The Truth About Money for Kidlit Authors

Don’t Tell Your Parents

Unless you are very, very fortunate/talented/persistent/all of the above – if you’re counting on writing income from book sales alone, it is unlikely that you will ever make a living wage.

We authors are a funny lot. We want so badly to write, and then to see our books in print, and then to see them in the hands of readers, that we forget that this is a business. A business, folks. We need to self-advocate a bit better and face that hard truth.

For those of you who don’t know how the traditional industry normally works, here’s a brief primer, along with some truths about my own experience. (The more you know…)

Advance on Royalties

If you are fortunate/talented/persistent/all of the above enough to sign with an agent, and then ditto to land a contract with a traditional publisher, you may receive what is called an “advance on royalties”. This is no more than a sort-of loan.

Most advances in children’s books are in the four figures to mid five figures. Your agent takes a standard domestic fee of 15%. Your advance is paid out in three to four parts: on signing, on delivery of the full manuscript, on completion of the entire editorial process (if not with the previous payment), on publication. This can take two years (or more, especially for a picture book).

Once your book is out and hopefully selling, your advance is earned back according to the percentage of earnings that you make on the sale of each book. Generally, for hardcover books up to 5000 copies sold, an author makes 10% of the sales price.

Let’s put numbers on that. Most hardcover middle grade books in 2024 are priced at $17.99. Ten percent of that is $1.79. If your books sells 5000 copies, throw a (cheap) party, because you are in the minute percentage of authors, and you will have earned exactly $8950 against your advance (see caveats).

After selling those 5000 copies, your percentage likely increases to 12.5% up to 10,000 copies sold, and 15% after that.

Now let’s say you scored an advance of $35,000. This is not unheard of in middle grade for some debuts and for higher-earning midlist authors. To reach the earned-out threshold, your book will have to sell:

5000 copies @10% ($1.79/sale) = $8,950

5000copies @12.5% ($2.25/sale) = $11,250

5000copies @15% ($2.70/sale) = $13,500

The total here is still under your advance ($33,700), so your book will still have to sell another $1300 worth (on your 15% sales percentage) or an additional 482 copies.

The rate at which your book sells is unpredictable. You may be happily surprised at sales. Or, it may take years. And please note that the above figures are hardcover only - the addition of paperbacks can make a significant difference, as they sell more copies but at lower rate of return for you.

Personal aside: in my books that have earned out, the average length of time from on-sale to earn out is 3 years.

The Multiple Caveats

The agent’s fee comes out of your earnings.

The payment process that stretches over long periods of time is also unpredictable – you are never sure when that check will arrive.

There is much dispute over how many copies of any given book can expect to sell over its lifetime, but suffice to say that earning out is a high bar that many authors do not meet. I recently earned out on CARRY ME HOME (2021) with a total number of books (HC, PB, e-book) of 22, 930 to get there, on an advance of $25K.

The importance of earning out your advance cannot be overstated. Many publishers consider an inability to earn out a red flag and may not take a chance on your next book.

Discounted books cut deeply into author profits, so that’s evil (looking at you, Big A), and pirated books are double evil.

Your publisher may decide not long after your book earns out that it’s not selling at a high enough rate any longer to keep it in print, which means…no more royalties. This is a real blow.

What To Do

I know this sounds despairing, so let’s put some positive spin on things.

Audio book sales bring a 25% royalty rate (yay! And they are getting more popular!) and paperback sales, while at only a 7.5% rate, tend to sell better and faster, contributing to earn-outs. And if you are lucky enough to sell foreign rights, that sale brings new audiences, a royalty bump, possibly another advance (ask your agent), and extended shelf life.

You can negotiate for a lower advance – I know that seems crazy, but the sooner you earn out, the happier your publisher – and other publishers looking at your work – will be. Just as long as your book stays in print, so talk to your agent. See my low advance above.

Taking a high advance may, however, skew the publisher’s attention to marketing in your direction, so…weigh and consider.

Your position as a published author gives you street cred to book paid school visits, get paid teaching gigs, and sell editing services if you have the chops.

If your book does go out of print, try to get back the rights and re-release it independently. A lot of work that may not pay out, but it’s better than not having your book out in the world.

Here’s an alternative: consider going to an indie model as opposed to traditional publishing. This post last week caught a lot of attention for good reason. Yes, this is harder to do in kidlit, with its gatekeepers for younger readers. But it would work for YA.

Lobby for better wages for authors. What does that mean?

• I think simultaneous hardcover/paperback releases would work well for kidlit authors who have a budget-limited reading audience but a need for library bindings.

• I also think we should renegotiate percentages and earn-outs accordingly. It also means lobbying for higher percentages overall. These rates have been the same forever.

Bottom Line

You are doing what you love, and what will bring joy to children. You are creating a legacy that cannot be diminished with time. While you might not be able to tell your parents that you make a living wage, you can put your book in their hands and watch their eyes light up.

This is not a career path to easy street, but it is a most rewarding and fulfilling journey.

Put Your Best Book Forward

The most important advice I can give is that you put your best work out there and nothing less. I’ve created a bunch of writing craft courses, from free to low cost to extensive, and I truly believe that they will help you. Check them out!

As always, keep writing!