What is the economic forecast in your household? Gloom or Boom? While the national economy fluctuates, if you have lost your job or top clients, it’s no good to you whether the stockmarket is rising, or interest rates are up, or any of that stuff! You live in the now of needing more income. Better yet, make it residual income so we don’t have to go through this anguish again.
My own family suffered through a household recession in 2008-09. What helped me was this premise: “every adversity brings with it the seed of an equivalent advantage” (Napoleon Hill). Out of this hard time, my copywriting sprouted wings and then I turned to teaching others how to write a book (or editing them).
The Lure of Residual Income
Illness, job losses, income insecurity: all these make us long for a residual (passive) income. Many of us turn to online sources for the new gold of our time.
But within this ‘making money online’ field, there are many pitfalls for the unwary. I found that psychological principles apply on the Internet just as they do in real life.
Consider this – you have been conditioned to search for GAIN without WORK, quick cash, and easy success. You’ve watched Gary Vee or other internet gurus and how well they’ve done and it seems so easy. This is just a mindset trap.
Seth Godin says on ‘instant success’:
“It still takes ten years to become a success, web or no web.”
“The irony of the web is that the tactics work really quickly. You friend someone on Facebook and two minutes later, they friend you back. Bang. But the strategy still takes forever…”Seth Godin
It also spells failure for the thousands of people who see others’ outward signs of success (income, houses, cars), but don’t understand the depth of their powerful drive and action towards their goals.
I’ve banned myself from saying ‘passive income’ because, let’s face it, most good income sources are NOT passive at all and require hours and hours of your precious time up-front. It would be truer to say ‘long-haul income’!
That’s the pessimistic stuff out of the way. If you’ve found a topic that really interests you: that’s the place to start. Whether it’s Feng Shui, colour combining, food specialities, or Writing about Writing, there is a bevy of people hungry for this ‘insider’ information. Just use the keyword search tools, like Ubersuggest, to find the numbers of searches in your country.
Why Royalty Income from Books is Popular
Royalty income is earned from selling eBooks and paperback books (via Print on Demand or in more professional cases, distributors). eBooks are the easiest to reach for, which has led to no less than 10 million Kindle ebooks listed on Amazon.
You can get paid between 30 and 80% for eBooks. (80% direct at Smashwords, a distributing ebook aggregator). Amazon pays 35 or 70%, depending on the price point. Recommend eBook prices at Kindle are from $0.99 to $9.99, with a sweet spot for your book’s genre and length. (Remember that you need to claim your tax treaty reduced rate if an Australian).
You can get paid about 45% (40-55%) of paperback sales through IngramSpark, Amazon Print or Lulu. Much goes in printing and shipping to buyers. There are calculators to work out about what royalties a certain length book would get and whether to make it black/white or colour. Colour is much more.
What About Course Income?
The main trick with earning income from a course is having a steady stream of visitors to turn into fans and then buyers. There is no way you can just advertise to a course sales page and expect great results. A fan base must be built up.
Some authors, like Kary Obermeyer and The Membership Guys have built up their tribe with a bestselling book. It also works back the other way; I looked at the membership site and ended up buying the book: Member Machine, as I thought I’d check out the value for $20 first. Great tips and some of them made me go, ‘doh’: why didn’t I think of that!
So, the book sells the need for the course, in a way… Then the course sales page must offer some social proof or risk-reversal (such as money-back offer), or both.
Using YouTube to Promote Your Books
Stefan James talks about writing via YouTube videos, then sells a digital product on how to write books fast over at Project Life Mastery. He’s made it to being a millionaire from all his information products.
For Kindle success, he says it’s better to create a short series that addresses one area, than one long book. Plus, it makes the author more money! Genius.
Another author, Gillian Perkins, has gained 500,000 views on just one video about self-publishing a book. Her book is called Sorted, so is about something else. Nothing about what she says is earth-shattering, but there are so many book writing novices wanting that knowledge, that it’s very popular.
Well, hopefully you learned something today about creating residual income or royalty income. Plus, steer clear of some MLM or fast-track opportunities and set your mind on the long game plan.
Get to know more about creatively creating income and dodging the scams in my book: Creative Ways with Money. Preorder now for a 27 January launch, so you don’t forget. Or buy the print book in February!