Getting Dirty On Her Own

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The-dirty-girls-social-club Author Alisa Valdes-Rodriquez is walking away from St. Martin's Press and self-publishing the third book in her hugely successful DIRTY GIRLS SOCIAL CLUB series in both e-book and print formats. She say, in part:

The Dirty Girls Social Club was published through St. Martin’s Press and sold more than half a million copies. The second Dirty Girls book, Dirty Girls on Top, also with St. Martin’s, came in just under that. When I did the math, I realized I’d only have to sell 100,000 copies on my own to earn what I’d made for six times the sales with a major publishing house. If I sold the same number of Dirty Girls books as I’d sold in the past, meanwhile, I’d be…a goddamned millionaire. A goddamned millionaire in control of her own career and destiny.[…]While I will continue to go with big publishers for my young adult books (I am under contract with Harper Collins for three books right now) I am very curious to see how the Dirty Girls experiment goes for me. I suspect it will go well enough to merit a national tour, which makes me think I should probably start taking pilot lessons now.

I predict her experiment will be a big success…because she's clearly shrewd, determined, enthusiastic and has a strong, pre-existing platform that she worked hard to build. Even if she sells only a tiny percentage of what she did with St. Martins on her first two Dirty Girls books, she will still make a fortune.  But even if it doesn't work out, which I doubt, she's wisely keeping one foot in the professional publishing world with her YA novels. This is one very smart lady.

Valdes-Rodriquez and Terrill Lee Lankford  are just the first in what I am certain will be a wave of professional authors opting to self-publish rather than accept the 25/75 e-royalty split or a pitiful mid-list advance (for which they will be essentially giving up rights to their books forever).

Spinetingling Interview

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Spinetingler Magazine has a long interview with me today on e-publishing. My thoughts on the subject have changed a bit since I did the interview but probably aren’t new to any of you who’ve read my blog, but even so, here’s a taste:

But have publishers been slow to adapt? Absolutely. Are they pricing ebooks too high? In some cases yes, but I don’t necessarily believe that the arbitrary $9.99 figure set by Amazon makes financial sense for publishers or authors…not while there are still hardcovers and paperbacks being published. The $2.99 price point makes a lot of sense for self-published authors like Joe and me…but does it make sense for Michael Connelly’s latest book from Little Brown? I don’t think so.

There’s no question that publishers should definitely be giving their authors a much bigger ebook royalties…and they will. It’s inevitable. But right now, publishers are in a state of total confusion and terror. They don’t know what to do…Borders is on the verge of collapse, Barnes & Noble is closing stores, ebook sales are exploding… it’s akin to what radio was facing when television came along. So they are trying to cut costs, pruning the midlist, firing editors, hunkering down and waiting out the storm. How they will emerge afterwards is anybody’s guess at this point.

It’s naive to think, though, that James Patterson or Janet Evanovich or authors in their stratosphere are going to be walking away from traditional publishing any time soon…they benefit enormously from the infrastructure and reach those companies provide. You can’t compare what A-list writers get from traditional publishing to what mid-list writers are experiencing. They are different universes. And it’s naive to think that big publishers, or printed books, are going to disappear. I’m sure the ebook world will, like the print world, continue to be dominated by the big publishers and the big authors (the big players in radio became the dominant players in TV, too). But there is more opportunity now for individual authors to take charge of their own careers. That said, it would not surprise me if Amazon, and eretailers like them, eventually institute some kind of filtering system to deal with the deluge of self-published work that they are being hit with. The slush pile has gone digital…and it’s going to be overwhelming, for Amazon and for readers, to wade through it all.

Just Say No

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Author Terrill Lee Lankford announced on his blog that he has just walked away from a big advance from a major publisher on his next book over the outrageous 75/25 e-book royalty split…and is going to self-publish instead. He says, in part: 

What this “sizable advance” now looks like to me is a very expensive loan. I have been watching the e-book revolution carefully for the last two years and it is clear to me that by 2012 everything we have thought about traditional publishing will be history. The bookstores know this. The publishers know this. And some of the writers know this. But I have a feeling not everyone has gotten the memo yet.

[…]
So I have no choice but to go full indie here. You heard me. I am walking away from a potential traditional publishing deal and joining the ranks of the self-published.[…]
This is a huge gamble for someone in my position. I am not prolific. My habit has been to publish two books every seven years or so. That time was approaching and I was hoping that I had found a new home with this editor and publishing house. But I can’t sign away my financial legacy to my children in this fashion, however small it may be.

He also has a warning for mid-list authors who are seeing new publisher interest in their dormant backlist…

In the meantime a lot of the little folks who just want to see print again are probably going to be seduced by new interest from publishers. I have a feeling there is going to be a tidal wave of cheap purchases by the publishers hoping to tie up as much material as possible at these usury rates. And then how much will your “platform” be worth? If you are just another name in a list of hundreds fighting for attention on a giant slate of titles you will have handed in your work cheap, with no way of getting it returned to you. Yes, that’s right. E-books don’t go out of print, so if you don’t fight for time limits, your work will be lost to you. Permanently.

I think we are going to see more and more authors, those who haven’t become household names, doing the math and making the same decision that he has.

Publishers Screwing Authors out of E-Book Royalties

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Here's an Authors Guild report regarding how publishers are ripping off writers on ebook royalties…

E-Book Royalty Math: The Big Tilt
 
To mark the one-year anniversary of the Great Blackout, Amazon's weeklong shut down of e-commerce for nearly all of Macmillan's titles, we’re sending out a series of alerts this week and next on the state of e-books, authorship, and publishing. The first installment (“How Apple Saved Barnes & Noble. Probably.”) discussed the outcome, one year later, of that battle. Today, we look at the e-royalty debate, which has been simmering for a while, but is likely to soon heat up as the e-book market grows. 
 
E-book royalty rates for major trade publishers have coalesced, for the moment, at 25% of the publisher’s receipts. As we’ve pointed out previously, this is contrary to longstanding tradition in trade book publishing, in which authors and publishers effectively split the net proceeds of book sales (that's how the industry arrived at the standard hardcover royalty rate of 15% of  list price). Among the ills of this radical pay cut is the distorting effect it has on publishers’ incentives: publishers generally do significantly better on e-book sales than they do on hardcover sales. Authors, on the other hand, always do worse.
 
How much better for the publisher and how much worse for the author? Here are examples of author’s royalties compared to publisher’s gross profit (income per copy minus expenses per copy), calculated using industry-standard contract terms:  
 
“The Help,” by Kathryn Stockett  
Author’s Standard Royalty: $3.75 hardcover; $2.28 e-book. Author’s E-Loss = -39% 
Publisher’s Margin: $4.75 hardcover; $6.32 e-book. Publisher’s E-Gain = +33%
 
“Hell’s Corner,” by David Baldacci 
Author's Standard Royalty: $4.20 hardcover; $2.63 e-book. Author’s E-Loss = -37% 
Publisher’s Margin: $5.80 hardcover; $7.37 e-book. Publisher’s E-Gain = +27%
 
“Unbroken,” by Laura Hillenbrand 
Author’s Standard Royalty: $4.05 hardcover; $3.38 e-book. Author’s E-Loss = -17% 
Publisher’s Margin: $5.45 hardcover; $9.62 e-book. Publisher’s E-Gain = +77%
 
So, everything else being equal, publishers will naturally have a strong bias toward e-book sales. It certainly does wonders for cash flow: not only does the publisher net more, but the reduced royalty means that every time an e-book purchase displaces a hardcover purchase, the odds that the author’s advance will earn out — and the publisher will have to cut a check for royalties — diminishes. In more ways than one, the author’s e-loss is the publisher’s e-gain.
 
Inertia, unfortunately, is embedded in the contractual landscape. If the publisher were to offer more equitable e-royalties in new contracts, it would ripple through much of the publisher’s catalog: most major trade publishers have thousands of contracts that require an automatic adjustment or renegotiation of e-book royalties if the publisher starts offering better terms. (Some publishers finesse this issue when they amend older contracts, many of which allow e-royalty rates to quickly escalate to 40% of the publisher’s receipts. Amending old contracts to grant the publisher digital rights doesn’t trigger the automatic adjustment, in the publisher's view.) Given these substantial collateral costs, publishers will continue to strongly resist changes to their e-book royalties for new books.
 
Resistance, in the long run, will be futile. As the e-book market continues to grow, competitive pressures will almost certainly force publishers to share e-book proceeds fairly. Authors with clout simply won’t put up with junior partner status in an increasingly important market. New publishers are already willing to share fairly. Once one of those publishers has the capital to pay even a handful of authors meaningful advances, or a major trade publisher decides to take the plunge, the tipping point will likely be at hand.
 
In the meantime, what’s to be done? We’ll address that in our next installment in this series, on Monday.
 
Our assumptions and calculations for the figures above follow.
 
——————————————————– 
Doing the Numbers: Hardcover
 
To keep things as simple as possible, we assumed that for hardcovers: (1) the publisher sells at an average 50% discount to the wholesaler or retailer (2) the royalty rate is 15% of list price (as it is for most hardcover books, after 10,000 units are sold), (3) the average marginal cost to manufacture the book and get it to the store is $3, and (4) the return rate is 25% (a handy number — if one of four books produced is returned, then the $3 marginal cost of producing the book is spread over three other books, giving us a return cost of $1 per book). We also rounded up retail list price a few pennies to give us easy figures to work with.
 
“The Help,” by Kathryn Stockett has a hardcover retail list price of $25. The standard royalty (15% of list) would be $3.75. The publisher grosses $12.50 per book at a 50% discount. Subtract from that the author's royalty ($3.75), cost of production ($3), and cost of returns ($1), and the publisher nets $4.75 on the sale of a hardcover book.
 
“Hell’s Corner” by David Baldacci, has a retail list price is $28. The standard royalty is $4.20; the publisher's gross is $14. Subtract royalties ($4.20), production and return costs ($4), and the publisher nets $5.80.
 
“Unbroken,” by Laura Hillenbrand has a hardcover list price of $27. Standard royalties are $4.05. The publisher's gross is $13.50. Subtract royalties of $4.05 and production and return costs of $4, and the publisher nets $5.45.
 
Doing the Numbers: E-Book
 
E-book royalty rates are uniform among the major trade publishers, but pricing and discounting formulas fall into two camps: the reseller model favored by Amazon (Random House is the only large trade publisher using this model) and the agency model introduced by Apple a year ago. (See yesterday’s alert for more information on these models.)
 
Under the reseller model, the online bookseller pays 50% of the retail list price of the book to the publisher and sells the book at whatever price the bookseller chooses (for bestsellers, Amazon typically sells Random House e-books at a significant loss). Random House frequently prices the e-book at the same price as the hardcover until a paperback edition is available.
 
Under the agency model, the online bookseller pays 70% of the retail list price of the e-book to the publisher. The bookseller, acting as the publisher’s agent, sells the e-book at the price established by the publisher, but the publisher is constrained by agreement with Apple and others to set a price significantly below that for the hardcover version.
 
The unit costs to the publisher, under either model, are simply the author’s royalty and the encryption fee, for which we’ll use a generous 50 cents per unit.
 
Here’s the math:
 
“The Help” has an e-book list price of $13 and is sold under the agency model. Publisher grosses 70% of retail price, or $9.10. Author's royalty is 25% of publisher receipts, or $2.28. Publisher nets $6.32. ($9.10 minus $2.28 royalties and $0.50 encryption fee.)
 
“Hell’s Corner” is also sold under the agency model at a retail list price of $15 list price. Publisher grosses 70% of retail price, $10.50. Author's royalty is 25% of publisher receipts, or $2.63. Publisher nets $7.37. ($10.50 minus $2.63 royalties and $0.50 encryption fee.)  
 
“Unbroken” is sold by Random House under the reseller model at a retail list price of $27. Publisher grosses $13.50 on the sale. Author

Knee-Jerk Defensiveness

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There's a very narrow range of acceptable opinions in the "indie" world of self-published authors. And here they are, in no particular order:

1. the "traditional" publishing system is evil, unfair, and inept. Oh, and it's doomed. It will collapse by next Tuesday.
2. "traditional" publishers are terrified by the talent and imagination of self-published authors. 
3. bestselling authors like Meyer/Rowling/Grisham etc are miserable hacks who owe their success entirely to marketing.
4. any 99 cent indie book by an amateur is going to be as good, if not better, than any "traditionally" published book. 
5. published authors are elitists who fear the democratization of publishing because it offers more choice to readers and threatens their sense of entitlement. 
6. readers can't tell the difference between self-published books and "traditionally" published books because there really is no difference.
7. any published author who criticizes any aspect of self-publishing is criticizing YOU personally and YOUR book. 
8. "beta readers," no matter who they are, are really the best judges of your work, not any editor or agent.
9. there's really no need for experienced editors or copyeditors, since "traditionally" published books often have errors in them.
10. there's no such thing as a bad self-published book.
11. there's no such thing as a bad self-published book cover
12. always encourage "indie" work and never criticize it, no matter how awful it might be.

Any deviation from those accepted attitudes is seen as condescending, destructive, and treasonous. That's not to say there isn't some truth to them, but God forbid anyone in the "indie" ranks should ever acknowledge that: 

1. the stigma associated with self-published work is often well-deserved
2. the stigma, if anything, might endure and even become stronger as more unreadable swill is put out there.
3. failing to acknowledge the stigma doesn't make it go away, it only reinforces the negative stereotype that self-published authors have blinders-on and can't tell good writing from slop.
4. self-published work should be judged by the same high creative and editorial standards as "traditionally" published books. (Yes, there are standards, and we all know it).
5. readers *can* tell the difference between amateur, self-published work and professionally-written, "traditionally" published books. Most of the time, there *is* a difference.
6. there are a lot of awful self-published books.
7. there are a lot of awful self-published book covers…and yes, it matters.
8. self-published work could benefit from, and often desperately needs, professional editing, copyediting, and art design (regardless of whether you found a typo in Michael Connelly's last book).
9. relying on inexperienced "beta readers" can often be a case of the blind leading the blind
10. the reason Meyer/Rowling/Grisham etc. are bestselling authors is because they had great ideas for books and wrote them very well…and they might actually be more creative, and better writers, than most of us (it wasn't just luck).
11. it's okay to be critical of self-published work (and when someone is, that doesn't mean they are talking about YOU and YOUR book).

Gumming up the Plumbing with Your Old Underpants

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Charlie Wendig has written a hilarious… and genuinely insightful…post about the justifiable stigma attached to self-publishing and how to avoid it. Here's a taste:

I (and I’m sure other capable writers) have noticed and noted that self-publishing bears a certain stigma. With the term comes the distinct aroma of flopsweat born out of the desperation of Amateur Hour — it reeks of late night Karaoke, of meth-addled Venice Beach ukelele players, of middle-aged men who play basketball and still clutch some secret dream of “going pro” despite having a gut that looks like they ate a basketball rather than learned to play with one.

Self-publishing just can’t get no respect. This is, of course, in contrast to other DIY endeavors.[…]This is in part because it’s a lot harder to put an album or a film out into the world. You don’t just vomit it forth. Some modicum of talent and skill must be present to even contemplate such an endeavor and to attain any kind of distribution. The self-publishing community has no such restriction. It is blissfully easy to be self-published. I could take this blog post, put it up on the Amazon Kindle store and in 24 hours you could download it for ninety-nine cents. It’s like being allowed to make my own clothing line out of burlap and pubic hair and being allowed to hang it on the racks at J.C. Penney.

That last line just killed me. And it's not even the funniest bit in his post. What's great is that he doesn't just take cheap shots at bad, self-published writers the way, say, I would.  By using strong examples, he clearly and hilariously illustrates the many cringe-inducing mistakes made by aspiring writers and, at the same time, offers solid advice on how to avoid "gumming up the plumbing with your old underpants."  It's a very entertaining read, whether you're a writer or not.

Paperback Parade

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Mygunhasbulletspod_2-001 My two "Charlie Willis" novels, MY GUN HAS BULLETS and DEAD SPACE, are now both available as trade paperbacks. These are the best-looking print editions of those two books yet, thanks to cover artist Carl Graves and designer Steven Booth.

 MY GUN HAS BULLETS, in particular, really looks nice...and it's about time. It was published back in the 1990s in hardcover by St. Martin's Press and I've never been satisfied with any printing of the book until now.

Those two books join THE WALK, THREE WAYS TO DIE and MAN WITH THE IRON-ON BADGE, which are also available now in trade paperback editions.

Kindle Tales

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Devils-playground-813x1280 A bunch of my friends have new and out-of-print books that have just been released on the Kindle.

Bill Crider's classic westerns RYAN RIDES BACK and MEDICINE SHOW are out and cheap, too.

Doug Lyle has brought back his Samantha Cody books, including DEVIL'S PLAYGROUND.

And James Reasoner, Bill Crider, and Mel Odom have teamed up under the pen name "Colby Jackson" on RANCHO DIABLO, an original series of westerns, that kicks off with SHOOTER'S CROSS.

Check'em out!

Farewell to the Mystery Bookstore

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IMG_0057 Tonight, the Mystery Bookstore had their farewell party. It was a bittersweet event. It was great to see so many mystery writers and fans in one room…but sad to see a legendary, independent bookstore close down.

 

The owners and employees, in their good-byes, observed that they've never met a nicer, more supportive group of people than mystery writers and what a pleasure it was just having the chance to get to know them all.

They're right. As I was looking at all those faces, and talking to all those writers, I was struck by what an incredibly friendly, warm, and out-going group they are…and how much I like them.

Unlike TV, where there is a real class system…you don't see showrunners hanging out with staff writers and treating them as equals… that isn't the case at all among mystery novelists.  Everyone mixes together. The superstars like Michael Connelly and Robert Crais are as friendly, approachable, and supportive as the least-known mid-list writer. They don't just hang out with other writers in the bestseller list. Everyone treats one another with mutual respect. Sure, there are a few in the biz who don't, but those are the exceptions. 

The Mystery Bookstore was like our home, the place where all of us could get together several times a year, like a family gathering for the holidays, and talk shop and catch up with one another. Losing the store is like losing our home. I wonder now how often we'll all get together under one roof now that we've lost the store…my fear is that it will be hardly ever.

The loss of independent bookstores, which are really so much more than just places that sell books, is one of the real, and painful, downsides of the success of the Kindle.

(Pictured: Lee Goldberg, Dick Lochte, Thomas Perry)