Kids sometimes ask me (usually to their teacher’s or parent’s chagrin) how much money I make. I respond by explaining how royalties work. They assume that if I wrote the book, I get all the money from the book’s sales so they are often outraged to learn that when they purchase a paperback book for $6.99, my share - a standard six percent royalty - is forty-two cents. I then explain that my agent gets fifteen percent of everything I earn, in this case, six cents. So that puts my share at thirty-six cents per book. I’m considered a business by the State of Washington so I pay a Business and Occupation Tax and, of course, I pay federal income tax, as well. Why would anyone in their right mind work for such a pittance?Find her answer at her blog.
Wednesday, February 24, 2010
A writer's payday
Peg Kehret has an entertaining and thoughtful post up about the work we do and the money it brings.