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is an older post and although you might find some useful tips, any technical or publishing information is likely to be out of date.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
Three years ago, I gave up a career as an IT business consultant for large corporates, earning a six-figure income, to become a full-time author-entrepreneur.
Over the last few years, I have shared my income split, business model and my lessons learned from year 1, as well as lessons learned from year 2. Here's the latest installment at the end of year 3.
How do I currently make a living as an author-entrepreneur?
I didn't double my income from last year as planned, but my overall income increased by 24% which isn't bad. I'm not doing a full income disclosure like some brave souls, but I did make over double the average income for a man in the UK in the last tax year.
The income split changed as I intended, which is great, as I am moving away from online courses to focus on book-based products, because they are more evergreen and don't need updating.
In the last year, the split has been:
• 40% book royalties
• 25% course sales and consulting
• 20% commission/affiliate sales/sponsorship
• 15% professional speaking
I have followed the plan to write more books and create more products in the world. I currently have five books in the ARKANE action-adventure thriller series, and two in the London Psychic series. The books are available in ebook, print and audio formats.
I also have books in German, Spanish and Italian. I've sold books in 58 countries (as itemized by the Kobo Writing Life reporting map right.) I also have four non-fiction books, available in print and ebook formats, and coming soon in audio.
There are new revenue streams from audiobooks since ACX launched, and direct payments from Apple and Nook, as well as Kobo and Amazon, plus podcast sponsorship. I'm pleased about that as I have a lot of issues being dependent on one income source – put that down to being laid off during the GFC!
One of my books was in a box-set that hit the New York Times and USA Today bestseller lists in March, and I have my first traditional deal with Ullstein-Midnight, a German imprint, for Desecration-Verletzung.
I continue to sell some multimedia courses, although those will mostly be phased out in the next year. The blog, podcast and my email list earn me affiliate commission as well as sponsorship and occasional advertising revenue. I do some occasional, exclusive consulting. I also continue to speak professionally both in the UK and abroad. I was on a panel at Thrillerfest in New York in July, and am speaking in Stockholm and Frankfurt in the next few weeks.
Here are my lessons learned from the last year.
Lesson 1: The industry changes but the fundamentals of what we do doesn't change
There have been a number of changes in the publishing eco-system in the last year which have created a ‘disturbance in the force,' and distracted me and others. But these ups and downs will continue over our lifetimes.
Change is certain but we can't let every little spat distract us from our task.
We write books. We get them into the world using one of many available publishing options. We connect with readers. We receive payment and use that money to live well and experience everything that feeds back into our books.
The tools, the companies, the technology that allows us to do these things may well change, but our job remains the same. Remaining agile is one key to managing the change, so being indie continues to suit me well.
Lesson 2: “If it's just about the cashflow, go back to your day job”
So said my husband when I reviewed the income projections for my books and lamented missing my targets. He's right. I earned three times as much money as a business consultant, but I was so unhappy, I could never have sustained it. I was at the point of crying most days because I hated it so much.
I love this author life. I couldn't imagine living any other way now, but although cash-flow is important, it's not my driving force. Freedom is.
Freedom to create, to live how I want to, to travel, to help people, to control my time, to build my own brand and my own assets.
I've had a number of opportunities this year that I've turned down, even though taking them would have earned me more money.
Strategy is about what we don't do, as well as what we do.
With a finite amount of time and energy, we have to focus on the true reasons why we live this life. My recent novel, Delirium, may have a smaller audience than a happy-ending-romance but it's what I am drawn to write. Like Stephen King says about writing horror, “What makes you think I have a choice?”
Lesson 3: It takes time to let go of self-censorship and find your true voice
Desecration was the first book where I finally let my true self out, and Delirium continues in that vein with a very personal author's note at the end. I love my ARKANE series but these are the first books where I feel my true voice shines through.
Both books are supernatural suspense/ crime thrillers that tackle underlying themes I've been wrestling with all my life. Many authors struggle with the fear of judgement and I have let that hold me back for a long time.
I really am this happy, jolly, smiley girl you see at TheCreativePenn.com … but my shadow side is now revealed in J.F.Penn. I'm finally at peace with letting this other side out … but it's taken many years to get here. I'm ready to let it out now!
Lesson 4: It all comes back to creativity
I'm in a transition phase right now, which means a lot of turmoil and journaling! I have spent the last few years learning how this industry works, learning my craft as a fiction writer, learning about marketing and speaking … and the result of that has been this blog, the podcast and my non-fiction books.
As stated above, my last few fiction books have felt like a shift, as I have found my voice. Plus, I'm 40 next year, and unsurprisingly, I do find myself taking stock. What I am discovering is that this quote from T.S.Eliot is true:
“We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time.”
I find myself drawn back to creativity, back to exploring what's in my mind, trying to understand how I can delve deeper into my creativity and learn more about releasing it from the critic that tries to destroy every idea.
Way back in 2007, I made a little card with an affirmation on: “I am creative. I am an author.”
I couldn't even say it out loud back then, but I read it in my head until I could say it. And then I read it out loud every day until I believed it. And then I took action to make it happen. In some ways, I have achieved that affirmation – in other ways, I am only just beginning to understand what it means.
I look forward to exploring this and sharing the journey with you!
My plans for Author-Entrepreneur Year 4
My plans and focus for the next year include:
- Big focus on primarily fiction. I have a LOT of ideas, I just need to get them on the page. I have a number of stand-alones as well as (working titles) Inquisition and Kali in the ARKANE series, and a new one in the London Psychic series. I also want to write a psychology for writers book. I will continue to focus on exploiting the rights per book, as well as recording more of my own audio.
- Taking more risks and learning how to keep my critic quiet. My critic is a ‘good girl,' she wants universal adoration. She doesn't like annoying people or going too far to the edge. It's time for her to know her place. I just have to work out how to shut her down in the first draft. I'm definitely intending to do some Improv training, learning how to say ‘yes' to any impulse.
- Speak internationally on creative entrepreneurship, focusing on fewer, more highly paid events, that support my goals around travel and personal development.
- Continue to serve the audience of TheCreativePenn.com through blogging and podcasting as well as social media.
- Increase my income by 30% and change my income split to 50% book royalties, 10% course sales and consulting, 20% commission/affiliate sales/sponsorship, 20% professional speaking.
I look forward to sharing the next year with you!
Please do leave your comments below and join the conversation – I value each and every one!
Top image: Flickr Creative Commons champagne by Andrea Parrish, handwriting by Dave King,
Daniel says
Congratulations on the three years, and thanks for sharing your lessons with us. Inspiring as always.
Al says
Thank you for sharing your journey thus far. I hope next year exceeds your hopes and expectations.
‘learning how to say ‘yes’ to any impulse’
I think this is the key to both fulfillment and success.
Kirk says
Congratulations, Joanna! Hope you far exceed your goals for this year. Thanks for sharing and for all you do on The Creative Penn.
Kirk
Megan Linden says
Congrats on your anniversary, Joanna! Great job! 🙂
I think what you’ve accomplished is really impressive and although your income isn’t yet what you hoped it would be, making over double the average is good, especially as an author.
Good luck with your new goals and here’s to fantastic year four!
Megan
Joanna Penn says
Thanks Megan – my goal is to reach what I earned after 13 years as a business consultant – so I have a few years to go yet 🙂
Natalie K. says
Congratulations, Joanna! Three years working for yourself, basically having your own business, is a real accomplishment. I wish you the best of luck in the future! 🙂
Rebecca Cantrell says
Congratulations on achieving so much in such a short time! That’s amazing.
Have you read The Artist’s Way by Julia Cameron? Working through some of those exercises really helped me to find my voice and keep my inner critic at bay (most of the time–I still have a way to go!).
Joanna Penn says
Hi Becky, yes, I read the Artist’s Way years ago and stand by the Artist’s date as a core of my own creative practice – mine sometimes stretch for days rather than hours 🙂
Thank you!
Michael Kelberer says
Congrats, Joanna. You continue to inspire me along a similar journey, and I very much appreciate both your professional insights and personal candidness!
Best of luck in year 4!
Michael
Robin Lyons says
You go girl! I know I’ve benefited from being on this journey with you, thank you. May your 4th year be the best yet.
Joanna Penn says
Thanks – sometimes it’s hard to be open about these things, so it’s great to know that it helps!
Leda Sammarco says
This is a wonderful post, I really admire and appreciate your openness in sharing all of this. I’m at a transition with my own business, so it feels very timely. I particularly like the part about finding your true voice and showing both sides of yourself. Wishing you all the very best for year 4 – may it exceed your expectations.
Joanna Penn says
Thanks Leda, and I know we’ve been connected for a number of years now – thank you for following the journey – and I wish you all the best with your own business transition!
Margarita Morris says
Congratulations on what you’ve achieved. Reading your post is inspirational!
Eduardo Suastegui says
Thanks for sharing this. Very inspirational for me, not yet half a year into ‘the life’ once I clicked the ‘Publish’ button. Good to hear you’re going to be focusing more on your fiction on year 4. Write on!
Joanna Penn says
Thanks Eduardo – part of writing these posts is to keep myself accountable 🙂 All the best for your next 6 months!
Vick says
That’s awesome. I started writing fiction this year, but all was novella type books. But I’m in the process of writing standalones also and more novels this year. I didn’t receive a lot in royalties this year from my books but hey its a start. I have some non fiction books that keeps me a float but I plan to put more fiction works out this year. I follow you and you have taught me a lot. I learned a lot from your website alone. I thank you for that. Keep your head up. You can do it.
Joanna Penn says
Thanks Vick – and yes, I find a combination of fiction and non-fiction works for income … I hope we can both find some momentum with more books this year 🙂
Henry Hyde says
Huge congratulations – I can’t believe it’s only 3 years – it seems like you’ve been around forever! (In a nice way…) Well done, your journey has been inspiring to so many of us. I look forward to your 30th anniversary. 🙂
Joanna Penn says
I’ll take it as a compliment, Henry! The blog is 6 years old this Dec, I started the site in 2008 – but I went fulltime in Sept 2011 – so maybe you found me while I still had a day job 🙂
Ruth Skilbeck says
A moving and inspirational account of your writer’s journey Joanna, thanks for sharing this, and for your writing and for sharing so much with your readers, you are a leading light in this new field and I wish you all the best.
Joe says
Thank you Joanna for all that you share with us. I love your podcast, I’ve learned a lot from it and I’m forever grateful.
No guts, no glory… you’re living your life on your own terms, the piece of mind that comes with that is priceless.
I used to have a large retail business with 6 employees, I made a lot more money then. I HATED it with a passion. My head hurt every night when I got home.
I down sized to just me and my wife and I make a lot less money now. I miss the money, but I don’t miss the rest of it. Not even a little.
I’ve been a mechanic all my life and my body is now telling me it’s time to do something else, I’ve considered going back to running the big shop so I can have employees do all the physical work instead of me. I would be making more money again and saving my body.
After having thought about it long and hard, I think I’d rather try herding cats instead. I’d rather be broke and happy than rich and miserable.
Joanna Penn says
Hi Joe – I agree with you on the employee thing – for me, freedom is so important – and having no employees, no office, no physical stock – these are the things that enable me to be happy!
I meet some women in my networking groups who make multi-gazillions and have businesses with loads of employees and it makes me shudder – I LOVE the freedom we have as creatives – and it’s about lifestyle, not money. Congrats on making the happy choices – we only have one life!
Nigel says
Thank you for sharing the above.
Do you think that you can add to your ‘I am creative, I am an author’ card’, the words ‘I am free’, yet, as you mentioned in Lesson 2?
Keep up the good work.
Joanna Penn says
Thanks Nigel – I think I have felt free for a long time, so that wasn’t a goal for that moment – but you’re welcome to make your own card!
Gilbert says
Congratulations, Joanna! It seems the sun never sets in your markets…
Joanna Penn says
The sun never sets – or keeps setting – on a global business 🙂
Robyn LaRue says
Amazing three years! So glad you are doing well. Can’t wait for my copy of Delirium to arrive.
Your transparency is an incredible help to those of us starting out. I’ve learned more from you than I can quantify. Thank you so much!
Joanna Penn says
Thanks so much Robyn, and thanks for trying my fiction too 🙂 Delirium is a special book to me, you’ll see by the author’s note!
I shall continue to be transparent 🙂
Karen Inglis says
Congratulations, Jo – you are so energised and such an inspiration. This especially rings true: “Strategy is about what we don’t do, as well as what we do.” I’m with you on that – and on turning down the bigger day-job bucks. (I just have farther to fall in terms of income due to my segment – LOL! But love every minute of it!)
Joanna Penn says
You continue to be my go to recommendation for kid’s book authors, Karen – you’re also an inspiration for how hard you work, and how generous you are in sharing too! We have a great community!
R.W. Peake says
Dear Joanna,
I just wanted to say that I enjoyed this post very much, and absolutely echo your sentiments. Although I am not as diversified as you, to say I’m happy, (and thrilled, and surprised, and excited, and…) doesn’t begin to describe it.
I’ve been doing this a little more than 2 years, and in that time have managed to build an audience that has allowed me to say without a shadow of a doubt that, although it’s my fourth, I am in my final career. And the fact that the pay is even better than when I was a VP of a software company, and I work from my couch is just a bonus. Not to mention the freedom to crazy things like decide on the spur of the moment to spend a month in Rome. (Which I can write off since that is the genre in which I write.)
I’ve been lucky enough to experience success in my other careers, and in other areas of my life, but outside of being a father, and a retired U.S. Marine, I have to say that I am prouder of myself for this new life than anything else I’ve done. But not because of the success itself, although that doesn’t hurt; as my daughter would point out, the one thing I DON’T need is a bigger ego!
No, what I’m proudest of is that I took the risk in the first place, especially given my advanced age, relatively speaking. I was 50 when I made the decision not to continue life on the hamster wheel that is upper management of the corporate world. I literally slept with my Blackberry under my pillow because I managed software development teams on opposite sides of the world, and I can’t count the number of 2:00 A.M. conference calls because of some emergency. I was making great money…and was thoroughly miserable.
So I stopped sending out resumes in early 2009, sold my large house in Houston, Texas, put most of my stuff in storage, and moved me and my dog Luke up to the Olympic Peninsula in Washington. Instead of another house, I settled into a 37 foot travel trailer, and did nothing but write. And write. And write.
Then I got what, at the time, I considered a crushing number of rejections from agents and publishers….all 25 of them. (I laugh at that now, knowing for example what Amanda Hocking went through)
Then I took that step of self-publishing, which as we both know, comes with a built-in stigma. But now I’m at a point where there is absolutely no upside to me going with a publisher, even if they were to offer the mythical million dollar advance.
Frankly, I’m happy to see that I’m not the only indie who is so happy with their decision.