I want to tell you one secret about why most authors are broke and then another secret on how you as an author can be rich
Secret # 1 Poor authors think you make money from Royalties by selling your books in book stores.
Well the sad truth on this one is that you have to sell a lot of books to make any money with a $1.00 or $2.00 royalty per book. Poor authors also don’t realize that book stores are a lousy place to sell books.
Secret # 2 Rich authors know how to use their book as a customer generating magnet so they can sell their other products that can have profit margins of 60, 80 or even higher percentages. Rich authors know the profit from one coaching client can be higher than selling 5000 books in some cases.
I am amazed more and more each week how profitable writing, publishing and selling your information can be. Of course not all topics are created equal but if you pick a topic that can truly help your customer you will most certainly do extremely well.
Wasn’t it Zig Ziglar who said if you help enough people get what they want you will get what you want?
I recently taught a class of eager students wanting to write their books. One girl worked as a cocktail waitress and was able to on average make over $500.00 per night in tips.
Most of her coworkers usually made about $100.00 per night in tips. Of course she quickly saw the value in writing a book that showed waiters and waitresses how to increase their income by as much as 5 times.
During the class she attended she realized that by writing a book and positioning herself as the expert her information would be of great value to not only the waiters and waitresses but also the business owners that employed them.
Think about it! You can only get more tips by giving better service and I think every business owner that employs waiters and waitresses would want better service for their customers.
So how is my student going to make a ton of money? In addition to selling her books to attract more customers she can sell high profit information products such as DVD’s, home study programs, coaching, workshops or seminars showing waiters, waitresses and business owners how to dramatically increase their net profits.
I know being both a business owner and author I am always on the look out for ways to increase my profits.
In most cases your information products can bring in 60 to 80 % or even higher profits. There are not too many businesses that make that kind of profit especially when you consider the low cost to get into the information marketing business.
Making money from royalties for most authors is not a very financially rewarding career.
If you don’t start to make money with your book it can get pretty lonely. This is where too many authors go wrong.
Don’t let that last statement depress you because your chance of making money with your book if you package and sell the information from your book in different ways brings up your odds of financial success exponentially. If you break your book into CD’s Seminars, DVD’s Consulting and a number of other ways that many of us like to consume information then you can turn a not so profitable book into a cash generating machine.
I always take a poll in the classes that I teach to see how many read books. Obviously in my classes most are book readers. Then I ask how many buy Audio CD’s? Still quit a number put up their hands. Next it is seminars and a number of hands go up as well. Then of course I ask how many take classes and everyone has to put up their hand for that.
I then use the example that we have 25 people in this class who all paid $59.00 for a 3 hour class. This quickly calculates out to $1,475.00 for 3 hours work which doesn’t even count other moneys that may come from coaching, consulting and other information I could sell the students.
I remind them at this point that this is mostly the information in my book sold to them in different ways of consumption. It would take quit a few books at even a $2.00 per book royalty to bring in the same amount of money from the class and other back end products I may sell.
They quickly see what I am talking about. My students are always a good example of how insatiable we can be for getting more and more good information. Many of them, myself included spend thousands of dollars per year and will continue doing so.
Even after you give your readers or clients every bit of information you have they will still want more and that is why you will always be in demand. As Martha Stewart says “It’s a beautiful thing”
I know you are reading this blog title and thinking about most of the authors you know of are starving and I am way off base with this one.
In my second life I am in the fire and flood restoration business which is considered to be part of the construction industry. Our industry in North America has an average net profit of 4.5%. To me that is a tragedy and even borders on pathetic and is probably not worth waking up for each morning.
Luckily my companies are not in the 4.5% profit margin group. In fact I learned a long time ago how to run a profitable fire and flood restoration business. I educated myself and we run net profits anywhere from 30 to 50 % each month. Now that is worth waking up for.
Why am I telling you all this? Because now that I am also an author and sell my information in a variety of different formats such as books, CD’s, DVD’s, Seminars, coaching and a number of other ways I am still in awe of how truly profitable being an author and information marketer is. In fact if you market your information properly you can very often make 90% and more net profit margins.
I am grateful and amazed every day about what an exciting opportunity it is to be an author and information marketer in today’s business world. If you are in this exciting business it is only going to get better over the next several decades.
I get more jazzed and excited each day when a customer buys a DVD set that I made once and now sell over and over again for profit margins that are not made by any other industry on earth. How cool is that?
Your wealth or money can come and go but if you have valuable information to sell you will inevitably be rich in very short order. It is specialized knowledge and information that is and will be the most valuable asset to have for a long time to come.
Whether you are an employee, business owner or want to make your book your main business being and author and information marketer is the best gig on earth. Don’t wait make it happen now!