Kindle Income – July 2015

Image result for kindle
This is a relatively new feature for this Blog. Each month I’ll report how much money I received from Kindle and how much I estimate I make in future months based on current sales. 

I’ve separated the numbers into 3 columns – Kindle (ebooks), Createspace (paperback), ACX (audio). The numbers in black, regular font have been paid to me. The numbers in italic grey are yet to be paid, and are predictions based on the current exchange rate. Once they’ve been confirmed, I’ll change them to black and regular. Amazon pay you 60 days after the month end, so I’m getting paid in June for the sales I made in April. 

July’s payments will be confirmed near the end of the month. The Royalties appear in my account on the last 2 days of the month. This is the only time I know for sure what I’ve earned after the exchange rate is taken finalised.

Let’s look at the numbers for this month: 


Kindle CreateSpace ACX TOTAL
January
February
March £9.50 £9.50
April £51.47 £51.47
May £101.03 £101.03
June £243.01 £243.01
July £503.26 £5.19 £13.00 £521.45
August £597.34 £131.29 £23.40 £752.03
September £657.81 £322.51 £980.32
October
November
December
2015 Total £2,163.42 £458.99 £36.40 £2,658.81
2015 Average £309.06 £153.00 £18.20 £379.83


Kindle
July has turned out to be a solid month for me overall. 

Kindle Unlimited royalties changed for the 1st July, and although we haven’t received our confirmed earnings, I predict that my income for the Kindle Unlimited downloads have decreased to around 1/3 of what I received previously.

Individual sales royalties haven’t changed, and I still receive 75% of any sales I make on a £1.99 book (pre-tax). Kindle Unlimited downloads do contribute to a significant amount for Kindle publishers, so the recent changes have impacted many people. The change isn’t great, but the earnings are still very significant, and I don’t intend on changing my tact. 

For July, I made more individual sales than in Jun, but I lost a significant sum from the Kindle Unlimited download royalties. Overall you can see from the table above that my Kindle income is still up month on month. 

I had 36 ebooks on Amazon at the of July. I was hoping to get to the initial goal of 50 in August at some point, but that’s going to be a challenge right now…… I don’t mind a challenge though! I still want to push on get 100 books out by the end of the year. Roughly speaking, I should expect 3 x the earnings I’m making now with 100 books. I made approx £750 in June, therefore I can realistically expect to earn £2,250 a month by December. This will take me close to what I’m currently earning in my job. 

I’m aiming on releasing 3 x books a week now, which I comfortably managed in June, but I struggled in July. I’m hoping that I can budge that weekly total up to 4 or even 5 a week more consistently moving forward and I believe this will be more realistic when I go at it full time or even part time in August. 

I lost a couple of writers in July, and I haven’t managed to successfully replace them yet. I must admit to being thrown off course by announcing that I’m leaving my job. Things at work have been extremely busy. It’s involved me staying late on some evenings, and missing several lunch breaks. These were key Kindle working times for me. I believe August will remain busy whilst we find a new manager for my role, but I intend to be far more productive on Kindle this month, and working 3 days a week should help. I made big steps on Createspace during July, but I’ll come onto that shortly. 

I ended up making an unconfirmed £752.03 in June and £980.32 in July according to my calculations for sales, which I’m delighted with. 

ACX payments are more swift than Amazon and Createspace (30 days rather than 60). I’ll receive an ACX royalty in September based on my sales during August. I remain hopeful that I’ll receive the £20 I need to take my total to over £1,000 in a month which will take me past my priority 2015 Goal. I have a bottle of Bubbly waiting for when that’s confirmed! 

I received £521.45 in actual payments from all three forms in July. This is pre-tax. 


Createspace
My total ebook sales and downloads went up slightly in July, as I only added a handful of books, but I took things up a notch with Createspace, and I’m so glad that I did. 

I finished July with 28 books selling on this format. My royalties for Createspace are estimated at £322.51 for July which I’m delighted with. 

At the end of June I had 8 books selling on this format and I made £131.29 (also unconfirmed). My book numbers, sales and income have almost tripled in July. 

I could not recommend Createspace higher for anyone interested in Self Publishing. It’s easy to do and the ROI is RIDICULOUS!!!!!

My worst ROI is a book that made me 25% in one month. My best has made me 1086% in and my average (excluding those 2 extremes) is 160% ROI in one month

How is this possible?

The set up costs are so low – less than £7 per book – You can cut those costs in half too if you edit the books yourself. I pay someone $5 to edit each book for me. The returns for each book sale is huge! I make approximately £1.76 per book sold. I sold 183 books in July. 

You only pay the set up cost once, and then you sit back and watch the money roll in. I don’t do any marketing on the CS books, as the kindle books advertise the paperback copies too (if you have them). Createspace is an outstanding option once you have an ebook in place!


ACX
Following on from Createspace’s easy revenue tactic, I went down the audio route to see how much potential it had. 

I’ve learned that the process takes significantly longer to complete. I can get a book on Createspace within a few days now. It takes a month to get an audio book onto ACX. 

I now have 6 audio books selling on ACX officially.

There are 2 main options to making money on ACX. One route is the 50/50 route, the other is buying the full rights. I’ve tried both to see how they workout.

The marathon book is a 50/50 option which I didn’t pay a penny for. An american voice artist records and produces the book, I check it and approve it. Once Amazon approves the book (2-4 weeks), the voice artist and I make 20% on the sales each. 

The other option is paying the voice artist to record and produce the book. I’ve paid a similar price for a standard written book, which remember, I’ve already paid a writer for – £40-60. So, £80-£120 for both written and audio. (Createspace on the other hand costs $5 for a cover, and I choose to pay someone $5 to format it for me).

When the paid audio book starts selling I take 40% of the profit, so we’ll see how it compares over time. They both have advantages. 

I earned £13 in my first month with ACX. Nothing too crazy there. I’m still not 100% sure of what I think of ACX yet. I’ve put some more books out there to test the market further and we’ll see how it goes.

I earned an unconfirmed £23.40 for ACX sales this month. The total costs for these sales set me back £260.20. This works out to a 9% ROI in one month. Certainly not a return to be sniffed at, but let me compare it to Createspace to demonstrate the power of the paperback format. 


I earned an unconfirmed £322.51 for CS sales in July. The total costs for these sales came to £186.40. This comes to a 173% ROI for one month! Now we’re talking!


I made my first Bounty sale during June which can lead to a nice payment, but it does have some conditions.


ACX Bounty Payments

If someone signs up to the ACX membership via your book you get a $50 bounty. The person must remain a member of ACX for 61 days to earn the bounty. One person signed up in July via one of my books, but I’ll have to wait to see if they remain a member after 61 days. 

If this is a regular occurrence the audio book route will be well worth it. Currently, I think it makes more sense to invest in more ebooks and Createspace before taking the ACX route.

From my experience so far I would suggest keeping to the 50/50 revenue split on ACX rather than paying for the work up front, as you forgo the initial set up cost to take a lower royalty payment. You still have to get a new cover done, but you can do that for $5 and that’s it as far as set up costs. You pass the producer your already paid for ebook, and they do the rest.  

I’ll update you on my thoughts after a few more months as I think I’ll have a better idea then. 



Summary

Despite my slightly slower month on Kindle, July has resulted in me being very close to my 2015 Goal of £1,000 in one month (pre-tax), which I’m really happy with. 

I think I can really cement my earnings over the next few months when I go part time at work, and further still when I’m working full time as a Kindle Publisher. 

I have some significant plans for August. Among my plans, I want to set up a Limited Company, a Youtube Channel, and I want to start designing a Kindle Publishing course which people can access online. Along with my continued publishing schedule for Kindle, CS and ACX.  

Things are really starting to come together now. I have a lot to learn about paying tax, and setting up a Limited Company, but I’m quite excited about it all. Not sure how long that’ll last!

I’m looking forward to going onto Youtube for my Blog. I want to cover my (sorry to say this……) ‘Journey’ from quitting my job to becoming FI……. and perhaps even a millionaire. There are a lot of people Blogging about Investing, FI, ER, Frugal Living, but there aren’t that many people on Youtube doing the same thing, so I think it’ll make my Blog a little different. I plan on talking about all of things that I discuss on my Blog – Basically, how to become FI and what steps I’m taking to get there. I want to focus on Personal Development, motivation, exercise and generally ‘living the good life’. 

I hope this is of interest to you. I’d really like to get your thoughts on what stuff you’d like me to film and talk about. What do you think?

My Kindle Publishing knowledge is ever-expanding, and I’m in a position where I feel I can help other people achieve a substantial side income, or even retire from their 9-5 job like I have. I want to create a course to help people earn money on the side, to make some extra passive income for myself, compound/collate my knowledge and use to use as part of my Skype Coaching, which I hope will become a big part of my life. 

I want to thank everyone once again for the kind messages of support and encouragement. I really appreciate it and I can’t tell you how influential it is. 

I hope you all have an amazing August!

How are your Side Hustles coming along for 2015? What do you think of the FFB40 Youtube Channel idea or the idea of an Online Kindle Course?

0 Comments

  • weenie

    Reply Reply 1st August 2015

    Hey Huw

    Been waiting for your full Kindle update for a while and it's been worth the wait – wow!

    Reading about our experience and success makes me want to do it myself but right now, I don't have the time/inclination to throw myself at it 100% and I'd rather not do a half-arsed attempt until I'm ready to put all efforts at it.

    I'd certainly subscribe to your FFB40 YouTube Channel and would have a look at what your Kindle Course had to offer.

    The numbers you are quoting are incredible and who would have thought Createspace could be so lucrative – well done for getting on board with that!

    I really have no doubt that you will reach £1m – look how far you have come already in such a short time, just through hard work, dedication and focus – well done and keep up the great work!

    Looking forward to seeing you soon and talking about this some more!

    Have a great weekend.

  • Awesome income stream from Kindle FFB40…You are churning out books at an amazing rate! Best of luck reaching your ultimate goal of 100 books by the end of the year. Whether or not you achieve it, I'm sure the income you continue to receive from Kindle sure helps the ease any disappointments. 🙂

    Best wishes and continued success! AFFJ

  • Huw Davies

    Reply Reply 2nd August 2015

    Hey Weenie,

    It's great to hear that people look forward to some of my updates. It made for pleasant writing I have to be honest. I'm so pleased with how it's all going.

    If I weren't doing it, and I was looking at the results and the ROI of others I would also be interested in it (as I was at the end of last year). For me, I wasn't put off by the work (I didn't know how much much involved), I was concerned with it's validity. Would it actually work? Were they over-egging it? Or was this a bit of a scam? I was interested in exploring income options for 2015 so I bought an online course and gave it a shot. I didn't know how much the books would cost, how much work was involved, I just went for it and I'm so glad that I did.

    It's worth noting that I took 3 days off work (holiday, not 'sickness'!) and dedicated those days to working through the course. I would highly recommend someone else taking the same strategy so you can really focus on it. The online courses are amazing value for money, but the downside is they take time to learn and understand as opposed to working with a coach you can fire questions at and get answers straight away. I wish I had hired a coach much earlier than 6 months into it, but I'm just glad I got one in the end. He helped to show me how I can take the publishing to a new level, streamline my processes, be more effective, organise my work, inside tips, and ultimately make a Huwge amount of money.

    I worked with a chap I still keep in contact with. He's a full time dad and he tries to work on Kindle 1 hour a day, plus the odd lunch break. He has 10 books out this year, and slowly and steadily making progress with it. It doesn't have to be a full time job, but it certainly can be. It's down to you to decide how big a factor you want it to be in your life. I think this is a great strategy for someone that isn't that interested or just very busy.

    Createspace has surprised me. I heard it was great, but I didn't think it was THAT great.

    I was really looking forward to meeting you in person in SOA and we didn't get as much of a chance to speak to each other as much as I would have liked (it was probably "just fine" for you!). I'll happily answer any questions you have about it in York, and we can also talk Blogging, Investing, Rubik's Cubes etc too. I can't wait!

    It's good to know I'd have 1 subscriber to my Youtube channel. Thanks Weenie! I'm looking forward to getting it started. It should be a lot of fun.

    I've worked through 5 online courses in total, and I've been working on Kindle for 9 months now. I think I can produce a course that has at least the information I collected/read in that time. There are things I've found difficult in the process that the courses didn't help with. I think I can produce something that has the same content within the courses I've done, but helps to answer those issues, and I'd like to put a 'Huw' spin on it too!

    Wow. Thanks for belief you show in me. I'd like to think I can do it too, and it's nice to hear other people share that belief. I've got a lot of work to do now!

    I really appreciate you offering support like this Weenie. It means a lot!

    Keep up the good work yourself, and I look forward to hearing what you've been up to in person very soon. See you in York!

    Huw

  • Huw Davies

    Reply Reply 2nd August 2015

    Hi AFFJ,

    Thank you very much!

    I have a big task to get to that amount, but it won't be the end of the world if I don't achieve it. Like you say, I'm sure the income from 70, 80 or 90 books will still be significant.

    Thanks for stopping by!
    Huw

  • EarlyRetirementGuy

    Reply Reply 2nd August 2015

    Wow! That ebook turnover increase is pretty amazing. I, like Weenie, have considered something like this before but it's really hard to judge just how (if) successful it might be. It seems alot of the online Kindle publishers also sell courses on how to do it so im really apprehensive about whether they are making as much Kindle income as they suggest..

    Still, I'd love to take a look at any course you produce. Obviously been following your journey for awhile now so know you're more 'real' than alot of the internet marketers!

  • Huw Davies

    Reply Reply 2nd August 2015

    Thanks Guy!

    I felt the same way this time last year. Actually, at the start of 2014, I thought about doing it but talked myself out of it until Dec 2014. I wish I had gone for it in Jan 14, but I'm glad I eventually gave it a go.

    Just like in P2P lending and Dividend Investing, I took the leap and went for it so I could find out for myself.

    You're right, there are a lot of other people out there. Most of which are based in the US. That doesn't mean they can't be trusted, as there are as many A-holes in the UK, as the US and any other part of the world. I just ended up procrastinating over the decision as the course introductions and Adverts seemed so 'cheesy' and hyped. This is usually a Red Flag for me.

    In my experience, the courses I've done have all been worth it, bar one, which was slightly over valued in my opinion (it still provided good value). The price you pay for what you get in return is amazing. I've spent almost £450 on courses and coaching, but I'm sat here looking at an 'unconfirmed £1,000 in earnings for July – 1 month's earnings. So for me, it's 100% worth it.

    As to whether the guys are stating factual earnings, I can't say 100% for sure. But based on my earnings – £1,000 a month for 36 ebook (including Createspace and ACX) you get the following:

    If I multiple that by 3 = 108 books for £3,000 a month ($5,000)

    Multiple that number by 2 = 216 books for £6,000 a month ($10,000)

    The $10,000 a month and 200-300 books that people 'say' they're earning/have published, actually stacks up to the results I'm experiencing. I therefore have every reason to feel that those numbers are probably genuine.

    My coach showed me some of his numbers and he has over 300 books, so I do believe him. That doesn't mean it's true, it's just my opinion.

    Thank you for the vote of confidence though. That means a great deal! People might not like my writing style, investment choices or ginger beard, but I back myself to be genuine. What you see is what you get. If this Kindle thing goes to shite, I'll be the first to say.

    I hope you can make the next UK Gathering down South. I'd be happy to give you my uncensored opinion on it all in person.

    Thanks again
    Huw

  • Dividend Drive

    Reply Reply 2nd August 2015

    Great to have the Kindle income broken down further. Excellent set of figures and shows that even with Amazon throwing a little issue in your path you can still charge ahead.

    I am amazed to read the CreateSpace details. Its sounds a fantastic service and shows there is still extensive interest in hard-copy books out there.

    Super to read. Keep up the good work!

  • Huw Davies

    Reply Reply 2nd August 2015

    Hi D2,

    I'm glad the post was of interest to you. Thanks for the kind words.

    There isn't much I can do about the Amazon change, and although it's mainly a negative move, there is still way too much to gain from it to be deterred.

    Yes, Createspace is UNREAL. I wish I were sponsored by them. My paperback sales are better than some of my ebook sales and as you rightly say, it shows that there is still a big market for hard copies and long may it continue.

    Thanks for the support!
    Huw

  • No More Waffles

    Reply Reply 9th August 2015

    Huw,

    Amazing job, wow! You really caught me by surprise with this whole Kindle business. I always believed you'd do well, but not this level of well. It's amazing that you're able to quit your job and go full time into the Kindle business.

    Just look at those growth numbers – unbelievable. Every business owner from here till Tokyo would be jealous of your performance!

    Looking forward to what you'll achieve next. Keep us updated!

    Best of luck,
    NMW

  • Huw Davies

    Reply Reply 9th August 2015

    Hi NMW,

    I hope you're well.

    It caught me out too!!! My goal was to hit £1,000pm at the end of Dec, not July. Why stop now?! I still have so much to do. If I increase my books from just over 30 to 300, why can't I earn £10,000 per month!

    The ROI on the kindle publishing is amazing and I want to continue benefiting from it as long as I can.

    Thanks for the kinds words, I really appreciate it!

    Cheers
    Huw

  • theFIREstarter.co.uk

    Reply Reply 11th August 2015

    Nice work my friend!

    I won't hassle you with any more questions on here as I'll be seeing you in a few days, so will come prepared with a list of questions for you then… haha lucky old you 😉

    I guess my main query/concern on the above would be are you worried that you are beholden to the whim of Amazon (example: the changes in the Unlimited they just made) at all? I know you are a fully adaptable and resourceful fellow so really if things change then it's no big deal, but it is something to bear in mind I guess. I also know your income sources are fairly diversified with dividends etc as well which will soften any blow of a radical change by Amazon et al.

    Also I have made absolutely no progress on my business/tax situation so won't be much of a help on that one in York… sorry!

    Cheers!

  • Huw Davies

    Reply Reply 12th August 2015

    Hi TFS,

    No problem at all. Bring your questions this week and let's talk it through!

    To answer your question honestly – Not really.

    I'm not thrilled by the fact Amazon could change their policy at any moment, but it won't stop me marching forward in any way. The way I see it, what's the worst that could happen here? – They stop paying royalties.

    If that were to happen, people like me would move elsewhere to get work and they would miss out on earning the money they make off people like me. They have a limitless size shop and we're doing a massive chunk of the selling. It's in their interest for it to be attractive, so more and more books are published at a better quality and they make more money.

    The difference between Kindle Publishing and my current job – I have MORE control over what I earn because I can publish yet more books, and improve them as I go along. If I want a pay rise, I can create another 10-30 books and I'll get more money. I didn't have that flexibility in my sales job and I was/am commissioned based.

    With that said, I won't be satisfied with JUST kindle income. I plan on diversifying my income streams as much as possible. Kindle is a great earner, but it is active. I'd like to find more passive streams and eventually spend time on my passions – helping people – Mainly with their finances and fitness.

    I want to view Kindle as 'one of the many' if I can in time. It'll be my main source of income for now, but I want to change that. I would never have done this last year, and I'm really proud of myself for taking on this challenge. Sure there's a risk to it, but there was a bigger risk in my mind in staying put in my job. I could be sacked, demotivated, to scared to move on eventually. Now I have more freedom and control.

    I have a lot of work to do, but I'm going in the right direction. Some people may think I'm naive or stupid for doing this, but I'm loving life right now and I have this blinding resilience and determination to succeed in it. I'll speak to you about it on Friday, but I TOTALLY believe in what I'm doing and I have every faith I'll be FI in the next 2.5 years (by my 35th Birthday).

    With regards to your last sentence – I'm now officially the Managing Director of HRD Publishing Ltd. I can't believe I'm even writing that. Things are gonna get interesting this year!

    See you soon TFS!
    Huw

  • theFIREstarter.co.uk

    Reply Reply 21st September 2015

    Thanks for the detailed reply as usual, I kinda guessed what you'd say but it's great to hear your exact thoughts on it anyway.

    We never really got round to talking about setting up businesses etc in York did we!?

    Maybe we can discuss properly on Skype and/or the down south meetup.

    Cheers

  • M from There's Value

    Reply Reply 20th October 2015

    looking forwards to the next update on this kindle stuff… so when's that gonna be, eh?

  • Huw Davies

    Reply Reply 21st October 2015

    Hi M,

    Ha ha….. I know!

    I haven't done any updating over the past few months on Kindle, Dividends, Income & Expenses, Goals, Net Worth etc.

    Part of which has been my, now delayed, switch onto a new platform. The list above are still being recorded by me – that hasn't changed. I've just not come to terms with putting the time into this Blog knowing that I'm going to be moving from it soon, which is poor for the readers I admit.

    I'm unlikely to spend the time to update everything on separate posts, but I'll attempt to summarise where I am with everything before moving over.

    Thanks for the nudge!

    Huw

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