Startup cost
$1.0k–$10k
TRUiC Business Ideas
How to Start a Literary Agency
Decision Snapshot
Literary Agency
Idea Score
70
Profit margin
22%
Break-even
4 mo–12 mo
Time to launch
2 wk–8 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Medium
Time commitment
Flexible
Part 1 - How to start a Literary Agency business - Background
A literary agency provides agents to represent writers and helps them ultimately sell their work to publishers. Your services to a client may extend beyond their initial publication. For instance, you or your agents may need to represent the client who writes a successful book when it comes to film or television adaptations of his work.
Our guide is in 3 parts:
- Part 1 - How to start a Literary Agency business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a literary agency?
If you are willing to start simple, then there are very few costs involved in opening a literary agency. For example, many agencies start with the owner as the sole agent, and that agent typically works from home. This is because it is very easy to correspond digitally with various editors and writers through things like email and Skype. Thus, you could open your business for less than $5,000. Almost the entirety of that money can go towards designing a professional website and advertising your services via newspapers and trade publications. Other forms of advertisement (such as social media) are essentially free, and there is no special licensing requirement for opening your business. You should also print some professional business cards to give to the various clients, potential clients, and editors you will meet.
What are the ongoing expenses for a literary agency?
Functionally, there are almost no ongoing expenses if you work from home. You may periodically have business lunches with clients and editors (which can later be written off via taxes), but just about everything can be done from the comfort of your home, and most of your best advertising will be done via online venues, just as most of your communication will come from email. Effectively, the only job-related expenses each month will be business lunches, gasoline for business-related travel, and the cost of hosting your website (which should be less than $250 a year).
Who is the target market?
You will have a diverse array of clients, but the best ones will always be those who react well to criticism. A major part of your job is discovering the most marketable angle of clients’ work and recommending changes, and clients who are receptive to these ideas are much easier to work with.
How does a literary agency make money?
Most literary agents make money by working on a set commission. Therefore, whatever payment their clients eventually get from a publisher, an agent would typically get about fifteen percent of that amount.
How much can you charge customers?
As mentioned before, you can charge your clients up to fifteen percent of whatever they get for the sale of their book, though you may go as low as ten percent. This commission model creates a natural writer/agent synergy as you are both invested in getting the highest payment for the book possible!
How much profit can a literary agency make?
Your exact profit will be dictated by the number of clients you have, the number of sales you make, and the amount of money those sales make. Some veteran agents guess that between $50,000 to $75,000 is the average salary, but successful sales (particularly sales that may eventually translate to major Hollywood movies or television shows) can propel your business into a six-figure income. Regardless of the profit, the virtually non-existent overhead means that most of what you bring in translates to profit for you!
How can you make your business more profitable?
Make sure you are familiar with how to sell and market books as electronic texts; this allows for another revenue stream regarding the books you sell. Make sure your marketing of your own business emphasizes your close and personal relationship with authors; this allows you to distinguish yourself from major agencies that may make their authors feel like virtual strangers. Finally, don’t be afraid to steer your agency towards the most profitable genres: if mysteries and romances are the hottest sellers, make sure you are actively seeking those books out rather than trying to market a dynamic new genre of a book that has no proven sales value to publishers.
Day-to-Day and Growth
What happens during a typical day at a literary agency?
In no particular order, your daily activities include discovering new clients as well as communicating with the clients you have. You will also have meetings with editors from different publishing houses that may eventually buy the works of your clients. The job also involves writing things like pitch letters for these editors and submitting formal copies of manuscripts to them. You will also be in charge of reading your client’s’ books so that you are prepared to properly market them to publishing companies and the public.
What are some skills and experiences that will help you build a successful literary agency?
Prior experience as a writer can help you in dealing with writers. Similarly, formal education as an English major or a related field can help you pick out some of the best submissions from authors. Finally, if you already have relationships in the publishing world, it can help you hit the ground running when it comes to helping your clients.
What is the growth potential for a literary agency?
The growth potential for this business is modest, with a projected three percent growth projected between 2014 and 2024.
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:
What are some insider tips for jump starting a literary agency?
Spend as much time around publishers and publishing houses as you can to get an idea of how they work. If you are not already an expert in marketing and technology, study everything you can: it will help you stay on top of your own game and better represent your clients. Finally, study the literary marketplace whenever you can: it is vitally important that you have your finger on the pulse of emerging trends (and, conversely, that you know when a once-hot trend has become yesterday’s news).
How and when to build a team
Team-building for a young literary agency can be tricky. Working by yourself is a major key to having almost zero overhead and retaining the entirety of your profits. However, if you have more texts coming in than you can reasonably read and represent each week, you may consider taking on a partner or establishing a small team.
Part 2 - Is a Literary Agency business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Literary Agency business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Literary Agency Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Literary Agency business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.