New Member

Hello. I’m happy to have found this website and forum. I have one novel, The Lonesome Isle, that I published through Createspace. I am currently working on the sequel to that novel and have started writing another book as well.

I am excited to have others to turn to for advice in this whole world of publishing!!!

Transforming The Book Industry: How Seth Godin Is Poking The Box

This article, by Michael Stelzner, originally appeared on the Social Media Examiner site on 3/14/11.

I recently interviewed Seth Godin, author of the new book Poke the Box. Seth has written more than a dozen other books, many of them focused on marketing. Some of his notable books include Permission Marketing, Linchpin and Tribes.

During this interview, you’ll learn about his latest book, his views on the state of the publishing industry and about his new venture The Domino Project.

Mike: Let’s start with Poke the Box. What exactly does “poke the box” mean?

Seth: If you’re a computer programmer and you want to figure out how something works, the way you do it is not by reading a manual or following a map. You do it by trying something, seeing what happens, learning from it and then trying something else. That’s how we figured out how the world worked when we were 5 years old, and it’s the way we figure out how to do something new in a changing world.

The reason that I wrote the book is that somehow we’ve lulled ourselves into this feeling that we need to wait for someone else to tell us what to do and give us permission to do it, as opposed to taking action and doing it ourselves.

Mike: You mentioned in the book it was your uncle who designed the “box” and put it in the crib of one of your cousins?

Seth: My uncle has a PhD from MIT. We call him “the admiral” because he was in the Navy ROTC program. He worked with lasers and all sorts of technology.

I have this vivid memory of when I was just 10 or 12 years old. My cousin was born and my uncle built a box—it must have weighed three pounds—in gray steel with one of those big, thick, black electrical cords. It had on it three or four switches and dials, and when you flipped a switch, something happened. A buzzer would go off or a light would flash. You’d turn a dial and something else would change. He plugged this thing in and threw it in the crib.

His thinking was that it’s natural for a kid to play with things, to figure out how they work. In a stable world, we don’t necessarily want people to do that because we want them to work on the assembly line and do what they’re told. I don’t know if you’ve noticed, but this isn’t a stable world anymore.


Read the rest of the article on Social Media Examiner.

E-Books, Downloadable Audio Books Continue Growth Based on AAP Publishers January 2011 Sales Report

This press release originally appeared on the Association of American Publishers site on 3/17/11.

March 17, 2011, New York, NY– E-books and downloadable audio books continue to grow in popularity according to the January 2011 sales report of the Association of American Publishers.

Figures for the first month of the new year show that E-book net sales increased by 115.8% vs January 2010 (from $32.4 Million to $69.9M). Sales of Downloadable Audio Books also rose by 8.8% vs the previous year ($6.0M to $6.5M). As AAP reported last month in its December 2010 monthly report and full 2010 analysis, E-book sales have increased annually and significantly in all nine years of tracking the category.

Among the other highlights of the January 2011 report:

  • Total books sales on all platforms, in all categories, hit $805.7 Million for January. This was a slight drop from January 2010’s $821.5M sales (-1.9%).
     
  • Adult Hardcover category fell from $55.4M to $49.1M (-11.3%), Adult Paperback dropped from $104.2M to $83.6 (-19.7%) and Adult Mass Market declined from $56.4M to $39.0 (-30.9%)
     
  • In the Children’s/Young Adult category, Hardcover sales were $31.2M in January 2011 vs $31.8M in January 2010 (-1.9%) while Paperbacks were $25.4M, down 17.7% from $30.9M in January 2010.
     
  • Physical Audio Books sales were $7.3M vs $7.9M the previous year (-6.7%).
     
  • Sales of Religious Books grew by 5.6%, from $49.8M to $52.6M.
     
  • Sales in the Higher Education category were $382.0M for January 2011, a slight drop (-1.4%) from $387.6M the previous year. K-12 sales hit $82.6M for the month vs $97.0M for the previous year (-14.9%).
     
  • In Professional and Scholarly Books, sales grew 1.3%, from $51.2M to $51.8M. Sales of University Press Hardcovers were $3.9M in January 2011 vs $4.5M the previous year (-14.0%) while University Press Paperbacks were $6.2M vs $6.7M (-7.8%).

All figures cited represent domestic net sales for U.S. book publishers.

About AAP
The Association of American Publishers is the national trade association of the U.S. book publishing industry. Its 300 members include most of the major commercial, education and professional publishers as well as smaller and non-profit publishers, university presses and scholarly societies. They publish content on every platform for a global audience.

Contacts:
Andi Sporkin – asporkin@publishers.org – (202) 220-4554
Tina Jordan – tjordan@publishers.org – (212) 255-0275

Five Books Out, The Sixth On Its Way

Over the past several years I have brought out five books in various formats, all currently self-published. The first, Worldmaker, was originally published by Ace Books in the ’80s. It is now a self-published book througn iUnivers’s Back-In-Print imprint. Then there were two sf novels released through BookLocker — Soldier of ‘Tween and Shadow Run. Those three are the sf.

I have a mystery/Suspense novel out there, In Pursuit of the Enemy. It was released through Infinity Press.

And, finally, I collected my short stories into a collection titled Spaceships and Brass Knuckles. This I released only as an e-book.

I am working on another mystery/suspense, titled Hollow Point, which I hope to have ready for release in a month or two.

I’m glad I found this site. Looks like there’s much great information here, and a fantastic community!

Here Iz Some Mental Gymnastics. Let Me Show You It.

So, I was talking with a friend of mine, Jackie Barbosa (who, btw writes some REALLY great historical erotic romance you should check out), and we were discussing changing attitudes toward self-publishing and in particular RWA which is Romance Writers of America.

I’ve never joined RWA, and I don’t see that reality changing. They would have to change their attitudes pretty severely to be more embracing of all types of genuine publishing achievement and not just publishing achievement that props up the old guard. They would also have to talk about relevant publishing topics and not just NY print publishing as if that’s all that exists or the “one true way to making a living”.

For example, right now, unless things have changed while I wasn’t looking, you aren’t a full member (i.e. acknowledged as a published author and allowed on panels at conferences and to officially promote your work and etc), unless you have been published by a publisher they have “approved” as a “really real publisher”.

This leaves out some epublished authors (last I checked. Sometimes epubbed authors are “real authors” in RWA world and sometimes they aren’t. I’m not sure if that tempest in a teapot has died down yet), and it leaves out all self-published authors.

RWA also has book awards called the RITA. Jackie was commenting on the midlisters who have left their publishers to go indie and said it will be interesting to see what kind of mental acrobatics RWA has to perform to explain and justify why one of these author’s St. Martin’s published book is eligible for RITA consideration, but the author’s self-published book, which has made her more money than any of her trad pubbed books… isn’t.

I’m dragging up the popcorn if/when that justifying goes down. Because it will be hella entertaining.

RWA basically bills themselves as a professional organization for romance authors whose main goal is supposedly to help romance writers get to the point of making a living writing. This is ostensibly what most official, large, genre writing organizations are about. But here is the thing…

It’s not really about that and never has been. It’s about validation, and ego, and wait for it… vanity.

So all this time, when people have said: “People just self-publish for vanity and because they are impatient and stupid and lame and can’t write…”

Well, sort of the definition of vanity is when you do something just because it “looks good” and makes you feel “validated”. What is the trad pub circus but a validation parade? Again, I don’t hate NY publishers. Most of the drama and silliness isn’t even being perpetuated by NY publishers. It’s being perpetuated by writers and writer organizations and a handful of agents who are too out of touch with reality to bother mentioning.

I am not in any way bitter. Why would I be? I’m thankful that I was smart enough to avoid all the drama and heartache that seems to be inherent in that system from start to finish for most authors.

Only 1% of authors make a living writing fiction. And here is where the intellectual dishonesty with many of these writer organizations start to show through. I’m in that 1%. I’m making a lot more than most NY published authors. And yet… according to RWA’s litmus test, I’m not a published author.

Huh?

So is publishing as a career about vanity or is it about business? Because I thought it was about business. Wouldn’t it be much more fair, if the genuine goal is about making a living, to do things based on income/sales levels?

RWA has always seemed like a hen party/social club to me. Which is why I’ve never joined and don’t foresee a future in which I would, unless I was treated like a “real author”. Because, I am one. When someone is making a career-level income, you can’t keep pretending they don’t have a career just because they don’t have a certain label on the spine of their books.

As things continue to change in publishing these organizations with special rules for those who have at some point in their past had a NY pub, even if they don’t have one now, is going to look more and more dishonest and just plain silly. I can’t wait for the show to start.

 

This is a reprint from Zoe WintersWeblog.

Authors Write Their Own Paycheques

This article originally appeared on the nzherald.co.nz site on 3/7/11.

It is a truism in the publishing industry that very few Kiwis get rich by writing a book.

While many receive a pittance for their creative efforts, there are some authors who have become millionaires – some many times over – by cutting out the middlemen and middlewomen in the publishing industry and marketing themselves to a global audience.

The most recent self-publishing success story is cooking star Annabel Langbein, who has broken all previous New Zealand records by selling more than 110,000 copies of her latest cookbook, The Free Range Cook. The book now sells in more than 70 countries and negotiations are underway to sell the accompanying TV series in several major markets.

Langbein is credited by many as a smart cookie who has carefully and patiently planned her career over many years. She admits to having turned down offers just because she didn’t think the timing was quite right.

She says she initially wanted to manage her own books simply because she enjoyed the creative challenge. But along the way, she has sought advice from some of New Zealand’s top businesspeople, including staff at Auckland University’s business incubator, The Icehouse.

Langbein is unsure how many books she has sold in total in her career so far, but guesses it would probably be in the millions. And she genuinely believes she is only just getting started.

Read the rest of the article on the nzherald.co.nz site.

Hello all1

By day I’m a textbook publisher for the Texas State Technical College System but my nighttime incarnation is running Dystopia Press to publish post-apocalyptic/dystopian novels.

Nietzsche And The Downfall Of Big Publishing

This post, by Smashwords founder Mark Coker, originally appeared on the Smashwords blog on 3/3/11.

In the dark alleyways of publishing, an author uprising is brewing against Big Publishing.

I’ve been thinking a lot about revolution lately thanks to the events unfolding in North Africa.

My wife, Lesleyann, has friends in Egypt, and they’ve kept us up to date via email. Their dispatches alternate between fear, uncertainty, optimism and celebration.

Revolutions are an awkward and messy business. They represent the end of one paradigm and the beginning of the next. While the root causes can trace back decades, when the uprising arrives it can occur with alarming rapidity.

The events in North Africa have recalibrated the meaning of "revolution" for me. I’m thinking now about revolution in the context of a popular uprising.

At the heart of any revolution is a loss of faith in the prevailing regime. In Egypt’s case, a number of catalysts precipitated the revolution; chief among them an oppressive political environment that offered little opportunity for democratic participation, freedom of speech and economic opportunity.

Frederick Nietzsche wrote, “God is dead.” I recall my philosophy professor at U.C. Berkeley 25 years ago explaining the quote with great passion. He said the beauty of the quote went beyond its immediate religious connotation – it was a metaphor for the power of faith. When you believe in something, your faith powers that in which you believe.

If we lose faith in an institution, a regime or a belief system, the very survival of that institution is imperiled.

Every institution is powered by faith. If your house catches on fire, you have faith the local fire department will respond. If you purchase a tomato from your local farmer’s market, you have faith the item you purchased will indeed taste like a tomato.

Often, faith is based on some future expected result. You can’t touch, smell or see it in the present. If we are rewarded for our faith, such as trusting that fire truck to come when we expect it, then our faith in that institution is reinforced.

Faith is the single most important force-of-nature driving all human experience.

Faith, religion, revolution, and publishing. Trust me, I’m going somewhere with this. The embedded PowerPoint below represents my attempt to pull it all together and make sense of where the publishing world is headed.

 

See the slideshow, and read the rest of the post, on the Smashwords blog.

A Writer Muses On Marketing And Sales, Part I

What exactly is the difference between marketing and sales?

That’s a question I asked myself recently, and after studying the subject a bit I think I have a useful answer. This post and the posts that follow represent everything I think I now know about marketing and sales, but I claim no mastery in the matter. I simply have a better understanding of how each relates to my aims as an author, and I offer these posts in that spirit.

If the average person has a general conception of marketing and sales it’s that they are aspects of business that drive customer purchases — at times by any means necessary. While true, I think this consumer-driven perspective misplaces the emphasis for authors who would like to profit from marketing and sales. Why? Because it’s hard to imagine an author who would like to have fewer readers, which in turn implies that all marketing and sales efforts are inherently useful for every author. They’re not.

In the great majority of cases, marketing and sales are not a means by which otherwise disinterested consumers can be compelled to spend. All the marketing and sales efforts in the world are generally not going to encourage someone to buy a new stove if their stove is working just fine. Treating marketing and sales as weapons of war may be what amped-up marketing weasels do in caffeinated team-spirit huddles, but I don’t think that’s a useful point of view for authors to adopt. And not just because the opportunity to sell books in a predatory fashion is minimal at best.  

Intent
A better approach for authors is to understand marketing and sales as tools, to understand what those tools can and cannot do, and to understand when they should and should not be employed in the service of an author’s objectives. Unfortunately there is as much conflicting advice about marketing and sales as there are people professing to clarify confusion about the two terms.

Given that they do not naturally differentiate themselves, it’s understandable that definitions of marketing and sales tend to emphasize how the concepts are distinct. But I think it’s a mistake to start with the premise that marketing and sales are different things. From everything I’ve read (and for artistic reasons I’ll get into later) I believe it’s more useful to see marketing and sales as two ends of the same continuum. And that continuum is defined not by the properties of a product, but by the intent of the product’s creator.

If you make something for yourself, or for a specific person, you don’t need to think about selling or marketing that work. Whatever sales is, whatever marketing is, and however the two might or might not relate to each other, none of that matters in instances where a product is going to be conveyed to a specific person. And that’s true without regard to compensation. If you know who you’re delivering a product to it doesn’t matter whether the product is a gift or the fulfillment of a contract: there is nothing you need to know about marketing or sales in order to see your intention through. (Understanding marketing and sales may help leverage a present opportunity for future gain, but that’s not the issue here.)

While these observations may seem absurdly obvious, the implications are important. First, marketing and sales are not inextricably bound to the act of creation or production. Second, marketing and sales are not inextricably bound to financial transactions between two parties. And both conclusions hold whether the product we’re talking about is a simple item, a complex gadget or a creative work.

Reality Check
Marketing and sales matter in instances where either or both of the following is true:

  • The people who are interested in your product are not all known or aware of the product’s availability.
  • The price people will pay for your product has not been agreed to by both parties.

The problem, again, is that these criteria seemingly apply to every product. Worse, if you’re like most writers, the rationality of your entrepreneurial thought process is probably something like this. “I personally know two people who will read my work if I ask them, but I also know there are more than six billion people on the planet. Plus, there are a lot of planets we don’t know about yet, so there are probably at least a trillion potential readers out there I could market to. I also know that most books sell for X dollars, but because my book is special it will easily sell for X + Y dollars, and that’s before the movie comes out. So, conservatively, I’m probably looking at a potential profit of $74 million in the first year, give or take current exchange rates and how interested I am in doing a book tour.”

No matter who you are and no matter what you write, it’s a given that there will always be people who don’t know about your work, and people who aren’t willing to spend what you’re asking even if they think you’re the best writer in the business. That’s as true for you as it is for Stephen King or any other writer. Marketing and sales will never negate those truths no matter how much time, effort and money you throw at them.

Decision Time
What marketing and sales can do — as tools — is increase the likelihood that you will be able to reach more readers. That may or may not also translate into an increase in profits, depending on whether you charge for your work and how much money you spend on marketing and sales.

The effectiveness of your marketing and sales efforts also correlates with the clarity you have about your specific authorial aims. For that reason, nothing is more important than having an honest discussion with yourself about your personal goals as a writer, including whether you see writing as a business. What else could it be?

Well, any of the following:

  • A hobby.
  • A dream.
  • An escape.
  • An emotional release.
  • An obsession.
  • A secret obsession.
  • A double-secret obsession.

Being a professional writer is a tough gig to get and a hard one to keep. Then again, so is running a successful restaurant. If you are famous among a small group of friends and family for a few tasty dishes, you may be tempted or encouraged to open your own catering business — or even your own eatery. But you would probably think twice about doing so given the increased risk, responsibilities and complexities of the undertaking. Because writing is a solitary craft it’s a little harder to draw direct parallels, but that only means you should think about the question that much more. (Note: I’m not talking about the definition of a business that the IRS uses, although that’s something else you should probably familiarize yourself with.)

If you aspire to write professionally, or even to turn a profit with your writing, it’s never too early to commit to writing as a business. It costs you nothing to do so, at least up front, and will definitely save you time, money and stress down the road. On the other hand, if you have no plan to turn your writing into a career, then that’s something you should acknowledge as early as possible. It’s going to make your writing life a whole lot easier, if not also more enjoyable.

Admitting that you’re not trying to write professionally does not mean you have to give up fantasies about success finding you, or that you’re freed from the eternal obligation to produce the best work you possibly can for your intended readers. Nobody can predict what will happen once a work is written, and that’s part of the fun of writing. But by the same token you’d have to be loony to bet on a lightning strike. And most if not all of the marketing and sales playbook involves placing bets.

Anything you do to market or sell your writing is going to take time, money or emotional capital. And if you’re like most writers I know you probably have a limited supply of each. So take a few deep breaths, then consider the following question:

Are you in business?

From the point of view of marketing and sales there are only two possible answers: yes or no. To truly understand the difference between marketing and sales, and how those tools relate to your objectives, you need to pick one of those answers. You can change your answer at any time, but you should always know what your answer is.

 

This is a reprint from Mark Barrett’s Ditchwalk.

Authors as Salespeople

A question from my ex-publisher stimulated me think about the pay structure in traditional publishing. The question she asked was: Why couldn’t you sell all those books when you were still under contract? Many factors came into play at the same time to quickly boost my e-book sales. Pricing strategy, volume of books, and massive effort all played a part. But one of the biggest issues was motivation, aka incentive.

In the business world, salespeople work for a small base pay and most of their income is in the form of incentive pay and bonuses. The more they sell, they more money they make. To some extent, this is true in traditional publishing, except that after the initial advance, writers (aka salespeople) only get paid every six months. If other businesses functioned that way, they’d have a hard time hiring and keeping salespeople. It’s hard to stay motivated when you wait half a year for a paycheck… then realize your publisher has kept most of it.

The other factor is information. Most salespeople get constant feedback on their performance. They know at any point exactly how their sales numbers are adding up. They can use that information to tailor their techniques and improve their sales. In traditional publishing, sales information comes too late to be effective and is often hard to decipher.

When you self-publish on Amazon, through both the Digital Text Platform and Create Space, after the initial six-week wait, you get paid every month. You also have access to hourly, daily, and monthly sales data. This information is direct feedback that you can use to figure out what promotional techniques work best. It can also function as incentive. When you see the sales bump up, it’s exciting and motivating.

Together, the steady income and the sales data provide a great incentive to spend time everyday blogging, tweeting, posting comments, and writing press releases. Wouldn’t it be interesting if traditional publishing houses followed Amazon’s lead and incentivized their writers to be diligent salespeople as well?

Publishers will say: It’s not possible. It’s too much bookkeeping. We’ve always done it this way. But Amazon knows what it’s doing, and it’s kicking ass in the publishing world.

What do you think? Would you work harder if your publisher gave you more sales data and paid you more often?

L.J. Sellers is the author of the bestselling Detective Jackson mystery/suspense series: The Sex Club, Secrets to Die For, Thrilled to Death, Passions of the Dead, and Dying for Justice.

INDIE AUTHOR: Being a 21st Century Author Means Re-Thinking Your Path

This guest post, by Kris Tualla, originally appeared on Beth Barany’s Writer’s Fun Zone on 2/22/11.

I’m rearranging the order of things and having a guest columnist talk about her adventure into becoming an award winning bestselling indie author! Please meet the talented and savvy Kris Tualla. She’s stopping by during her blog tour during the release of her first trilogy. Please give her a warm Writer’s Fun Zone welcome!

*^*

I have an agent. I have full manuscripts requested by major publishing houses. So people ask me all the time, “What made you decide to pursue independent publishing?”

Well… The traditional publishers did. “We don’t do American historicals… no one can sell Scandinavia… publishers LIKE their boxes…” I’ve heard it all.

And this is one of the rejections I received: “I think LOVING THE NORSEMAN has a lovely cast of characters, and a nice, cinematic quality to it. I also liked the balance Ms. Tualla creates in Ryder’s character, allowing him to be vulnerable yet strong. That said, medieval Scotland is a very crowded market…” Blah blah blah.

Looked like it was time to take my “lovely cast” to the people myself.

But there was a huge risk: self-published authors usually produce books which are severely sub-standard. From the writing to the editing to the formatting to the covers, these ignorant hopefuls have worked in a vacuum and have no idea how awful their books are.

So with my agent’s blessing, I took my American-Norwegian historical romance trilogy to e-publishing and print on demand (POD). And I did all the work myself.

Be warned. This is not a path for the faint of heart. The key is adequate editing – because it is IMPOSSIBLE for any author to edit themselves. Even traditionally published print books go through 3-4 rounds of editing before they are released – and many still have typos!

So for anyone reading this post who is considering this path, here is my process:


Read the rest of the post on Beth Barany‘s Writer’s Fun Zone.

Web Seminar Debates How Self-Publishing Will Lose Its Stigma

This post, by Lynn Andriani, originally appeared on Publishers Weekly on 2/23/11.

Thanks to the well-publicized success of authors like J.A. Konrath, Amanda Hocking, and Seth Godin, the stigma surrounding self-publishing is fading fast. Still, it’s far from gone, and a web seminar sponsored by PW and Digital Book World yesterday titled The Evolution of Self-Publishing covered the reasons for self-publishing’s stigma, how and why it’s losing that stigma, and what the industry and individual authors need to do in order to help self-publishing move even further into the mainstream.

But first, about those aforementioned bestsellers? Panelist and author Jason Pinter expressed his frustration at always hearing the same few names repeated as examples of how lucrative self-publishing can be. “What annoys me is that the same names are always used: Godin, Konrath, Hocking, The Shack,” he said. “There’s a sense of people latching on to a couple of individuals who’ve found success and then those people get a lot of publicity. Then it’s, ‘They can do it; I can!’ There is a bit of a fallacy there; it’s not always the case.”

Though there are, of course, many reasons most self-published books don’t sell well. One of the main reasons mentioned by the panelists? Marketing. “It’s one of the hardest things to do,” Pinter said. “Authors really need to look at what their goals are and how they’re going to realistically achieve them.” Carolyn Pittis, svp, global author services at HarperCollins, agreed: “Marketing is the issue of our time. Book marketing is the biggest challenge that anyone in the book business is facing today, purely because there’s so much noise and so much content getting created and so many potential distractions.” Marketing often determines a book’s commercial success—or failure, said Phil Sexton, publisher and community leader at Writer’s Digest. “It’s about what the intent of the author is. How much they’re going to back [their book], whether or not they’re going to try and sell it.”


Read the rest of the post on Publishers Weekly.

A Self-Publisher's Guide To Metadata For Books

This article, by Carla King, originally appeared on PBS.org‘s MediaShift on 10/12/10.

Metadata used to be a wallflower, hiding out at the library with the Dewey Decimal system. Now it’s at every party, flitting about gathering and sorting books on mobile devices, e-readers, and websites. Metadata is a core component of digital information and news; so good book metadata is good book marketing. It’s an essential tool for all self-publishers.

For those unaware, metadata is data about data, words about words. In the semantically driven matrix of search, all words have a value, and "key" words have more value still. These keywords must be strategically selected and then placed where they can do the most good. Creating metadata tags for your work is a marketing challenge that requires both editing skill and narrative common sense.

"As our digital landscape explodes — as web search becomes not just one way but THE way readers find what’s next on their reading lists — metadata only becomes more important," wrote Laura Dawson of Authorweb.

It might sound daunting, but if you know who your audience is, and you can fill out a form, you can create metadata for your book. Here’s what you need to know about providing metadata for your book record on the Bowker system and for all your web activities.

Identify Your Keywords

First, we must spill into search engine optimization (SEO) territory. The typical self-published author doesn’t need to hire an SEO expert. But I spoke with expert Mark Petrakis who helped me create these steps to identifying a solid keyword list:

  1. Imagine the words and short phrases your readers might enter into a search engine to find you and your book. Begin to eliminate the less important and more generic words and phrases from your list. Try to keep the number of repeated keywords to a maximum of three. The final list should be no more than 10 to 20 words with a 900 character maximum. This constitutes your "keywords" metadata and can be used for your book metadata, for creating tags on blog posts, and in your social media activities. Most major search engines (like Google) no longer factor in the keyword metatags at all in search results, so this just makes having effective TITLE and DESCRIPTION tags all the more important. (Similarly, your file names should be descriptive.)


Read the rest of the article on PBS.org‘s MediaShift.

The Imminent Collapse Of The Publishing Bubble

This post, by Candice Adams, originally appeared on the examiner.com site on 1/7/11.

Booms and bubbles are considered economic inevitabilities—when the getting is good, people will keep buying and selling until the last dollar to be made is had. Recent times have witnessed the burst of the tech and housing bubble. Most bubbles generally don’t survive longer than a decade due to a continued escalation in the destructive behavior that eventually dooms the industry. But what if a bubble lasted longer? Could the traditional publishing model be seeing the end of a 40-year bubble?

Bubbles occur for several psychological reasons, but the one that pertains most closely to the traditional publishing model is “The Greater Fool Theory.” This theory, although not scientifically proven but empirically observed, relies on the market’s overvaluation of a product leading to an inflation in price. The price continues to rise as long as a seller can find a greater fool than himself to sell it to. When the price finally plummets, the bubble bursts.

Moreso than books being overpriced, the traditional publishing model has been propped up by several illogical modus operandi that could eventually lead to the collapse of this house of cards.

1. Dog eat dog: Over the past 40 years, the publishing industry has gone from small publishers working with authors to instead being dominated by the “Big Six” corporate publishing houses (Random House, Macmillian, Simon & Schuster, Pearson/Penguin, HarperCollins, Hachette). Corporate publishing eventually led to the rise of the literary agent and the retail behemoths Barnes & Noble and Borders. Corporate publishers continued to acquire smaller presses that couldn’t compete with the large advances that corporations could offer. Larger advances led to more complicated deals, which needed to be brokered by an agent who preferred to work with corporate publishers who offered larger advances. With more books in their catalogues and backlists, the small independent bookstore could no long house, nor move, that quantity of inventory, and they were soon largely put out of business by the corporate mega-bookstores. However, in order for corporate publishers to continue to see profit in a very mature industry (and every corporation has to see profit), the Big Six began acquiring and producing fewer titles and attempting to sell more of the books they produce (i.e., publishing high concept book that could be optioned for their film rights, celebrity tell-alls, etc.) So while there is more book-selling space, fewer books are actually sold.

Read the rest of the post on examiner.com.

Borders Closing: An Author's Perspective

This post, by Steve Yates, originally appeared on his Fiction and History blog on 2/17/11.

Springfield, Missouri Borders on bankrupt chain’s closure list

There is a tumult in my heart about the Wednesday (2.16.2011) announcement that Borders will be closing 200 stores, including the location in Springfield, Missouri, the store in which Moon City Press first launched my novel Morkan’s Quarry.

The characters in my novel, the Morkans, owners of a limestone quarry in Civil War-era Springfield, would likely take a cold-hearted line on all this. Michael Morkan could easily see why a Borders at that Glenstone location would be one of 200 stores losing $2 million each day for the retailer. 25,000+ square feet of books right across the street from a Barnes & Noble store of equal square footage, that’s 50,000 square feet and surely lots of duplication. In those 50,000 sq. ft., think how many shelves HAVE to carry specific books that frequently sell—Harry Potter, The Twilight Series, the Da Vinci Code, and the like.

But walk-in, foot traffic markets have limits, capacities to absorb and demand any given product. In the heyday of giant retailers, back when Montgomery Ward still existed, and book buyers had few choices and no internet, such side-by-side offerings might have been sustainable. But this Starbucks-gone-wild passion for expassion came on after Montgomery Ward and lots of other retailers had already died and left fossils and empty shells.

The minute Morkan learned the space at Borders was leased, and the staff had to be paid an established minimum wage, and there would be no hope of free county prison labor… he would opt that every book in the place, every ISBN or SKU in retail parlance, be one that tears out of there faster than an opium and alcohol-saturated tonic (see energy drink) from a traveling medicine show.

There’s one source of the tumult: it is very hard to be unique and become a costumer’s favorite local bookstore when you have to carry what a corporate supervisor in Michigan chooses, items that can be sold to everybody. Giant scale, which can seem to the untrained eye a wowing advantage, becomes a deathtrap. And carrying all those hotcake items as your mainstay becomes unsustainable when your customer has already picked up The Chronicles of Narnia at Kroger or Sam’s or Wal-Mart at an humungous discount.

Read the rest of the post on Steve YatesFiction and History blog.