You’ve got expertise, insights, and a story to tell. You’re thinking about writing a business book. But is it worth the effort? A new study sheds light on what you can expect.
The Business Book ROI Study, conducted by Amplify Publishing Group, Gotham Ghostwriters, and Thought Leadership Leverage, surveyed 301 published nonfiction authors, including this writer. Amplify claims this is the largest-ever survey of published business authors. Their findings offer both a reality check and useful insights for aspiring authors.
1. Do you need a traditional publisher for your business book?
In the past, the main path to market for a business book was a traditional publisher. Today, the world is different. Self-publishing is comparatively easy. Hybrid publishers offer many of the same services as traditional publishers, but authors pay up front for these services. Hybrid publishing gives the author more control and input in the process, and also higher profit margins on book sales.
The study compared the profitability of the three paths. Traditional publishing led the pack with a median profit of $52,500. Hybrid publishing came in at $4,500, while self-publishing trailed at $1,700. Of course, these numbers need some interpretation.
Traditional publishers buy only titles they expect to sell well, and their books will be professionally produced. Hybrid publishers are more flexible but most enforce quality standards and avoid projects they think will fail. Self-publishing has no gatekeepers and quality can vary dramatically. The revenue differences likely say more about the selection process than the potential of each channel. I.e., a book that is good enough to yield a traditional publishing contract would almost certainly generate self-publishing revenue far above the average number.
And, profit isn’t everything. Authors working with hybrid publishers reported higher satisfaction than those with traditional publishers. Traditional publishers add credibility to first-time authors but tend to have a much longer publishing process. Each path has pros and cons, and the aspiring author needs to weigh priorities when choosing.
Authors were much happier with hybrid publishers than traditional. Fully 45% of hybrid authors strongly agreed that they were satisfied with their publisher vs. just 19% for those with traditional publishers.
2. How long will it take to write my book?
The median author in the survey spent 10 months writing their book. Traditionally published authors took 12 months on average. Self-published authors took only 6 months. The longer times for traditional books could reflect typical publishing lead times, a more rigorous editing process, or other factors. If your contract says you’ll deliver your manuscript in ten months, you’ll probably take the full ten months to write it.
If your topic is very timely, hybrid and self-publishing will usually get your book to market much faster than traditional publishers.
3. Do you need a ghostwriter for your business book?
A ghostwriter is a writer who will write your book for you. They may work from interviews, your own writings, and other sources to create a coherent and, one hopes, compelling book. Just 8% of the authors surveyed used a ghostwriter. But, fully 96% of that small number were happy with the results.
Using a ghostwriter isn’t cheap. The median cost reported was $25,000. Ghostwriter fees can run much higher, particularly for those with a strong track record of hitting bestseller lists. On the plus side, profits and revenue were higher. Ghostwritten books achieved a median profit four times the average book. Once again, there’s a selection bias – an author who hires a ghostwriter likely will invest more in promotion and other factors that increase sales.
4. Can you make money from a business book?
Good news: 64% of business books showed a gross profit. The median profit for books out at least 6 months was $11,350. But don’t quit your day job just yet. The range of outcomes is vast, from significant losses to multi-million dollar profits.
Here’s a key insight: book sales alone rarely drive profitability. The median book generated $18,200 in revenue. But speaking fees, consulting, and workshops often brought in much more. Here are median numbers for alternate revenue sources as reported by the surveyed authors:
- Speaking fees generated a median revenue of $30,000.
- Consulting produced a median revenue of $50,000.
- Workshops brought in a median revenue of $40,000.
- Organization sales resulted in a median revenue of $64,000.
- Online courses had a median revenue of $20,000.
- Partnerships had a median revenue of $100,000.
- Salary increases had a median revenue of $10,000.
Note that these numbers are self-reported and median values. Not all authors have all types of income. An author of a best-selling business book might earn the $30K median (or more) for a single speaking engagement, while many other authors won’t generate any speaking income at all.
5. How much should you invest in your business book?
The median author spent $7,000 on their book. This covered expenses like editors, graphic designers, and PR agencies. Hybrid-published authors typically spent more, with a median of $23,000. Investing in your book seems to pay off – on average, each dollar spent correlated with $2.33 in additional revenue.
Be prepared for surprises: half of the authors reported unexpected costs. It’s smart to build a buffer into your budget.
6. What drives business book success?
Three factors stood out:
- Clear strategy: Authors with a strong revenue plan earned twice as much as those without.
- Professional support: Ghostwritten books had a median gross profit of $43,250. Books with launch PR teams hit $55,500.
- Effective marketing: Email campaigns, Amazon reviews, and contributed articles topped the list. On social media, LinkedIn shone while X (Twitter) disappointed.
7. Don’t just focus on book sales
Here’s one key paragraph from the report: “Book sales rarely met expectations. Median sales were 4,600 for traditionally published books, 1,600 for hybrid-published books, and 700 for self-published books. But book sales didn’t predict success or ROI.”
In short, even though book sales were lower than expected, most authors met their non-monetary or revenue goals. This suggests that authors should focus less on driving book sales and more on achieving their other goals.
Only about half of authors in the study had a clear revenue plan. But, those authors who had a strong plan earned twice as much as those without. Also, authors who had a specific plan for achieving their primary goal were more likely to have their process go as expected.
8. Is it all about the money?
Writing a business book may not be a sure-fire way to make money, but that’s not the only reason authors write books. A whopping 90% of authors reported non-monetary benefits. These included increased credibility, a stronger personal brand, and more speaking opportunities.
One in three saw increases in speaking fees and consulting gigs. Many noted improved social recognition and media presence.
9. What do successful business book authors say?
The study captured insights from authors who’ve been there. One hybrid-published author advised, “Authors don’t make money on book sales. They make money on what the book makes possible. Spend time and money on getting the book off the shelf.”
A traditionally published author shared, “The money comes not from selling your book, but from having written—and published—a book… and all that comes along with it, including boosting your visibility and your credibility as a thought leader and expert in your field.”
10. Should you write that business book?
The report can’t answer that question for you, but it suggests that a potential author who has a desire to write a book can find a way to do it. More importantly, if you do publish your book, you’ll likely be satisfied with the results. 89% of the authors agreed that writing a book was a good idea. A significant percentage, 72%, strongly agreed with that sentiment.
The 32 page report is packed with insights that can guide both experienced and first time authors. It won’t help you write the book, but it may inform your planning process.
If you decide to move forward with your business book project, do so with open eyes. Set realistic expectations, plan your strategy, and consider the book as part of achieving your broader business and personal goals. With the right approach, your book will open doors you never imagined.