Tag Archives: authors

The Changing Face of Publishing

(This first appeared under a different title on the Book Business Website.) Let me preface this by saying I run a literary fiction micro-publisher operating much in the mold of how full-service traditional publishing has for years, although because my overheads are so low, I pay my authors 50% of print and 70% of ebook royalties, something I realize large publishers cannot do.

As self-publishing continues evolving, it strikes me that traditional publishers are losing one of our most important services for authors: bookstore distribution. The very distributors publishers have relied upon for years are hedging their bets (and expanding their revenues) by tapping into the self-publishing market. For example, both Ingram and BookBaby offer authors distribution to chain and independent bookstores. And the Espresso Book Network continues to expand a new retail solution for bookshops, libraries, and others. Not to mention the obvious: more and more consumers simply prefer buying print books and ebooks from Amazon.

More than just distribution, though, these new upstarts also offer the production tools needed to easily produce print books and ebooks. So there goes the production expertise competitive advantage of many publishers.

I realize many authors ardently support their publishers. I also know many are frustrated that their royalties are not higher, especially for ebooks. Traditional publishers and reviewers mostly dismiss self-published titles as “trash,” but what happens when established authors with large followings decide to go out on their own? Did you see this week that five of the top ten bestselling books sold by Apple come from self-publishing?

Any author can buy editing services. Any author can hire a book PR firm with social media expertise and mainstream media connections. And now any author can gain distribution to all the places their titles are currently sold.

There are many good authors frustrated at how fast they are forgotten in the Big Houses who pump out thousands of titles per year. I would think a lot of authors would rather hire the editorial and marketing services they choose on their own dime, using a portion of the extra royalties they receive from self-publishing at both book launch and as part of a sustained multi-year effort. To take complete control of their own book’s destiny, as opposed to assigning it to a company operating with high employee turnover and low morale. (Take a look at the recent Glassdoor ratings of the Big 5 as an indication of current employee morale.)

I believe this threat is greater for books than it would be for some other product type. Authors pour everything they have, over many years, into writing their beloved books. Giving their babies away to others is a big risk, especially for those who feel burned or overlooked in the past.

All it takes to demoralize an author working with a Big 5 publisher is to lose your editor in a layoff. Without that internal champion, you are sunk. The ensuing organizational chaos that follows just makes it more painful. This is a huge gamble on a co-dependent relationship where neither side typically feels great about it all the time.

The big strategic question for publishers is increasingly becoming how much does an author need to pay you to provide equal or better services available from somewhere else? Right now, the number they are paying is larger than the newer markets demand. The one big advantage of traditional publishing to authors is the royalty advance. But the few big names are getting more and more while the rest are getting less and are in essence being asked by the publishers to fund those large advances with their reduced 25% ebook royalty rates. How long will they put up with this?

So what should publishers be doing that they aren’t already? I realize many are working to establish their own direct-to-consumer businesses, which is a good start. But I am a skeptic when it comes to this, probably because my career working in five different industries trying this same thing has demonstrated that people like to shop where people shop frequently. The supermarket. Or Amazon. Or the local indie bookstore. Remembering to buy once or twice a year from a manufacturer with their own unique reseller site is inconvenient. And in my experience, the costs to the manufacturer (in this case publisher) become actually higher than the margins they provide to resellers offering a variety of products. Those resellers own the majority of the customer transactions. The tech and staffing requirements to run an in-house direct marketing and IT team will surprise most who are new to that business model.

How about providing a sliding scale royalty on ebooks based on performance, same as done in contracts for print? 25% for ebooks up to a certain number sold, 40% after that. But I doubt this will happen and also am not sure the margin is there. The poor author, giving 15% to an agent and then 15% to themselves. The publisher and resellers are getting most of the slim retail margin for themselves. Which is why I feel the current rules of the old business are not sustainable going into the future. So do you let others disrupt you or try and do it yourself?

Worst of all for publishers, they don’t own the content they deliver. They are completely at the mercy of their authors’ decisions on how they choose to publish going forward. Contrast this with a software publisher who owns the product they make and sell. So, in the spirit of looking for new ways to survive, why don’t publishers focus more on offering content outright and sell it under their own name. The Random House Book of Birding. Random House is the author, the staff produces the book, just as software engineers do for Apple and others.

I post this in part to make sure publishers are paying attention to the services their distributors and laid-off editors and marketers are providing through new channels. This is precisely what I saw in the photo industry as customers and staff moved from Kodak and Polaroid to Epson (first digital camera), Adobe (editing), and HP (ink and paper). And then, of course, Apple, Samsung, Facebook, Instagram . . .

 

New Ways for Authors

(This first appeared on Book Business, under a different title.)

One of the most fascinating aspects of new technologies is how they open doors for new business models. And this is very true in the evolving world of book publishing.

The book publishing model has many challenges, most notably how the established system of author advances, large superstore pre-orders, and returns limits what will be published. Consolidation has made it more difficult to gamble on new authors, so a significant portion of publishing has become about pumping out more of the same from the well-known writers with celebrity status.

Let’s face it. The best authors throughout history were not celebrity personality types! Writers and readers tend to be people eager for the contemplative life. I have been cringing while reading recent audience-driven articles about producing shorter works to feed increasingly distracted tastes. Great works have not been created to feed reader tastes. They have been written because the author had something important to add to our understanding of human existence.

I’m basically an optimistic pessimist, which means when all hope seems lost, mankind rises to the occasion with something better. And for many authors, publishers, and readers, I think print-on-demand is that meaningful, lasting innovation (along with ebooks).

I recently had an email from a reader who bought a Publerati novel through the Espresso POD network and the feedback was revealing to me. “I was surprised how high-quality the book is. I thought it would be a comb-bound pamphlet.” Wow! This reminded me of when digital photo first came on the scene and was just assumed to be inferior. (Side note: I am fascinated by the twenty-somethings I meet who are reviving vinyl records. They will pay more for what they perceive to be better quality. Innovations always confront a nostalgic backlash, I suppose. Or said another way, it’s cool to be retro and “not popular.”)

So maybe we need to overcome some consumer concerns around the quality of print-on-demand editions. That will take a more concerted industry campaign. The first thing I did was make a new page on the Publerati website with a quality statement along with a list of locations offering our titles. You can see it here and I welcome comments on how to make this better.

But the big opportunity of POD is to save the many excellent writers whose books will never sell in the huge quantities that the consolidated publishing industry needs. And in the POD model, these authors don’t necessarily require an advance. Why should they? Let’s get paid for what we produce, not what we have the potential to produce. Publishers have been burned time and time again with that hyped second novel that was a dud.

By only printing what each local market will support, we have a more responsible and sustainable business model. There is no need to prematurely mark an author’s book out-of-print to stem unexpectedly high returns. Now, the author’s book can be available for as long as the publisher wants and for as long as the reader wants. Isn’t that a much better system? Is that not a benefit publishers can offer mid-list and potential breakout authors?

When I see HarperCollins providing front list titles through the Espresso Book Network, I know change is underway. Change is always underway, but we can only see it after it has happened. The benefits to those on the front-edge of change are disproportionately high. Customers remember “who did it first” and their loyalty can be an immense barrier to entry from imitators slow to the new game.

POD publishing is already opening many new doors. What we cannot see from here is how fast this change will occur and who the early winners will be. I’m hoping many of these winners will be authors who can take more control of their publishing destiny. Enjoy the ride!

#ebookschangelives

The more I read and hear from near and far, the more I realize that ebooks are changing many lives in positive ways.

Many writers no longer have to endure years of agent rejections before publishing their work. Many readers are discovering new authors because they like ebooks and like paying less than what the popular authors ask.

At last, there is a great new place for the less popular people to hang out, a place so big, it feels like infinity.  It’s the world of digital.

Publishing consolidation continues to make publishers more cautious about trying something new. They are surviving on the Donald Trump books and blockbuster novels from well-known established writers. There’s that word again: established. As in establishment. Increasingly becoming the common enemy that might possibly be the only way to reunite our country. But that’s what they do best and whom they serve best. “You get the customers you deserve.”

Worldreader is demonstrating daily how ebooks are changing lives in remote regions of the world. Not just ebooks, but digital reading. On phones. On network-connected screens that overcome the heartless barriers of geography.

Civilizations no longer need that one great river or port to flourish.

The new Nile of our times is the Internet. And this is great news for a better future. Which is why we are launching our new hashtag:  #ebookschange lives. Please come visit us in this new world, on Twitter, Facebook, and unknown worlds to come.

#ebookschangelives