Amazon as a Major Publisher
By Jerry D. Simmons | August 29th, 2011 | No Comments » (Click to add yours!)
One well known New York based agent was quoted as being “giddy” about the possibility of a new major player such as Amazon willing to spend big bucks for acquisitions. In the short term it is likely that advance payments for the top tier authors and titles will rise slightly but for the longer term this means that Amazon is intent on driving down the prices of everything. Advances do not always follow the trickle-down theory so in this case it may help a few writers but certainly not all.
Consider the fact that Amazon is now totally integrated vertically in the book publishing and selling business lacking only in brick-and-mortar stores. Total integration in book publishing, especially with a company like Amazon, it not good overall for the health of the business. Who can compete with them? Barnes and Noble have been publishing books for quite some time but they never attempted to challenge the large publishers with lead title acquisitions.
The one element that is missing is the fact that the print business is still in decline and outlets for selling more print titles is limited. It is well known that a large percent of consumers search Amazon but still buy from local bookstores, mass merchants and discount stores.
Short term decline in advances and acquisitions could well signal the start of a new era for writers. You must consider that content is what drives all of this and Amazon is intent on controlling a certain amount of content. That still leaves tons of opportunities for writers and their content.
Tags: Book Marketing, Book Publishing
False Book Publishing Promises
By Jerry D. Simmons | August 24th, 2011 | 1 Comment » (Click to add yours!)
This past week there appeared an article in the Los Angeles Times titled “J.K. Rowling and Publish America’s unfulfillable promise.” It said that the well known POD company was promising hopeful authors an opportunity for the world famous author to read and comment on their manuscript for a $49 fee. Needless to say J.K. Rowling denied that and her lawyer has issued a cease-and-desist order.
The article went on to describe the company as one that “offers hopeful authors the opportunity to be published outside of the mainstream publishing ecosystem, accepting manuscripts without agents and has little of the traditional retail distribution and marketing infrastructure that established publishers do.” In addition Publishers Weekly commented that Publish America “has a long history of making dubious marketing promises to its authors.”
Mrs. Rowling offered the following through her spokesperson, “the claim was ‘completely false’,” and she also stated that her attorney’s would take” ‘appropriate action.’” Since the article appeared the company has removed the original offer from their website but vowed to continue with their promise.
The only reason this is worthy of your attention is the fact that hundreds of experts, professionals and even print-on-demand companies make promises and guarantees that are not factual and can never be fulfilled. There are never any guarantees in publishing and anyone or any business making such claims should be viewed with skepticism.
If any offer sounds too good and too inexpensive to be true, then you can bet you are right. The claim will not be true or inexpensive. Save you money, and defend your reputation, stay away from false book publishing promises.
Tags: Book Publishing
Know Your Publisher
By Jerry D. Simmons | August 17th, 2011 | No Comments » (Click to add yours!)
Publishers that rely solely on the printed format for their revenue are clearly becoming dinosaurs in this business. With the second largest bookstore chain now bankrupt and closed, the retail outlets for print is shrinking. The access for small and niche print publishers in the established accounts are minimal and may soon disappear. It is important for authors to know their publisher.
Mass merchants once the stalwart in dedicating space and marketing to books are rethinking their commitment. They were never married to books and never made books a priority, they wanted the fifty percent profit margin that publishers offered. Now that the business is shifting away from print these retail giants are reevaluating their space and marketing dollars and placing it elsewhere.
In New York publishing houses the slush piles that once lined the shelves in an editor’s office have been replaced by inexpensive eBooks. For years the biggest publishers have rejected unsolicited manuscripts instead relying on agents almost exclusively for their new product acquisition. Agents are now finding it harder to entice publishers because new content is widely available on the Internet.
For any writer considering a contract, step back and take a look at how and what your publisher publishes, this understanding is important for your future success. If your company is not relevant in the category in which you publish then your writing will not garner the attention, reviews, or distribution you may deserve. Today a print only publisher with no immediate plans to enter the digital market is not someone with whom you want to sign a contract.
Know your publisher, their strengths and weaknesses, then decide how that fits with your overall goals as a writer. It is not about getting published, it’s about getting published in the right way, with the right company. Success is fleeting, you need every advantage you can get.
Tags: Book Marketing, Book Publishing
Libraries and eBooks
By Jerry D. Simmons | August 17th, 2011 | No Comments » (Click to add yours!)
Libraries have been excellent book accounts for decades and suddenly when the eBook business begins to explode one major publisher, Harper Collins owned by infamous Rupert Murdock, has set a new policy. The New York Times is reporting that concerns over the growing market for eBooks and how sales could cannibalize their print business Harper Collins has decided to limit the number of downloads for libraries to their patrons of no more than twenty-six times. Considering check-outs are typically two weeks this means one year expiration on eBooks for customers.
The publisher says their eBook policy is more than a decade old and does not adequately compensate the publisher or author for the market changes that have occurred over that time period. Of the six major New York trade publishers neither Random House nor MacMillan market eBooks to libraries instead opting to remain with the current and antiquated sale of the cloth library edition. It still comes down to profits and when the majors feel they are not getting their share, they will do whatever to the customer and eventually consumer to maximize profitability.
And they wonder why the market for new readers is not growing?
Tags: Book Publishing
Why Midlist Books Become a Casualty
By Jerry D. Simmons | August 16th, 2011 | No Comments » (Click to add yours!)
Since books have declined in single unit sales since the early 90’s the major publishers have concentrated on one thing and that is selling more of what they know will sell. As shelf space shrinks they have focused on bestselling titles and that author’s backlist, plus celebrity authors. The reason William Morrow signed Crystal Palin was to reduce risk, she is the daughter of a known celebrity and thus her book will sell a certain number of copies. It has nothing to do with her writing skills or content, certain names will attract an audience who will buy almost anything.
To use a sports analogy—major publishers have given up on hitting singles and now spend time swinging for home runs. Instant bestseller is the name of the game, not signing and nurturing good writers with great potential. As a result the midlist title has taken the hit and that is why these editors sign fewer authors to smaller contracts with little more than a hope and prayer of ever making money let alone becoming a top author.
The reason they have to maintain some midlist presence is because otherwise they would be at a tremendous competitive disadvantage. Even though few of the midlist titles are expected to return a profit, each has a national platform through a major publisher and thus trumps any and all independent titles.
For those who believe that this approach is wrong, let me say I completely understand your feelings—however the powers running these publishing giants do not! The marketplace has proven for many years that few midlist titles are profitable and as shelf space declines the dilemma is whether to put more John Grisham backlist books on the shelves or take a chance with the next Patricia Cornwell. The answer is obvious.
One important note to make is that many small category publishers are doing an excellent job of taking many midlist destined manuscripts and turning them into lead category titles. This has proven to be a positive strategy and gives the author a different approach to the market. It still boils down to the personal goals of the author and their hopes for the future.
Tags: Book Marketing, Book Publishing
Profitable Midlist Titles
By Jerry D. Simmons | August 15th, 2011 | No Comments » (Click to add yours!)
Major publishers make every effort to publish books in all retail categories, what is called horizontal publishing. This is how they manage competition while generating additional revenue. Publishers generate approximately 90 percent of their total revenue from only about 10 percent of the titles they publish. A publisher with 2,000 titles per year would have around 200 that would be considered lead titles meaning they were heading a category in a top position with a high level of expectation for sales. The remainder of those 1,800 annual titles which generate less than 10 percent of the company’s total revenue are what is called midlist books.
Even though publishers generate approximately 90 percent of their revenue from the lead titles those few titles are often not profitable. The two areas where publishers profit most are backlist (titles older than six months in publication) and midlist. The reasons are backlist have a sales history proving they have a shelf life. Unfortunately only about seven out of ten midlist books published ever achieve the coveted backlist designation and remain active. Midlist that work and generate sales and reorders are titles where the publisher has little upfront investment in terms of advance to the author and little expenditure in marketing. Anytime a midlist performs at retail the publisher is happy and profitable.
This business is all about content, the creation of and delivery to the consumer. While one format may slowly decline there are other ways to market and sell quality content. Successful publishers will follow the consumer and provide access to their products in whatever way the market dictates. This is where the majors fall flat; they are doing everything to prop up their print business while at the same time lagging in creating opportunities for digital growth. This makes no sense and in the long run may become a disastrous strategy.
Tags: Book Marketing, Book Publishing
Independent Bookstores May Benefit
By Jerry D. Simmons | August 11th, 2011 | No Comments » (Click to add yours!)
It is highly unlikely that independent bookstores will benefit greatly from the bankruptcy of Borders bookstores and here is why, the problem with the former chain as a bookstore is emblematic of an overall problem with bookstores in general—lack of growth potential. The independent bookstores that have survived the onslaught of the low price retailer such as Wal-Mart have done so largely due to the evolution of the store beyond books such as associations with coffee shops, small cafes and a wide assortment of non-book products. These stores are selling anything and everything to customers in addition to books. They cannot survive without the extras much the same as Barnes & Noble who could not survive without a strong relationship with the iconic Starbucks brand.
It also makes sense that a large section within an independent bookstore should be set aside where the best independently published books could find a place, but there are reasons why this will not happen. First of all the perception in the marketplace of the independently published book is negative and thus it is hard to imagine any bookstore, let alone independent, who would ever devote a large section to the self-published title. Keep in mind that retail shelf space is like real estate and for books to warrant a large section they must turn inventory over on a consistent basis. As long as the general public continues to see independently published books in a negative light it is hard to imagine that any store would devote space to them.
Another reason why you won’t see a large amount of space in any bookstore devoted to the independent title is the economics of the business. In order for books to earn the amount of space required to make this category self sufficient, certain titles would have to provide a large enough marketing and promotional platform to create regional and or national sales. This means the author would have to find the financial resources to make this happen and it is hard to imagine this as possible with books that are generally considered local in nature. Book store events raise awareness and bring in crowds and unfortunately there are not enough quality independent titles capable of generating that kind of publicity let alone sales of individual titles.
Tags: Book Publishing
Fallout from Bookstore Bankruptcy
By Jerry D. Simmons | August 10th, 2011 | No Comments » (Click to add yours!)
Shortly after the nation’s second largest bookstore chain, Borders, announced they were filing bankruptcy, The New York Times wrote an article proclaiming that non-traditional outlets for books, such as department stores, specialty stores and a wide variety of high end boutiques would become the beneficiaries of the bookstore decline. Well that is partly true. These stores will benefit from a new revenue stream of very small niche genre specific subcategories of book sales that are not what anyone would consider mainstream. So on the one hand yes they will benefit in a small way but those sales will not come close to making up the loss from bookstore closures for the publisher.
There are two reasons for that, the first is that very small niche genre specific subcategories of books are not money makers for publishers. So these stores may benefit, in a small way, but publishers will not and in turn the industry will not. The second reason is that even though this means more book sales in total, the margins for non-traditional book outlets is very small and not anything close to what it would be for the same title being sold in a bookstore.
Here is an example: let’s say these non-traditional book outlets sell a single copy of a book for $15. If that title had been sold in a bookstore the publisher would have received roughly $7.50 at a 50 percent discount to pay for the production, marketing, handling, shipping and distribution of that book, not to mention the overhead of running a large corporate entity. That same $15 book sold in a specialty outlet will have much higher discounts which means the publisher earns much less from which the entire cost of their overhead must be paid. The gap is large and there will never be enough non-traditional book sales to make up for the difference between a standard discount of 50 percent and the requirements of a specialty sales discount.
In addition to the discount issue these non-traditional outlets are inconsistent in their merchandising and displays of books which make them highly unpredictable in sales. This makes the time associated with trying to increase book sales in these accounts as a waste. Unpredictability in publishing means never to be counted and ends up becoming nothing more than a footnote on a sales report. If a publisher cannot work with a book retailer in an effort to increase sales then no one can expect a consistent stream of revenue from these stores. Unlike bookstores motivated and excited about selling books, non-traditional stores are not. The specialty accounts primary source of revenue is not nor will they ever be books.
Tags: Book Marketing, Book Publishing
Change in Thinking
By Jerry D. Simmons | August 9th, 2011 | 1 Comment » (Click to add yours!)
There are new and growing opportunities in the world of digital publishing. The loss of a major bookstore chain to bankruptcy only accelerates the importance of eBooks and the digital marketplace. As authors are connected to the printed book much the same as children to their bedtime stuffed animals, they must recognize that a shrinking market for print creates more opportunities for other forms of publication. The importance and relevance of the printed book to readers is obvious.
The web is an open playing field for new authors and eBooks are the future. The cost to publication is lower, the problems with distribution are much less and the fact that marketing mirrors the entire system of buying, downloading and reading quality content as an eBook makes it a hand to glove situation. Going from manuscript to eBook is faster and can be done as much for testing the market for content as for being one piece in a entire publishing program.
Any author struggling to print copies rather than invest if a quality eBook conversion and marketing is making a big mistake. It is difficult enough to reach an audience but printing to satisfy a very small group of fans is fast becoming folly. Limited budgets represent limited opportunities which in turn place more relevance on maximizing the way you spend your dollars. Rather than focusing on an all out publishing program try creating steps starting with eBook followed by print but only after your digital success pays for your entire program.
The publishing industry is changing, the print market is crumbling and the new digital eBook revolution is just getting started. Continuing to think as an author the way business operated ten years ago is wrong; if you do not change you will become just another failure in the system. Don’t make the same mistakes; take one step at a time, allow your success to guide your future, focus on eBooks first and market via the web. You will not only maximize your investment but you will also increase your chances of becoming a successful author.
Tags: Book Marketing, Book Publishing
Old is New Again
By Jerry D. Simmons | August 3rd, 2011 | No Comments » (Click to add yours!)
Over the past year I have written many times about the fact that authors need to move quickly in order to take advantage of the window of opportunity left by major publisher’s slow acceptance of eBooks and the digital marketplace. That window is beginning to close as more major publishers combat rapidly declining print sales by aggressively moving into eBooks.
The world’s largest trade publisher recently announced their once popular mass market romance series, Love Swept, will be re-launched in eBook beginning early next year. This highly successful series once demanded a large market share and shelf space in both bookstores and retail mass merchants and was a darling to booksellers. Over time as the mass market paperback fell from grace and sales declined, Random House stopped publishing.
With the rise in eBook sales and the fact that romance is the number two selling category behind non-fiction, the publisher made the obvious decision it was time to resurrect this series. Those authors still under contract will get new life and new authors hoping to land a contract will see opportunities open for your agent. Prices for the new re-launch in eBook will be between $2.99 and $4.99 which is the perfect range for eBook romance even though some of the titles are very old backlist.
If the Love Swept announcement wasn’t enough, Random House also made news with another announcement indicating they were teaming up with the highly popular web site Politico to produce instant eBooks. In years past at the height of the mass market paperback, instant books were very successful. Publishers with ties to media such as Time Inc. had the contacts to produce books of a topical nature in a timely manner.
The fall of the Berlin Wall was one such example, the book division worked in concert with magazine writers to produce a quick mass market paperback which provided more depth and insight than the magazine. Priced right and packaged with the help of photo journalists, these books sold hundreds of thousands of copies. Instant books then became successful as crime stories, political reports or any number of topics. With the drop in mass market sales the instant book was all but abandoned. Now with eBooks, that publishing model appears to be back in play.
So why is this important? History is beginning to repeat itself in book publishing as the majors begin testing more product in the digital marketplace. This of course takes attention away from other writers and their content because these newly launched eBooks will be supported by lots of marketing and a nice marketing budget.
On the flip side, this marketing push does nothing but bring attention to eBooks and the large cache of available product. With only 1 in 600 manuscript submissions getting published, this will open opportunities for writers. Research Firm Emarketer predicts that by the end of this year there will be around 21 million eReaders in use and another 24 million computer tablets available. That is a dramatic increase over 2010 and again bodes well for the future of eBooks. If in fact old is new again then perhaps these will create more opportunities for new and emerging writers to gain recognition.
Tags: Book Marketing, Book Publishing
