Other People’s Money

Writers with publishers
are paid in normally two ways
– royalties
(they receive a % of every sale)
or
advances on royalties
(which is exactly that,
an advance representing a portion
of what the publisher thinks
the total royalties will be).

Some writers want to leave
their publishers
and self publish
but they’ve already spent their advances
and they can’t wait
for their self publishing venture
to pay.
They’re stuck.

And that’s one of the problems
with playing with other people’s money.
It can give these other people a control
over your business.

Mike Michalowicz
shares

“Grow Your Business by Raising Money
The reason this piece of advice is a flop
is because it suggests that raising money
—in and of itself—
is the end result,
rather than a means to an end.
While there may be times
when you need an infusion of cash
to accomplish a goal,
the mistake is in making raising money
your primary objective.
Investors want to bet on success,
and the real value of a company
isn’t how much cash it can raise
but how much good, successful work’s being done.
Don’t spend your time
chasing other people’s money
(which is far too easy to spend).
Instead, spend your efforts
earning your own money.”

Be VERY careful with other people’s money.