The Numbers
So, yeah, I’ve gone IndieGoGo to try to raise some seed funds. It’s true, utilizing POD as a platform is pretty low-overhead. However, there are costs involved with starting any business. For Year One, here are some projected costs (though you can be sure new costs will accumulate as time progresses). I set a goal of $1000, and here’s how I came up with that number:
Business Licensing: $100 (varies from state to state)
This is for sole-proprietorship licensing in Washington State; you have to register with both your State and your City. The next step up is forming a Limited Liability Corporation, which can be far more expensive but has a lot of benefits of its own– more on that later. I spent a little more to register “Strange Animal Publications,” “Strange Animal Press,” and “Strange Animal,” so I have a little flexibility. Your mileage may vary.
ISBNs (Block of 10) : $250
Most POD services, such as Createspace, will include ISBNs for free as part of their service, but there are always strings attached. Based on my research, investing in your own block will give you far more flexibility. Unfortunately, there is only one place to get ISBNs, and since it’s $125 for one or $250 for ten, ten is your best bet. Keep in mind that every edition of your book (paperback/electronic/hardcover) needs its own unique ISBN.
Website/Domain: $150 (2 years)
This includes options like site security and domain locking, which you want. You may be able to find something cheaper, but I like fatcow.com, which is highly rated and uses wind power! As I’ve mentioned, I know enough web/blog design not to have to pay somebody to do this for me. I can’t recommend WordPress highly enough (it’s included free with fatcow sites, and there’s even automatic installation). It’s versatile, pretty easy to learn, and a little time investment learning how to use it goes a looooong way.
POD Fees: $200
No matter which POD site you use (Lightning Source, Createspace/Amazon, Lulu, etc.), there’ll be associated fees for things like distribution plans. Also, you’ll have to order any print proofs you want at base cost. Not terribly expensive, but this can mean multiple copies, since you want it to look as good as possible before you offer it for sale.
Other fees: $300
This is the most nebulous category. I’m still trying to wrap my head around stuff like liability insurance, which looks like it runs from $300-$500 annually, and I’d like to take at least one or two classes in business operations. Also, it’s always a good idea to have a little squirreled away for unforeseen costs. Most of these costs will likely arise in Year Two, when I start publishing for other authors, but I’d like to start now.
My first year’s income will be based on whatever self-published books and reprints I get together, but since it’s hard to get started until you can get started, I thought crowdsourcing would be a good way to get the ball rolling.
Why IndieGoGo?
A failed Kickstarter Campaign taught me a few lessons. Kickstarter works great if you already have a large following and, and already have some money to invest in a campaign. I have neither. Also, Kickstarter only pays if you meet your goal. Since I have lots of time but no money, IndieGoGo seemed like a better choice. IndieGoGo also pays whatever is donated, regardless of whether the goal is met (minus a variable percentage, of course).
What does that mean? It means that, as of the time of this post, I have $245 in donations, $200 of which I will actually see! That is SIGNIFICANTLY AWESOME (thanks, supporters!). Not only do I have enough to cover some of my goals, and I can even open a basic business checking account (a must!).
If I don’t raise the full amount, I’ll consider it a minor setback. As long as you approach your venture as a long-term process, any amount will help!
SO, if you have contributed, THANK YOU THANK YOU THANK YOU! If you haven’t, that’s okay, too– thanks for reading!
You can find Strange Animal’s IndieGoGo Campaign by clicking here!
