Phil Simon » Publishing

Interview with Sue Collier

philsimon — Wed, 25 Aug 2010 15:29:55 +0000

I recently did an interview with author Sue Collier about self-publishing. Here’s a sample:

What is your background? I am an independent technology consultant, author, writer, and dynamic public speaker for hire. I focus on the intersection of business and technology and have written two books: Why New Systems Fail and The Next Wave of Technologies. My next book is called The New Small and will be out in November. I also write for a number of technology media outlets and sites and host the podcast Technology Today.

To listen the entire interview, click here.

Eleven Questions for the Indie Publisher: Featuring Phil Simon

Interview with Sue Collier is a post from: Phil Simon

The Cleveland Indians, Seth Godin, and Publishing

philsimon — Wed, 25 Aug 2010 10:30:15 +0000

In his book Dealing: The Cleveland Indians’ New Ballgame: How a Small-Market Team Reinvented Itself as a Major League Contender, Terry Pluto details the free agent moves made by The Cleveland Indians in the early 1990s. The small market team locked up rising stars such as Sandy Alomar, Jr., Cory Snyder, and Kenny Lofton before big market teams like the Yankees could sign them on the open market.

At the time, these multimillion dollar contracts were fraught with risk. After all, guaranteeing the big money to somewhat unproven entities could have backfired, setting the franchise back for years. Ultimately, however, these risky moves paid off, as Cleveland had more than its fair share of success in the mid-90s.

Seth Godin and the Publishing Industry

I was thinking about this the other day after I read about Seth Godin’s decision to bypass traditional publishers. While Godin can reach his audience directly via his enormously popular blog, speaking engagements, and other means, many up and coming authors do not nearly have his reach. They would probably welcome the security of a three book deal, for example. I think about authors in my general age range with some proven history selling books–and strong social media presences. Why aren’t traditional publishers actively trying to lock us up? (My sense from speaking with other authors is that most deals are on a book-by-book basis. Think of it the baseball equivalent of a player option.)

Of course, we might say no to proper publishers for whatever reason, as I did with my upcoming book The New Small. Emerging authors might elect to keep their options open. But why not try and get the next big star before she hits it big?

A Few Thoughts

The Indians were proactive twenty years ago and I have a really hard time using that adjective to describe the publishing industry right now. If I were a small publisher, I would be targeting these folks. In fact, now that I have started a publishing company of my own (more on that in future posts), I might as well do just that.

And why limit things to books? Consider what LiveNation did with Madonna. Yes, that one. Why not lock up an author with a hybrid book/conference circuit gig?

For all I know, traditional publishers have thought this through and I’m just missing something. But imagine having Albert Pujols play for your team at Jason Heyward’s salary for five years.

Feedback

What say you?

The Cleveland Indians, Seth Godin, and Publishing is a post from: Phil Simon

Cover for The New Small

philsimon — Thu, 12 Aug 2010 14:16:52 +0000

I’m pleased to present the cover for my third book: The New Small: How a New Breed Of Small Businesses is Harnessing the Power of Emerging Technologies. This is the handiwork of my cover guy, Luke Fletcher. Luke and I had worked together on the second edition of my first book, Why New Systems Fail. He set the bar high that time and I didn’t want to work with anyone else. There’s something really exciting about seeing your vision of the cover become a reality, and this guy just makes me want to write more books.

While I’m at it, I’m also pleased to announce that Chris Brogan is going to be writing the foreword to The New Small. I am beyond stoked about this. I’ve been a big fan of his blog, talks, and books. I’m confident that Chris will get the book off on the right note. He knows more about social media that just about anyone out there, and one of the pillars of the book is the effective use of social media and networks. He’s also no stranger to the other topics covered in the book, to put it mildly.

While not on Amazon yet, you can contribute to the publication of the book by clicking here.

Cover for The New Small is a post from: Phil Simon

Publishing Mysteries, Part II

philsimon — Mon, 19 Jul 2010 14:25:05 +0000

I’ve ranted before about why so many traditional publishers have yet to embrace Web 2.0 and emerging technologies. Yes, I understand that today the onus is on individual authors to “get the word out” for their books. I honestly don’t have a problem with this. I’d also argue that authors are uniquely positioned to explain the content of–and intended audiences for–their books.

But I’m reminded of my basketball-playing days at college. Often during our games, the ball would wind up in an adjacent court, interrupting it in the process. I’d apologize to the fellow hoopsters and say, “A little help here?”

The O’Reilly Model

I really just don’t get why all (yes, all) publishers don’t do what O’Reilly does. Aside from hosting real-world and virtual conferences, they understand the importance of concepts such as community and social networks. Check out this interview by Mac Slocum with the authors of the the upcoming book Gamestorming. Is it a coincidence that the book’s Amazon pre-sales numbers are a very respectable 2,500–give or take?

Perhaps most fascinating for this interview is Mac Slocum’s role at O’Reilly. Check out his brief bio:

Mac Slocum is O’Reilly’s Online Managing Editor. At heart, he’s a web guy. At various times and and at a variety of outlets, he’s been a web editor, a web producer, and a web writer. He’s also taught journalism courses and helped organize conferences.

How many traditional publishers even employ an online managing editor? I’d bet that few do.

Simon Says

O’Reilly is just plain smart. Sure, maintaining a web site, employing writers, and creating meaningful content all cost money and take time. But there appear to be pretty significant rewards for both publishers and authors. Increased book sales and fees from conferences certainly come to mind. More than that, though, it appears as if O’Relly views its authors as partners, not merely as independent contractors who need to generate their own buzz.

It seems that most publishers take the provincial, short-term view that these types of things just don’t pay off. Focusing on short-term costs instead of long-term benefits is typical of companies in industries in decline. Rather than fight the inevitable future, O’Reilly seems to be embracing it. Kudos to them.

Feedback

What am I missing here?

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Publishing Mysteries, Part II is a post from: Phil Simon

Is Amazon Trying to Do Too Much?

philsimon — Wed, 14 Jul 2010 10:56:13 +0000

As my recent phone problems have reminded me, few large companies can consistently do things right. Comcast and Verizon have ceaselessly irritated me over the last few weeks with astonishingly frustrating policies, antediluvian information systems, bad data, and ostensibly indifferent attitudes towards customers. These companies have a hard enough time providing just a few products and services.

I started thinking to myself, is it possible for one company to do everything? I had that in my mind as I read an interesting interview in Fortune with Amazon.com CEO Jeff Bezos. The company has been expanding its offerings and has come a long ways from its days as a dot-com poster child. These days, Amazon is offering a great deal more than just books, CDs, DVDs, and physical goods. It’s no longer just a “B2C” company; its recent forays into cloud computing and Infrastructure-as-a-Service (IaaS) mean that it has become a “B2B” company. And it has no intentions of stopping.

From the interview:

Fortune: Speaking of picking up new skills to address consumer needs–you’ve addressed some customer needs by making substantial forays into cloud computing with S3, Elastic Compute Cloud, and the Relational Database Service. What’s next for cloud?

Bezos: One of the things you’re seeing is that companies without any legacy are no longer building any data centers. They’ve already stopped. So that’s a testament to how powerful this model is. That the only people still building these data centers are the people that are temporarily corralled into that model because of their legacy. That model is more expensive, less flexible. It’s not just more expensive, but it’s also capital expenditures instead of pay-as-you-go variable costs like it would be if you were using Amazon web services.

Mixed Feelings

I have mixed feelings about this. Part of me thinks that companies with extra compute power and resources might as well sell them. On the other hand, I wonder if Amazon will one day stray from the values that have allowed it to get to this point: specifically, amazing customer service. Based on what Amazon is doing, can it concurrently and effectively be a:

consumer retail company
publishing company
film production company
grocer
reseller of web services

And that’s not it. I was absolutely amazed to read about the number of irons that Amazon has in the fire. In a way, I suppose, this is similar to the Google model of trying 10 ideas, hoping that one will pan out. It seems to me, though, that Google doesn’t try to tackle so many different types of problems so far outside of its core competency.

Feedback

What do you think?

Is Amazon Trying to Do Too Much? is a post from: Phil Simon

Why I’m No Longer Helping Reporters Out

philsimon — Mon, 31 May 2010 10:30:53 +0000

After the publication of my second book this past spring, The Next Wave of Technologies, I began subscribing to Help a Reporter Out. I figured that additional exposure gained by talking to reporters would help me do the following:

sell more books
make more money
become a rock star
retire by 40 to some exotic island

All kidding aside, I knew that my publishers weren’t exactly going to be devoting a team of people and considerable funds to the promotion of my books–a subject about which I’ve ranted before. As Seth Godin explained in an email to me, “All publishing is self-publishing.” Translation: If I wanted to get the word out I would have to do all of the legwork on my own. To this end, HARO seemed like a good idea.

HARO: The Basics

For those of you not familiar with HARO, let me explain the process very simply:

Interested parties sign up for different newsletters.
Newsletters arrive with media inquiries–e.g., “Looking for social media expert or author.”
Ostensibly qualified person responds to reporter via email.
If interested, reporter responds to inquirer.
Conversation or email exchange takes place.
Reporter/freelance writer obtains valuable expertise and advice gratis in exchange for potential future media exposure or attribution.

So, why, after two months of diligently responding to nearly 20 inquiries for which I was qualified to comment, am I off HARO? Three reasons.

General Principle

First, I value my time. On several occasions, I spent more than 30 minutes speaking with reporters, providing valuable information to them. Now, could they have obtained much of this insight via the web? Of course. I’ll be the first to admit that I am not the definitive source on all things technology. Still, I was essentially helping them write their pieces (for which they were paid) faster than they would otherwise be able to do.

In each case, either the reporter/writer or his/her editor in question decided not to reference me. Of course, the crux of my conversations remained in the articles. In short, I was an unnamed contributor to the piece and that just doesn’t sit well with me.

Ethics, Fairness, and Consideration

Let’s say that I were fine with not making the final cut. In each case, the reporter didn’t see fit to tell me that my contribution was not referenced in the ultimate piece. Call me idealistic, but if you spend 30 minutes speaking with someone and that input is removed, it’s just common courtesy to let that person know. No one should have to find out about this upon publication.

Reporters might contend that you speak with so many people that it’s impossible to let everyone know about final decisions made by editors. I don’t buy it. I’m not talking about sending a bouquet of flowers and an apology card. Keep a list of people with whom you spoke and, if some are cut, then send an quick email. A little consideration goes a long way. If you reporters are too busy, then so am I.

Supply and Demand

Finally, for every media inquiry about the most esoteric of subjects, I’d wager that there are hundreds of responses. Even “looking for Metallica fans who’ve attended last year’s US Open” will likely get many responses. This is the long tail in action. It just doesn’t make sense to spend the time responding with such a lower probability of making the cut.

Simon Says

Look, if a reporter seeks me out, I’ll obviously listen. I’m still part media whore and silly is the author, speaker, business owner, etc. who ignores free publicity. But it seems equally foolish for me to continue to help out when the web is the ultimate DIY tool. I’m reminded of Charlie Sheen’s great quote in Wall Street, “Will you do your own homework, Marv?”

What do you think?

Why I’m No Longer Helping Reporters Out is a post from: Phil Simon

Is Traditional Publishing The New Vanity?

philsimon — Thu, 22 Apr 2010 10:00:42 +0000

I recently “met” Kristen J. Eckstein on LinkedIn. She’s the Executive Producer at Imagine! Studios and the author of a number of books. I had started a discussion about boutique publishing firms vs. true self-publishing vs. “traditional” publishing and she chimed in. After a few emails, it was telephone time and we hit if off immediately. We shared some of the same experiences and grievances, making for a good rant. I liked her comment that “traditional publishing the new vanity”

Kristen’s a really smart cookie and I’m pleased to present her guest post.

I cannot tell you how many conversations I’ve had recently with dissatisfied self-published authors who went through a self-publishing company to get their book done. Call it vanity, “paid-for” publishing, “POD” publishing, subsidy, etc., the business model remains the same. The company takes several thousand dollars from you and gives you a book. Then they proceed to give you “royalties” on every book you sell. You get your book done, the publisher handles all the nitty gritty stuff, you get an ISBN and distribution, then you make more money immediately as books are sold. Sounds like a great deal, right?

Think again.

Publishing Math 101

First of all, you already paid to get your book done. And if you went the professional route and did it right, you probably paid anywhere from $3,000–10,000 in the process. Then you’re going to pay anywhere from $2–$5 and up on every book sold? Let’s do the math. Don’t worry, I’ll make it easy on you.

Let’s say your book is 120 pages, 5.5″ by 8.5″ in size. Typical print cost on such a book is $2.52.
Your book retails for $10
The vanity publisher generously lets you buy copies at 50% off to resell (an excellent discount, by the way).
This means you pay $5 per copy.
The publisher makes a profit of $2.48 per copy

Now let’s do the math on distribution through Amazon:

Amazon takes 45% off the retail price, so they pay $5.50 per book.
Your book sells on Amazon and your publisher receives that $5.50 in compensation.
Then the publisher “generously” gives you a 35% royalty on the net profit, so you make $1.93 per book.
The print cost is $2.52, so the publisher keeps the remainder: $1.05 per book.

That sounds fine, after all, they’re stocking your books and filling your orders, right?

Think again.

This is the typical outline of a paid-for publisher that uses the print-on-demand system for printing and Ingram’s distribution channel. Let me give you an industry secret here. The publisher does absolutely nothing to fill orders for your books. If you order directly from your publisher, it’s as easy as them going into the printer’s back-office, filling out a form, selecting your address, and the printer does all the work. The printer prints, binds, and ships the books to your door. If someone orders your book off Amazon, your publisher doesn’t lift a finger. The printer and distributor do all the work for them, and all your publisher does is sit back and collect the quarterly checks.

So on an order of 100 books shipped directly to you, your publisher just made $248 for something that took them less than 5 minutes, and that’s if the person handling your account is a newly-hired intern. If you sell 100 books on Amazon, your publisher just made $105 for doing absolutely nothing. Wouldn’t it be great if you got to keep that extra $105? After all, you’re the one doing all the marketing and promotion.

Now let’s think about the traditional industry for a second. No, you don’t have to pay anything up front to get your book created. And if you’re lucky you’ll even get an advance of at least $3,000.

But… (you knew that was coming, didn’t you?)

The publisher takes 100% of the control away from you.
The publisher requires you to create and implement your own marketing plan.
The publisher requires you to pay for all your marketing efforts out of your advance, then out of your own pocket.
And, the publisher “highly recommends” a specific PR firm for you to hire (a good PR firm will cost you a minimum of $1,000 per month).

Phil’s note: And then some.

Return on Investment

The author receives six percent of every book sold and the prestige of having a big publisher name on your book. In other words, on that $10 book mentioned above, you’ll make 60 cents. And that’s only after your advance is earned out. If you got that $3,000 advance, you’d have to sell 5,000 copies of your book to ever see another dime from the publisher.

Meanwhile, the publisher is keeping all of the profits. Let’s say after the distribution discount and print cost the remainder is $2.98. So before you see another dime, the publisher will make at least $14,900 on your book and you foot all of the marketing costs.

If you sold those 5,000 books through a vanity publisher, only through Amazon, you would have made $9,650 immediately. Imagine if you went indie! You would make that entire $14,900.

Now, it is true that the average self-published book only sells 250 copies. But it is also true that the average self-published book is unedited and poorly designed with no marketing plan. So if you treat your self-published book like it’s traditionally published, set it up the correct way for full distribution and keep your marketing doors open to bookstores, imagine how many copies you could sell!

I’ll leave you with two questions.

When’s the last time you bought a book you really wanted solely based on who published it?
Is going with a traditional publisher strictly for the ego boost and name recognition the “new” vanity?

I think that things are headed in that direction.

Feedback

What do you think of Kristen’s perspective? Is traditional publishing the new vanity publishing?

Kristen Eckstein has been coaching people through writing and publishing their books “indie” style for almost 8 years. She has appeared on numerous guest blogs and interviews as well as conducted local and virtual writing and publishing workshops. Get your free copy of her eBooklet, “7 Keys to a Best Seller” at www.UltimateBookCoach.com.

Is Traditional Publishing Really Vanity? Is Self-Publishing Still a “Bad” Word?

by Kristen Eckstein, Book Coach

Think again.

First of all, you already paid to get your book done. And if you went the professional route and did it right, you probably paid anywhere from $3,000–10,000 in the process. Then you’re going to pay anywhere from $2–5 and up on every book sold? Let’s do the math. Don’t worry, I’ll make it easy on you.

Let’s say your book is 120 pages, 5.5″ by 8.5″ in size. Typical print cost on such a book is $2.52.

Your book retails for $10

The vanity publisher generously lets you buy copies at 50% off to resell (an excellent discount, by the way).

This means you pay $5 per copy.

The publisher makes a profit of $2.48 per copy

Now let’s do the math on distribution through Amazon…

Amazon takes 45% off the retail price, so they pay $5.50 per book.

Your book sells on Amazon and your publisher receives that $5.50 in compensation.

Then the publisher “generously” gives you a 35% royalty on the net profit, so you make $1.93 per book.

The print cost is $2.52, so the publisher keeps the remainder: $1.05 per book.

That sounds fine, after all, they’re stocking your books and filling your orders, right?

Think again.

This is the typical outline of a paid-for publisher that uses the print-on-demand system for printing and Ingram’s distribution channel. Let me give you an industry secret here… The publisher does absolutely nothing to fill orders for your books. If you order directly from your publisher, it’s as easy as them going into the printer’s back-office, filling out a form, selecting your address, and the printer does all the work. The printer prints, binds, and ships the books to your door. If someone orders your book off Amazon, your publisher doesn’t lift a finger. The printer and distributor do all the work for them, and all your publisher does is sit back and collect the quarterly checks.

BUT… (you knew that was coming, didn’t you?)

The publisher takes 100% of the control away from you.

The publisher requires you to create and implement your own marketing plan.

The publisher requires you to pay for all your marketing efforts out of your advance, then out of your own pocket.

And, the publisher “highly recommends” a specific PR firm for you to hire (a good PR firm will cost you a minimum of $1,000 per month).

What do you get in return?

6% of every book sold and the prestige of having a big publisher name on your book. In other words, on that $10 book mentioned above, you’ll make 60 cents. And that’s only after your advance is earned out. If you got that $3,000 advance, you’d have to sell 5,000 copies of your book to ever see another dime from the publisher.

If you sold those 5,000 books through a vanity publisher, only through Amazon, you would have made $9,650 immediately. Imagine if you went indie! You would make that entire $14,900.

I’ll leave you with two questions. When’s the last time you bought a book you really wanted solely based on who published it? Is going with a traditional publisher strictly for the ego boost and name recognition the “new” vanity? I think it could be headed in that direction.

~Kristen Eckstein has been coaching people through writing and publishing their books “indie” style for almost 8 years. She has appeared on numerous guest blogs and interviews as well as conducted local and virtual writing and publishing workshops. Get your free copy of her eBooklet, “7 Keys to a Best Seller” at www.UltimateBookCoach.com

Is Traditional Publishing The New Vanity? is a post from: Phil Simon

Essential Reading for Those Considering Self-Publishing

philsimon — Tue, 20 Apr 2010 11:30:13 +0000

Looks like this will be Publishing Week on my blog. After my post yesterday, I seem to be on a bit of a roll. So, without further ado…

One of the questions that I often hear from people is, “What are the benefits of self-publishing?”

I should know. A little over a year ago, I self-published my first book, Why New Systems Fail (since picked up by Cengage as a revised edition). A full description of the advantages and disadvantages of self-publishing is way, way beyond the scope of this post. I’ll list my top five, though.

Five Major Advantages of Self-Publishing

You control everything, including the cover, marketing, content, editing, bells and whistles, etc. (Note that you’ll probably have to pay extra for some of these features.)
You’ll probably make more money per book. Royalty rates can be 35%, give or take. This tends to be two to three times higher than books published by big firms.
In theory, you can get your book to market faster than with a traditional publisher.
You retain the rights to the content after publication. If you want to pitch the book to a proper firm, then you can. (Check the contract language just to make sure.)
If you have a large established audience willing to buy your book, then they probably won’t care if you are self-publishing. For example, if you’re a fan of Steven King (as I am), is the publisher even a consideration in your decision to buy his latest tome? Do you even know who publishes his books without looking it up?

Five Major Disadvantages of Self-Publishing

For better or worse, there’s still a stigma with self-publishing. That’s eroding but I’d be lying if I claimed that it didn’t exist in some form.
It can be very difficult to find competent copy editors on your subject. (Again, I should know. Invite me out for beers sometime and I’ll tell you a few stories).
You may not sell many copies. The average self-published book only sells something like 250 copies. Note that major publishers may not be able to sell more than that through their distribution channels.
The interiors may well not of the same quality as those of a book from a “proper” publisher. Call it vanity, but there’s something to be said for a very professional “feeling” book.
It’s very easy to inadvertently violate fair use, especially if you don’t pay for those type of services. Say what you will about big publishers, they’re very conservative and don’t want to get sued. They make sure that you cite everything.

Again, these lists weren’t meant to be comprehensive. They just reflect my priorities. Others’ opinions may vary.

For a comprehensive guide to the topic, check out Dan Poynter’s Self-Publishing Manual, 16th Edition: How to Write, Print and Sell Your Own Book. Poynter is a prolific author and I’ll bet that you have heard of at least a few of his books. In fact, in the time that it’s taken you to read this far, he’s just written another book.

I’m kidding.

If you’re hell-bent on making your book a reality through your own means, then the obvious question becomes, “With which company?” Google “self publishing companies” and you’ll return 86,000,000 results. Call a few of the companies that their sales people will no doubt tell you about why you should go with them.

What’s a prospective author to do?

The choices can be overwhelming but there’s good news. I recently came across Mark Levine’s amazing eBook on self-publishing. Let’s just say that I would have saved myself more than a few headaches if I had known about this gem 18 months ago. Levine carefully examines the major players in self-publishing, breaking down royalty rates, costs, contract language, and the like. He ultimately places the companies into categories of author-friendliness. It’s a great read and worth its weight in gold for those unsure about where to go.

Let’s just say that, if I decide to self-publish book #3, I’ll refer to Levin’s eBook exclusively throughout the selection process.

Note that Mark has graciously agreed to give away a free copy of his eBook to the best comment in this thread on this site. I’ll let Mark judge that for himself.

One more thing. Regardless of which option, it’s an amazing feeling to hold your book in your hand. Do it.

Essential Reading for Those Considering Self-Publishing is a post from: Phil Simon

Publishing Mysteries

philsimon — Sat, 17 Apr 2010 10:22:19 +0000

There are many things that just don’t make sense to me that should. I’m not talking about MacGuyver trivia, how to tap dance, or 18th century French philosophy. I expect to be clueless about those things. I’m talking about things in my general sweet spots.

Oh, sure. I have my own theories, but there’s a big gap between thinking and knowing. To paraphrase Brandt in The Big Lebowski , “Well Dude, I just don’t know.”

So, my readers, acolytes, followers, and Tweeps, I present to you a new series of posts. In it, I’m going to be examining these modern day mysteries. I have two goals for this series and each post in it:

To generate discussion about topics of interest
To ultimately garner a better understanding of these topics

Today’s focus is the publishing world–a topic that will probably get me in a decent amount of trouble.

Before beginning, though, perhaps I should read a book like This Business of Books: A Complete Overview of the Industry from Concept Through Sales by Claudia Suzanne. One problem, though: the book was written in 2004 and I don’t see how that book isn’t at least partially dated at this point.

No matter. I’m pretty sure that I can get better answers to these questions by crowdsourcing than by reading yet another book.

Marketing

Before unveiling the first mystery, a little background is in order for those of you not familiar with the economics of the publishing industry. Publishing houses expect authors to do the lion’s share of the marketing and promotion of their books. At the same time, publishers keep about 90 percent of the royalties, at least for non-rock star authors like me. I’m sure that Seth Godin has a better deal and, to be honest, he should. The guy keeps churning out best-sellers. Can someone say “sure thing”?

Strangely, I’m comfortable with the status quo.

With that out of the way, yesterday I actually saw a large ad in this week’s BusinessWeek Robert’s Rules of Innovation by Robert F. Brands. I assumed (incorrectly) that his publisher paid for the ad. Nope. Brands himself did. I don’t know what the magazine charged him, but I’ll bet you a coke that it was easily in excess of $3,000 USD.

Here’s what I don’t understand. How can major publishers expect authors to pay for PR firms and their own advertisements?

I ask this question because I have been told that I would have to foot the bill for these things, even though most of the proceeds from those expenditures would not go to me. What’s more, I not unique here. Since becoming an author last year, I’ve probably met or spoken to 40 other authors who, by and large, have the same question.

Along these lines, I have one more question: Wouldn’t publishers be better off by doing fewer books?

Let’s do some simple math here. Let’s say that a major publisher puts out 20 books per month and can’t effectively market any of them. The publisher relies on a few authors to hit the jackpot. In essence, the “winners” finance those whose books lose money. This is not unlike a VC firm betting on ten companies, hoping that one hits it big.

Wouldn’t publishers make more money if they did half as many books and actually marketed them effectively? Think about the time and expenses involved with publishing a book, detailed pretty extensively here.

If you think that marketing doesn’t matter and that the cream always rises to the top, I encourage you to read the story about Maria Carey’s rise to fame, detailed in Greg Kot’s excellent book Ripped: How the Wired Generation Revolutionized Music. Let’s just say that we only know who she is because key people in the music industry (including her ex-husband) spent millions of dollars telling us who she is.

Pricing

OK. Enough browbeating publishers for now. How is it that Amazon.com can charge more for the Kindle edition of The Next Wave of Technologies than the hard copy? I assume that my book is not alone here. There are something like 480,000 books on the Kindle as of this writing and I don’t have access to a database to write what is probably a very simple query.

While this anomaly may be temporary, doesn’t it violate every basic rule of economics? The marginal cost of making a digital copy available is effectively zero; physical books do not follow that law.

Feedback

I’d love to know what I’m missing here. Am I just being simplistic or dense?

Publishing Mysteries is a post from: Phil Simon

Is Amazon Becoming the New Wal-Mart?

philsimon — Tue, 23 Mar 2010 10:01:22 +0000

They say that 40 is the new 30. Along these lines, I have been wondering recently if Amazon is becoming the new Wal-Mart.

The extent to which Wal-Mart bullies its suppliers has been well-documented. (I’ll stay away from Wal-Mart employees here. I just don’t want to go there in this post.) To its credit, the company has been aware of its image problem and has recently taken steps to address it.

Now, it looks like another massive company is exhibiting some of Wal-Mart’s, er, “less than desirable” tendencies. In Amazon Threatens Publishers as Apple Looms, Motoko Rich and Brad Stone write about how Amazon continues to play hardball with publishers. I can tell you from personal experience that I am very confused about how Amazon operates with authors and publishers.

Sensing an Opportunity?

Perhaps Barnes and Noble sees an opportunity to steal market share from the 800 lb gorilla. This might explain B&N’s recent executive shakeup.

Look, no one is saying that Amazon is evil. I’ll bet–as others have–that their antics are a direct function of their investors’ desire to increase profits and the company’s stock price. Also, I’d wager that Amazon has been focusing lately on what to do about the iPad. It may have found a solution.

In the End

Amazon isn’t going anywhere. If you look at Amazon’s market share in the book world, it’s in no jeopardy of losing its places as numero uno anytime soon. Still, don’t fumbles like these anger key business partners and cause them to look for alternatives? Is Amazon truly so big that it will always be immune from all current and future competition? If it is, then it’s the first company in history to be accurately able to make this claim.

Is Amazon Becoming the New Wal-Mart? is a post from: Phil Simon