Where Does All the Money Go in Publishing a Book?

Where Does All the Money Go in Publishing a Book?

Have you ever compared the numbers behind the publishing of a book in print compared to self-publishing a book in digital format? Have you ever wondered why authors receive very little of the retail price of their book? Why are margins greater for eBook authors?

Below I have documented where some of the money goes in producing a book. The key point to note is that with eBooks there are no longer big costs associated with production (low if any), storage and shipping.

The costs for marketing will also be lower if you use the many free techniques presented to you in this eBook. If you choose paid options then that will come down to the return you receive for every dollar spent.

There are some legitimate reasons as to why publishers have taken such a big chunk in royalties from book sales.  The costs associated with printing and publishing a book were once very expensive.  With POD (print on demand) the model has changed.

Here’s where the money goes in traditional publishing models for books:

  • Production of book
  • Cover design
  • Typesetting
  • Copy-editing
  • Wholesale proceeds to publisher
  • Storage and warehousing of books
  • Shipping and delivery
  • Marketing and promotion
  • Author’s royalties
  • Publisher’s gross margin

All this information is provided so that you can make better informed decisions. I still enjoy books in print and know that anyone who has walked into a book store and seen their book on the shelf for sale has received a buzz.

So it’s all about considering the best return for you as an author. It is important to understand the extra costs involved in selling a book in print form so you can appreciate what goes into getting your book from manuscript to book store.