E-Book Discussion

Chuckarama left a good comment on a recent post, and I wanted to follow up on it. Chuck (can I call you Chuck? :)) writes:

“I’m not sure I fully agree. I’m not a writer, but I suspect built into that 10 year rule of thumb there is something else happening. Sure you’re improving your technical skills as you go along, no matter what level you’ve attained, but what you are probably spending a lot of time doing is figuring out what will make it through the filter and what won’t. Your testing the barrier to entry, for it’s weaknesses or trying to get in the heads of the editors and publishers, to know what they want. You probably aren’t even conscious of it a lot of the time. But what if the 10 year rule of thumb turns out to be an old wives tale?”

This idea of writing for an audience is important. If you just write for yourself, you may end up with only a fan-base of one. You must write with the target audience in mind. Editors know this, and they read looking for books that are ‘marketable’. I have heard from several authors who have written a book their agent or editor loved, but they ultimately rejected it because the book simply wasn’t marketable. What that means is the publisher doesn’t think they can sell enough copies to recoup their investment.

E-books offer two solutions to this problem.

First, it lowers the cost of recouping the initial print investment. In doing a bit of research, I think you can get an e-book to market for less than $2,000, not including marketing. If you sell your book for $9.99 on Amazon, you need to sell roughly 286 copies to make your investment back.

In other words, instead of a book needing to sell 5,000 copies to be ‘marketable’, a book would only need to sell 300 copies.

Second, it takes the guessing out of the equation. As I mentioned above, agents and publishers are guessing at what readers will like. They make an educated guess, publish the book, and cross the fingers. E-books give a direct line to readers. There is no guessing. If readers like it, they’ll tell their friends, and sales will go up. If they don’t, you’ll sell a few copies to your mother and your friends, and it will end there.

This site lists authors and books that were rejected by editors because they weren’t marketable. Books include Catch 22, Diary of Anne Frank, Harry Potter and the Sorcerer’s Stone, Lord of the Flies, Animal Farm, and more. Of course these books went on to be published, and many of them have become classics. In other words, a lot of editors got it wrong–very wrong in some cases. We readers almost missed getting these books. With e-books, and a direct to reader approach, this is less likely to happen.

I’m going to end with a quote sent to me by my friend The Damsel. Sometimes I feel like I’m come across as disparaging the publishing industry. I don’t mean to, I just get excited about the possibilities of the emerging models, and tend to focus on the differences. I don’t think the old model will go away, simply it’s going to evolve.

“We should not see print and electronic literature as a competition, but rather a conversation. The more voices that join in, the richer the dialogue is likely to be.” N. Katherine Hayles

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Stiff Competition

I’ve talked a lot about why publishers and editors should be nervous, but today I figure it’s time to point the finger at authors. There are a lot of good reasons why we should be excited about e-books, but there are also some things that should make the beads of sweat pop out on our collective brows.

Today in a book store, readers walk in and have literally thousands of books to choose from. In an e-book store, there are hundreds of thousands of choices. Marketing and outreach will be key if you hope to convince that one reader to choose your book out of all of the books at their disposal.

But something even more worrisome is on the horizon. When I go into a book store, there are new books, or there are classics. The classics (Mark Twain, Charles Dickens, Jane Austin) are often much cheaper than the new releases. Sometimes you can pick them up for just a few bucks.

However, with e-books, these books will be free, not just cheap. You may think there is not much difference between cheap and free, but you would be wrong. :)

In Predictably Irrational, Dan Ariely talks about an experiment where he offered Hersey’s kisses for one penny, and a much better kind of chocolate for 26 cents. When he did this, most people opted for the more expensive chocolate. Hershey’s kisses just aren’t that good.

However, then he lowered the price of both chocolates by one penny. Now the Hershey Kiss was free, and the better chocolate was a quarter. The results flip flopped. More people chose the inferior-but-free chocolate to the better chocolate, even though the price difference was identical.

Ariely says the reason we saw this change is because whether something is 1 penny, 1 dollar, or a hundred dollars, we have to make a decision. Is the benefit worth the cost. However, when the price drops to free, we don’t see the obvious monetary cost. There is no decision. We see that it’s free, and we take it, because there is no cost.

So, right now authors compete against each other. But what happens when readers realize they can download thousands of books for free from Project Gutenberg? It’s daunting enough to think I’m in competition with Steven King and J. K. Rowling, but Mark Twain? Charles Dickens? That is stiff competition indeed. And what makes it worse is their books are priced to move.

Sweating now?

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The Open Model of Publishing

I’ve spent a lot of time talking about the open model of publishing, but haven’t really spelled it out. Allow me to start spelling.

The open model, in it’s most basic form, is the idea of giving something away for free and then trying to find some other way to make money. It’s the old razors and blades notion. You give away a free razor, and then sell blades to make money.

Bars and Taverns have used this model for years, giving away salty pretzels or peanuts to assist their patrons in feeling thirsty. Nearly every gaming console also practices this idea, selling the console at a loss, and then making money on selling games.

The open model hit the music industry in the mid 90s, and the music industry was unprepared. Napster and the mp3 format revolutionized the way we listen to music, and the recording industry has fought it ever since. What savvy musicians have realized, however, is that the open model works just great for artists–it’s the record labels that are being left out in the cold.

Take Jonathan Coulton for instance. He gave 52 songs for free over the course of a year. That is roughly 4 full CDs worth of material. Is he crazy? Crazy like a fox. Hid music is good. People show up for his concerts, buy his shirts, and yes, even buy his CDs, in spite of the fact that they can download his music for free. He now makes a ‘comfortable living’ doing what he loves. He went from part time musician to full time musician, all by giving away his work.

It works the same way in several other industries such as TV and film, but as writers our turn has been slow in coming. The problems lies in the face that people don’t sit at their computer to read an entire novel. They may sit there long enough to do it, but usually they’re jumping from site to site on the Internet. The idea of reading 300 pages on a desktop is daunting.

But e-books have changed all of that. Now people are finding the beauty and benefits of e-books, and as authors we finally get our turn to take advantage of this not-so-new medium.

I’ve talked a lot about the merits of e-books, but selling your book on Amazon is not using the open model. Giving away your book on Amazon is an example of open publishing, and believe it or not it works, even in the publishing industry. Cory Doctorow gives away digital copies of all his books, and feels this has affected his print sales positively.

Giving away books is not a magic bullet. I’ve said it with e-books, and it holds true to the open model. You must first master the craft, or readers will quit after 3 pages. But the idea of giving away something for free, and making money some other way, is a time tested method.

If you’re interested in reading more about this model, I highly recommend Chris Anderson’s article on the topic, as well as his book.

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Kindle DX Reboot

Amazon has launched their new Kindle DX. They’ve also lowered the price. The old price was simply too close to the iPad, while the new price, $379, is enough of a difference to attract folks who just don’t want to shell out the $500.

Personally I’d rather have a smaller device than the larger screen size, but the lower price shows that Amazon is making adjustments. We’ll see if the trend continues.

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Feel like pressing your luck?

Is this a sign of things to come? Last week we saw Amazon drop the price of the kindle to $189. Today they acquire Woot! and are offering an exclusive deal for one day. You can pick up the Kindle for $149. If you’re not familiar with how Woot! works, this deal will be good for 24 hours, so you’ve got to move fast.

I’ll be honest, I’m severely tempted. Will prices drop further before Christmas? Will this be the best deal that comes along? The thought of me dropping 50 public domain books on that bad boy and sitting fat and happy in my recliner is oh so tempting.

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Readers Vs. Slush Pile

Interesting article over at salon.com. Laura Miller, an industry insider, pokes fun at e-books and the changes in the publishing industry.

Miller takes a slightly snarky tone in describing the current state of publishing. New technology allows authors to bypass agents, publishers, and editors, and go straight to the readers. Miller poses the question, are readers ready to meet the slush pile?

From the article:

“You’ve either experienced slush or you haven’t, and the difference is not trivial. People who have never had the job of reading through the heaps of unsolicited manuscripts sent to anyone even remotely connected with publishing typically have no inkling of two awful facts: 1) just how much slush is out there, and 2) how really, really, really, really terrible the vast majority of it is. Civilians who kvetch about the bad writing of Dan Brown, Stephenie Meyer or any other hugely popular but critically disdained novelist can talk as much trash as they want about the supposedly low standards of traditional publishing. They haven’t seen the vast majority of what didn’t get published — and believe me, if you have, it’s enough to make your blood run cold, thinking about that stuff being introduced into the general population.”

This argument is not new, and there are many agents/editors/publishers who feel this way. They see themselves not only as gatekeepers, but as noble protectors. They are the ones keeping the helpless reader from this massive pile of slush and sludge. “It’s horrible out there,” there tell us. “Lucky for you we’re here to help protect you from all this garbage.”

This is all well and good, but completely silly. We live in the information age. Information wants to be free. The more information the better. What is slush and sludge to you, may be just what I’m looking for. Look at blogs. There are millions of blogs, and new ones starting up every day. But as Nathan Bransford put it, “No one sits around thinking, “You know what the problem with the Internet is? Too many web pages.””

Miller writes, “In other words, [finding gems in the slush pile is] a dirty job, but someone’s got to do it, and if the prophecies of a post-publishing world come true, it looks, gentle readers, as if that dirty job will soon be yours.”

Does Miller complain about how many Youtube videos there are? Blogs? Web pages? Wikipedia entries? I humbly suggest Miller read up on the benefits of crowd sourcing. E-books are going to make life easier for editors and bookstores, not harder. In fact, it may be the very thing that saves them. Instead of having to roll the dice, and trust the judgment of a few editors and agents, publishers will be able to look at Amazon, read reviews, and see how many copies have been sold. If it looks like a book is hot, snatch up the print rights and sell it.

What people like Laura Miller forget is that before any writer was good, they were awful. We’re often told as writers that it takes ten years to really master the craft. In the age of the internet, mastering the craft just becomes more public. Instead of writing six books, and finally getting that seventh one published, now we post the first six on Amazon, and finally get attention with book number seven. How does it hurt the general public? If the first six are really that bad, reviewers will share their opinion and nobody will read the books. Authors will either keep at it, or give up, which happens to be exactly what happens today.

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Cling to that old model…

There has been a battle waging for the last several years. I’m not talking about Iraq or Afghanistan, I’m talking about the battle between Google and publishers.

Google has been trying to digitize books and make them searchable. The idea is people could find material in a book, read a little bit of it, and if that is what they are looking for, they could either buy a physical copy, or find one at a library to check it out.

Publishers don’t like this. Technically this is violating the copyright because Google is. . .well, they’re copying the book.

There is a classic scene in movies–one where the protagonist falls over the side of a cliff. As the camera pans, we see the protagonist is clinging for dear life to a small branch.

Publishers are clinging to the old model with the same sense of desperation. There are opportunities in the new model. Times are scary for publishers, and nobody knows for sure which path will work, but clinging to the old model will NOT work.

Look at the lengths to which the Internet Archive is forced to go to make a digital copy available to readers. The Internet Archive has a lot of public domain material, but is trying to make more in-copyright material available. From a Wall Street Journal article:

“With its latest project, the organization is making inroads into the idea of loaning in-copyright books to the masses. Only one person at a time will be allowed to check out a digital copy of an in-copyright book for two weeks. While on loan, the physical copy of the book won’t be loaned, due to copyright restrictions.”

So imagine you’re a reader who just found a book at a library. But you’re told you can’t check it out because somebody has a digital copy checked out somewhere. The whole beauty of digital copies is you can make millions of exact copies with negligible cost. But we’re going to tie up physical books, and only allow one digital copy out at a time because of outdated copyright laws?

As an author, I’m fully aware of how hard it is to make a living in this profession. But this attempt to lock down copies and create a monoploy doesn’t help me, they help my publisher. If a person comes to a library and finds my book on the shelf, and they are told they can’t check it out, I’ve just lost the opportunity of making a fan. That person will find something else to read. And when Christmas rolls around, and he needs a gift for Aunt Betty, he won’t think of my book because he hasn’t read it.

Nothing about the new models is for certain, but what is for certain is that those who cling to the old model will be left behind. The landscape is changing, and authors and publishers who change with it will likely be better off than those who keep holding onto that branch.

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Before you sign the contract…

I’ve talked with a few authors about digital rights since starting this blog, and more and more people are seeing digital rights as something separate to the print rights. Before e-book rights were something ‘thrown in’ to a contract. We’ll publish your book. Oh, and we’d like your digital rights as well, as long as we’re at it. But now authors are seeing these rights as something they should retain.

A recent article in The New York Observer notes that Andrew Wylie of The Wylie Agency has put digital rights on hold across the board. They are looking to bypass publishers and license books directly to Google, Apple, and Amazon. Once again, Publishers should be nervous. Just when it looks like e-books might prove to be a cash cow, agents and authors suddenly have a way to deal directly with the distributors. Why deal with a publisher when an author can keep 70% of the proceeds of a book?

To all authors out there, if you are about to sign a contract with a publisher, think long and hard before you sign away any digital rights. You might be giving away more than you think.

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E-Book Growth

The nice thing about the Huffington Post is that they have such a wide variety of people writing for them. When they totally miss the mark on one article, they have another article that nails it.

A few weeks ago a writer for the Huffington Post declared that e-books would make mid-list authors extinct–something that just isn’t true.

Today we have a different writer, Rafi Mohammed,  welcoming e-books and the changes they are bringing. I particularly like this bit:

“With print sales destined to slowly wither, brick and mortar book retailers also need to adapt to the realities of this movement towards e-books or go the way of record stores. Numb from disbelief, the music industry and record stores twittered their thumbs as consumers switched to digital. As a result, how many record stores are in your area today?”

E-Books bring many opportunities for authors and readers, not so many for publishers and stores. It is crunch time, and they need to adapt. If bookstores don’t already have a strategy around how to survive the next 2-3 years, then it’s probably already too late. Publishers have more time to adjust, but there are many opportunities for smaller publishers to jump to the head of the class, so to speak. Those who really understand the digital age, and have a strategy, will see tremendous opportunities in the months and years to come.

Authors should also have an e-book strategy, or at least make sure your publisher does. I think in the future, we’ll rarely see authors sign away their rights, and for a publisher to ask for e-book rights will seem about as ludicrous as asking for the rights to a first-born child.

Again, from the article:

“This week’s e-reader device price war was a shot over the bow — the future of publishing has been clarified: digital books are set for explosive growth while print books are slowly headed toward extinction.”

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Open Model and E-books No Shortcut

Publishing an e-book does not mean authors can skip the most important step of all–mastering the craft.  A friend of mine, Trent Cameron, sent me an interesting link about online file sharing (pirating or information liberation, depending on how you look at things) and how it affects content creators.

For those unfamiliar with the idea of openness it may come as a surprise to hear that Sam Bozzo, a film director, embraces the idea of people sharing his movies online. From the article:

“For me, the [online sharing] was ultimately “free advertising”, and I am the only truly independent documentary filmmaker I know making his money back this year.”

But he goes on to say something equally interesting about how pirating does hurt bad or mediocre movies. People watch them, are unimpressed, and they don’t tell their friends, nor do they buy the product. The good films, however, are shared, talked about, and people generate buzz which ultimately leads to more revenue in DVD sales or box office sales. Again, from the article:

“With “Blue Gold” already available on DVD in North America, UK, Japan, and Australia, the initial fear of a filmmaker is that each person who downloads a torrent would have instead paid to buy or rent a DVD if the torrent were not available. I feel this is false for many reasons. For an independent film like mine, most torrent users would have never heard of my film if not for the torrent. Unlike a large blockbuster film, I had no advertising money to spread the word of the film, so the torrent leak provided another outlet to hopefully create a viral campaign of word-of-mouth. The main point, though, is that this only worked because the film is a solid good film (for the target market at least), so word of mouth could only help the film.”

I’ve said it before, and I think it’s worth repeating–E-books and The Open Model aren’t shortcuts to publishing. They are additional options now available to writers.

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