Are you writing for fun or profit, is it a business or is it a hobby? Without evidence of published works and records of profits and losses, it is a hobby, so says the IRS.
Why even ask the question? Why does it matter?
All too often, in my experience anyway, we women deny the importance of making money and decry the notion of sales…they are demeaning, or irrelevant. We’re artists after all…we write for the sheer joy of telling a story. Therefore we fail to take notice of our mounting expenses until they mount up, big time.
At a recent book reading, a woman confided to me that she was writing a book.
“We write because there is a story burning in our gut but we do it because we hope that others will read our story.”
“I don’t care if anyone buys it, I just want to get it written,” she declared conspiratorially, as she walked away with a copy of my new signed book in her hands.
I am skeptical of that claim. Once our first book is published, we’re excited, psyched, and we expect some kind of feedback, whether praise or criticism. Or we wouldn’t have written the book. Yes, we write because there is a story burning in our gut but we do it because we hope that others will read our story. We want people to buy our books. We need to be honest to ourselves about this fact because the 21st century expenses of getting a book published and then noticed are far from trivial. But there are ways to legally mitigate the expenses simply by declaring ourselves as business women.
Having had fifteen years experience with running a small online advertising business with my husband , I learned quickly the distinction between hobbies and businesses from the IRS. The IRS knows that many people join companies like Herbal Life or Melaleuca for the tax write-offs for a home business. The analysts can quickly distinguish between the hobbyists and the business people in network marketing. And the financial penalties for claiming a business when it is merely a pleasurable pastime can be weighty indeed.
“Most new businesses don’t break even for three to five years”
While meeting with my accountant recently, I was reminded of the importance of record keeping in case of IRS audit. Two years into my writing career, I am solidly in the red. And expected to be since most people who start new businesses don’t break even for three to five years if they stay in business that long. The numbers for writers are no cheerier, maybe worse.
But when we approach our writing craft with a business mindset, the dismal financial projections fade into the background and we can gain some distance from our emotional selves. And benefit from all these expenses each April while we compete in the marketplace.
When I decided to write fiction, I began with the expectation that my expenses would far exceed my sales. And I’ve not been disappointed. As a writer without an extensive reputation, I know my expenses will continue to be significant enough for me to continue keeping detailed, careful records just in case the IRS comes knocking.
Okay, now that some boring but essential aspects of writing have been dealt with, let’s return to marketing. Last month’s article, Marketing, Wise investment or Money Pit, ended with a promise for a few more promotional methods I use, have used or plan to employ this next year. Starting with Email Marketing. Then we’ll briefly discuss PR Releases and Paid Editorial Reviews as well. Of course, each of these methods costs money but now we agree that we can get some benefit from our annual taxes, the sting isn’t quite as painful.
Email Marketing
The primary advantage of email marketing is its extremely low cost. And its high payback if you have a list of interested people. The disadvantage is that it is labor intensive, especially for the inexperienced. But for around $20 to $30 dollars a month for an auto responder and a series of well-written sales pitches in the message, you’ll be assured of book sales.
I began collecting the email addresses of the folks who bought my books at readings a couple of years ago. When my latest books were released, three email messages over a three month period garnered more sales than from live book readings.
PR Releases
I have purchased four press releases from three different companies. The total cost was four figures but I cannot tell you if any sales were generated from these press releases. Similar to my experience with Facebook, Twitter and LinkedIn, the initial results are exciting because there looks to be extensive action. The reports provided by the companies are detailed and impressive. But I am unable to correlate the press releases with book sales. Will I use a press release when my next book is released? Perhaps but I’m not sure.
Editorial Reviews
Editorial reviews are essential. Almost universal is the desire to read what others have said about the story, that’s why the back page of well-established writers lists the glowing reviews from other authors or reviewers.
“We need to be prepared for wounds, sometimes bloodshed, when the reviewer publishes her opinion about our new book.”
Deciding where to go for reviews is a daunting task, however, because the universe of possibility is dizzying. And so are the prices—we can spend nothing or a lot. Despite the fact that opinions vary when discussing the value of a paid review I believe a book to be unfinished without a review.
A couple of caveats regarding editorial reviews: Paid reviewers will not guarantee a good review. This means we need to be prepared for wounds, sometimes bloodshed, when the reviewer publishes her opinion about our new book. But I am very careful about where I go to request a review. You need to be too.
Conclusion
Is it worth it? Only you can decide, but for me, yes…most definitely!
Suggested Reading:
- How can an Author use Publicity?
- Your Writer Platform: Get Reviews for Your Book
- Jacques Matthew – It takes three years to build a business
- Huffington Post – The Writer’s Odds of Success
- How to Get Reviews For Your Book (Without Begging, Bribing or Resorting to Subterfuge)
