Given recent events, aka Hachette-Amazon, it’s required reading for anyone involved in the publishing industry. I think it’s actually required reading for anyone who just buys from Amazon. It lays out how a company that was just a thought in 1994 became what it is today.
After reading the book, then I suggest reading the reviews written by some of the people mentioned in the book, including Mr. Bezos wife. I’m a bit surprised at the negative reaction from some of these people because I didn’t think the book is a smear job on either Bezos or the company he started and still runs. It lays out a business template of someone driven to success.
My take on Bezos from this book (which might totally be wrong, I’m sure his wife knows him better): he wants to win. It’s not all about making money (although I’m sure he doesn’t complain) but about winning.
I’m business partner of Amazon (and other platforms) simply because eBooks resurrected my writing career after traditional publishing said it was over. I tell writers it’s the best time ever to be an author. I’ve been able to re-publish my extensive backlist and get it to writers and Amazon facilitates that. I was recently able to publish a free Sneak Peak containing excerpts and author notes from 42 of my books and make it live on Amazon (and other platforms). What bookstore or publisher would do that? I get paid every month, while traditional publishing still issues royalties as if computers and the internet had never been invented.
Also, every interaction I’ve had with Amazon employees (including a day long visit in January) has been positive. They view authors as customers too, which is key although there are rumblings that might change.
That said, after reading this book, I also cast a leery eye at the future and make plans in case winning comes at the cost to me and my career.
As far as Amazon-Hachette, I think the real point is the future of print. Put simply, the current business model is antiquated and extremely inefficient with bookstores being consignment stores and books being shipped back if they don’t sell. Print on Demand is the inevitable future as the machine gets smaller and the price point gets lower. The part of the negotiations that really caught my eye was the mention that Amazon wants to include a clause where they can print up books and sell them if they are out of publisher stock. This means a POD machine at every Amazon fulfillment center and one doesn’t have to stretch the imagination to envision chronic shortages of supplies of print books from publishers. It would be dramatically more efficient, but would give Amazon much more control over publishing.
I also envision Amazon kiosks in airport, at colleges, in malls, etc. with POD machines. Inventory is stored in the computer. The book is printed when the customer wants it. Of course, the problem is: how does the customer know the book exists if they can’t see it? Which is a problem for digital: discoverability.
I was in Costco yesterday (yes, with great emotional suffering) and noticed how much the book table has shrunk in the past year. Same with going into a Barnes & Noble a couple of weeks ago: a lot less books getting racked. But, also, at airport bookstores, at Costco, the only books being racked at from a handful of mega-bestselling authors. Not much democracy there. For well over a decade publishers have gone more and more to the blockbuster and relegated the midlist and new authors to the slums. Understandable business-wise but apparently something some of those mega-bestselling authors who yell loudly about Amazon care nothing about.
At Cool Gus we take emotion out of the business process and look realistically to the future. I see many crowing that “digital has flattened” and “ebook sales have slowed”. Yes, as one getting above 50% and heads toward 100% things will slow down. It’s math. For those who worry about Amazon taking over the world, we also noticed at BEA a much more aggressive approach from #iBooks, Google and PubIt (although what the split means, we won’t get into).
As I noted in a previous blog: anyone who thinks the status quo is going to be maintained needs to be looking for a new job soon.
That said: It is still the best time ever to be an author. And, I believe, to be a reader. I’ve got a print book on my desk that would have been “out of print” but for POD technology, which I’m using for research. And I’ve got books on my iPhone, always ready to be read, like when I’m sitting in the doctor’s waiting room later this morning.
Nothing but interesting times ahead!
So says Kahlil Gibran Kahlil. I made the error during Beast Barracks of buying off on the pitch from the brand new Arabic instructor at West Point—it was the first year they were offering the language and they needed enough bodies to fill a section. So I signed up.
I had not yet learned the military maxim: never volunteer for nothing.
Lots of numbers being bandied about in publishing now. Lines are drawn. Bayonets are being sharpened along with pencils and you know what? Readers don’t give a crap.
Indie authors apparently make. Whatever. In all these surveys, I doubt my numbers are getting counted. 60 titles spread over a bunch of genres, most indie, some with 47North, some with the Martians. I also have a nice revenue stream from Audible ACX. Why does everyone suddenly care what I make? They never did in traditional publishing.
One truth is that all the numbers are completely skewed in traditional publishing by a handful of mega-bestselling authors. Take them out and the whole thing changes drastically.
Maybe that’s the key to all of this. We need to clean up our own house. Because that’s what we control.
Hugh Howey tweeted something interesting, something I’ve been harping on for a couple of years. It’s not about who makes more money or how or whether they’re hybrid, inbred, or have two heads. It’s about RIGHTS.
When music imploded digitally, the musicians who not only survived, but prospered, did it one of two ways. On tour. (Which aint likely for authors). And/or controlling the rights to their music.
In case no one has noticed, author rights are being sold. E-reads was just sold. Along with all those contracts. I was with E-reads so long I got my rights back after seven years. This selling of rights is going to happen more and more. Sort of like your mortgage during the bubble. Remember that? Authors could end up with the Russian mob owning their rights. I watched a special where David Geffen talked about trading Poco’s contract to another agent for Neil Young’s. Really.
And if I see one more indie author taking a trad deal and bubbling about how much is being offered them, how wonderful it’s going to be, I would make a gentle suggestion. Let’s hear from them in a couple of years. If you haven’t been trad published, you are likely in for a very rude awakening. I cringe sometimes when I see someone who has been successful self-publishing, who signs away their rights for not just the up front money but what they think is going to be all the great distribution, marketing, yada yada yada. I recommend any author who is thinking of going indie to trad, research back a couple of years and study the first authors to do that. Where are they now? How glad are they now they sold away those rights? I might be wrong, but I haven’t heard much about some of them. I can, however, check their rankings on Amazon. I’m reminded of when a Roman consul/emperor returned to the city and they held a Triumph and there was a slave in the chariot whispering “Respice post te, hominem memento te.”
The flip side is that indie publishing is getting tougher and tougher. Take out the top 5% of indie authors and the numbers are also skewed. The market is saturated. Bestseller lists have very few consistent titles, even day to day. What many indies aren’t saying is that the increasing competition is making it tough. I know Hugh Howey thinks the pie can grow bigger, but Joe Konrath speculated that a couple of years ago, and it’s simply not reality.
For trad authors thinking of going indie, here is some food for thought.
- Where will you be in five years when print is mostly via POD? I’m seeing Createspace (Amazon) Kiosks in airports printing books soon.
- Where will you be in five years if you don’t own any of your rights and you are no longer frontlist with the publisher that does own those rights? Think they’ll be pushing you? Hahahahahaha. Sorry. Had to do that after looking at royalties for my three co-written NY Times bestsellers that are backlist with St. Martins. I made more yesterday indie than I do in six months on those books.
- Percentage wise, the revenue you would receive from indie publishing will likely more than make up for the loss of what your traditional publisher is doing for you. Seriously. I can do the math of your royalty statement.
- Control. How much do you have? Date of release? Cover? Editing? Pricing? Library distribution? Cover copy? Marketing? Running specials? Most importantly creatively? Can you write what you want to write? What your fans want?
- You can’t really self-publish. Not if you have multiple titles. It’s so much more than just cover, formatting, etc. The digital dance (trademarking that now, like I should have done hybrid author) is complex. But I don’t think you need to give up 50% of the royalties for those services. You need a partner who will do that for you, giving you more than they get. A concierge service for authors where the creator of the content is valued more than the mode of delivery.
There’s another saying which is considered also a curse: May you live in interesting times.
Ah yes– FREE for the next 2 days: West Point to Mexico, the first part of my Duty, Honor, Country trilogy. From West Point in 1842 into the Mexican War. My West Point-Civl War version of HBO’s Rome. Did you know the Mexican War was the bloodiest in our history percentage wise?
*****Admin Note From Jen*****
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I’m linking to an article I wrote that was published today in Kirkus:
Currently in Seattle where we infiltrated Amazon’s Death Star yesterday, Jen teaches at Bellevue Library tonight and I teach for PNWA down the road. Then then Emerald City Writer’s Conference tomorrow.
I’ve been pretty quiet on the entire publishing front for a long time, mainly because I’ve been focused on producing content (writing) and running Cool Gus with Jen Talty (Jennifer Probst’s first book with us is out on the 22nd of this month, Executive Seduction).
But that doesn’t mean I haven’t been thinking about it and discussing it with my wife, the font of useless information; until I need it. So here are 5 off-the-cuff thoughts. Do with them what you will.
- It’s not ‘all about the book’. Someone said that and it made groan. It’s about story and content. How that gets to readers varies. Digital, print, audio, carrier pigeon. We have to be open to it all.
- Authors need to make more off a book because they’re going to sell less copies. I used to see numbers posted by indie authors all the time. I’m not seeing those numbers much. I check on sales ranking for authors and most authors who were doing great two years ago have seen a decline in sales. The market has become saturated. While trad authors might still be selling lots of print, that number will decline as venues decline. They will be surprised to see their digital sales also get muted, because there is much more churning in bestseller lists in digital than ever before and it won’t get better. So 25% of cover price for an eBook aint gonna cut it.
- The “leveling off” “we’ve made it through” mindset that started at BEA this year is so naïve it’s sad. We’re not sliding back to the good old days of publishing. In fact, I submit things are going to change even faster and those who are taking a deep breath now and thinking they’ve weathered the change are going to get tsunamied under. I’ve had several #1 NY Times bestselling authors ask me about what’s going on in the past six months and the clock is ticking. My wife says 2014 will be the year of big name authors jumping ship and going indie. They have to deal with those pesky contract issues, politics, yada yada, but a few are going to start seeing the gold mine of top royalty rates via digital and audio offsetting loss of print sales. But they’re going to need help doing it, because it aint as easy as it looks. Drop Cool Gus a line. Even though he’s wearing the cone of shame.
- Things haven’t really changed in terms of marketing. Each book and each author is a unique commodity. Publicity people in traditional publishing weren’t stupid—they did the best they could. To think it’s all changed because of digital is naïve. Some things are different, but overall, there is no one solution. I see a lot of Marty’s from House of Lies out there trying to sell their magic formulas for online marketing. Except not one has listed an example where they actually did it. And could prove their marketing led to sales. That’s the problem. We realize each author is different so we don’t have boilerplate. We make a unique plan for each one.
- The eBook is not the same at the print book. Even in terms of narrative structure. I find my books are shorter. I do more “info dump” but that’s because people read for two main reasons: one is entertainment, but two is information. You can look up stuff right out the manuscript now. I hear Jenny Crusie screaming in New Jersey right now. Do you know who Mary Meyer was? That Khrushchev was forced out of office the day after these was murdered? They’re shorter, but they’re cheaper. $3.99? Seriously? You can’t get a cup of coffee at Starbucks for less. And get more value and time well spent.
Nothing but good times ahead.