in a mountain cabin. I reflected on everything that has happened in the last year and made goals for the coming one. To me, my birthday is more of a new year, than January 1st is. Anyway, thanks for the added motivation, JoAnne! Love it! ~Karen
Joanna Penn says
Thanks Karen – and that first month’s income is often the smallest 🙂 My income went up significantly after 3 months and then again when the second book was released – so just get writing the next book!
Karen Fisher-Alaniz says
That’s what a writer-mentor said too. She said it takes 3 books before you see the sales really jump, which then includes the first book. There’s a saying among traditionally published authors that three weeks after your book comes out, all your publicist wants from you is your NEXT book! Geesh! ~Karen
Dougie Brimson says
Some wonderful posts on here and some great advice.
As someone who has ‘been there, done it and still doing it’ the most important thing I’d say to any writer looking to make a living is to ensure that your time management is absolutely spot on because it is all too easy to get wrapped up in everything else whilst forgetting to set the time aside to actually write!
David Clarke says
An inspirational post, as always, Joanna. There are so many nuggets of excellent advice there and a huge amount of positivity. Congratulations on your first year and good luck with the next one; I shall enjoy watching your star rise even further.
As someone who has benefited from a consultation with you and who is now ready (almost) to launch his book, I can recommend your no holds barred, down to earth approach to anyone out there who want to move forward as an indie.
Best
David
Vikram Narayan says
Hi Joanna,
Congratulations on spending a year without those golden handcuffs.
As an IT contractor if you decided not to work for a few days (ill health, other commitments etc.), your net earnings would be zero.
As an entrepreneur, you will continue to earn residual income even on those days when you decide to not get in to office.
In essence not only are you working on your profit and loss statement but you are also building up your balance sheet via assets being created (your books, your reputation as a writer, your publishing company brand name). Many people with steady pay checks neglect to factor this in and avoid making this leap.
It’s the entrepreneurs who make this world go around.
Keep pushing!
John Mountford says
Joanna,
Thank you for your very open response, however it has left me feeling still a little uneasy. May I be frank while acknowledging that I am still a newbie writer:
From reading Pentecost it was clear to me that you know how to write but that your prose is at times forced and clumsy. This, I imagine, is the norm for most first novels, mine included. This is where a good editor is so badly needed, more so than the copyediting: a good content/structure edit should erase as much of the ‘amateur’ from our writing as possible.
I raise this issue because I am looking for an editor for my manuscript; while I value your advice, I cannot afford to spend that amount of money for an edit that does not do this for me. I guess the question I am posing is this: are online editors up to the same standard as traditional publishing editors? Comments from your readership would be appreciated. Apologies for being a little blunt.
Joanna Penn says
John, you will have to decide what you think is best for an editor.
In the end, Pentecost has 91 reviews on Amazon with a 4 star average and over 30,000 ebook sales, so I am happy with the result – even though editing can never truly finish.
I have just done a re-edit for my agent for the submission to publishers and inevitably, if the book gets picked up, then i will do more edits. So whoever you hire, you will always be able to do more. All the best with it – but in the end, to be frank, this is not a post about editing, so let’s stop this thread of the conversation. Thanks. Joanna
Karen Fisher-Alaniz says
Yes, there are excellent editors out there. Although my book is traditionally published, and so obviously I had an in-house editor, I do know that there are freelance editors out there who worked in the industry. That said, I do think you have to be very, very careful about who you hire for such a thing. Recently, I was on a website and really enjoying the content. I did notice a spelling error and a grammatical error in the first sentence of the home page, but overall, I enjoyed it. It wasn’t until I poked around a little more that I realized this person was offering to edit your book. Yikes! Red flag.
So, I’d say be very careful; do your research.
Also, just my opinion, but I think you crossed that fine line between being blunt and being rude.
Dougie Brimson says
Yes, I also thought he was quite rude in the way he phrased his post.
Joanna Penn says
Thanks for your defence guys – but I don’t want this to be a thread about editing – the blog post is on being an entrepreneur so we’ll just leave it at that – thanks, Joanna
Jack tone says
Excellent and motivating post. I really liked this advice: “Action Point 2: Keep writing, keep producing, keep learning – and do it for the rest of your life.” That’s great advice because if you keep doing something, no matter what it is, eventually you will succeed; it’s only a matter of time.
Good luck in year two.
Joanna Penn says
Thanks Jack – I just hope it doesn’t take 30 years 🙂
Wendy says
I enjoyed reading about your experience with the London Library. I only wish that such a historical and inspiring place was available for me as well. London is on the other side of the planet for me and therefor a tad to far a commute. I make due with going to the local Starbucks or my local public library here in California, which at least is quiet and has free wi-fi. As an entrepreneur, I agree that it is important to get out of your home studio and be around people. If I did not do this, I would go crazy. I do this through booking booth space at festivals for my art where I can interact with my customers and get a little fresh air while making income. I remember that it took a good two to three years before my artisan business became profitable. I expect that it will be the same with selling my novels. Thank you for the inspirational article. I always look forward to your blog posts.
Joanna Penn says
2 – 3 years is a great plan Wendy, and I know how lucky I am to be in London. However, I did specifically move back here last year – from Australia, really the other side of the world! so it was a conscious decision to seek a more culturally inspiring location to live in. (I was in Brisbane which is great for beaches, bad for culture!) We all have to find our place in the world 🙂
Pamela Hegarty says
The “why” of your choices drew my attention. I’ve always treated writing not only as a passion, but a business, beginning with ten years as a travel writer, then returning to my first, more demanding, call to be a novelist. I feel that when we write a story, we write it because we have to write it and we are the only one who can write it. My thriller novel continues to be an international best seller, but deep within the intricate weave of a complex, action-packed plot, the thread that connects it and inspired me was something very personal. Without getting too intimate, let me just say that after the passing of my parents, I thought a lot about what happens after we die. My goal was to entertain readers, but I also hope readers found that thread of inspiration. So I guess one thing I’ve learned is to try to believe in yourself. Like the War of Art says, you need to fight that dragon every day. If you do, you’ll be amazed at what can happen.
Joanna Penn says
Hi Pamela – I have seen your book doing well in the Amazon charts so congrats on that! Thanks for sharing your motivations – we can definitely combine business and art as authors.
Marcia says
Yay! Joanna! I’m so happy you’ve had a great year! Your lessons help nail down the process for me and alleviate the self-doubt I’ve been carrying around. You were meant for this work. I agree that being 100% author isn’t you…you are so amazing at helping other writers learn and think more clearly about what we do. I hope one day to meet you at a conference. I’d love to connect on a face to face basis,too! This year, I’ve been working at being more professional in my writing career. As a retired person who worked almost 40 years, it’s so hard to get back into pro-work mode. I’m getting there and expect the next 12 months to see 3-4 books on the market and a very professional work attitude. Wishing you an even better year ahead!
Joanna Penn says
It would be great to meet you too Marcia 🙂 and on the self-doubt thing, I get it every day, so hang in there. I have been talking to my Mum about retirement as I think the struggles are very similar and she is going through this phase of wondering how to structure time as well. If you find or write a book on this, let me know as I think it is very common for active people retiring in their 60s to feel they have a lot more to give, but struggle with all the online stuff that would enable a new career that is age-independent … one of my hobby horses right now!
Good luck with all your books!