Biz Basics for Writers

I just found some notes from a presentation I did a while ago for a group of aspiring writers. I shared the stage with my accountant, Jonathan Becker, CPA. The notes, taken in my particular brand of shorthand, are filled with great advice for owners of “creative” small businesses. That definitely includes freelance writers. The suggestions are still relevant, so I’m going to pass them along without embellishment.

• Bill by the hour. Bill for every single hour you put into your business.
• If a client isn’t willing to pay you for what you do, you probably don’t want that client anyway.
• When you raise your rates, don’t grandfather your old clients. If you do, you will begin the resent them.
• There’s a rule in accounting that every three years you should dump the bottom 20 percent of your client list.
• When you figure your hourly rate make it three times your expected or hoped-for income. Add to that 40 percent for what it costs to run the business. Divide that figure by 2,080 hours (working hours in a year), and that is what your hourly rate should be.
• Set up your books. Get help from your accountant if you need it.
• Creative people need to know how to reconcile a checkbook.
• Creative people should have a feel for what’s going on inside your business.
• If you’ve been business for two or three years and are going nowhere, it may be time to look for a job.

How to set up your business entity:

• Sole proprietor (on your own and doing business)
• LLC (Limited Liability Corporation limits your personal and family exposure) Set up your LLC with an attorney, and register with the Missouri Dept. of Revenue.
• Add umbrella protection to your homeowner’s policy.

Income tax:

• Fifty percent of incomes goes to taxes.
  
• Deduct anything that pertains to your business: Internet access, website, magazine subscriptions, supplies, equipment, consultants, accountants, attorneys, and so on.
• Any items deducted reduce taxes by 50 percent.
  
• Work with your accountant on what to deduct.
  
• The IRS does very little auditing at the small business level.

Marketing:

• Get on TV or radio to talk about what you know.
• Follow up on every lead.
• Return phone calls that day.
• Respond to e-mails.
• Identify your market. Network. Join groups.

Basic? Yes? Important to your financial success? Also yes.

Web Marketing 101: Online Newsletters

There are almost as many ways to stay connected to the cyber-world as there are people in it. OK, I’m exaggerating. But, in addition to those I’ve tried, there are certainly an equal number or more I have never even thought about. Or, if I have thought about them, I don’t know how to create them. Podcasts and PowerPoint presentations that actually show up on my website are two perfect examples. One thing I do know: if I want to market my website, I need a newsletter.

Everybody has an online newsletter, I’ve been told many, many times by many, many people. Not knowing how to create one is no excuse. Most of them are plain vanilla, no bells and whistles, text only. Of course, some of the simplest in form are also the most complex in content. And that’s what worried me. Where was I going to get all those facts and references and really great tips that seem to be the heart and soul of online newsletters? I could worry about how it should look after I figured out what it should say.

I went in search of examples of good online newsletters.

Scribe & Quill, a newsletter for writers, has changed a lot in recent years. It used to come monthly in two sections, with each section long and crammed full of material. For nine years, it has been primarily written, edited, and published by one person — a dynamo named Bev Walton Porter.

WebsiteMarketingPlan's newsletter, put out by my personal web guru, Bobette Kyle, is for people who are really serious about marketing their sites. It is full of tips, links, offers, plans, and articles. In short, it is a graduate course in website promotion.

The BuzzFactor is really for musicians, but it demonstrates how multifaceted Bob Baker is. He has a great website, blogs, numerous books and e-books, ezines, and a terrific presence on Amazon. At his Self-Publishing Book newsletter, Bob shares his abundant knowledge of the creative process and marketing with writers.

Hello, my name is e-zine is published by a one-man whirlwind — Scott Ginsberg — who has more energy than a room full of two year olds and more marketing ideas than a Madison Avenue ad agency. Scott writes in list form: 72 Ways to do this … 6 Ways to do that … 13 Types of … 10 Strategies to … and on and on. Personally, I think he’s a genius.

The BuildBookBuzz newsletter is fresh, informative, and practical. I stumbled on it when I read an article on one of the online sites, followed the link to Sandra Beckwith, e-mailed her and received a lovely reply, became an instant fan, and subscribed to her newsletter. Sometimes, you just meet someone smart and special when you let your fingers do the walking.

Author Marketing Experts, as it name suggests, is aimed at intrepid writers of books. Penny Sansevieri is one, as well as a speaker, blogger, article writer, and tweeter. Her newsletter is long, filled with information and advice, including details on how to target particular publications, and unadorned with graphics (at least, the version I receive). Text and nothing but text, but that text is always worth reading.

I read all these newsletters and others; I studied them; I admired them (or they wouldn’t be mentioned); and I came up with something completely different. It has a plain text version, but, really, it’s intended to mirror my website. Sometimes, it actually does that. I must admit that getting News & Views from Bobbi Linkemer to look the way I envisioned it was harder than learning how to podcast, or so it seemed.

Then, of course, there was the matter of what to write about. There, too, I took an offbeat approach. If News & Views looks intriguing and informative, and you think you might like to receive it once a month, hit this link and subscribe. In the meantime, I’ll start working on the next one.

Small Claims Court Revisited

I’m going to eat some words here. In a blog titled “It’s not fair!” I said: Do not — I repeat — do not ever try to sue a client in small claims court. In my experience, it cannot be done. I have tried three times, and, as I sit here popping Excedrin, I am about to give up.

I’ll admit I was pretty frustrated when I wrote that. I had already filed the same claim twice; plunked down my money twice to have to sheriff track down my elusive client; and gone to court to explain why I hadn’t prosecuted the defendant, who had never been served because he couldn’t be found. The sheriff’s office was getting used to my visits and phone calls, to the point that they actually called me to find out what the problem was (that’s a first, I’m told), and then went out to track him down.

The third time’s a charm, they say. They are right. I filed suit again, paid the sheriff again, and got on the docket again. Then, wonder of wonders, I began receiving e-mails from my missing client suggesting a settlement of 25 percent of what he owed me. Of course, he didn't actually have that amount of money, but he would borrow it. Yeah, right. I suspected that this time the sheriff had actually served the subpoena.

I went to court today, but my client did not. The courtroom was packed; and, if I had stayed around a bit longer, I could have written a book instead of a blog post. The judge was a comedian who should have his own TV show. He spent 45 minutes trying to keep a straight face hearing a case having to do with cement, planter boxes, and a dissatisfied customer who waited 13 months to complain about the contractor. Then, he devoted five minutes to cracking jokes with me before he awarded me the full amount possible in small claims court.

“That’s great,” I said. “Now what do I do?”

“Well, that’s the problem,” he replied. “We’re not allowed to tell you that.” The assembled crowd cracked up. I collected my evidence and went to report to the ladies at the filing window that I had won my case by default. I guess very few people ever tell them how it all turned out. They were delighted and, apparently, not at all restricted from telling me what to do next and how to do it.

So, off I went, armed with new forms to fill out and renewed determination to tackle the next step of our insane legal process. Updates to come.

Another Class; Another Magic Moment

I’ve been teaching a class in how to write, publish and promote your nonfiction book for several years. I have taught it to individuals and groups, for the University of Missouri-St. Louis, the Lindbergh School District’s Adult Education Program, and the St. Louis Community College. Every class is unique, of course. The students are adults of all ages and backgrounds. They have lived lives before they walked into what could be “just another noncredit course.” It might be fun, or it might be a complete waste of time. They don’t know, but I think I do. By the end of the first two hours, I hope I have convinced them that this is going to be a different kind of class, not what they expected, and perhaps even a life-changing event.

I hope that doesn’t sounds arrogant. I say it because I have experienced the incredible dynamics and personal transformations that take place in these classes, year after year. It is difficult to describe the synergy that occurs within a group of strangers who mesh in some inexplicable way. Someone has a question; two people offer answers. One person is stumped on which direction to take; another responds with compassion and insight. And I stand at the front of this high school classroom, transfixed, yet again.

My new class met last night — the class I had wondered whether to teach at all because of the low enrollment. Ultimately, I decided to “trust the process” (see sweatshirt on my last blog) and am so grateful for that decision. The process worked (it always does). Somehow, we ended up with 10 amazing people. I do not use the word “amazing” lightly. It is a wonderful group of individuals who are writing about subjects as diverse and substantive as I could ever hope for.

Some had their sentences nailed: “My book is about _________________.” Others were not so sure, torn between two good ideas and trying to get in touch with their real passion for one of them. This is the exciting part — when everyone is turned on by the possibilities. It is my job to keep them turned on and moving forward toward their completed books. I have no illusions that anyone will write a book in six weeks, unless he or she works on it every waking hour, but I do know they can learn what it takes and get a good start on actually doing it.

I emerge from each of these classes greatly enriched by the people I’ve met and the things I've learned from them. This semester promises to be one of the best ever!

To Teach or Not To Teach

My class at the community college used to be filled to overflowing. The maximum was 15 students, and there was usually a waiting list. The Economy (with a capital E) has changed all that. Belt tightening is no longer just a good idea; it’s a reality. Enrollment is down on all three campuses, but whether to teach or not to teach is completely up to me. Last semester, I decided not to.

Even though we had enough students for the college to break even financially, I reasoned that if anyone dropped out, and people always do, the group would be too small to be effective. The result was that I missed teaching, and the students I never met missed out on what could have been a great experience. This semester, the same choice has presented itself: teach or cancel the class.

This time, I am going to teach.

What is the worst thing that could happen? Well, the class could turn into the world’s smallest writing group. Actually, it couldn’t be any smaller than the time we started with six people, instantly dropped to four, and ended up with two. Those two showed up every week of a frigid winter semester, and one of them turned out to be a close friend.

It could be group made up of introverts in which no one talks. Of course, in all my years of teaching, that has never happened. While it’s true that more than one true introvert in a tiny group can put a lot of pressure on the others to carry the ball, how likely is a room full of people who don’t participate? Not very.

I guess I could go on with all the “worst things,” but that seems a pointless exercise. A better approach would be to wear my favorite sweatshirt on the first night of class and let the Fates take care of the rest.

4 Ways to “Self-Publish” Your Nonfiction Book

Time magazine had an article in its most recent edition about self-publishing, and I think every one of my clients has read it. While the article dealt mostly with fiction, there is no question that self-publishing is also a viable option for nonfiction authors. So, in response to all the questions arriving in my e-mail, here are some things you should know about self-publishing.

You do everything a publisher does, and you pay for all of it. On the other hand, if there is a profit after expenses, you keep it. you are in control, creatively and financially. The book is yours; you make all the decisions. Depending on the approach you take, you can make a lot of mistakes and spend a lot of unnecessary money if you don’t know what you’re doing. Finally, no matter how you plan to publish, to attract buyers, your book must have a catchy title, eye-catching cover, solid content, and excellent writing. Here are four approaches:

Self-publishing: the "right" way
There are many steps involved in this approach. As a self-publisher, you are responsible for printing, warehousing, marketing, and distributing your books. For help, check out Independent Publishers Association (PMA) or its local chapter in your city. The guru of self-publishing is Dan Poynter, whose book, The Self-Publishing Manual: How to Write, Print and Sell Your Book, has become the bible for self-publishers. He describes this process in great detail.

Technical steps

• Begin by forming your own publishing company. Create a fictitious name to lend it some credibility.
  
• Download or send for copyright forms; file them with U.S. Copyright Office .
  
• Check into the need for local business licenses; apply for them if necessary.
  
• Secure an ISBN (International Standard Book Number) and an EAN bar code from R.R. Bowker.
  
• Get competitive prices from printers.
  
• Decide how you want to handle storage and distribution.
  

Creative steps

• Start with a great title and subtitle. You might want to hire an expert to guide you. One of the best is Sam Horn.
  
• Have your book cover designed by a graphic designer who specializes in books.
  
• Have your manuscript edited and copy edited (two different processes).
  
• Send bound galleys to peer reviewers.
  
• Request testimonials for various promotional uses.
  

Marketing steps

• Write a marketing plan. It is never too early, and you can always add to it as you go along.
  
• Create a promotional piece or brochure. Have your book designer do it.
  
• Put together a mailing list.
  
• Do a promotional mailing.
  
• Develop a website for your book.
  
• Create a blog about your subject matter.
  
• Write articles, and submit them to print publications ans online article sites, such as EzineArticles.com, Amazines.com, or ArticleSnatch.com.
  

Print on demand (POD/Subsidy Publishers/Author Services)
POD is a digital technology that prints anywhere from one to 1,000 books at a time. The rest of the time, your book is stored as a digital file on a large server. This eliminates the need for large press runs and storage space. The appeal of POD companies — such as BookSurge (owned by Amazon), AuthorHouse, iUniverse (owned by Barnes & Noble), InfinityPublishing, LuLu, Xlibrus, and PublishAmerica — is that they offer a variety of packages to authors. The set-up fees and cost per book or per page vary from publisher to publisher, so it’s a good idea to shop around. Obviously, the quality of the books produced this way runs the gamut. It is up to you to ensure that your book meets the same high standards demanded by conventional publishers.

Here are few other things to keep in mind:

• POD companies charge an up-front fee, which can be as high as $1,500.
  
• Most POD companies have strict guidelines for format, size, and pricing.
  
• There is an additional charge for editing and marketing; and, in some cases, purchase of the marketing package is mandatory.
  
• If the company designs the covers, it owns the cover design.
  
• Wholesalers and retailers may not buy POD books because they are non-returnable, higher in price, and often lower in quality.
  
• The ISBN number is often in the company’s name, not the author’s, making the company the publisher of record.
  
• After an initial number of complimentary books, you must purchase copies of your own books at about 40 percent of retail.
  

Start with a printer
This is something you would do as a self-publisher, of course, but it’s a less complicated process. Some printers provide the ISBNs and bar codes at a slight additional cost. One is NoWaste Publishing in Fenton, Missouri, which printed the last two editions of How to Write a Nonfiction Book: From Concept to Completion in 6 Months. You can do as much or as little of the self-publishing process as you like with this option. I uploaded my book to amazon.com, featured it on my website, made it the centerpiece of my blog, wrote articles based on its content, and printed only what I could afford and store.

Use LightningSource
LightningSource is a digital printer that prints books for publishers, as opposed to individual authors. You would have to create a publishing company to take advantage of their services. Ironically, the big POD houses farm out their printing to LightningSource, so they may be printing your book whether you realize it or not. LightningSource:

• is owned by Ingram, the largest book wholesaler in the US
  
• will automatically get your book into Borders, Barnes & Noble, and Amazon
  
• charges a single, upfront set up fee of $500, and then you only pay for what you print
  
• sells internationally
  
• prints in black and white and color, hardback or softback
  
• will print anywhere from one book to 10,000
  

Love/Hate Relationships

Being a freelance writer is all about relationships — relationships with editors, agents, clients, designers, photographers, printers, computer experts, interview sources, and other writers. It’s an understatement to say that such a career requires well-honed people skills and that developing and sustaining relationships are essential to success.

“Love/Hate Relationships” not only covers both scenarios, it captures the ambiguous nature of our feelings towards those who pay our “salaries.” I hope you have encountered at least one or two clients or editors who fall into the too-good-to-be-true category. When you do, you probably pinch yourself, simply because they are such a rare breed. These are the people who return phone calls, respond to query or marketing letters, respect your work, pay you what you’re worth time), and try not to make unreasonable demands. They are all candidates for sainthood, in my opinion.

At the other extreme are those who are rude, arrogant, disrespectful, demanding, unrealistic, over-controlling, and penny pinching. Working for them is stress squared because they leave you feeling diminished and drained. On the bright side (yes, there is a bright side), as a freelancer, you do not have to do business with people like that. You can turn down the job at the outset; address the problems when they surface; and, if you choose to, resign from the project. My feeling is that, no matter how much you think you need the money, nobody needs it that much.

When I was a full-time employee, I can’t even count the number of times I bit my tongue, compromised a principle, or tolerated unacceptable behavior from a boss; because, I told myself, I didn’t want to risk my livelihood. Jobs like mine were not that easy to come by ... I had two children to support ... I would never live down the humiliation ... and on and on and on. Getting fired was the worst possible thing I could imagine; and then, one day, the worst possible thing happened.

Amazingly, I did not die; my children did not starve or become homeless; I did get over it; and I felt free for the first time in my career. The worst possible thing turned out to be the best possible thing. One of the reasons was knowing that I would never again remain in an abusive situation. I knew there would always be another assignment, another client, or another job, just around the corner. In the last 20 years, I have had to test that assumption on more than one occasion. I have walked out of a meeting; I have confronted a client who was way out of line. I have even stated, unequivocally, that I found the person’s behavior unacceptable and, if it didn’t stop, I would leave immediately. It stopped.

These, of course, are worse-case scenarios, but they illustrate the underside of freelancing. Not everyone you encounter will be professional or even civil. Some people are very difficult, if not impossible, to work with (See Solving People Problems (Amacom) for an entire book on this subject). But nowhere is it written that you have to grin and bear it. You don’t.

In between these two extremes are the people you are more likely to work with or for. They are neither saints nor villains; they are just regular folks. They run the gamut of quirks and personalities, good days and bad, consistency and professionalism. For the most part, you won’t love them or hate them. You may develop relationships with them, or you may never get past being seen as a “vendor.” You may admire some things about them and dislike others. And you may even put up with less-than-optimum working conditions from time to time. But that is the reality of the world of work and certainly of freelance work.

Years ago, when I was working for a large corporation and having a particularly bad day, I was crying the blues to my printing salesman. Finally, he shrugged and said, “Well Bobbi, that’s why they call it work and not sandbox.” I've often thought of having that put on a banner and hanging it over my desk.