How much do authors earn from royalties?

Question

I want to know what the normal royalty rate for most authors and how much do they earn from it. And also how much does a bestselling novelist earn. What do you suppose is the royalty rate of authors like JK Rowling, John Grisham, Stephen King and Stephenie Meyer.

Is it also possible for you to become rich by writing books?

Please answer all my questions!

Thanks :-)

Answer 1

Most genre's have a set basic percentage for royalties and the contract is also pretty standardized for first time authors, writer beware website as well as the writers guild have a verbatim copy of my contract with the percentage rate blank.

I write romance for a pretty large publisher and they have the international rights.  They hold the title for as many years as they continue to print and sell the novel for a contracted amount of years.  Watch for that in contract because some of them can sell one copy in Vietnam and retain the rights for another three years.

     I've heard percentage rates as low as 2% to 10% for contracted first time authors.  Some luck out and get higher for multiple titles.  Six books 10 thru 20 percent.  You also get an advance standard 2500 per book to 5000.  This advance must be paid out through the profit of sales from your book prior to you receiving your first royalty payment  That first check is usually a negative figure and you get them quarterly to bi-yearly depending on the publisher.  Smaller publishers may pay yearly and some do their accounting every month.  You are also responsible for paying your own taxes on that money.  The publisher sends you a w-4 at the end of the year and since you usually spend as much or more than your advance and royalties on promotion, supplies, advertising, (medical) and office/writing space you break even or get something refunded.  H & R block offer speakers about self business (which you are as an author).  You don't have to have an IRS number but can get one if you're making and spending that type of money.  I go to an accountant who does all of my taxes on one form but you should keep itemized lists of profits and spending.  Gas, tolls, meals, meetings, supplies, office space in or out of the home, even some car repairs when you travel are outlined on the IRS website for small business' and the self employed.

   The authors guild is geared toward writers and most writers that I've met also write articles, have blogs that they sell advertising space on, do public appearences at conferences and run workshops.  Some do editing of others work for a fee and charge for speaking engagements once you've wet your feet and made a respectable name for yourself.  I'm not quite commanding a stadium of fans but I can get a group of 12 from a book club to buy me lunch and the library association to hit me off with a hundred or so per engagement.  Conferences are harder because they usually pay out big money for big names and the mid level names get stipends while the neophytes do them for free food and free books, free t-shirts and free advertising.  You make your profit by selling books wherever you go.  but most writers have some tidy sum saved up to supplement their writing or keep the nine to five.  I know authors who have out nine books in various genre's and still work but take time off for promotion.

I promote locally.  And big names can demand whatever they want.  Agent and attorney's usually negotiate terms.  Mid-level authors can make up to $10,000. advances and then have decent returns on royalties.  Advertising and promotions eat up some of that and advances usually cover multiple books.

Answer 2

Over 90% of authors can not make a living by their writing. Many only make a few thousand per book. Best sellers obviously make more. JK Rowling became rich but some of that came from movie deals.  So yes it is possible but the odds are against it.