The Steve Laube Agency » E-Books

Goodbye to Traditional Publishing?

Steve Laube — Mon, 14 May 2012 10:00:08 +0000

by Steve Laube

Recently Ann Voss Peterson wrote of her decision to never sign another contract with Harlequin. One major statistic from the article is that she sold 170,000 copies of a book but earned only $20,000.

Multiple clients sent me Peterson’s “Harlequin Fail” article and wanted my opinion. My first thought is that this was the typical “a publisher is ripping me off” fodder. But that would be a simplistic and knee-jerk reaction and unfair to both Peterson and Harlequin.

Yes, Harlequin pays a modest royalty that is less than some publishers. Since when is that news? That has always been their business model because it is the only way to create and maintain an aggressive Direct-to-Consumer and Trade publishing program. Their publishing machine is huge and they are a “for profit” company. For Profit. If they are unprofitable, they go away.

If an author is uncomfortable with the terms, then don’t sign the contract (which is Peterson’s decision going forward). I urge each of you to be careful not to sign a contract and then complain about it later. Unless you were completely hoodwinked you agreed to those terms and should abide by them.

Understand that I am not being critical of this lady’s decision. It is her choice to do so.

But my issue is not with the money (although it is important) it is a larger question. She says she has sold 170,000 books but not made that much money. For the record Peterson has signed with Thomas Mercer which is one of the publishing divisions of Amazon.com…a traditional publisher of sorts, so she may still reach a 100,000 plus audience. So is it all about the money and not about number of readers? If Peterson had chosen to go Indie (solo) and published using the e-book option (like the Kindle Direct Program) and sold 10,000 copies she would make the same amount of money. BUT she would have 160,000 fewer readers! One Hundred and Sixty Thousand.

Consider the stadium where the Arizona Cardinals (NFL) plays seats 63,000. So, in essence this author’s choice could mean walking away from three stadium sized audiences for her stories.

In Peterson’s case it does not appear to be a dollars vs. readers issue because she has signed with another publisher. But for many who are frustrated with their publishing experience it is a good question to ask.

Reaching 170,000 readers is a rare place in this busy industry. And don’t forget that the success of those numbers made her an attractive acquisition for Amazon.com . That is not the case for most writers whose midlist numbers can be depressing. (Read CBA fiction author Eric Wilson who laid out his income while publishing with traditional publishers over a ten year period and has chosen to go a different route with his new books.)

If you wish to wave goodbye to traditional publisher and go Indie (independent) I believe the first question to ask is whether or not you want to start a small business. Just like an entrepreneur. Those authors who are entrepreneurs are ideally suited for the self-publishing route. The understand the energy it takes and pitfalls ahead.

The second question is whether they can sell enough copies to make it all worthwhile. And are also are willing to take responsibility if a book fails.

But not all artists are entrepreneurs. I know of many authors who have gone this route. One sold 1,000 copies of their e-book in a year. Another is averaging about $1,000 in revenue each month…but had to self-publish ten books to reach that threshold. Another has sold about 2,500 e-copies in a few months but the numbers are slowing considerably. Each of these writers can get much more guaranteed income from going the traditional route. Their indie effort is nice income (in this business any income is nice) but it is not a replacement.

P.S. In my opinion it is wrong to compare Amazon’s traditional publishing divisions (like Thomas Mercer) with other publishers. Amazon is so incredibly large and diversified that they could lose money on publishing for five years and still be profitable elsewhere. For a company like Harlequin they are solely vested in publishing (not Zappos shoes, or used books, or electronics). Thus their cost structure is different. Amazon has brilliantly used their economic model and created one that takes advantage of their infrastructure without having to build from scratch.

Is that a defense of traditional publishing? It could be seen that way. But it is more a reminder not to compare oranges with apples. They are not identical.

Your Turn

What is your take on this issue?

Is there a question on this topic you would like to have answered in a future blog?

News You Can Use – Nov. 15, 2011

Steve Laube — Tue, 15 Nov 2011 10:00:03 +0000

The End of Borders and The Future of Bookselling – BusinessWeek article shows why Borders failed and why it doesn’t mean the demise of bookstores. Every writer should read this.

Another Change in How We Read Books? – Cloud-based book rentals…is it the future?

You Don’t Have to Accept Rejection – Copyblogger makes the case for the Indie route

Does Your Web Site Use Flash? – If so, then it is time to change. It is no longer supported by Adobe.

Random House of Canada to Try New Book Tour Model – Selling tickets that include the price of the book. Thus the book is “free.”

Jeff Bezos of Amazon, Owns the Web – A fascinating article from Wired magazine

Kindle’s Cost More to Make than What Amazon Charges – Obviously a “loss leader” that gets readers buying tons from Amazon.

A Fascinating infographic. Enjoy!
From: Media Beat

The Greatest Thing Since Sliced Bread?

Steve Laube — Mon, 11 Jul 2011 10:00:08 +0000

Guest Post by Teddi Deppner

We are really pleased to have Teddi Deppner be our guest today. I first met Teddi at the Mt. Hermon Writers Conference while she sat through my Major Morning Track, listening patiently to 8 1/2 hours of lecture over four days. She has recently been asking some penetrating questions about technology and the publishing industry so I invited her to create a post and express those thoughts for your discussion.

Teddi Deppner has published hundreds of websites over the last 15+ years in her work as a professional web designer, marketer and consultant. Recently, she has launched on a quest to map out simple, effective strategies to share with creative people using the Internet and social media for their business. Find her latest projects at www.TeddiDeppner.com.

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Thanks to Steve for the opportunity to share some thoughts with his audience. This post, intended primarily to open a lively discussion, was sparked by an article by Craig Mod about “Post-Artifact Book Publishing”.

Craig’s essay presents the idea that books have traditionally been artifacts: the concrete, physical products of an author. He diagrams the process and participants in the creation, publishing and distribution of this artifact and how things are changing now that books have become more than static artifacts.

The part that fascinates me is his observation that the digital age of publishing isn’t really about taking “the book” (a frozen collection of specific words and images) and simply copying it into some readable digital format. Instead, we now face the opportunity to take our idea and shape it into an unlimited number of formats: printed book, web page or online community, e-books of varying flavors, interactive and/or animated digital presentation, video, and yes – much, much more.

So many choices these days! Are you tempted to ignore them until the dust settles? Don’t think those choices apply to your “book”?

Think again.

What’s a Book, Anyway?

Craig Mod’s article is worth reading in detail, and every time I read it the implications multiply. A provocative and key concept I keep returning to:

To think about the future of the book is to think about the future of all content.

Books weren’t static because that’s the best way for a person to express an idea to the world but because it was the only way we had available to record an idea and spread it beyond our immediate circle of friends.

The printing press transformed the world in very short order. I believe we’re living at the dawn of a similar transformation. The Internet may not be the best thing since sliced bread, but I would argue it’s the best thing since the printing press!

Today we have available a new means of spreading ideas — and it doesn’t require a static, physical form. The Internet is with us everywhere, as Netbooks, iPads, mobile phones and e-readers like the Kindle are in more and more hands. Five years ago did you imagine you’d be checking your email while waiting at the gas pump? Did you have any idea you would take 20 books on vacation with you and use up less room in your bag than for a single paperback novel?

A New Set of Questions

As an author, as a business person, as an artist, I’m asking myself some new questions:

What is the heart of my idea?
Is it best expressed in a static form, or is it rather at its heart a conversation that should begin somewhere and then dynamically grow and evolve?
Who is looking for an idea just like this one and how do I reach them?

I’m exploring new “best ways” to convey a story:

What length works best? Does my audience want serial episodes or large chunks of completed story arcs at a time?
How many illustrations should I include and what should they look like? Pure text novel or completely graphic novel?
Should I attach music or record an audio version?
Should I offer multiple versions of this story, rated for content along the same lines as movies?

These things are fun to think about, but the most urgent missing piece for me as a creative person making a living producing this content is the business model.

How do I turn what’s in my head into cash in my pocket?
What is the payment model? What is the distribution model?
Who do I need to partner with to make it happen?
How many different successful partnerships can I create with collaborators? (writer + filmmaker, writer + artist, writer + writer, and stick some editors in there all over the place because we need QUALITY, people!)

Making Sandwiches That Sell

Okay, so we’ve got all this sliced bread. Now what do we do with it?

Many authors are offering free content as bait to gather their target audience into position and sell them paid content. Sometimes it works, sometimes it doesn’t. Will this model last? Is it sustainable?

And who decides what content is worth paying for? Where do the curators (see Steve’s post on curation) fit in? I can imagine a day when I pay a publisher not for printing a book but instead for a list of vetted, quality content providers directly matched to my preferences.

Although even the average “Joe Reader” is aware that things are changing, he’s ignorant of the full implications. He just goes along, doing what he’s always done, right? His assumptions and prejudice and habits based on a lifetime of traditional consumption of books and movies and music are still mostly intact.

Or are they?

As big entertainment companies change how other forms of content are delivered and paid for (music, TV episodes and movies), what is already changing in the minds of our target consumer? How have your content buying habits changed in the past five years?

What Do You Think?

I’d love to hear your thoughts! At the risk of mixing the metaphor, let’s say this post itself is a slice of freshly baked bread. Help me butter it. Throw on some jam. Go ahead and toast it, if that’s your thing.

Post a comment sharing how you read your books, check your news, get new ideas. Tell me what you’re willing to pay for and what you’d rather enjoy for free. I’d especially like your ideas on the most exciting content you’ve purchased recently and what kinds you wish were available but can’t find anywhere.

All About E

Steve Laube — Fri, 17 Dec 2010 17:52:58 +0000

This was the year of the E word. “E-Books.” The topic replaced the other “e” word…the Economy…as the number one topic among authors, editors, publishers and agents. And the news media reported every nuance with breathless excitement. The iPad, the iPhone4, the Droid, the avalanche of tablets, the Kindle, the Nook, and a deluge of e-reading devices, all commanded our time and attention.

But the story is not over. In fact 2011 promises to continue this conversation as our industry writhes in chronic pain from its various twists and turns.

Two articles that you should read to help with some year end thoughts….

First, from Dominique Raccah, the CEO of Sourcebooks, very openly talking about the mistakes they made in trying to do a one-day e-book promotional giveaway of their Jane Austen books. This is evidence of the veritable labyrinth called the e-book marketing and sales world.

I’ve heard authors express their misunderstanding of publishing by saying, “But e-books are easy to sell. Just make the conversion and put it up on Amazon!” But this CEO’s article should divest you of that thought.

This past Summer I sat through a two hour presentation from Hachette regarding their Digital initiatives. I came away discovering that it is far more complex than I ever realized. And came away very glad that publishers were working hard to maximize both revenue and opportunities for my clients.

Second is an article that will be published in Sunday’s LA Times but the online version released today. In it David Ulin claims that “E-books are Good News for the Literary World.” Here is a key quote:

The issue is not what we read on, just as the issue is not what we read. The issue is that we read, that we continue to interact with long-form writing; by altering the conditions of the conversation, e-books and e-readers have already served an essential purpose.

Well said. Note that in the article he admits to rarely using e-readers, but that he appreciates and accepts their use.

Thus 2010 added a new letter to our vocabulary. Instead of just the three Rs (readin’, writin’, and ‘rithmatic) we have added an “E.” Bu wouldn’t that make it ER? (an unfortunately pairing of letters when applied to the state of publishing).

E-Book Buyers Buy More Books

E-Book Buyers Buy More Books

Steve Laube — Thu, 18 Nov 2010 16:19:51 +0000

New research by the Book Industry Study Group (BISG) has made some interesting discoveries.

E-book consumers say they are buying more books overall, but fewer in print, and are decreasing their total dollars spent
More than 40% of e-book readers have reduced the number and dollars spent on hardcovers and paperbacks.
Retailers are becoming more important than publishers as a source of information about e-books.
General fiction and mysteries are the fastest-growing e-book genres.
More respondents received e-readers as gifts than bought them for themselves.
Respondents who bought devices for themselves most often were motivated by suggestions from friends.
The iPad has only a marginal impact on the popularity of the Kindle and Nook.
Heavy to moderate book buyers want e-devices that don’t have a lot of other options.
The iPad may bring new and light e-book buyers into the market.

The full November 17, 2010 BISG press release can be found here.

It will be very interesting to read their findings a year from now. In the next year we will see a veritable flood of “Tablet” devices and more dedicated E-Readers. Plus it is highly likely there will be an iPad 2.0.

I carry my Kindle when traveling and really appreciate the convenience. Transferring documents via wi-fi makes it ideal. I’ve even uploaded all of my speeches and teaching notes, just in case I forget to bring the correct file folder…a backup. In addition I’ve stopped traveling with a laptop. My Droid smartphone provides access to everything I need (in most cases). And now Carbonite (www.carbonite.com) allows for remote access to any files backed up on the office computer, so any file can be retrieved at any time, anywhere. My oldest brother, on the other hand, loves his iPad.

Do you have a e-reader device, other than a smart phone or a laptop? If so, which one, and how do you use it?

E-Books Redux: Behind the Stats

Steve Laube — Wed, 21 Jul 2010 17:39:55 +0000

I had hoped to let yesterday’s post put much of my thoughts to rest on the issue of e-books…at least for a while.

But today I came across this article “What Amazon Didn’t Say About E-Books” by David Carnoy for CNET. In the article he makes some very strong statements regarding Amazon’s claim of reaching a “tipping point” with regard to Kindle sales and its impact on e-book sales.

Do yourself a favor and read the article.

Then vow to lay it all aside for the rest of the Summer and write your book!

And no, the picture for this post is not our cat. I simply found the picture and thought it might get your attention. Feel free to submit your own caption for the photo in the comment section.

More E-Book News: Behind the Stats

Steve Laube — Tue, 20 Jul 2010 15:34:47 +0000

Today’s Wall Street Journal online quotes Amazon.com as saying that ebooks have outsold hardcover books over the last three months.

Additional statistics from that article include: “Amazon sought to suggest that Amazon remains the leading retailer for e-books. The company said that of the 1.14 million James Patterson e-books sold as of July 6, nearly 868,000 were from Amazon.” Also, “in June, Apple CEO Steve Jobs had claimed that his company’s iBookstore, which launched in April, had taken 20% of the market.”

My observations of these developments are two-fold.
One. Everyone is claiming “dominance” but no one is sharing actual verifiable data. It’s like standing on the playground in pre-school and saying “my Dad can beat up your Dad.”

Two. Claiming that e-books have outsold hardcovers is disingenuous if they are counting free downloads as sales. Remember when Amazon claimed that on Christmas Day they sold more e-books than p-books? Of course they did. Everyone who received a Kindle as a gift, turned it on and downloaded books. Who else was shopping for books on Christmas Day?

Remember the news adage “if it bleeds it leads.” So just because something makes a great headline and a press release doesn’t necessarily reflect day-to-day mundane reality.

By the way, take a look at the comments section of yesterday’s blog entry. Randy Ingermanson provided some great thoughts and I responded with a couple other things to consider as well as part of the ongoing discussion on this issue.

E-Book Sales: Behind the Stats

E-Book Sales: Behind the Stats

Steve Laube — Mon, 19 Jul 2010 10:00:39 +0000

There is mixed news with regard to book sales in May of this year. Store sales were down 2.6% but publisher sales were up by 9.8%. Read all the various stats here. Remember these are simply comparison of 2010 monthly numbers with 2009.

The biggest area of growth, percentage-wise, is in e-books (up 162.8%).

But lets look at actual dollars, not percentages.

Publisher sales (according to the Association of American Publishers) were $715.3 million in May. Of that total, e-books accounted for $29.3 million…or about 4%. If this was a 162% jump over 2009, then e-book sales in May of last year were $11.2 million.

There is no question that this is a huge leap. But it still means that 96% of all sales are still in hard copy.

Many experts claim that in five years (by the year 2015) that e-books will “tip” and account for over 50% of all book sales. I’ve heard this from two major publishers (one was the head of the digital initiatives for that publisher) and from my friend Randy Ingermanson in his excellent e-zine (read pages 2-11 for his full report on the issue).

For that to happen a 100% growth rate would have to be sustained. That would mean 2011 would have e-books at 8% of sales, 2012 at 16% of sales, 2013 at 32%, etc.

I’m not arguing that it won’t happen. Just that it may not happen quite so fast. Sustaining that rate of growth is a lot harder than it looks on paper (no pun intended). Please read my earlier blog post “Is Print Dead” to go further behind these type of statistics (in that post I attempt to show that hard copy CDs still account for nearly 70% of all music sales).

I’ve written earlier that I own a Kindle and like it. I have bought a number of books for the device. And in fact have purchased many books that I already owned in paper…sort of a “best of” or “favorites” bookshelf. Why? Because I’m a collector. And having those books with me at all times is a neat thing. Plus they become searchable. It also means that I can have access to these books forever and from wherever I am. And I’m not in fear of losing books when the corner of the garage collapses in a big rain storm (true story). However, if there are a lot of people like me, then the “growth” is somewhat skewed.

I hesitantly compare this to the transition from record albums to cassette tapes to compact discs. Or the transition from VHS to DVD (and now to Blue-Ray). I suspect many of you purchased albums or movies that you already owned because you wanted them in the new format, for whatever reason. They were your favorites. So initially some of your expenditures were not for new material. Of course, eventually we began purchasing 100% of all new music or movies in the new format. And that is where the direct comparison with books breaks down.

There are legion of readers who will not convert to e-books. An amateur poll I’ve taken of folks (family, friends, professional acquaintances) has been very interesting. Most are intrigued by the Kindle device. One showed me their iPad (with an accompanying gloat). But few were ready to embrace switching from p-books (paper) to e-books (electronic). And none were prepared to go all digital any time soon.

I reiterate what I’ve said before. This is one of the most exciting times to be in this industry. The changes are rapid, they are innovative, and they are creative. Writers who can create dynamic content have nothing to fear. The consumer continues to demand great content in whatever form they can get it. Literary agents like myself, make it our job to watch these developments carefully and to continue to safeguard our client’s revenue and their ideas.