#HowToAuthor: Book Deals & Marketing

Don't quit your day job (unless you can)

Now that we've gone over the sobering truth about book deal money--that you are unlikely to get a lot of it--let's talk about the big dream: quitting your job to write books full time.

Most people can't do this. But some people can.

Before I go into situations where it is possible to quit one's day job and write full time, let's go over payment schedules in publishing. Your advance money will be paid out to you in installments, with the most money coming to you relatively close to your deal closing. Subsequent payments will be smaller.

Here is a hypothetical deal situation (which is not based on my book deal--I did not get this much money, haha) to demonstrate how the money would flow to the author. I am choosing to show a 2-book deal paid out over three years, and have purposely chosen an above average deal in order to quash expectations. I'm nice! Let's say you get an advance of 200K for a book deal offer that comes in the month of June 2017. Your publication date is set for June 2019--two years from the offer (common). So book one will publish June 2019, book two will publish June 2020.

Your deal will likely be split into 5 payments of:

$66,666 upon signing of your contract + 4 payments of $33,333. The subsequent payments come when: 1) your 1st book is turned into your editor and accepted as OK to publish 2) when your 1st book is published 3) your 2nd book is turned into your editor and accepted as OK to publish and 4) when your 2nd book is published.

Here is an average schedule for when each of these terms will be likely to be met (taking into account delays on the publisher's end, because everything in publishing is slow, in getting the money to you):

Anywhere between August 2017 and Spring 2018 (or longer) for the $66,666 upon signing/execution of completed contract. Contracts can take time. This will be your largest single payment.

If your book releases June 2019, it likely won't be turned into your editor and OKed to publish until June 2018 or Fall 2018 AT BEST.

Your next payment will trigger when your first book is release, so summer 2019

Same thing as before: most likely your 2nd book will be accepted by your publisher triggering your third payment in summer or Fall 2019, but sometimes second books drag into publication year, so things could be accepted in Winter 2020.

Your last payment will be upon publication, Summer 2020.

Throughout all this, let's hope your publisher pays you on time!

Here's a video from my YouTube channel that breaks down a number of advances!

Now I know what you're thinking: Alexa, that is a lot of money. What crazy LA-life are you living? I agree: on the face of it, this is $200,000!  That's legit cash.

First, subtract your agent fee, which is 15% of everything. Your 200K is now 170K. Still not bad, though the payments coming to you are now: $56,666 + 4 payments of $28,333.

Then, Uncle Sam comes for your money. This is where it HURTS.

Jennifer Laughran is generous in her number crunching (you can Google her post), but I'm a "worst case scenario" kind of gal. I'm going to use the tax rate Uncle Sam applied to my similar freelance income last year: 38%. It's best to prepare for the worst and hope for the best.

After setting aside 38% of each payment for taxes, this is what you have left: $35,133 + 4 payments of $17,566. Total over three years = $105,400

And here is how it looks on that payment schedule:

$35,133 in 2017

$17,566 in 2018

$17,566 in 2019 (or $35,133, depending on schedules)

$17,566 in 2020 (or not, if it is paid out in 2019)

I would not be able to live off this money, living in Los Angeles as a single person. If you're in a really cheap area? Maybe... for year one (35K annual income is fine in many places).

And this is a breakdown for a higher than average 2-book deal. Plug in lower numbers and the outcome is more bleak. If this money were spread across three books, the payments would be smaller and even more spread out.

This isn't to cry about book deal money, but to point out that the average single person would be unable to live comfortably--or at all--on this income.

Which brings me to: who CAN quit their day job? (continue to the next chapter to find out!)