Business Overview

Many people dream of seeing a book with their name on the cover, but not everyone has the ability to write one themselves. Ghostwriters are hired to write works for those who either cannot or do not want to write their own works. Ghostwriters deal with a range of clients from celebrities to everyday people who need their stories to be told.

Who is this business right for?

Successful ghostwriters must like to work in the background and have no interest in gaining popularity through writing. They need to be adaptable and flexible, both in their writing style and their work schedule. At the same time, ghostwriters require the self-discipline to remain on task and see a project through by delivering exactly what they promise.

What happens during a typical day at a ghostwriting business?

Most ghostwriters spend a large part of the working day marketing their services to potential clients. When ghostwriters are actually working on a project, their time is divided between researching, writing, communicating with clients, and revising their writing based on the client's feedback.

What is the target market?

Since the majority of the market for ghostwriting is nonfiction, the ideal nonfiction clients include anyone who wants to promote their image or ideas like celebrities, business owners, everyday people who have an extraordinary story to tell.

There is also work for ghostwriting fiction. Most jobs for ghostwriters who write fiction are for genre novels like thrillers, fantasy and romance.

How does a ghostwriting business make money?

A ghostwriting business earns money by writing under the name of their clients for a pre-determined payment.

What is the growth potential for a ghostwriting business?

Hiring a ghostwriter to write a book has always been widespread practice. But these days more and more people are using ghostwriters to publish a book to help shape their public images or to cash in on their popularity. There is always work available for quality ghostwriters.

Getting Started

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

Ghosting is more than just knowing how to write well. The best writer won't be able to make it in the ghostwriting business if he doesn't master other skills as well. Success as a ghostwriter depends on knowing how to properly research a topic, having the ability to work well with clients, and the understanding how to market and run a professional business,

What are the costs involved in opening a ghostwriting business?

Starting a ghostwriting business is not expensive, but it does requires a bit of money to get going.

As most ghostwriters work from home, the biggest expense is most likely marketing. But the good news is these costs are minimal. At the very least, ghostwriters should have their own domain name and a good-looking website to advertise their services. A professionally designed website can cost several hundred dollars for a simple site or several thousand dollars for a more complex one. Ghostwriters who want to keep their startup costs as low as possible may want to consider a low or no cost do-it-yourself website design option. The cost to host a website is usually less than $100 dollars a year and buying a domain name is under $10 per year.

Most ghostwriter already own a computer, but some may wish to purchase a new one specifically for their business. Ghostwriting doesn't demand much from a computer and even the lowest-priced models are more than adequate. A reliable Internet connection is critical and can run from $30 to $100 a month depending on the speed of the connection.

Another expense worth considering is joining a professional association like The Association of Ghostwriters or National Association of Independent Writers and Editors. These types of organizations are especially helpful for new ghostwriters. Each organization's yearly dues are under $100.

What are the steps to start a ghostwriting business?

Once you're ready to start your ghostwriting business, follow these steps to ensure that your business is legally compliant and avoid wasting time and money as your business grows:

  1. Plan your business. A clear plan is essential for success as an entrepreneur. A few important topics to consider are your initial costs, your target market, and how long it will take you to break even.
  2. Form a legal entity. Establishing a legal business entity prevents you from being personally liable if your ghostwriting business is sued.
  3. Register for taxes. You will need to register for a variety of state and federal taxes before you can open for business.
  4. Open a business bank account. A dedicated checking account for your ghostwriting business keeps your finances organized and makes your business appear more professional to your customers.
  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.
  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.
  7. Get business insurance. Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
  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.
  9. Establish a web presence. A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

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

Where can I 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.

Recommended: offers video courses and a supportive online community of like-minded entrepreneurs. Try one month membership for for free.

What are some insider tips for jump starting a ghostwriting business?

It takes a while to establish a new ghostwriting business, but there are a few ways to get the ball rolling. Many ghostwriters received their first projects from friends of friends, so successful ghostwriters need to network either online or offline. One of the best ways to network is to become actively involved in a particular subject matter, or niche. A ghostwriter who is able to develop a reputation as the "go-to writer" on a particular subject, never has to worry about looking for work in the future.

Growing Your Business

How to promote & market a ghostwriting business

The best way to market a new ghostwriting business is by networking. The easiest way to network is online through sites like LinkedIn or Facebook by joining as many writing groups as possible and keeping your professional profile up-to-date. A private website is also an essential tool for driving new business. A ghostwriter can use a website to showcase her writing style and to attract clients through inbound marketing.

Recommended: Get started with local advertising for your business with a $300 credit from Yelp.

How to keep customers coming back

Clients love friendly and attentive service, but delivering a great finished product on time is the only way to keep a client truly happy. A happy client means more referrals and more work in the future. Above all else, a ghostwriter needs have the ability to keep all of the promises they make to clients. Projects should be completed on time, or even in advance of the promised deadline. 

How and when to build a team

Most ghostwriters work alone, but some do have assistants to help them to communicate with clients, conduct research or edit their work. A ghostwriting business which needs occasional help can benefit from hiring freelancers to avoid increasing its fixed monthly costs.

Legal Considerations

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a ghostwriting 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, check out our informative guide, Sales Tax for Small Businesses.

For information about local licenses and permits:

Services Contract

Ghostwriting businesses should require 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 intellectual property ownership. Here is an example of one such services agreement.

Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your ghostwriting business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Reduce Personal Liability

Structuring your business as a limited liability company (LLC) ensures your personal assets are protected in the event your business is sued.

What is an LLC?

Form an LLC in 5 easy steps

Earning Potential

How much can you charge customers?

Ghostwriters usually charge a fee which is based on the length and type of assignment the client wants them to write. Inexperienced ghostwriters without expertise in a subject may charge as low as $5,000 for a book-length manuscript. With a little experience, the average ghostwriter can charge between $15,000 and $50,000 per book. Well-known ghostwriters can command much more.

What are the ongoing expenses for a ghostwriting business?

The ongoing costs for a ghostwriting business include marketing, utilities, and any membership fees.

How much profit can a ghostwriting business make?

Due to the low fixed expenses, the majority of the money ghostwriters earn are pure profits.

How can you make your business more profitable?

Ghostwriters can increase their writing rates by becoming an expert in a niche subject. Taking courses or earning a degree can significantly add to a ghostwriter's bottom line. Many writers who start off ghostwriting eventual begin to publish under their own names.

Next Steps

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