By Henry DeVries, CEO, Indie Books Intl.
Dang that old adage: it takes money to make money. Authors should not buy into the dream they will write a book and be discovered, and money will flow in like a lottery jackpot windfall. Let’s talk reality.
Publishing a book is an investment and should be looked at like an investment. In my studies I have documented returns of 400 to 2,000 percent for consultants who correctly use publishing and speaking as a marketing strategy. As a disclaimer I should say “your results may vary.”
But that being said, where does the money come from? Not everyone has the $5,000 to $25,000 necessary to write, publish, and promote a book.
For some consultants, the money comes out of cash flow. Happily, the entire amount is not needed up front. Typically, this money is spread out over the six to twelve months that is takes to properly prepare and publish a manuscript. A consultant that wants to earn an extra $100,000 in gross revenues above what they are making now should expect to invest $35,000 to do it (the pre-tax net will probably be $50,000).
If the money cannot come from savings or cash flow, then the author needs to be creative. The money can come from retirement savings accounts or borrowing from life insurance policy cash reserves; I know I have done both to build my business. There is also borrowing against the equity of a home. There are loans from family and friends. Others are exploring crowd sourcing as a funding option for the book.