Self-Publishing Operating Expenses

Operating expenses vary widely based on the tools you deem important to your work. For my business, I categorize expenses into core, product creation, and optional (non-essential).

Core Expenses are required to keep my business running. They don't include expenses for creating new material, advertising, or attending conventions. The idea behind this breakdown is simple. Expenses get placed into this category if they're required for the business to operate under the following conditions. (1) I don't write or make anything new. (2) I stop all marketing. (3) I don't change anything within the text of my previously published works.

(3) is especially important because of the end matter in my novels. Typically after the story ends, I refer readers to my website, my newsletter, etc. This means that there are some expenses that are required to maintain the integrity of the end matter, such as website costs.

My core expenses are:

• Website domains
• Website host
• State and local business licenses
• Mail provider (Physical mail not email)
• Email list magnet provider

Product creation expenses are anything that's required to produce new material for sale. These are pretty straight forward. Mine include:

• Cover design
• Editing
• Audiobook narration

Optional Expenses consist of everything else:

• Promotional materials (Posters, Bookmarks, etc)
• Advertising creatives
• Advertising costs
• Software (ebook formatting, photo editing, etc.)
• Conference fees

Many of these expenses will be required by all self-published authors. Depending on where you are in your business growth, you may have more core expenses. As your business grows, you might even want to expand your categorization.

Throughout the year, I return to the costs in these categories to ensure they are on track with my expected costs for the year. It's important to track your actual expenditures in a budget to make sure you're making money and not hemorrhaging it.