Indie vs Traditional Publishing: Which One is More Profitable?

As a writer, there’s nothing quite like holding a physical copy of your own book in your hands. But for many emerging authors, the traditional publishing route can often feel like an elite club guarded by gate-keepers..

That’s one of the main reasons self-publishing has become a legitimate option for many authors. Most self-published authors are quick to point out the benefits such as the freedom to maintain complete creative control of their work and secure a higher royalty rate, but it’s not without its challenges and potential pitfalls.

Whereas, traditional publishing involves signing with a publishing house, who then acquires the rights to your work. This option provides authors with resources such as professional editing, book cover design, and marketing teams.

Moreover, authors can tap into the vast readership of established publishing houses and receive a significant advance payment, not to mention the prestige that comes with being published by one of the ‘big five’ publishing houses. However, traditional publishing is known for its fiercely competitive nature and the small percentage of writers that make it through the door.

One of the most notable advantages of traditional publishing is the prestige or ‘boasting rights’ that comes with it. Alongside that are the aforementioned professional support teams, vast readership, and extensive promotional efforts which all contribute to realise their book to its full potential.

The downside, of course, is the exclusivity of the club notwithstanding the years it takes before an author’s book is published. It’s worth bearing in mind this challenging and often discouraging journey to get a book accepted by a traditional publisher, with years of rejection letters is the norm rather than the exception.

On the other hand, self-publishing is a more accessible path for writers to get their work out to the world. The statistics are encouraging; over the past decade, self-published books have risen from 50,000 to over 1 million annually. The autonomy that self-publishing offers writers can be a double-edged sword, but the rewards can be tremendous.

The freedom to make all the decisions regarding one’s book, from title to cover design to price, can be very attractive to writers seeking full creative control. The profit margins are much higher for self-published authors – on average, around 70% for ebooks and 30% for print-on-demand compared to the industry standard royalty rate of 10-15%.

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Income Potential

How Much Do Authors Make?

Traditional publishing houses offer substantial advertising, a vast readership, and access to professional support teams. However, it can be challenging to gain entry into this elite club. C. S. Lewis, author of The Chronicles of Narnia, faced 800 rejections before he got published. Stephen King’s best-seller Carrie was turned down 80 times by publishers, yet both books have now been translated into hundreds of languages and adapted into movies. The average income for traditional published authors is around $50,000, provided that they earn out their advance royalties.

Self-publishing offers a higher royalty rate and complete autonomy. Authors retain full control of their work and receive more profit. However, the downside is that authors must handle all aspects of the publishing process themselves. Author Lori Lesko poetically describes it as “The good news about self-publishing is you get to do everything yourself. The bad news about self-publishing is you get to do everything yourself.”

Despite these advantages, the disadvantages of self-publishing also need to be considered. Not least is the fact that the author must manage the entire publishing process, from editing to formatting to marketing. A common pitfall for self-publishers is skimping on professional editing or cover design, making their book less attractive to readers and slowing down sales.

For self-publishers, the key to success is to think of themselves as business owners and not just writers.

To gain more insight into the self-publishing process, it’s recommended to see how other self-publishers fare. For instance, The Alliance of Independent Authors (ALLi) is an international nonprofit organisation that connects indie authors, advisors, and services. In a survey conducted by ALLi, they found that self-publishing can lead to exponentially higher earnings than traditional publishing.

The median income of primary income self-published authors was $12,749 in 2022, with almost half of the respondents (43.8%) reporting revenue of over $20k. Around 28% earned $50k or more, and almost a fifth ran six-figure publishing businesses. The survey also found that self-published authors’ average income has increased by 53%, which has surpassed the earning potential of traditionally published authors.

Self-publishing is becoming an increasingly popular option due to the advancements in technology, the rise of e-books, and their distribution. This route allows authors to retain full control over their work, from content to distribution, and gives them a higher cut of the profits. However, self-publishing demands an immense amount of work, from book layout to marketing and distribution.

Regardless of the publishing path, one thing that is essential for success is effective book marketing strategies. Promoting a book can be intimidating for many writers, but it is equally critical as writing and publishing the book.

The most successful independent writers have used different marketing tactics to create a readership base, generate buzz, and make their work stand out in a crowded marketplace.

How to Market a Self-Published Book

1. Social Media Platforms – One of the most effective and low-cost self-promotion tools is social media platforms. Many independent writers use social media platforms to build a community of followers, share their work and information about giveaways, discounts, events, and author updates. You can use Facebook, Instagram and Twitter ads to increase your reach and target specific demographics.

2. Amazon KDP: Amazon Kindle Direct Publishing offers a range of tools and services to help self-publishers promote their work. J. L. Curtis used KDP and social media to promote his book, Rimworld – Into the Green. He used the platform to run a countdown deal with discounted prices, heavily promoted the promotion through his social media channels, and reached a broader audience.

3. Podcasting: Podcasts have exploded in popularity in recent years, presenting an opportunity for authors to connect with new readers. Author Kurt Chambers used podcasts to promote his book, Truth Teller. He contacted podcasters with audiences similar to his target market, and asked for an interview which resulted in a boost in sales of his book.

4. Crowdfunding – Crowdfunding is essentially raising funds from your audience to help you publish your book. This unique method has allowed many independent writers to bypass traditional publishing expenses and keep their creative control.

5. Author Interviews – Being interviewed as an author provides multiple benefits, including having your interview with us ranked in the top Google search engine results.

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It’s important to note that the success of any marketing effort depends on an individual’s readiness to take action, perseverance, and consistency. When it comes to writing and publishing, there are no shortcuts. It takes hard work, dedication and a willingness to take risks and try new methods. By exploring the available options, networking, and engaging with readers, independent writers can establish themselves as successful authors.

Ultimately, the choice between traditional and self-publishing comes down to personal preference as well as grit, resources, and goals. For creative freedom and control over the publishing process, self-publishing is a practical choice, while traditional publishing may offer more support, reach, and access to established markets.

Regardless of the route, taking advantage of all the available resources, exploring and experimenting with different tools and techniques can help writers build a successful and fulfilling writing career.

Useful Resources:

The Alliance of Independent Authors – A non-profit organization for self-publishing authors with access to resources, information and networking opportunities.

The Creative Penn has many recommended tools for writing, editing, publishing, and book marketing.

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