I was recently asked why my books are so expensive. Surely, the reasoning goes, if my books would cost 99 cents, I'd have more sales and make more money, and besides, it would curb piracy.
No. At 99 cents, I couldn't live off writing, simple as that. I most definitely wouldn't even have attempted becoming a full-time writer. In fact, I wouldn't have walked out of my day job, and would very likely now be doing some (read: any) job out there, leading to less time to write and possibly giving up.
Let's walk through the facts and numbers:
Amazon sets the price bracket
The common price points for books are heavily engineered by Amazon based on the payout. Amazon pays out 70% on books priced between $2.99 and $9.99, and only 30% on books priced below $2.99 or over $9.99.
In other words, a self-published writer makes about $0.30 for a 99-cents book, but about $2 for a $2.99 book.
And why is Amazon important? Because Amazon is 80-90% of everybody's ebook sales.
Cost of producing a book
Producing a novel-length book properly (edits, edits again, decent cover, formatting, conversion, etc) easily costs between $1,500 (that's low-balling, because I've cut deals with some people) and $2,000 - all of this is money you have to invest before the money is starting to roll in. There are people who don't invest in an editor, because an editor is by far the most expensive part of production, but a good editor makes all the difference. There are people who cut corners on editing and claim nobody notices. Well, I notice, and I want to publish books that are worthwhile, which means investing enough money to make sure I'm proud of what I'm putting out.
Now, if you self-publish, you need to sell nearly 6,700 copies to make your money back at $.30 royalties per copy. And this is where the kicker is - speaking from my own personal experience, I haven't written even one book that has sold that many copies. Even if I do manage by some miracle to sell 6,700 copies - at that point, I haven't even been paid for my work.
Conversely, let's assume you have a really, really good contract and a publisher would pay you 50% of earnings per copy (publishers pay closer to 25-40%), a publisher would have to sell twice those 6,700 (= 13,400) copies for the author to make $2,000 for a novel. The publisher has to pay for its own expenses, aka marketing, staff, possibly offices, conferences, IT support, corporation tax (that's after footing the bill for production costs of the actual book).
Investment in training/man-hours
I haven't crunched the actual numbers, but let's assume a novel is about 100-300 hours of work (I'm pretty sure that a historical novel, with all the research and fact-checking is a lot more than that) and you do manage to sell those 6,700 copies and do make $2,000 for a book. If you average the production time (200 hours), that would be a theoretical $10/hour (before tax, before cost like internet connection, heating, research books). That's about £6/hour. Minimum wage in the UK is £6.50/hr, while London "living wage" (how much you need to cover living costs in London) is £7.85/hr.
Now, I've made more making sandwiches at gas stations (EUR 9/hr), which required about a 30-minute training. Yes, everybody can write, but to write something other people want to read takes tens of thousands of hours of practice, which isn't paid and incurs quite a bit of cost as well. I'd estimate if you're working very hard and have access to mentoring and how-to books, it will still take 3-7 years to train yourself to become a writer who can write a decent story. I've been writing and learning for 20+ years.
And we often forget all the other hours an author spends on supporting their books and being available to readers: answering reader emails, blogging, paying out of pocket for print books for giveaways, swag, attending conferences, postage and admin for sending signed print books around the world, responding and being present on social media, responding to thousands of messages and questions overall. All those are hours not spent writing or doing a day job. I believe they have value.
Depth of market
I don't have access to actual hard sales data apart from my own and some data from friends and colleagues, but I do have a decent idea about the size of the m/m market specifically. In m/m, I'm considered a "mid-lister", which is a polite way of placing my sales somewhere in between "doesn't sell enough to make money" and "bestseller". I'm in that nebulous area where I'm making some money but still can't afford to travel to GRL on my writing income alone and where a month of bad sales means I'm fretting about whether this whole thing was a crap idea and whether I shouldn't just go back to a day job because every year out of the day job means I'm getting less employable.
I have steady sales on some books (thank you, Dark Soul and Market Garden), but even so, only very few of my books have sold more than 3,000 copies - and those that did were co-written (in other words, I only make half the money on those). I don't think any of them have sold more than 6,700 copies.
Now, obviously there are best-sellers in m/m who sell 20,000 and 30,000 copies of a book, so there's some depth in the market, and you could argue that the high prices keep people from buying the other books. Let's test that theory: I've experimented with freebies (Bookbub/giveaways), and the best performance of those was another 2,000 copies given away for free for a book that had sold 2,000 copies thereabouts.
If that number had been 20,000 copies, that would have meant there's 20,000 people I'm not reaching because of the high prices. But there aren't. Even assuming the "freebie downloaders" would be willing to pay 99 cents for a book, I'd only reach 4,000 people with my average book if I priced it at 99 cents. Still way short of the 6,700 I need to earn the initial $2,000 investment let alone make even a dollar of profit.
Alternatives
Short of becoming a bestseller, who reliably sells 20,000 copies of everything (which isn't really in my control), there are obviously ways to make the numbers work. Considering that 70-80% of those $2,000 production costs are editing costs, there are authors out there who simply don't pay a professional editor. I've tried that: I've had Return on Investment checked by a lot of friends and I gutted it myself, and I'm a decent self-editor, but I know Return on Investment would have been a better book if I'd paid a professional editor. At that point in time, I just couldn't afford it and so I did the best I could. I don't regret it, but I wish I'd had had the money. But then, I expected it to sell maybe 100-200 copies in total.
Thankfully, there's so many free books out there that people who don't want to pay for their reading don't have to. There's tons of fanfiction and free fiction on the internet, and a lot of it is very good. The Kindle Free list is huge and gets more books added every day. Of my own works, there's Special Forces, which is 1,000,000 words (roughly equivalent to 10-15 novels, which would cost people normally $75-100 to buy if we assume an e-book price of $6.99 per novel).
Other authors are doing it
Some authors are making the 99-cent model work for them. Mostly, these books are very short (flash fiction, short stories) or aren't edited (the "throw unedited crap onto the market" model), and then readers complain about how the book was too short or the novel was so bad it wasn't even worth those 99 cents. However, this is not what I want to be known for - I like to take pride in my work and do the best I can, which does mean some investment in a good team. (And yes, I charge more than 99 cents even for short stories, because they still cost money to produce properly.)
But there are some authors that do edit their stuff and still put it out for 99 cents. These are usually first books in a series, or cheap tasters, and the bet is that the reader will enjoy the book so much they'll pay more for the next installments in the series, at which point, everybody wins and the author earns money from the other books (another version of this is the "permafree" series starter, where the first book is free). A 99-cent book is like getting offered a piece of cheese at the cheese counter - it's always to entice the customer to then buy more of the cheese they liked.
There are also bundle deals - I recently bought two 99-cents bundles. One was a bundle of ten epic fantasy novels, the other a bundle of ten hetero historical romances. These bundles are usually an attempt to break a bestseller list (like the New York Times Bestseller List), so the participants can adorn their names with the very coveted "New York Times Bestseller" bit. I bought those because I was quite ready to discover new-to-me authors in a genre I love (epic fantasy) or do market research in a genre related to my own (hetero historical romance). If I find an author I like, I'll buy their full-priced backlist.
And I think in some genres, the 99-cent model can work. But these tend to be BIG genres, like hetero romance or thriller/mystery. M/M in my view is too small to support the same kind of numbers. I'm hopeful this might change over time, but we're not there yet.
What if writing doesn't pay
If writers can't earn a living from writing, the obvious solution is that somebody else has to pay for them to live. I have writer friends who're on social security (nothing shameful about it - it's never really a choice), or have wealthy spouses (personally, I prefer the power balance in a relationship to be more equal). Others have several day jobs and run the risk of burning themselves out. I can't count the writers who have severe mental and physical health issues because of stress or massive self-exploitation to somehow make this thing work.
Obviously, nobody owes a writer a living. I'm not entitled to sales, but I am entitled to profit off my copyright (I wrote it, I get to sell it by law, so yes, I object to piracy). At the moment, my writing is my only source of income, and it's not enough to make pension contributions or rack up savings (and I'm 39 years old, so I need to plan for retirement, as I won't inherit any money).
At the moment I get by on less than UK minimum wage. I still need to make a profit, because my only alternative is to return to full-time work and that means more stress, less writing, fewer releases. I would even have returned to a day job, if I could have found a job in my field. EVEN so I'm acquiring qualifications to earn money from a career unrelated to writing - I like a Plan A, B and C.
But in the meantime, I need to charge more than 99 cents for my work.
No. At 99 cents, I couldn't live off writing, simple as that. I most definitely wouldn't even have attempted becoming a full-time writer. In fact, I wouldn't have walked out of my day job, and would very likely now be doing some (read: any) job out there, leading to less time to write and possibly giving up.
Let's walk through the facts and numbers:
Amazon sets the price bracket
The common price points for books are heavily engineered by Amazon based on the payout. Amazon pays out 70% on books priced between $2.99 and $9.99, and only 30% on books priced below $2.99 or over $9.99.
In other words, a self-published writer makes about $0.30 for a 99-cents book, but about $2 for a $2.99 book.
And why is Amazon important? Because Amazon is 80-90% of everybody's ebook sales.
Cost of producing a book
Producing a novel-length book properly (edits, edits again, decent cover, formatting, conversion, etc) easily costs between $1,500 (that's low-balling, because I've cut deals with some people) and $2,000 - all of this is money you have to invest before the money is starting to roll in. There are people who don't invest in an editor, because an editor is by far the most expensive part of production, but a good editor makes all the difference. There are people who cut corners on editing and claim nobody notices. Well, I notice, and I want to publish books that are worthwhile, which means investing enough money to make sure I'm proud of what I'm putting out.
Now, if you self-publish, you need to sell nearly 6,700 copies to make your money back at $.30 royalties per copy. And this is where the kicker is - speaking from my own personal experience, I haven't written even one book that has sold that many copies. Even if I do manage by some miracle to sell 6,700 copies - at that point, I haven't even been paid for my work.
Conversely, let's assume you have a really, really good contract and a publisher would pay you 50% of earnings per copy (publishers pay closer to 25-40%), a publisher would have to sell twice those 6,700 (= 13,400) copies for the author to make $2,000 for a novel. The publisher has to pay for its own expenses, aka marketing, staff, possibly offices, conferences, IT support, corporation tax (that's after footing the bill for production costs of the actual book).
Investment in training/man-hours
I haven't crunched the actual numbers, but let's assume a novel is about 100-300 hours of work (I'm pretty sure that a historical novel, with all the research and fact-checking is a lot more than that) and you do manage to sell those 6,700 copies and do make $2,000 for a book. If you average the production time (200 hours), that would be a theoretical $10/hour (before tax, before cost like internet connection, heating, research books). That's about £6/hour. Minimum wage in the UK is £6.50/hr, while London "living wage" (how much you need to cover living costs in London) is £7.85/hr.
Now, I've made more making sandwiches at gas stations (EUR 9/hr), which required about a 30-minute training. Yes, everybody can write, but to write something other people want to read takes tens of thousands of hours of practice, which isn't paid and incurs quite a bit of cost as well. I'd estimate if you're working very hard and have access to mentoring and how-to books, it will still take 3-7 years to train yourself to become a writer who can write a decent story. I've been writing and learning for 20+ years.
And we often forget all the other hours an author spends on supporting their books and being available to readers: answering reader emails, blogging, paying out of pocket for print books for giveaways, swag, attending conferences, postage and admin for sending signed print books around the world, responding and being present on social media, responding to thousands of messages and questions overall. All those are hours not spent writing or doing a day job. I believe they have value.
Depth of market
I don't have access to actual hard sales data apart from my own and some data from friends and colleagues, but I do have a decent idea about the size of the m/m market specifically. In m/m, I'm considered a "mid-lister", which is a polite way of placing my sales somewhere in between "doesn't sell enough to make money" and "bestseller". I'm in that nebulous area where I'm making some money but still can't afford to travel to GRL on my writing income alone and where a month of bad sales means I'm fretting about whether this whole thing was a crap idea and whether I shouldn't just go back to a day job because every year out of the day job means I'm getting less employable.
I have steady sales on some books (thank you, Dark Soul and Market Garden), but even so, only very few of my books have sold more than 3,000 copies - and those that did were co-written (in other words, I only make half the money on those). I don't think any of them have sold more than 6,700 copies.
Now, obviously there are best-sellers in m/m who sell 20,000 and 30,000 copies of a book, so there's some depth in the market, and you could argue that the high prices keep people from buying the other books. Let's test that theory: I've experimented with freebies (Bookbub/giveaways), and the best performance of those was another 2,000 copies given away for free for a book that had sold 2,000 copies thereabouts.
If that number had been 20,000 copies, that would have meant there's 20,000 people I'm not reaching because of the high prices. But there aren't. Even assuming the "freebie downloaders" would be willing to pay 99 cents for a book, I'd only reach 4,000 people with my average book if I priced it at 99 cents. Still way short of the 6,700 I need to earn the initial $2,000 investment let alone make even a dollar of profit.
Alternatives
Short of becoming a bestseller, who reliably sells 20,000 copies of everything (which isn't really in my control), there are obviously ways to make the numbers work. Considering that 70-80% of those $2,000 production costs are editing costs, there are authors out there who simply don't pay a professional editor. I've tried that: I've had Return on Investment checked by a lot of friends and I gutted it myself, and I'm a decent self-editor, but I know Return on Investment would have been a better book if I'd paid a professional editor. At that point in time, I just couldn't afford it and so I did the best I could. I don't regret it, but I wish I'd had had the money. But then, I expected it to sell maybe 100-200 copies in total.
Thankfully, there's so many free books out there that people who don't want to pay for their reading don't have to. There's tons of fanfiction and free fiction on the internet, and a lot of it is very good. The Kindle Free list is huge and gets more books added every day. Of my own works, there's Special Forces, which is 1,000,000 words (roughly equivalent to 10-15 novels, which would cost people normally $75-100 to buy if we assume an e-book price of $6.99 per novel).
Other authors are doing it
Some authors are making the 99-cent model work for them. Mostly, these books are very short (flash fiction, short stories) or aren't edited (the "throw unedited crap onto the market" model), and then readers complain about how the book was too short or the novel was so bad it wasn't even worth those 99 cents. However, this is not what I want to be known for - I like to take pride in my work and do the best I can, which does mean some investment in a good team. (And yes, I charge more than 99 cents even for short stories, because they still cost money to produce properly.)
But there are some authors that do edit their stuff and still put it out for 99 cents. These are usually first books in a series, or cheap tasters, and the bet is that the reader will enjoy the book so much they'll pay more for the next installments in the series, at which point, everybody wins and the author earns money from the other books (another version of this is the "permafree" series starter, where the first book is free). A 99-cent book is like getting offered a piece of cheese at the cheese counter - it's always to entice the customer to then buy more of the cheese they liked.
There are also bundle deals - I recently bought two 99-cents bundles. One was a bundle of ten epic fantasy novels, the other a bundle of ten hetero historical romances. These bundles are usually an attempt to break a bestseller list (like the New York Times Bestseller List), so the participants can adorn their names with the very coveted "New York Times Bestseller" bit. I bought those because I was quite ready to discover new-to-me authors in a genre I love (epic fantasy) or do market research in a genre related to my own (hetero historical romance). If I find an author I like, I'll buy their full-priced backlist.
And I think in some genres, the 99-cent model can work. But these tend to be BIG genres, like hetero romance or thriller/mystery. M/M in my view is too small to support the same kind of numbers. I'm hopeful this might change over time, but we're not there yet.
What if writing doesn't pay
If writers can't earn a living from writing, the obvious solution is that somebody else has to pay for them to live. I have writer friends who're on social security (nothing shameful about it - it's never really a choice), or have wealthy spouses (personally, I prefer the power balance in a relationship to be more equal). Others have several day jobs and run the risk of burning themselves out. I can't count the writers who have severe mental and physical health issues because of stress or massive self-exploitation to somehow make this thing work.
Obviously, nobody owes a writer a living. I'm not entitled to sales, but I am entitled to profit off my copyright (I wrote it, I get to sell it by law, so yes, I object to piracy). At the moment, my writing is my only source of income, and it's not enough to make pension contributions or rack up savings (and I'm 39 years old, so I need to plan for retirement, as I won't inherit any money).
At the moment I get by on less than UK minimum wage. I still need to make a profit, because my only alternative is to return to full-time work and that means more stress, less writing, fewer releases. I would even have returned to a day job, if I could have found a job in my field. EVEN so I'm acquiring qualifications to earn money from a career unrelated to writing - I like a Plan A, B and C.
But in the meantime, I need to charge more than 99 cents for my work.