In 2017, by age 24, Rachel Richards had already worked as a financial advisor and then as a financial analyst at a manufacturing firm. After picking up her license, she began working as a Realtor. No matter what kind of work she was doing, one thing remained constant: People in her life were constantly looking to her for help with their finances.
“I began to wonder, ‘Why aren’t they learning on their own? Why aren’t they reading books, or listening to podcasts or looking on websites?’” says Richards, now 30.
Then it dawned on her: Most of the financial books she’d come across were boring and esoteric, bordering on intimidating. And few were targeted toward young women. “So I thought to myself, ‘How can I make this topic sassy and fun and simple?’”
Richards began writing her first book, “Money Honey” in January 2017 and self-published on Amazon that September. By just about any measure, it was a massive success. In its first month, the book brought in $600. The next month it brought in $1,000. “After that, it was pulling in $1,500 a month pretty consistently,” she says.
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The robust income she earned from publishing didn’t hurt. All told, through the end of July 2022, Richards has sold about 25,000 copies each of “Money Honey” and her second self-published book, “Passive Income, Aggressive Retirement,” a 2019 release which details her strategies for early retirement.
In 2021, royalties from the two titles netted Richards more than $97,000 in profit. Here’s how she did it.
She self-published online
Richards, like many aspiring authors, dreamed of seeing her name in print through the window of her local bookstore. She also hoped that with a traditional book deal, the publisher would handle the labor-intensive task of promoting the book. That turned out not to be the case.
“The more I asked authors about their experience, the more I learned that publishers expect you to do 99% of the marketing and promotion,” Richards says. “If you’re an author with no platform, they’re not going to send you out on a national book tour.”
Once she learned she’d have to flog the book herself no matter what, Richards was far less inclined to give a publisher a big chunk of her royalties. “When you get a book deal, you earn a 10% to 15% royalty. When you publish on Amazon, you earn a 35% to 70% royalty.” (Royalty structures vary between different formats, such as e-books and paperbacks, and factor in costs such as shipping and tax.)
She also says that self-publishing guarantees creative control, even if it comes at a cost. Thinking her book wouldn’t sell and hoping to limit her losses, Richards spent just $561 to hire an editor and a cover designer for “Money Honey.” She says a more “realistic” minimum budget is at least $2,000 and ideally would include an interior formatter as well. She spent $3,500 putting together her second book.
Link to the rest at CNBC