How to Co-Author a Book and Split Royalties Automatically

Last updated: January 31, 2025

Co-authoring an eBook is an exciting yet intricate process. But when you first start there’s a lot to think about how to co author a book, from aligning writing styles to managing sales and royalties, multiple factors need careful attention. One of the biggest challenges? Ensuring a fair, transparent, and hassle-free revenue split.

Fortunately, Payhip’s Collaborations tool streamlines this process, allowing co-authors to split royalties automatically-eliminating the need for manual calculations and payments. In this guide, we’ll walk you through everything you need to know about co-authoring an eBook and setting up seamless revenue sharing.

Disclaimer: This guide focuses exclusively on co-authoring eBooks and does not apply to printed books.

Why Co-Author an eBook?

Teaming up with a writing partner offers numerous benefits:

• Bigger Audience, More Sales – Two authors mean double the reach. Your co-author’s audience becomes your audience, skyrocketing book visibility and boosting sales.
• Expert Power Duo – Combine your strengths! Whether it’s storytelling, research, or marketing, a co-author fills in the gaps and makes your book stronger.
• Work Smarter, Not Harder – Writing a book solo is overwhelming. Splitting the workload speeds up the process, making it easier to finish (and publish!).
• Built-in Accountability Partner – Procrastination? Not when you have a co-author depending on you! Stay motivated and actually finish your manuscript.
• Cut Costs, Maximize Profits – Share the costs of editing, cover design, and marketing-while enjoying a bigger return on investment.
• Dynamic & Engaging Reads – A mix of writing styles and voices makes the book more compelling, keeping readers hooked from start to finish.

However, co-writing also comes with challenges-particularly when it comes to defining roles and handling royalties fairly.

Understanding eBook Royalties: What It Means for Co-Authors

Book royalties represent the portion of sales profits that authors earn, typically calculated as a percentage of revenue. Unlike traditional publishing, where publishers take a large share, self-publishing allows authors to determine their own revenue splits. Several factors influence how royalties are distributed, including:

• Industry reputation – A well-known co-author may have stronger sales leverage.
• Marketing contributions – Some authors bring an established audience, significantly boosting sales.
• Writing and editorial input – The creative and technical effort put into the book.

In the self-publishing space, each co-author’s contribution should be fairly reflected in the revenue distribution. Though royalties are often associated with traditional publishing, self-published eBooks still generate revenue that should be divided accordingly.

How Often Are Royalties Paid?

For self-published eBooks, payment frequency depends on the platform used. Many authors still manually distribute royalties on a monthly or quarterly basis. Manually distributing royalties is a major headache for authors for several reasons:

1. Time-Consuming – Tracking sales, calculating percentages, and making payments manually can eat up valuable writing and marketing time.
2. Prone to Errors – Mistakes in calculations or delays in payments can create disputes between co-authors, damaging trust.
3. Financial Hassles – Managing multiple payouts, handling different payment methods, and accounting for currency conversions can be complicated.
4. Inconsistent Cash Flow – Monthly or quarterly payouts mean co-authors might have to wait long periods to receive their earnings.
5. Tax and Accounting Challenges – Keeping records of payouts and ensuring accurate reporting for tax purposes can be overwhelming.

But good news! With Payhip, co-authors can receive their share instantly and automatically with no need for manual intervention.

How to Automate Royalty Splits for Ebooks with Payhip

Manually tracking and distributing earnings can be tedious. Payhip eliminates this hassle by automating revenue splits through the Collaborations tool. Here’s how to set it up:

Step 1: Create a Payhip account for free

Sign up for a free Payhip account and upload your eBook as a digital product. This is where all sales will be processed.

Step 2: Invite your coauthors or collaborators

1. Navigate to Marketing > Collaborations in your Payhip dashboard.
2. Click Add a Collaboration and enter your co-author’s PayPal email.
3. Assign revenue percentages (e.g., a 50/50 split or another agreed-upon ratio).
4. Send the invitation.

Once accepted, Payhip will automatically distribute royalties with every sale-no calculations or manual payouts required. You have the option to show or hide your coauthors’ names, depending on what you’ve agreed to with your coauthors. You can also invite up to 4 coauthors within a single eBook.

Step 3: Publish and promote your eBook

Maximize sales by sharing your Payhip store link on social media, newsletters, and author websites. Understanding how to sell ebooks effectively is key—leveraging strategies like SEO, email marketing, and social media promotion can significantly boost your book’s visibility. The greater the visibility, the higher the earnings—and thanks to Payhip’s automated system, revenue splits remain accurate at all times.

Additionally, consider launching an author website to establish your brand and create a central hub for your books, blog content, and mailing list. A website allows you to showcase your expertise, connect with readers, and drive long-term book sales. If you’re wondering how to build an author website for free, Payhip offer an easy-to-use website builder with no upfront costs, allowing you to create a professional online presence without breaking the bank. A well-designed website enhances your credibility and gives potential readers an easy way to discover and purchase your ebooks.

Tips for Successful Co-Authorship

Co-authoring a book can be an enriching experience when managed correctly. Here are essential tips to ensure a smooth and productive collaboration:

1. Establish clear expectations early on

Before writing, sit down with your co-author and define roles, responsibilities, and expectations. Clarify details such as who writes which sections, how revisions will be handled, and the book’s overall structure. Having an agreement in place can prevent confusion and conflicts down the road.

2. Maintain open and honest communication

A successful partnership relies on effective communication. Set up regular check-ins to discuss progress, challenges, and feedback. Utilize collaboration tools like Slack, Google Docs, or Notion to keep track of updates and ensure both authors stay aligned on the vision.

3. Develop a writing and editing workflow

Create a structured workflow for writing, revising, and editing. Some co-authors divide chapters, while others work on separate aspects such as research and storytelling. Decide on a system that works best for your team to ensure efficiency and a cohesive writing style.

4. Use technology to streamline collaboration

Leverage tools that make co-writing seamless:

• Google Docs – Real-time editing and commenting.
• Scrivener – Ideal for organizing large manuscripts.
• Trello/Notion – For tracking progress and assigning tasks.
• Grammarly/ProWritingAid – Helps refine and polish content collaboratively.

5. Plan for disagreements and decision-making

Creative differences are bound to happen. Establish a system for resolving disputes, whether it’s voting on major decisions, seeking an outside perspective, or dividing final say based on expertise. A pre-agreed conflict resolution strategy helps maintain a healthy working relationship.

6. Agree on royalties and rights in advance

Financial arrangements should be transparent and fair. Decide how earnings will be split, whether evenly or based on contributions. Using Payhip’s Collaborations tool eliminates the hassle of manual calculations and ensures both authors receive their rightful share automatically.

7. Promote together for maximum impact

Leverage both authors’ audiences by cross-promoting the book through social media, email lists, and guest appearances on podcasts or blogs. A strong joint marketing effort increases visibility and boosts sales. By following these strategies, co-authors can create a successful and rewarding writing partnership, ensuring their book reaches its full potential.

Collaborative Writing for Your Ebooks

Co-authoring an eBook is a fantastic opportunity to collaborate and grow your readership. However, the eCommerce platform that you choose can make or break your success. With Payhip’s Collaborations tool, you can automate revenue sharing, ensuring both authors get paid fairly without additional administrative effort. Ready to simplify your co-authoring experience? Sign up for Payhip and start publishing today!