How to Start an Audiobooks Business

Several years ago, self-publishing revolutionized the traditional and ebook industries. Now, new audiobooks publishers are taking over the audiobook industry -- which is the fastest growing format in publishing.

Audiobooks are no longer published only by major publishing houses, but they’re also being put out by smaller audiobooks businesses. Audiobooks businesses may publish their own works, works of other publishers or works in the public domain in audio format.

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Learn how to start your own Audiobooks Business and whether it is the right fit for you.


Start an audiobooks business by following these 10 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your audiobooks business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Check out our How to Start a Business page.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

Luckily we have done a lot of this research for you.

What are the costs involved in opening an audiobooks business?

The startup costs for an audiobook business are manageable, and it’s possible to start a business with very little capital if necessary.

First, the business must have a space for recording. Renting or building a recording studio is the best option, but also the most expensive. More affordable options include finding a quiet office or setting up a silent space in your home. Whatever space is used, there should be no noise from other people, appliances, fans, traffic or anything else.

Second, the business needs recording and producing equipment. This includes a computer, a microphone and recording/editing software. The microphone should be of the best quality possible, and it should be desk-mounted or come with a headset. A handheld microphone will make holding the script difficult while narrating.

Third, the business must have a narrator to read the work. Hiring a narrator may cost anywhere from a few hundred to a few thousand dollars, depending on the reputation of the narrator and the length of the book being recorded.

Finally, the business must have audio rights to a book. Rights for the most popular books can cost five- and six-figure sums, but rights to many other books can be had for little or nothing. Business owners with limited capital can start by recording works of unknown authors and giving the authors a percentage of the sales, or owners can record their own works or public domain works. (Audio rights to public domain works don’t have to be purchased, but these books are harder to sell because they can be accessed for free.)

Finally, some cover art is needed. Business owners may hire someone to design a cover, or they can design one themselves. Because covers are small and simple, this is usually a minimal expense.

To have all of this professionally done for a 90,000-word work can cost between $3,000 and $4,000. A shorter book that’s fully read, recorded and produced in house can cost as little as $450. As a hybrid solution, business owners can outsource the narrating or some technical work for somewhere between these two costs.

What are the ongoing expenses for an audiobooks business?

The ongoing expenses for an audiobooks business are minimal. They consist of the narrating and production costs of future books, with minimal overhead unless a business has its own studio.

Who is the target market?

With the proliferation of smart devices that can stream audio, the market for audiobooks is huge. Most people read occasionally, and an increasing number of people are preferring to listen to books.

How does an audiobooks business make money?

Audiobooks businesses make money by producing and selling audiobooks. Businesses may earn a royalty per book sold, a flat fee per book produced, or a combination of the two.

How much can you charge customers?

The cost of an audiobook can vary, but most are priced between $7 and $35 depending on length. Many customers, however, don’t pay the full price of an audiobook. A large number of audiobooks are sold through a subscription model by credit, with customers typically paying around $15 per credit.

How much profit can an audiobooks business make?

The profit potential for an audiobooks business is significant. For reference, assume a business has books sold on Audible, which is one of the largest audiobooks retailers. Audible charges around $15 per credit, and pays a royalty between 25 and 40 percent on each sale.

Based on these numbers, an audiobooks business might expect to make anywhere from $3.75 to $6 per book sold. If a business has 100 titles available and each sells 30 copies per month, the business would bring in over $10,000 monthly.

How can you make your business more profitable?

Most audiobooks businesses increase their profits by publishing additional titles. Businesses may branch out into other genres in order to attract more listeners.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Audiobooks Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability.

It's very important to secure your domain name before someone else does.

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STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your audiobooks business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can start an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

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You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

Learn how to get an EIN in our What is an EIN guide or find your existing EIN using our EIN lookup guide.

Small Business Taxes

Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).

You can learn more about small business taxes in these guides:

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

Open a business bank account

  • This separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • It also makes accounting and tax filing easier.
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Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

Open net-30 accounts

When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.

Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.

Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.

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Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!

Get a business credit card

  • This helps you separate personal and business expenses by putting your business' expenses all in one place.
  • It also builds your company's credit history, which can be useful to raise money and investment later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a audiobooks business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

For information about local licenses and permits:

Certificate of Occupancy

An audiobooks business is generally run out of an office and recording studio. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

  • If you plan to lease a location:
    • It is generally the landlord’s responsibility to obtain a CO.
    • Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to an audiobooks business.
    • After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
  • If you plan to purchase or build a location:
    • You will be responsible for obtaining a valid CO from a local government authority.
    • Review all building codes and zoning requirements for your business’ location to ensure your audiobooks business will be in compliance and able to obtain a CO.

Service Contracts

Audiobooks businesses should consider requiring clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and so on.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Learn more about General Liability Insurance.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Recommended: Learn what business insurance for your Audiobooks Business will cost.

Business Insurance for
Audiobooks Business

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
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Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

How to promote & market an audiobooks business

How audiobooks are marketed depends on how the rights are obtained. Businesses that produce audiobooks for small publishers don’t need to worry about marketing, for publishers will take care of it. Books that aren’t from publishers can be promoted through Audiobook Boom, Audavoxx and AudioFile.

Regardless of who is running the marketing campaign for a book, reviews are extremely important. Therefore, it’s important to include a request for reviews at the end of an audiobook.

How to keep customers coming back

An audiobooks business can keep customers purchasing additional titles by producing multiple books within the same genre. Listeners who enjoy one book will often search for other similar ones.

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Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business.

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

  • All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
  • Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
  • Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.

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Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.

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Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.

Start An Audiobooks Business In Your State

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Select your state below for an in-depth guide on completing each of these steps in your home state.

Is this Business Right For You?

Anyone who loves books may enjoy running an audiobooks business. The work makes books more accessible by putting them into a format that allows them to be enjoyed whenever the listener desires, even when driving or performing other tasks.

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Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

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What happens during a typical day at an audiobooks business?

Work at an audiobooks business involves three distinct stages:

  • Acquiring the audio rights to a book
  • Narrating the chosen book
  • Publishing and marketing the finished audiobook

Each of these stages comes with distinct tasks. When acquiring audio rights, business owners are in regular contact with authors, agents, and publishing houses. This is followed by hours of solitary work while the book is read and recorded. Finally, marketing requires communicating regularly with others while also analyzing data privately.

What are some skills and experiences that will help you build a successful audiobooks business?

Audiobooks business owners should know how to record and produce good, clean audio. While this work can be outsourced, audiobooks businesses that don’t do their own recording offer customers little value and will have a hard time finding success.

Business owners who don’t have recording experience can learn by taking a class, such as the ACX Master Class or VOXpertise’s offerings. Recording Audiobooks and Recording Your Own Audiobook are two books that can also be helpful.

Additionally, business owners may want to develop skills as an audiobook narrator. Owners who aren’t adept at narrating can hire narrators, but this increases operational costs significantly. Owners who have narrational skills can earn a higher profit margin.

Owners can develop narrative skills by either taking an audiobook narrator class or studying acting. Audiobook Narration for Beginners and Edge Studio’s Audiobook Training are two businesses that offer audiobook-specific courses. Most cities have community colleges and acting groups that offer multiple acting options.

What is the growth potential for an audiobooks business?

An audiobooks business may be a small operation that produces just a few books, or it can become a large company that has thousands of titles available. Karen Cummins has a smaller audiobooks business with just over 50 books available. Brilliance Audio has offered audiobooks since the days of tape decks and is one of the largest businesses in the industry.

Podium Publishing offers a reference for how quickly an audiobooks business can grow. The company produced 200 titles in their first five years (and won several awards). This was an aggressive schedule and called upon the talents of multiple professionals.

Not sure if an audiobooks business is right for you? Try our free Business Idea Generator and find your perfect idea.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting an audiobooks business?

Finding independent authors who will sell audio rights to their books is possible but difficult. To get audio rights to multiple works easily, business owners should reach out to agents and small publishers. Agents may encourage their clients to sell audio rights, and small publishers often outsource audiobook recording.

How and when to build a team

An audiobook business can be run as a one-person business if the business owner also does the narrating. Owners who hire a narrator will need to do so for each book. Narrators may be paid by the hour or a flat fee, and they can be found through local performing arts agencies.

Next Steps

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