A friend recently joked that I’d become “richer” now that I’m writing another book. I believe there is a misconception about how much money authors make on the books they write. You hear about the the mega-bestsellers in the media, but the average book doesn’t sell enough copies to clear the author’s advance. Here’s a short course in book finances:

1. Authors receive an advance for writing the book. Normally, they get 50% upon signing the contract and the remainder once the manuscript is accepted by the publisher. The advance can range from between a few thousand dollars to the millions you hear about Jack Welch getting for his memoirs. For most authors, the advance is in the low five-figures.

2. The author makes a royalty from each book sold. The royalty ranges between 15-20%. However, the percentage is not calculated off the retail price of the book, but on what the seller pays for it. For instance, if a book retails for $24.95, a bookstore normally buys it from the distributor at a 50-60% discount. The royalty is paid off that amount. Thus, on a $24.95 book, an author would make roughly $2.00.

3. Royalties must clear the advance before the author receives additional proceeds. Example: If an author receives a $10,000 advance, the first $10,000 in royalties will offset the advance. He won’t receive an additional dime from the publisher until that happens.

4. The publisher normally retains a percentage of the author’s royalties in reserve to offset returns from booksellers of unsold copies. The reserves are released, over time, to the author.

5. The author is able to keep the advance, even if sales don’t clear the amount he was given.

6. Most publishers send royalty statements and checks every six months to the author. In other words, after the advance, you get paid twice per year.

I’ll address other issues like international rights, audio and paperback rights, etc. in a future post. Anyhow, there’s a dash of insight for you into the financial aspects of books. FYI: The average business book only sells 5,000 copies, so you can see that most authors aren’t getting rich off of a single book that sells mediocre numbers.

Now, back to “Leadership by THE BOOK.” One of the strategies I want to present is how to balance an “iron fist” with the “velvet glove” when addressing performance shortfalls. Yesterday, I decided on an excellent example. Haggai and Zechariah were both prophets. The books they wrote in the Bible are near the conclusion of the Old Testament. Both of these men addressed complacency and indifference with totally different, yet complementary approaches. I believe you’ll find this strategy in my book very helpful as you seek greater results within your organization.

It’s Sunday, so I’m off to church. I’m hoping that the pastor will present something in his sermon that I can put in the book! It’s fun getting ideas from others, putting them in my book, and then selling the information back to them!

I read a story yesterday about how a chaplain was fired for including the word “Jesus” in a prayer for the North Carolina State Legislature. Some hyper-sensitive soul was afraid that “Jesus” would offend those hearing the prayer.

In the midst of such craziness, I suppose I should place a disclaimer on the cover of “How to Lead by THE BOOK: Proverbs, Parables & Principles for Tackling Your Toughest Business Challenges” that “Jesus” is mentioned repeatedly throughout the book and to not make the purchase if you find His name offensive or dangerous. These are strange times we live in. It appears that those who find the name of “Jesus” offensive have gained veto power over those who are offended when His name is omitted.

I’ve started making my list of potential cover quote contributors. Publishers like to see how many influential cover quotes an author can secure to adorn the cover or opening pages of the book. Over the years, I’ve had many kind and generous men and women contribute quotes to promote my book: Zig Ziglar, John Maxwell, etc. However, it’s a bit of a pain to put this part of the project together. It is time-consuming and intrusive. You must contact each person, ask them to take the time out of their busy schedule to read your book, and then to offer a quote in support of it, all before a specific deadline. My list of potential contributors now stands at thirteen and includes business leaders, authors and entrepreneurs. I’ll contact them soon to get their commitment to review the book, and then send them a “draft copy” known as a galley proof to review at the appropriate time. If I can secure six strong quotes from the thirteen prospects I currently have, I’ll be very pleased.

I’ve decided to use the Eric Liddell story mentioned in yesterday’s blog post as a supporting principle in the strategy I present explaining that when faced with decisions to please either men or God, you must choose the latter. 1 Samuel 2:30 says it best: “…for those who honor Me I will honor, and those who despise Me shall be lightly esteemed.” I wonder if the now-lightly-esteemed employee in the North Carolina Legislature who objected to the name of Jesus is aware of this verse?

It’s Saturday. Time to enjoy leisure and put away the computer. Ironically, it’s during the times of “doing nothing” that the best ideas often emerge. I’ll keep the computer within reach, just in case.

My publisher wants How to Lead by THE BOOK: Proverbs, Parables & Principles to Tackle Your Toughest Business Challenges to have 50,000 words. That translates to around 220 pages. The book will be based on biblical strategies for tackling approximately 70 business problems. Here’s the challenge: what to include/not include/how deep to go on each topic, etc. The Bible will be the primary research tool for this book. It has 66 books, 2,118 chapters and 773,692 words! In other words, there’s a lot to sift through! I’ve got the potential topics narrowed down to 72. This may continue to fluctuate. I’d like to have an even 70. Plus, 70 is a meaningful biblical number. One of my goals is to weave in strategies and insights from all 66 of the Bible’s books.

I’m writing this book with the assumption that the reader believes in God, but knows little about the Bible. That format worked well with How to Run Your Business by THE BOOK. My task is to take something potentially complex and intimidating, the 773,692 words in the Bible, and bring them to life. I need to make the Bible’s strategies relevant and usable for the reader to apply in their organization. I can’t get preachy or academic. Keeping things simple is a key. Since I’m simple and non-academic, the task will be much easier.

One of the 70 challenges will be: “What is the best way to give feedback or advice to someone else?” While there are several points I’ll offer, there’s a great example in Exodus 18. Moses is spending all day solving disputes amongst the 2 million people he’s leading to the Promised Land. People are lined up for hours to see him. The problem is, he’s not getting anything else done! Sound familiar? His father-in-law, Jethro, sees what’s happening and is appalled. But here’s what Jethro didn’t do: He didn’t chastise, criticize, or offer alternatives until he first asked “Why are you doing it this way?” In other words, he diagnosed the situation before he prescribed an answer. Because he sought first to understand Moses, Moses was more open to Jethro’s advice and quickly applied it. There’s a lesson there! I’ll probably have a chance to use it today.

Today, I’ll spend time gathering potential stories, parables, principles and proverbs that will fit the 72 challenges I’ve outlined thus far. The research part is fun and easy. Tying it all together in words that make sense is where the work comes in.

Yesterday, I was reminded of the story of the Scottish Olympic runner Eric Liddell, whose story was the basis for the movie Chariots of Fire. I’ve got to find a way to incorporate his level of commitment to principles over popularity into one of the 72 strategies.  Tomorrow, I’ll share what I come up with.  For  now,  it’s time to get back to work.

Yesterday, I signed the contract for my 11th book: “How to Lead by THE BOOK: Proverbs, Parables & Principles to Tackle Your Toughest Business Challenges.” It will be published by Wiley in June, 2011. My due date is December 15th. This will be my ninth book with Wiley. They’re the world’s largest business book publisher, and I value my relationship with them. The best thing about them, in my opinion, is that they don’t micromanage their writers. They let us write!

Since my last book with Wiley, “How to Run Your Business by THE BOOK: A Biblical Blueprint to Bless Your Business” has already gone into its fourth printing my editor, Dam Ambrosio, suggested that I write a follow-up. I’m really excited about this book, because I know that it’s going to help a lot of people.

For the next several months, I’ll use my blog to relay progress, share insights from the book, occasionally vent and give a play-by-play record of the journey that takes a book from the drawing board to the bookshelves. Some days I might only have a couple of lines to share, but my goal is to share at least a little something every day or so.

Along the way, I’ll solicit your ideas, feedback and stories; some of which may wind up in the book! Please leave comments or ideas here on the blog and I’ll respond to you.

The new book will read well cover to cover, but will also be suitable for use as a desk-reference. I plan on including between 70-80 strategies. Some will run for two paragraphs and others for three pages. I’ve already listed ideas for 74 topics, and I am in the process of selecting the best biblical examples to use in supporting each strategy.

I’ve been asked many times over the years, “What is the secret to writing a book?” Well, here it is: You’ve got to write the book! You start with an outline, and then start writing! You’ve got to take it from your head and put it onto paper. That being said, I had better follow my own advice and get moving. In fact, one of the 74 potential strategies I have in my outline is, “What is the best way to give feedback or advice?” I discovered some great material from Exodus 18 on how to do this. I’ll share it tomorrow.