I’ve rarely seen an industry with more rampant misinformation than the publishing industry. On one hand, every author claims to be a “National Bestseller” and on the other, every major publisher will tell you that barely a handful of books sell more than 2,000 copies/year. Even if you manage to get accurate book sales numbers, few understand how that translates to income and advances. People read isolated case studies in the media and harbor dreams of quitting everything to write the one book that will change the world and make them millions–a scenario that seldom unfolds as planned.
Where-in lies the truth?
Since I’ve never aspired to be a full-time writer, here I de-construct my writing income with full objectivity so any aspiring writer can decide whether to go full throttle for a book or not. To note, I think the below is a good benchmark for a writer with average talent. I’ve never done an MFA or a creative writing course. I wasn’t a writing prodigy as a child. I’d only attempted one short story before my first novel—and our college magazine rejected it (incidentally that may’ve been the only story ever rejected in the history of the magazine since the editors barely cobbled together enough stories to publish a literary magazine once a year—it was engineering college, after all!). Net, I’m sure you can do better if you put yourself to it. So here goes:
First things first, how does a novelist make money?
A writer has four major sources of income:
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Advance against royalties
The guaranteed payment a publisher pays you for the right to publish your book. It is typically paid in three phases—1/3rd on signing a book contract, the next 1/3rd on sending in the final edited manuscript, and the final 1/3rd when the novel is published.
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Royalties
Your per book payment on publication after the publisher has made up the advance. Typically 7.5-10% of retail price on paperback, 10-15% of hardcover. Important: In order to get a US deal, you’ll need a literary agent who typically charges a 15% commission on both advance and royalties.
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Film Contract
A combination of option fees in the beginning so the filmmaker has the “option” of making your book into a movie and later, if the filmmaker decides to make a film, you get a payment of 2-4% of the film’s production costs.
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Speaking Fees, Guest lectures, magazines columns etc.
If you hit the bestseller lists, many such opportunities come your way. How much you make from them depends on your hustle.
So how much money have I made so far?
First, my publication history…
Publication Date | Publisher | Territories | Copies Sold | Market Verdict | |
Keep off the Grass | 2008 | HarperCollins | India Only | 80,000 | Significant Bestseller |
Johnny Gone Down | 2010 | HarperCollins | India Only | 60,000 | Bestseller but fell short of market expectations |
The Yoga of Max’s Discontent (published in India as The Seeker) |
India: 2015; US: 2016 | Penguin RandomHouse | India, US | India: 30,000 in year 1.
US: 10,000 in 2 months |
India: Above Average but not blockbuster.
US: Too early to predict but off to a solid start. |
Now, the money…
Advance* | Royalties* | Film Contract | Speaking Fees etc. | Total | |
Keep off the Grass | $2K | $16K | $10K** | – | $28K |
Johnny Gone Down | $12K | – | $150K** | – | $162K |
The Yoga of Max’s Discontent (published in India as The Seeker) |
$85K | TBD | TBD | TBD | $85K |
Total: | $99K | $16K | $160K | 0 | $275K |
*Net payment received by me=85% of offer. Excludes literary agent commission=15%.
**Keep off the Grass was optioned and later dropped by Ben Rekhi, an Indian-American director. Johnny Gone Down was optioned by an international film-maker.
Net, I’ve made $275K in the last seven years of writing. This is just revenue and not profit since I haven’t subtracted expenses from traveling for book tours, taxes (a little complicated since I’ve written while living in India, Singapore and the US), marketing etc.—I’ll write a separate post on those. Is that good or too little? Only you can decide. As I said, my only goal here is to give you a peek inside a profession shrouded in unnecessary mystery.
Some universal observations on the above
- US advances are much higher than Indian advances. Coming off Keep off the Grass’ success, Harper’s $12K (Rs. 6 lakhs) advance for Johnny Gone Down was very high for the Indian market but pales in comparison to the $90K(+$10K for India) advance I received for The Yoga of Max’s Discontent as a debut novelist in the US.
- Movie deals can be extremely lucrative for a novelist especially if you get an international deal. Johnny Gone Down was originally optioned by a German filmmaker who was trying to make a Hollywood movie from the novel for the last 4 years. The above are just option fees since the film hasn’t entered pre-production yet so more fees will accrue if/when the film enters pre-production stage. I’d highly recommend getting an entertainment lawyer involved if you get approached by a film-maker or a production house instead of jumping in excitement and signing the first offer you get. Movie contracts are very, very layered.
- I’ve refused all speaking engagements, newspaper columns etc. thus far mainly because I’ve been single-mindedly focused on becoming a better novelist. Again and again, I’ve seen authors distracted by the false hype surrounding a writer and consequently, their writing starts to develop a shallow sameness. One day, maybe I’ll stand on a podium and share my miniscule knowledge about the world so this column might show better figures!
- I’m a firm believer there’s karma in the above. I wrote Johnny Gone Down during one of the darkest phases of my life when my mother was dying, my relationships were collapsing, and I’d made some terrible career decisions. The novel was written with a lot of blood and heart since the writing helped me make sense of my choices. Yet book sales fell way short of expectations. But with the movie deal, I perhaps made what I deserved from the novel. That’s why I’ve been largely indifferent to the weekly sales of The Seeker in India. I’ve given the novel everything and more AND then some more. Somewhere the universe will give the book its due.
- Finally, a more accurate picture for an aspiring full-time writer would be the revenue/year for writing. So here goes the split:
Full-Time Spent* Revenue Revenue/Year Keep off the Grass 4 Months $32K $84K Johnny Gone Down 6 Months $162K $324K The Yoga of Max’s Discontent/The Seeker 18 Months $85k $57K**
*Full Time, includes writing, pitching, and editing time. I’ve actualized the time taken on each novel to a regular 8-hour workday. In reality, Keep off the Grass was written part-time after work (average=3 hrs/day including weekends) over one year. Johnny was a mix of part and full-time. The Seeker was heavily full-time.
** I’m hoping this goes up as the US version of the book is off to a really great start.
The $324K/year question: why don’t I become a full-time writer?
A logical question: if I could write a book like Johnny Gone Down every year, why do I continue to pursue my corporate career? There are obvious practical reasons. The muse doesn’t follow a yearly schedule. Sitting for a year at home writing doesn’t guarantee I’ll produce a quality novel. And perhaps what’s worked for me so far is that I’ve pursued whatever interested me since I’ve had no financial goals for my writing at all. For instance, if I had submitted to market pressure after Keep off the Grass’s success, I’d probably have written a contemporary corporate satire rather than a dark thriller like Johnny. The bigger reason though is that I don’t think writing is my true dharma. Instead, my dharma is to push and challenge myself each day and explore my deepest depths through tough, uncomfortable choices in work, life, spirituality, everything, and then express what I’ve learnt through my writing. Extraordinary writing, I hope therefore, will become the effect of an extraordinary life rather than the cause of it!

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66 Responses to “How much money does an author make: de-constructing my writing income”
Karan i see writing as everything and most importantly a catharsis and a meditation. But i have this doubt. Does a book requires to be perfect when sent to the publishers and agents, or just the story needs to be clear and they will polish the mistakes and technical aspects like grammar. Because when i read a published book of authors like you, Jeffrey Archer, etc, it seems perfect which i am not able to find in my draft. Please guide on this one, and if possible also write a blog on how a draft should be when one sends in to submissions. Thanks
Janmejay, thanks man. I’d say to get published in the US, you need a very, very polished draft. I’d recommend using a freelance editor before beginning the submission process. Did you see this article? http://www.karanbajaj.com/writing-creativity/how-to-become-a-better-writer-the-only-writing-resource-you-need/
Too good for newbies and overtly aspirational budding authors like me who don’t even know how to play the game. But one thing is for sure, I am game to play this one. Your insightful detailed approach will prove to be more than fruitful and I am thankful to have stumbled upon your book once, which is resulting in me reading this post.
I dont know much about Dharma & Karma but I enjoy doing two things apart from my day job i.e. Yoga & writing. Tha nks for the enlightenment Karan.
Amen Rajan. You’re going to win this game–I’ll be sitting on the sidelines applauding! Glad you found the post useful.
Hi Karan: Appreciate you opening not only your heart but also sharing your financial wisdom, such a rarity. I think your corporate career actually makes you a better writer as you are not under any pressure to write a particular type of bestseller. Wishing you more and more success ….
Indeed Prasad, i’ve thought so too hence never really seriously considered quitting my job. But I’ve learnt the importance of full-on sabbaticals where one is singularly focused on writing–those can be transformative.
WoW man!!!
I love the way you write.
Keep doing the good work.
Ah thanks Pawan! Keep reading. Glad this was useful.
Nice one!!!
I guess you have missed out the income generated through your website.
Currently zero, Ami!
Worth reading and worth sharing.
I am also one of the aspiring authors who has written the novel and looking to get published.
Thanks Karan for writing such a useful article
Good luck to you Danish!I’m sure it will happen.
This is an amazing post. You are incredibly generous to share this with your readers.
Thanks man. Incredibly generous of you to comment
Saying something and actually practicing it are two different things, this is at-least what we see now a days and you are divinely different. Speaking about somebody’s financials i consider is the last kept secrete beyond which it shows the individual’s progression in the self discovery. Really enjoyed reading your books. Thank you and God bless.
Ah man, thanks for the kind words. Indeed, holding nothing back from my readers is the goal!
Brilliant synopsis
Thanks!
Karan, enjoyed the book, though the initial chapters were a bit too much of Bronx. The result of the additional time you took to finish the book is clearly visible in the end results. The book reads almost like one written by a western author. The styling is perfect, and the complexity of the character POV’s have come up sharp and enjoyable.
Will you please look at one Chapter of my debut novel, and tell me if it’s up to US publication standards. Of course, it has to go for a final polish back to my editor in the US by the end of this month. I will be much obliged. Keep up the good work.
Sure man, the Army has a special place in my life! karan@karanbajaj.com. And thanks for your kind words–very glad you enjoyed the book.
Lovely, informative & thank you
Glad it helped!
Dear Karan,
One of the best article I ever read on this topic of book publishing and what actually writers make. Usually we never find such info anywhere but like you said when its your dharma you open up everything and thats what make you unique in this journey as a writer. Wishing you more success ahead.
Thanks man, very kind words. Indeed man, I want everyone to have a balanced pov about the artist life–lots of misperceptions about it. Thanks for reading!
I’m exactly going through a phase in life, where I’m open to such learning opportunity.
A confession: I subscribed your email around a month back, but ignored them to read later in free time.
I’m thankful to you for such a open insight about the writing career.
Great! Glad it was useful.
Very interesting but for us like new writers no body gives chance… getiing advance royalties is just like a dream. Second is we are now financing our cost of publishing as new fishes are in the market, they dont care about the book, just about the money. it happens in the case of big writers like you…. novels are good but what basis publishers reject that I dont understand,, all now happens is about seeing the writers’ professional bakcground and their education means University or college… so that idea doesnt fit into all…. Thanks for valauaeble idea shared and I always have found these advice help, hope they would do to us…
Hey man, don’t be discouraged. An outstanding book will always find a home. Just keep working hard and improving your craft and success will follow.
Just discovered your incredibly resourceful posts and had to say thank you for sharing your insight! My friend Erin Gabrielson directed me to your site and I’ve been binge reading all of your advice and undoubtedly will return again and again, as I am very early in my process of an aspiring writer. Much appreciated!
Excellent Patrice! I’m so glad you started–writing and subsequently, publishing, will be an incredibly transformative experience. Reach out anytime you need my help.
Thank you Karan!
Adison Quin Petti: Colorado
Queers for a Creative Economy
720-862-6126 or adison.petti@gmail.com
Good luck!
Thank you Karan, you are a great help.
Glad you found it useful!
This is god sent for a person like me who is totally unaware about how to go in for a deal. This breakup at least clears the kind of stuff one has to know to list in the deal ! Please do a blog post on similar matters, esp on how to judge the value of one’s work, how to get the right worth of your work in a deal.
Thanks Prachi. Great ideas-will put them on the list for future posts.
Dear Mr. Bajaj,
This article has been extremely helpful. Could you please guide a bit more on how to get a freelance editor? And one more thing : I’m writing at a very slow pace since I’m writing with great care and not to make any kind of silly mistakes in grammar, or in the use of phrases or idioms. I have recently got one chapter checked by a retired Professor of English Lit. She told that there are some minor mistakes in the use of articles and prepositions, but not any major one. But she has also advised to make the language a bit easier. Is my approach towards writing okay? Can use of delicate language affect the plot or flow of story? Please advice.
The way you explained your dharma was simply beautiful and hit the right chords home. Good luck, sir.
Thanks man!
Hey Karan, you are truly inspiring other writers and aspiring authors.
Keep your eyes up.
Thanks and best
Kind words, appreciated.
Very helpful and much appreciated! Awesome!
Thanks!
Hi Karan,
I am a software engineer by profession & I am planning to write a book. But it will not be a novel (I haven’t managed to write one yet). It will be a collection of say 6 to 8 short/long stories. Hence I have a few questions on this :
What will be the case for short stories? My question is that does they sell as much as novels? What will be the royalty structure?
I am based in India. So, will it be prudent to pursue an US publisher (since they offer higher advances) or I need to be content with Indian publishers? If I want to pursue an US publisher, how can I do that?
Hey man, 1. Very hard to sell short stories but there are always exceptions. 2. You should pursue both. 3. Some tips on how to get a book deal here will help http://www.karanbajaj.com/bookdeal/
Hello Karan,
Thank you so much for this post. It’s so useful for young and aspiring writers like myself. I have one question (something I am struggling with since a long time). How do you find the time to WRITE A NOVEL while balancing a corporate career among other things. And, how long did it take you to finish your novel, in this case?
Your insight and help would be appreciated. Thanks a lot.
Thanks Kay. Did you read this? I break my full time down here. http://www.karanbajaj.com/writing-creativity/how-long-does-it-take-to-write-a-book-a-personal-account/
And some ideas on writing with a day job. http://www.karanbajaj.com/writing-creativity/how-to-write-a-novel-with-a-day-job/
Also, definitely sign up here as I cover writing tips and discipline. http://www.karanbajaj.com/bookdeal/.
Good luck!
Its been very healing – landing on your website and reading your blogs. Your insights helped realign me. Thank you, and May God be with you.
Thanks for the thought, Abhilasha.
Thanks for the inspiring blog Karan.
I have written my first book titled ‘Practical application of Patanjali yoga sutras’.(not including more than sixty books in Tamil).
Can you suggest some publishers who will be interested?
Love n light,
UK.
I came to know about you only today. Reading about your experiences and posts is motivating. Right now I am facing another sickness period of my life and I feel so stuck. I am also a banker and love writing. I love how your posts made me feel relaxed and made me want to cheer up to do something about this. thank you
look forward to reading your books and maybe listen to your live talk someday.
Have a wonderful Sunday sir.
Reading your blogs for a week now. Can’t believe how profoundly you think and how simply you put in words. You are certainly a good marketer. It is high time you should start assisting newbie authors with marketing. Your experience not only motivates me but also encourages me to look beyond writing a book.
I have realized that a successful book is not only about a great manuscript but also about presentation, marketing and online presence. Thank you so much for such amazing posts.
I am always looking for such motivational posts.
Hi karan,
A very useful info is being provided by you. Keep it up. This would immensely help upcoming writers
What a fantastic post and quite useful for newbies … here’s hoping to more blockbusters from you. good Luck.
Hi Karen,
I have a full-time job in IT, but would like to start writing my first novel around my job and see where it leads me over the next 2years. I can’t afford to give up my job and do something I have never done before with no idea if I can write well or finish a book. I have sufficient spare time to write, but my question is how to I create a good environment for writing and how can I switch off from my job and other distractions to focus on writing? Many thanks in advance, Andrew
Every authour writte diffrent type of journal so it will diffrent then others, I have earn more 1000$ month as a authour.
Thanks Sir, for such a post.
I want to know that how much it helps getting your book published by big publushers like Harper’s or Penguin random house.
And is getting a good literary agent to represent your work, in order to be published in US, a big breakthrough or just a starting step?
Hi,
I have written a book but it has become to get a reply from Harper Collins. It has been six months but not getting responses from Collins, penguin etc.
Do you have any suggestions.
PS like my page on Facebook.
Great post. Thanks for being so honest.
Never! never do i share or give away my books to anyone, sometimes depending on the person i even refrain them from touching the book. I came across your book and it offered what everyone secretly wants – enlightenment or the path to it. I won’t be boring you about what aspects i liked about the book other than it was paced at a speed i love to read. I gave your book to this helpful flight attendant who tried to put my fears during the flight at bay, on inquiring i came to know she herself is a voracious reader, i gave my copy of your book – THE SEEKER, to her. I want everyone to read it. as soon as my flight landed i again bought a copy for myself, and i have read so many books but never felt like reading for the second time, with this achievement of a book of yours i am waiting to read it for the second time after i complete some backlog of some already purchased novels. keep writing!
Help me in publishing my debut
Karan,
Thank you for this. I am half way through my first novel and found this article really helpful and inspiring.
Hii karan sir,I really really liked your article. It gives us a brilliant insight into a novelist’ s life. Im 16 years old and I want to become an author myself ,so if you have the time ,could you give me some tips ?
Hi Karan
This is your oncologist 2hr friend..
Remember delhi Mumbai flight
You are a champion…
I read about you…
See how influenced I was that i write this at 2:30am in night…
Cheers…do share your number…
Hi Karan,
I’m a Student of Film Direction based in Hyderabad, India. I resigned from my Job to Become a Film Director. Now, I’m about to write a Super Hero Novel. I’m investing my time and life on this. But sometimes i do hesitate whether it’s worthwhile to write a Novel or a movie Script. Need your thoughts on this. Thanks for your help in advance Brother. Amar.
wow that s so honest of you to give the details..gud job