Self-publishing transformed the conventional and ebook businesses some years ago. New audiobook publishers are now taking over the audiobook sector, which is the fastest expanding publication medium.
Audiobooks are no longer simply released by big publishing firms, but also by tiny audiobook enterprises. Audiobooks firms may publish their own materials, works by other publishers, or public domain works in audio format.
Follow these ten steps to start an audiobook business:
Plan your Audiobooks Company
Create a legal entity for your audiobooks business.
Taxes must be registered for your audiobooks business.
Create a Business Bank Account and a Credit Card
Set up Accounting for your Audiobooks Company
Get the Permits and Licenses You Need for Your Audiobooks Business
Purchase Audiobooks Commercial Insurance
Define your Audiobooks Company Brand
Make a website for your audiobooks business.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up this basic guide to getting started in the audiobook industry. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting an audiobook business?
An audiobook company has modest initial expenses, and it is easy to establish a business with very little cash if required.
First, the company must have a recording room. Renting or establishing a recording studio is the greatest, but most costly, choice. Finding a quiet workplace or creating a silent room in your home are both less expensive solutions. There should be no noise from other people, appliances, fans, traffic, or anything else in whatever place is utilised.
Second, the company need recording and production equipment. A computer, a microphone, and recording/editing software are all required. The microphone should be of the highest quality and either desk-mounted or equipped with a headset. While narrating, a handheld microphone will make it difficult to grip the script.
Third, the company must hire a narrator to read the piece aloud. Hiring a narrator may range from a few hundred dollars to a few thousand dollars, depending on the narrator’s reputation and the length of the book being recorded.
Finally, the company must own the audio rights to a book. The rights to the most popular novels may cost five or six figures, while many other publications can be obtained for little or nothing. Owners with minimal funds may begin by recording unknown writers’ works and paying the authors a share of sales, or they can record their own works or public domain works. (Audio rights to public domain works do not need to be obtained, but these books are more difficult to market since they are freely accessible.)
Finally, cover art is required. Business owners may either pay someone to create a cover or design one themselves. Because coverings are generally modest and basic, this is usually a low-cost option.
It might cost between $3,000 and $4,000 to have all of this properly done for a 90,000-word piece. A shorter book that is completely read, recorded, and produced in-house may be as little as $450. As a hybrid option, company owners may outsource storytelling or technical labour for a fee somewhere in the middle of these two figures.
What are the continuing costs of running an audiobook business?
The continuing costs of running an audiobooks company are negligible. They consist of future book narration and production expenditures, with low overhead unless a company has its own studio.
Who is the intended audience?
The market for audiobooks is massive, thanks to the growth of smart gadgets that can stream audio. Most individuals read on occasion, and a rising percentage prefer to listen to books.
How does an audiobook company generate money?
Audiobook companies generate money by creating and selling audiobooks. Businesses may receive a royalty on each book sold, a flat charge on each book created, or a mix of the two.
How much money may you charge your customers?
The price of an audiobook varies, but most are between $7 and $35, depending on duration. However, many buyers do not pay the entire amount for an audiobook. A substantial number of audiobooks are offered via a credit-based subscription model, with users usually paying roughly $15 per credit.
How much money can an audiobook company make?
An audiobooks company has a high earning potential. As an example, suppose a company sells books on Audible, one of the top audiobook sellers. Audible charges around $15 per credit and pays a royalty of 25 to 40% on each transaction.
Based on these figures, an audiobook company should expect to earn between $3.75 and $6 per book sold. If a company has 100 titles available and each sells 30 copies per month, the company will earn more than $10,000 each month.
How can you increase the profitability of your company?
Most audiobook companies boost their earnings by releasing more titles. In order to attract more listeners, businesses may expand out into various genres.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting an audiobook business?
An audiobook company has modest initial expenses, and it is easy to establish a business with very little cash if required.
First, the company must have a recording room. Renting or establishing a recording studio is the greatest, but most costly, choice. Finding a quiet workplace or creating a silent room in your home are both less expensive solutions. There should be no noise from other people, appliances, fans, traffic, or anything else in whatever place is utilised.
Second, the company need recording and production equipment. A computer, a microphone, and recording/editing software are all required. The microphone should be of the highest quality and either desk-mounted or equipped with a headset. While narrating, a handheld microphone will make it difficult to grip the script.
Third, the company must hire a narrator to read the piece aloud. Hiring a narrator may range from a few hundred dollars to a few thousand dollars, depending on the narrator’s reputation and the length of the book being recorded.
Finally, the company must own the audio rights to a book. The rights to the most popular novels may cost five or six figures, while many other publications can be obtained for little or nothing. Owners with minimal funds may begin by recording unknown writers’ works and paying the authors a share of sales, or they can record their own works or public domain works. (Audio rights to public domain works do not need to be obtained, but these books are more difficult to market since they are freely accessible.)
Finally, cover art is required. Business owners may either pay someone to create a cover or design one themselves. Because coverings are generally modest and basic, this is usually a low-cost option.
It might cost between $3,000 and $4,000 to have all of this properly done for a 90,000-word piece. A shorter book that is completely read, recorded, and produced in-house may be as little as $450. As a hybrid option, company owners may outsource storytelling or technical labour for a fee somewhere in the middle of these two figures.
What are the continuing costs of running an audiobook business?
The continuing costs of running an audiobooks company are negligible. They consist of future book narration and production expenditures, with low overhead unless a company has its own studio.
Who is the intended audience?
The market for audiobooks is massive, thanks to the growth of smart gadgets that can stream audio. Most individuals read on occasion, and a rising percentage prefer to listen to books.
How does an audiobook company generate money?
Audiobook companies generate money by creating and selling audiobooks. Businesses may receive a royalty on each book sold, a flat charge on each book created, or a mix of the two.
How much money may you charge your customers?
The price of an audiobook varies, but most are between $7 and $35, depending on duration. However, many buyers do not pay the entire amount for an audiobook. A substantial number of audiobooks are offered via a credit-based subscription model, with users usually paying roughly $15 per credit.
How much money can an audiobook company make?
An audiobooks company has a high earning potential. As an example, suppose a company sells books on Audible, one of the top audiobook sellers. Audible charges around $15 per credit and pays a royalty of 25 to 40% on each transaction.
Based on these figures, an audiobook company should expect to earn between $3.75 and $6 per book sold. If a company has 100 titles available and each sells 30 copies per month, the company will earn more than $10,000 each month.
How can you increase the profitability of your company?
Most audiobook companies boost their earnings by releasing more titles. In order to attract more listeners, businesses may expand out into various genres.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
If your audiobooks company is sued, becoming a formal business organisation, such as an LLC or corporation, safeguards you from being held personally accountable.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To run an audiobooks company, certain state licences and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
or details on municipal licences and permits:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Occupancy Certificate
An audiobooks company is often operated from an office and a recording studio. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can get a valid CO for an audiobooks company.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building laws and zoning standards for the location of your company to guarantee that your audiobooks business will be in compliance and able to receive a CO.
Contracts for Services
Before beginning a new project, audiobook companies might consider asking customers to sign a services agreement. By defining payment terms and conditions, service level expectations, and so on, this agreement should explain client expectations and reduce the possibility of legal problems.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Promote and Market an Audiobook Company
The manner in which audiobooks are sold is determined on how the rights are secured. Businesses who create audiobooks for small publishers do not need to worry about marketing since the publishers will handle it. Non-publisher books may be marketed on services such as Audiobook Boom and AudioFile.
Reviews are crucial regardless of who is in charge of a book’s marketing strategy. As a result, it is critical to add a request for reviews at the conclusion of an audiobook.
How to Keep Customers Returning
By publishing many volumes in the same category, an audiobook company may keep consumers coming back for more. Listeners who appreciate one book will often seek out others in the same genre.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.