That's a great question and one I get asked a lot. Here is a simplified example comparing the two models with a 5,000 book print run. You can see the publisher’s profit isn’t enough.

**Self-Publishing Model**

Book retail price: $24.00

Total revenue selling 5,000 books: $120,000

Cost to produce the book (includes design and packaging @ $2,500 plus printing): $10/book

Total cost to produce 5,000 books: $50,000

Gross profit selling 5,000 books: $70,000

**Publisher Model**

Book retail price: $24.00

Total revenue selling 5,000 books: $120,000

Cost to acquire the book (advance of $10,000 + royalties 7%): $18,400

Cost to print the book (estimated $6.50/book): $32,500

Cost to sell to resellers and distributors (50% of total revenue): $60,000

Gross profit selling 5,000 books: $9,100