Business End

Articles about the business aspects of publishing and self-publishing.

Announcement Hachette/Amazon Business Interruption

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This post from the Amazon Books Team was posted on the Amazon site on 5/27/14.

We are currently buying less (print) inventory and “safety stock” on titles from the publisher, Hachette, than we ordinarily do, and are no longer taking pre-orders on titles whose publication dates are in the future. Instead, customers can order new titles when their publication date arrives. For titles with no stock on hand, customers can still place an order at which time we order the inventory from Hachette — availability on those titles is dependent on how long it takes Hachette to fill the orders we place. Once the inventory arrives, we ship it to the customer promptly. These changes are related to the contract and terms between Hachette and Amazon.

At Amazon, we do business with more than 70,000 suppliers, including thousands of publishers. One of our important suppliers is Hachette, which is part of a $10 billion media conglomerate. Unfortunately, despite much work from both sides, we have been unable to reach mutually-acceptable agreement on terms. Hachette has operated in good faith and we admire the company and its executives. Nevertheless, the two companies have so far failed to find a solution. Even more unfortunate, though we remain hopeful and are working hard to come to a resolution as soon as possible, we are not optimistic that this will be resolved soon.

Negotiating with suppliers for equitable terms and making stocking and assortment decisions based on those terms is one of a bookseller’s, or any retailer’s, most important jobs. Suppliers get to decide the terms under which they are willing to sell to a retailer. It’s reciprocally the right of a retailer to determine whether the terms on offer are acceptable and to stock items accordingly. A retailer can feature a supplier’s items in its advertising and promotional circulars, “stack it high” in the front of the store, keep small quantities on hand in the back aisle, or not carry the item at all, and bookstores and other retailers do these every day. When we negotiate with suppliers, we are doing so on behalf of customers. Negotiating for acceptable terms is an essential business practice that is critical to keeping service and value high for customers in the medium and long term.

A word about proportion: this business interruption affects a small percentage of Amazon’s demand-weighted units. If you order 1,000 items from Amazon, 989 will be unaffected by this interruption. If you do need one of the affected titles quickly, we regret the inconvenience and encourage you to purchase a new or used version from one of our third-party sellers or from one of our competitors.

We also take seriously the impact it has when, however infrequently, such a business interruption affects authors. We’ve offered to Hachette to fund 50% of an author pool – to be allocated by Hachette – to mitigate the impact of this dispute on author royalties, if Hachette funds the other 50%. We did this with the publisher Macmillan some years ago. We hope Hachette takes us up on it.

This topic has generated a variety of coverage, presumably in part because the negotiation is with a book publisher instead of a supplier of a different type of product. Some of the coverage has expressed a relatively narrow point of view. Here is one post that offers a wider perspective.

http://www.thecockeyedpessimist.blogspot.com/2014/05/whos-afraid-of-amazoncom.html

Thank you.
 

Amazon vs. Hachette: What It’s About And Why I’m Rooting For Amazon

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This post by Publetariat founder and Editor in Chief April L. Hamilton originally appeared on her Digital Media Mom site on 5/24/14.

As you may have heard, or read, or discovered while browsing Kindle books on the Amazon site, Amazon is currently in the middle of a battle with “Big 5″ publisher Hachette. The beef is over reseller wholesale contract terms (the publisher’s ‘cut’ on every ebook of theirs sold by Amazon), and Amazon has been using some strongarm tactics to remind Hachette that Amazon doesn’t HAVE to sell Hachette books at all if the parties can’t come to an agreement.

 

First, a little background is needed.

Back when the Kindle was new and ebooks were just starting to become a thing, say 2008 or so, Amazon established wholesale terms with publishers on ebooks based on the “fixed price” (usually known as a “suggested retail price” in other industries, for other products) which was set by the publishers. Amazon could discount the actual sales price of ebooks to whatever they wanted, or even offer them for free, so long as they paid the publisher the wholesale rate that was based on the publisher’s fixed price.

For example, if the publisher’s fixed price was $15 (seriously, that’s the average of the fixed prices the Big 5 publishers were setting; on some ebooks they wanted to go as high as $18) and the publisher’s wholesale cut was 40%, Amazon would have to pay the publisher $5.60 for every copy sold or given away on Amazon. Whether the ebook ultimately sold for $10, $6, or was given away for free, Amazon owed the publisher $5.60 for every copy distributed to Amazon customers. As a result, Amazon was (and still is) actually LOSING money on many ebook sales, but they were willing to take the hit to establish their Kindle line as dominant among ereaders.

 

A couple years down the road, publishers started to get nervous.

In 2010 publishers decided they didn’t want Amazon to have the right to set its own prices on their ebooks anymore, even though Amazon’s retail pricing didn’t affect their wholesale cut AT ALL. They feared that if Amazon were allowed to establish $9.99 in the minds of consumers as a standard price point for frontlist ebooks (new release ebooks the publisher expects to sell well), they would never succeed in rolling out their own, much higher fixed prices. And they were probably right about that, but only because the fixed prices they had in mind for frontlist ebooks were ridiculously high to begin with.

 

Click here to read the full post on Digital Media Mom.

 

Three Reasons Why I Do Not Give a Fig Who Steals My Books

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This post by Patricia V. Davis originally appeared on the Women’s National Book Association San Francisco Chapter site on 3/18/13.

A few years back, I was in the audience listening to a speaker at a prestigious writers’ conference as he warned us about book piracy and how many potential sales authors stood to lose as a result.

“I know for a fact that people are pirating my work and even selling my books illegally online,” he said, clearly not happy about that.

He went on to inform a roomful of mostly new writers that he’d even caught some reviewers ─ legitimate ones ─ selling their review copy of his book on eBay after they’d reviewed it. “When giving out review copies of your books, be sure to write ‘review copy’ in it, to help prevent that from happening,” he cautioned. He continued in the same vein about illegal copies being obtained for his ebooks, as well, and I observed several audience members taking notes diligently on his piracy prevention suggestions.

The problem is, I’d personally never heard of him before that conference, and if you ask me even now, I couldn’t tell you the title of even one of his books.

What does this mean? I’m getting to that.

Let’s take another scenario:  Me, as a teenager at a neighbor’s garage sale. She had a bin of old paperbacks that she was selling at ten cents each. Obviously we’re going way back here, before the internet even existed, so in essence, her reselling of those paperbacks at ten cents each was that era’s equivalent of today’s online book piracy. I bought a paperback that looked intriguing ─ why not, at that price? ─ and took it home to read. I became so enraptured by the story, that I read it all in one sitting, then raided my babysitting money which I’d saved for something else, walked all the way to the local bookstore and bought another of her books at the full paperback retail price that same day. Over the years, I’ve repeatedly bought her titles, and sometimes, if I’m feeling famished for the quality brain candy novels that she writes, and something new she’s written looks particularly appealing, I won’t even wait for the paperback version ─ I’ll spring for the hardback price of 25 dollars plus tax. (Yes, even this day of eReaders and iPads, I still buy hardback books.) So, the novel that I bought “illegally” hooked me into becoming a lifelong fan of this author.

 

Click here to read the full post on the WNBA San Francisco Chapter site.

 

Using SlideShare For Marketing Fiction And Non-Fiction Books

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This post by Joanna Penn originally appeared on her The Creative Penn blog on 5/16/14.

I know you don’t want to think about any other sites for marketing!

But in this post, I outline why I think you should consider Slideshare and how I’m using it for both my brands, J.F.Penn thriller author, and Joanna Penn, professional speaker and non-fiction author.

 

Why care about Slideshare?

Slideshare is basically a presentation sharing network.

It’s a form of content marketing, but more visual, and if done well, it can be much more effective than writing a blog post on a topic, especially if you are unknown and your site has no ranking. Visual marketing is very much the big thing now. In an age of text overload, people are clicking more on visual content – whether that’s Instagram, pics on Twitter or Facebook, infographics or SlideShares.

It’s easily shareable and viewable on any social platform as well as on mobile devices. On the right, you can see a tweet that actually embeds the whole SlideShare so it can be read within Twitter. Awesome for twitterholics like me!

Slideshare is one of 120 most visited websites in the world, with 60 million monthly visitors. It ranks highly in Google for keywords, and you can use embedded hyperlinks to direct traffic to your site.

 

Click here to read the full post on The Creative Penn.

 

Smashwords and OverDrive to Bring 200,000+ Indie Ebooks to 20,000+ Public Libraries

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This post by Mark Coker originally appeared on the Smashwords blog on 5/20/14.

Imagine if your indie ebook was purchasable by thousands of public libraries around the globe. Now imagine no more.

Smashwords today announced an agreement to supply more than 200,000 titles to OverDrive, the world’s largest library ebook platform.

OverDrive powers the ebook procurement and checkout systems for 20,000 public libraries around the world, including 90% of US public libraries.

This agreement marks a watershed moment for indie authors, libraries and library patrons around the world.

It’s also a big deal for thousands of small independent presses around the globe who now have a convenient onramp into the OverDrive network.

Millions of library patrons will now have access to the amazing diversity and quality of the Smashwords catalog.

At a time when many large publishers are charging libraries high prices for ebooks (front list ebooks from Big 5 publishers can cost libraries $80, and even backlist ebooks can cost libraries $20-40), Smashwords authors and publishers are stepping in to supply thousands of affordably priced, library-friendly ebooks. Faced with the option of purchasing a single James Patterson novel for around $40.00, or ten thrillers from today’s most popular indie authors at $4.00 each, libraries now have exciting new options to build patron-pleasing ebook collections.

To help librarians streamline collection development, in the weeks ahead OverDrive and Smashwords will create curated buy-lists lists libraries can use to purchase the most popular indie authors and titles. Libraries will soon have the option, for example, to purchase the top 100 YA fantasy novels (approximate price: ~$400), or the top 1,000 most popular contemporary romances (~$4,000) or top 200 complete series across multiple categories (~$2,000), or the top 200 thrillers, mysteries, epic fantasies or memoirs. With most of our bestsellers priced priced at or under $4.00, you can do the math to appreciate how incredibly affordable these collections will be. We’re going to have fun slicing and dicing.

Our lists will measure title popularity by aggregating sales data from across the Smashwords distribution network. Indie authors: If you needed yet another reason to fully distribute all your titles to all retailers via the Smashwords distribution network, now you have it. Stand up and have your sales counted because we want to help libraries purchase the greatest diversity of high-quality ebooks across multiple genres and categories.

Here are a couple additional stats to help you appreciate the massive scale of the OverDrive network:

 

Click here to read the full post on the Smashwords blog.

 

Save Our Stacks

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This post by Rebecca Schuman originally appeared on Slate on 5/12/14.

It’s not about the books. It’s about the books representing the last place on campus where intellectual contemplation thrives.

If a college library moves 170,000 of its books to storage, to make room for sumptuous new administrative offices—which is happening at Maine’s Colby College—does it still count as a library? Or, as an impassioned open letter from concerned faculty attests, is it no longer “a place for reflection and deep thought, research and scholarship,” but rather merely “a waiting room” sans books and a reference librarian, and surrounded by temples to the new gods of the American university?

The Colby administration argues that the renovations are there to help the students, providing them with more study space. The student newspaper is less convinced, headlining an op-ed “Sorry, Your New Library Still Sucks.”

The Colby case is but one example of a widespread move to re-appropriate library space in the age of digitization. From the University of Nebraska to the University of Edinburgh, from the University of Nevada–Las Vegas to Kent State, knowledge repositories the world over may soon have to change their names, because the liber will be increasingly hard to come by. In fact, the only major library to “resist” this trend—the New York Public Library—did so only reluctantly, and out of capitulation to a passionate, organized, grass-roots campaign.

 

Click here to read the full article on Slate.

 

May 2014 Author Earnings Report

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This post originally appeared on Author Earnings on 5/19/14.

Three months ago, we released our first full report on Amazon e-book sales and author earnings. Our goal was to look at unit sales and earnings by various publishing paths in order to help authors make informed decisions in this rapidly changing publishing environment. The results were eye-opening, but it was merely our first data point. Our long term goal has been to pull data every quarter to see if we can spot developing trends.

A quick recap on our methodology: Using a custom software spider, we can crawl every Amazon bestseller list and pull info from each book’s product page html. This data goes into a spreadsheet, which gives us the price, ranking, average review, and much more for every ranked e-book on Amazon. Using established ranking-to-sales data from numerous bestselling authors (including our own works), we are able to present author earnings by title and publishing type. As with our past reports, all the data has been anonymized and is available for download at the end of this report. And just like with past reports, any reasonable numbers entered for the power curve of the product rank-to-sales ratio reveals the same overall picture. That is, our conclusions are not dependent on our estimates but are borne out of the freely available data.

The exciting thing about pulling this data is that we have no idea what we’re going to find. Our conclusions since the last report might need rethinking. Our advice on what an author might want to do with a manuscript today could very well change as the publishing industry takes another swerve. My partner and I debated what we expected to see from this second round of data. We both predicted no more than a 2%-3% swing from any one publishing path to the other over such a short period of time. I wagered we’d see a 2% drop in self-publishing titles, offset by an increase in Amazon imprints, as the latter continues to snatch up high performing e-books and put more marketing muscle behind their own authors. My partner thought we’d see a 2% hike in self-publishing at the expense of traditional publishing. We bet a dollar on the outcome.

 

Click here to read the full post on Author Earnings.

 

Don’t Ever Do It For the Money: A Conversation with My Agent

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This interview by Edan Lepucki originally appeared on The Millions on 5/19/14.

Whenever my students ask me about getting a literary agent, I say three things: 1. There are a lot of agents out there. 2. The process can take a long time, so be prepared for rejection and waiting, waiting, waiting. 3. If you’re afraid of your agent, he or she is not the right agent for you. That last piece of advice is borne out of my experience working with Erin Hosier, whom I consider not only my advocate and colleague, but my friend. I’m not afraid to email her for advice and I do not fear her reaction to my work. (Other friends of mine seem cowed by their agents, which saddens me: if your agent can’t root for you, then who in the business can?) Erin is honest and smart and funny, and if I am bugging her too much I expect her to tell me so. When she isn’t agenting at Dunow, Carlson and Lerner, she’s writing. Her memoir, D0n’t Let Me Down, is forthcoming from Atria Books. Also: her lipstick is always impeccable.

She answered the following questions via email within 24-hours. If you want to hear more from Erin — and who won’t after reading this? — she’ll be appearing at WWLA: The Conference on Saturday, June 28, 2014. (And, yes, that’s a shameless plug.)

 

The Millions: How did you become a literary agent?

Erin Hosier: I had been interning at a magazine and found it to be a stressful, low-paying job with a lot of responsibility, but I loved the editorial meetings. I loved talking about ideas and strategizing with smart people. It was thrilling to help put together an issue of a magazine, and see the fruits of our labor on display just three months later. The people there were always bummed out, though. They moved so quickly through an idea when I wanted to immerse myself in one. I happened to read a galley of a book called The Forest For The Trees: An Editor’s Advice to Writers, that made book publishing sound much more my speed. Through a mutual acquaintance, I was introduced to the book’s author, Betsy Lerner, who then hired me to be her assistant when she made the switch from Doubleday editor to literary agent at The Gernert Co. The whole thing happened very quickly, in the time it would have taken for another issue of the magazine to come out. I answered phones and worked really hard for a year before I ever sold a book, but once I showed the aptitude, I was given a lot of support and encouragement to move forward in my career. There was nothing corporate about that agency. I didn’t have to compete with anyone or fill a quota. I’ll always be grateful for that experience, but my publishing soulmate will always be Betsy Lerner, who I’ll follow to the ends of the earth.

 

TM: Can you describe, in 2-3 sentences, why a writer needs an agent?

 

Click here to read the full interview on The Millions.

 

A Life Beyond ‘Do What You Love’

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This editorial by Gordon Marino originally appeared on The New York Times Opinionator on 5/17/14. Authors and writers often struggle with the choice between quitting their day jobs to follow their passion fulltime, and maintaining a toehold on financial stability. This piece speaks to the practical limitations and societal downsides of pursuing one’s passion to the exclusion of all else.

Student advisees often come to my office, rubbing their hands together, furrowing their brows and asking me to walk along with them as they ponder life after graduation. Just the other day, a sophomore made an appointment because he was worrying about whether he should become a doctor or a philosophy professor. A few minutes later, he nervously confessed that he had also thought of giving stand-up comedy a whirl.

As an occupational counselor, my kneejerk reaction has always been, “What are you most passionate about?” Sometimes I‘d even go into a sermonette about how it is important to distinguish between what we think we are supposed to love and what we really love.

But is “do what you love” wisdom or malarkey?

In a much discussed article in Jacobin magazine early this year, the writer Miya Tokumitsu argued that the “do what you love” ethos so ubiquitous in our culture is in fact elitist because it degrades work that is not done from love. It also ignores the idea that work itself possesses an inherent value, and most importantly, severs the traditional connection between work, talent and duty.

 

Click here to read the full editorial on The New York Times Opinionator.

 

Evaluating Your Editor

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This post originally appeared on Popular Soda on 10/3/13.

All editors are not created equal.

It is virtually impossible to find professional-level editing for bargain-basement prices. This handy checklist will help you determine if you’re looking at an experienced editor or a green freelancer. You may not have the funds, desire, or need to hire a top-notch editor, but this checklist will help you avoid untrained and unqualified individuals.

These guidelines are for editors who work on a sentence-by-sentence basis. They may call themselves line editors, copy-editors, or even proofreaders.

 

Experience

Look for experience specific to editing. Degrees in English and published books are nice, but they do not constitute copy-editing training.

Writing and editing are related skills, but not interchangeable, kind of like being good at running and being good at soccer. If you are a fast runner, that will help you in playing soccer. However, you can’t simply run around the field and expect to spontaneously learn the rules of the game. Editing is the same.

Check to make sure that your potential editor has training or formal experience in editing and he’s not just running around the field. An English degree is not enough. Look for education directly related to editing as well as in-the-field experience, such as editing for a book publisher or newspaper.

 

Rates

 

Click here to read the rest of the post on Popular Soda.

 

Making Money As A Writer

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This post by Alexander M. Zoltai originally appeared on his Notes From An Alien site on 5/13/14.

I’ve written many posts about writers and money.

Some folks think that only the journalist-type or the non-fiction writer should think about making money…

Some folks think that fiction writers shouldn’t consider money and only write for the love of the art…

Some folks think the new self-publishing juggernaut can slam them into the mega-sales bracket…

Thing is, there’s a bit of truth in all those ways of thinking—a bit…

The full truth about any individual’s chance of making money with their writing involves, at least, the following factors:

* How strong their desire is to make money

* How much money they can spare to help them make money

* How much time they have to spend working toward making money

* The choice of venues in which they’re willing to try to make money

From my experience, I’d recommend a writer soberly consider those factors; then, based on their deliberations, make a sound judgement about one more factor:

 

Click here to read the full post on Notes From An Alien.

 

Literary Criticism in the Era of the Clickbait Headline

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This post by Jason Diamond originally appeared on Flavorwire on 5/15/14.

This probably says more about the type of conversations I have when I’m not sitting behind a computer than anything, but I’ve spent plenty of time in bars debating whether book reviews are of any value to anybody, from the reading public to the author who might look to critics for notes on what to improve. (If you are that special kind of literary masochist, then good on you. Go on doing what you’re doing). As someone who writes about books, as well as the type of person who enjoys reading criticism — to the point where I’ll read books full of book reviews from decades ago — I’m always going to stick up for book reviews. I’m always going to want to read them, and I wouldn’t mind always writing them. Reviews are important. Without them, the literary balance is thrown off, and the bar can be lowered to astonishing levels.

The thing is, people really don’t talk about reviews all that much. They might read them, but for the most part, unless it’s some intense Michiko Kakutani takedown over at the Times, discussing reviews doesn’t really compare to talking about which Stark was killed on the latest episode of Game of Thrones in terms of culturally relevant conversation topics. I wish that wasn’t the case, but in this tweet-a-second world, book reviews have had to fight really hard to stay in the conversation, especially on the Internet, where an Amazon review can make any casual reader feel like they’re John Leonard.

 

Click here to read the full post on Flavorwire.

 

You’re Not Gonna Spend a Lot Marketing This Book

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This post by Saundra Mitchell originally appeared on her Making Stuff Up For A Living blog on 1/13/14.

So, I’m reading this absurd article on all the things you need to spend money on to market your own book. Oh noz, you have to pay a zillion dollars for a website, for a mailing list, for copy and editing for your website, wtf? I’m not even going to link to article because, seriously, WTF?

Here’s the deal. If you’re willing to put the time in yourself, you can do almost all of your book marketing for free. It may be worth it to you to pay for someone else to do everything- and if you’re in a position to do that, awesome! Go for it! But if you’re not, or if you’d prefer to have strict control over everything, here’s a brief guide to doing it yourself.

 

Blog/Website: More and more people are using Blog software to host their entire websites. WordPress is fantastically flexible, free and your URL can be an easily memorable yourname.wordpress.com. WordPress has about a zillion free themes so you can customize like whoa, and because it’s an integrated service, it shares your links on other blogs like yours to drive traffic. FOR FREE.

Blogger is another free host and software package that’s easy to use and customize for your needs. And you know what drives even more traffic to websites? Twitter. ALSO FREE.

 

Graphics: Graphics for your website, your bookmarks, your postcards whatnot- you can create them yourself for free, from the bottom up. Download a copy of GIMP image manipulation software, and play with it.

 

Click here to read the full article on Making Stuff Up For A Living.

 

The Art and Business of Reader Engagement and Author Platform

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This post by Jane Friedman originally appeared on her site on 12/13/13.

In the nonprofit world, you’ll frequently hear about “audience development,” which concerns itself with outreach to people interested in what you do, and customizing that outreach based on a person’s level of interest.

Audience development is difficult to strictly define because it involves not just pure marketing, but one-on-one relationships. It’s not about selling (although the result is often sales); it’s about creating an experience or community that engages with you over the long term. And that requires that you communicate with your readers meaningfully and consistently.

One of the best summaries of audience development I’ve read is from Shoshana Fanizza, who has spent more than a decade in arts development:

Audience Development, in a nutshell, is all about relationship building to achieve the “power of people” to support your art form. Consider it as building positive energy, people energy, to attract more support for you. Audience development does take time to see results. It is a building process. … You want to get to know your audience and connect with them. If they feel connected and cared for, they will want to become more involved. It will take effort and persistence, but you will see the relationships you build start to form a positive community around your art. This community is the key to succeeding!

So, audience development is a fancy business word for directly communicating with your readership, and engaging with them in a way that’s mutually beneficial and respectful. What follows is a starting framework and strategy for doing just that, and much of it overlaps with developing your platform. (If you don’t know what platform is, read my definition here.)

 

Why is this important?

 

Click here to read the full article on Jane Friedman’s site.

 

Penguin's Author Solutions Still A Poor Self-Publishing Choice

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This post by Orna Ross originally appeared on the ALLi blog on 5/9/14.

Yes, it’s that time of  year again, when the Watchdog desk here at ALLi Towers (otherwise known as Jim Giammatteo and Mick Rooney) scan the self-publishing scene and analyse the good, the bad and the definitely-to-be-avoided.

Authors still have to make their self-publishing choices in an unregulated environment where the same service can cost $500 against $15,000, for pretty much the same thing, depending on where you shop; where services that are absolutely useless are sold at inflated prices; and where one large operation with many imprints dominates the information stream, including Google Ads/search.

Prior to launching our guide to services at Book Expo America at the end of May, we wanted to alert you to that company, the world’s largest self-publishing service, Author Solutions (ASI), acquired by Penguin-Random House in 2012, and trading under a number of brand names including Trafford, XLibris and iUniverse.

The Watchdog Warning issued last year about this company is still in place.

Our hope that Penguin would clean up ASI’s practices, notorious in self-publishing circles for over-promising and under-delivering has not, as yet, materialised — and ASI imprints score a very poor rating in our guide again this year.

 

Click here to read the full post on the ALLi blog.