Selasa, 31 Mei 2011

Ebooks and Self-Publishing Part 3 - Yet Another Dialog Between Authors Barry Eisler and Joe Konrath

Joe: Many exciting (and some strange) things have been happening since we chatted about ebooks in our first and second online conversations.

Barry: Something with monkeys and frogs?

Joe: The frogs are losing, man. Losing bad.

Barry: Might be worth mentioning here that for anyone who’s interested, in addition to the blog posts linked above, in about a week (around June 7), the whole three-part conversation, fully edited and with headings and a table of contents, will be up on Amazon, B&N, and at Smashwords under the new title, Be The Monkey: A Conversation About The New World Of Publishing Between Barry Eisler and Joe Konrath. We wanted to make it free, but because it’s self-published, we can’t charge less than 99 cents. Which is still a pretty good deal for a 35,000+ word conversation containing so much interesting commentary, much of it made during intervals of sobriety.

Joe: And also containing so many monkey and frog links. In the interest of keeping this installment under 10,000 words because we both have deadlines, let's curtail the monkey business for a moment.


Joe: You made big news at BEA with your announcement that you've signed with Thomas & Mercer, the new mystery imprint. The same imprint I just signed with for Stirred (with Blake Crouch).

Barry: Yes! I’m thrilled about the deal. And fascinated by some of the commentary on Kindle Boards and in the Twitterverse.

Joe: Seems like a lot of people have responded without thinking things through.

Barry: The most common complaint goes something like, “Eisler said he was going to self-publish, but now he’s just with a legacy publisher again! Hypocrite!”

Joe: Funny how they were quick to jump on that without having read your contract.

Barry: From what people were claiming, you would have thought they’d read not just the contract, but my mind, too.

Joe: Why don’t you give a quick rundown of what’s in the contract?

Barry: The gist of it is, it’s the best of both worlds, legacy and indie. The advance and marketing muscle you (might) get in a legacy contract; the kind of digital royalties, creative control, and time-to-market you get with indie.

Joe: I think this is a good place to give everyone a friendly reminder of what our goals are, because a lot of people seem to think that going with Amazon means our goals have changed.

Barry: Let me take a crack at that.

I've said many times that "publishing is a business for me, not an ideology" and that the right deal could certainly lure me back to the legacy world. That remains true. What's more important, though, is the nature of what could conceivably lure me back. And what could lure me back is precisely what I've never been able to get from any legacy publisher--not the two who have published me; none that I've negotiated with, either. Specifically:

1) A much more equitable digital royalty split.
2) Full creative control (packaging, pricing, timing).
3) Immediate digital release, followed by paper release when the paper is ready (no more slaving the digital release to the paper release).

As it happens, all these terms are available to a self-published author, so I decided to self-publish. What some people might be missing in that simple statement, though, is that it's the terms that are important to me, not the means by which I achieve them. If these terms are a destination, self-publishing is undeniably an excellent vehicle for getting there. But it isn't the only vehicle. And if another vehicle comes along that offers all these terms, plus a substantial advance, plus a retail wing that can reach millions of customers in my demographic... then, as a non-ideological businessman, I'm going to change rides.

But "change" is a somewhat misleading word under the circumstances, implying as it does an overall either/or dynamic. And here's another misconception I've been seeing a lot: this notion that authors must somehow be classified into indie, legacy, or whatever. Reminds me a bit of apartheid South Africa's obsession with classifying citizens by their race--equally strange, though admittedly the authorial version is less invidious. Anyway, here's the thing: what really matters is that we're not living in an either/or universe. I now have four low-priced, self-published digital works, and if Amazon blows out the marketing for The Detachment, those other works (and the ones to come that I plan on self-publishing) will benefit enormously. In the face of all this, why would anyone want to argue for some sort of either/or approach? It would certainly foreclose a lot of potentially lucrative business opportunities.

For a single title that doesn't incumber my ability to self-publish or otherwise publish anything I want, Amazon offered me all three of the items I list above (except for pricing, but regardless of what the contract says, we agree that digital books should be priced far lower than legacy prices), plus a massive, uniquely Amazon marketing push to its retail operation and otherwise, plus an advance comparable to what SMP had offered me (note, though, that the Amazon deal is for one book; the SMP advance was predicated on two books. When I say "comparable," I mean on a per-book basis, and sorry everyone if I wasn't clear about that in my announcement at BEA). In exchange, I've given up certain digital retail channels because the Amazon deal is exclusive to Kindle platform devices. And Amazon will sell paper versions through its retail stores and through wholesale channels to other retailers. Anyone who thinks this sounds like a legacy deal has been talking to legacy publishers I've never heard of.

Okay, your turn.

Joe: It's a brave new world, and someone has to be first.

But it's more than that.

I wasn't the first person to upload my ebooks to Amazon using DTP.

However, I was the first person to start posting my royalty figures. This helped to inform other authors so they could make their own decisions. I've lost count of the number of people who have thanked me (over a thousand) because I was transparent in what I was doing, and because I actively disseminated the information.

Still, my main goal has been to sell books. That doesn't mean I can't help some authors along the way.

We owe no one explanations. While the self-pub culture has become pretty open about sharing figures, the legacy-pub culture is still closed-lipped.

Closed-lipped doesn't help anyone. The more information we all have, the better off we all are. Which is why we continue to talk numbers and disclose what we're doing.

My goal isn't to save the world. My goal isn't to take down the Big 6. My goal is to make a good living doing what I love.

But if I can also help a bunch of writers, and help destroy a greedy, bloated, ignorant industry, it's an epic win for writers and for readers.

Be the monkey! Remember the old saying, monkey see, monkey do? Monkeys tend to teach each other what they've learned.

The first thing you did, mere minutes after signing the Thomas & Mercer deal, was do a live interview and talk at length about contract terms. You didn't say, "sorry can't discuss that" over and over again. Instead, you broadcast (and continue to broadcast) how this deal is better than any you’ve ever had before. Not because of money. But because of the great terms it offers you as an author.

Barry: Just to be clear, it’s not just the substance of the agreement that I think is so excellent. It’s also the structure and style. It’s an amazingly clear, easy-to-understand document, and it’s free of the kinds of punitive provisions legacy publishers use to maintain dominion over writers. I love that Amazon gets that its publishing contract is a key sales tool.

Joe: Which will no doubt bring more authors to them.

Barry: Yes. Exactly the kind of competition we need in the industry, but that we’ve never had.

Joe: If the Big 6 were smart, they'd begin offering authors similar terms. For decades, the only way they competed with each other was through bidding wars, offering the largest advance. But Amazon's author-friendly contracts are about more than just the advance. Wouldn't it be great for authors if every legacy publisher suddenly realized, "We're going to lose our authors! How do we woo them back?"

Which is what will happen, but I haven't seen any wooing. I haven't even seen any acknowledgement that there is a problem.

Barry: A last thought about what one author owes others. While I certainly am guided by self-interest, I’m also profoundly motivated by the desire to make publishing a better industry for readers and authors (for anyone who doubts me, see the For Writers section of my website). During the course of our negotiations, I worked hard to persuade Amazon to jettison various legacy provisions that gain publishers little and that authors loathe. It's a huge credit to Amazon that they listened to my arguments and changed their template accordingly, and it's satisfying for me to know that other authors will get the benefit of the more enlightened template I helped forge--both from Amazon directly, as it expands its publishing wing, and from legacy publishers, who will be forced to compete with Amazon's more enlightened terms.

Joe: What about the fact that your deal with T&M is exclusive?

Barry: Right, it’s a world deal for digital, paper, and audio rights. The ebook, again, will only be available on Kindle-format devices. My calculus was: on this one title, I’m giving up something like 20% or 30% of my digital retail channels, but Amazon’s marketing muscle will mean I sell more Kindle copies with them than I could have sold all-format copies on my own.


Joe: You don’t think format exclusivity is bad for the industry?

Barry: I love when you play devil’s advocate.

Though I think I understand why they’re doing it, I think Amazon is making a mistake with the format exclusivity. I also think they’re going to change the practice and allow Nook and other devices to download books from the Amazon store. The store itself offers a first-rate customer experience, so I think they’d make more money giving more devices access to it. Plus it would be good for authors, too.

But on balance? I would argue that the kind of pressure required to improve legacy publisher performance and practices can better be exerted by Amazon and self-publishing together than by self-publishing alone. Because I believe legacy performance and practices are a much bigger hindrance to readers than the unavailability of this or that title on this or that platform, I do think that on balance readers will be better off in the presence of deals like mine than they would be in their absence.

Joe: Exclusivity is the new currency. Look at the videogame wars. Each system (Wii, PS3, 360) has exclusive games that help the customer determine which system to buy. This is good, not bad, for consumers, because it promotes competition. The more competition, the more technology improves, and the more prices drop.

Thomas & Mercer will allow us to reach more customers, even though it isn't an epub release. The paper distribution will be much farther reaching than we could achieve on our own, and the level of marketing Amazon does will let us peak higher on the Top 100 list, selling more ebooks (at least initially) than we could with a self-pub release, even taking into account fewer sales to Nook, Sony, and Kobo customers. I say fewer rather than zero because we're releasing without DRM, meaning the files can be formatted to epub for free.

But let's think farther ahead. Technology has become disposable. When we upgrade a cell phone or printer or iPod or TV, we dispose of the older one. We suffer from abundance.

When I was a kid, we had one black and white television. Now my family of three has seven flat screen monitors in the house, plus two laptops. We each have an iPhone. We have five iPods. I just got an iPad. And we have a Wii, a PS3, and a 360, so exclusivity doesn't matter to us. We buy the games we like.

I can see a day where it isn't a choice between a Kindle or a Nook. People will own both a Kindle and a Nook. The concern of many who haven't bought an ereader yet is exclusivity, and losing purchased ebooks if the format changes.

But ebooks are digital. While you can't play an 8 track on your iPod, right now, using free software, you can format Kindle mobi files into epub files, playable on Nook, Sony, and Kobo. You can also strip DRM and format epub into mobi, if you know what you're doing.

Exclusive is more good than bad, and there are ways around the bad.


Barry: You know one thing I think has been missing in all the online conversation?

Joe: More monkey/frog video links?

Barry: Don’t tempt me. A simple definition of what “legacy publisher” means.

Joe: We were both at BEA this week. I heard the term dozens of times. Which amused the hell out of me, since you coined it.

Barry: And you popularized it. It’s really a perfect descriptive term (and by the way, there’s a great discussion about it going on right now on Lee Goldberg’s blog). This is Wikipedia’s definition of “Legacy System:”

A legacy system is an old method, technology, computer system, or application program that continues to be used, typically because it still functions for the users' needs, even though newer technology or more efficient methods of performing a task are now available. A legacy system may include procedures or terminology which are no longer relevant in the current context, and may hinder or confuse understanding of the methods or technologies used.

Joe: Amazon doesn't fit that definition. They're innovators. They pretty much single-handedly popularized ebooks, which had been around for years without taking off with the public. Funny that publishers complain Amazon has too much power in this area, when nothing prevented them from inventing a popular ereader, or selling ebooks from their websites.

Barry: Also, have you ever heard of a traditional publisher with a powerhouse retail wing?

Joe: Or a traditional publisher who actually listens to their authors? I've been screaming about how legacy publishers need to step up their game, and have even told them how to do it. For years. None listened. Except for Amazon.

So let's put this misconception to rest: Amazon is NOT a legacy publisher.

Barry: Reasonable people might differ and we can argue at the margins, but here’s what a legacy publisher is to me. It’s a publisher that offers authors a shockingly low digital split--17.5% of retail, or 14.9% after the agent’s cut--while keeping 52.5% for itself; that insists on controlling packaging, pricing, and timing decisions; that slaves the digital release to the paper release because its business imperative is to retard the growth of digital and preserve the position of paper. Am I missing anything?

Joe: The legacy system is based on an ineffective, archaic business model. The shelf life of paper titles is getting shorter, it's getting harder for authors to make money, returns are a terrible waste, and not all books are treated equally. The few with large coop budgets and widespread distribution don’t enhance reader reader choice; they restrict it.

Barry: That’s the gist of it, anyway. If your business model revolves around: (i) maintaining the primacy of paper (in significant part, by delaying the release of digital books and pricing them too high); and (ii) offering punitive financial, creative, and other terms to authors, you’re probably a legacy publisher.

We should come up with a ten-part questionnaire or something: “If you answer more than four of these questions ‘yes,’ we’re sorry to say that you’re probably a legacy publisher.”

Joe: Another one I'll add is the inability to deal with change. It's the music industry all over again. They should be embracing new technology and innovating ways to improve their business model. I'm not seeing this. I'm seeing fear, anger, and denial.

Barry: Agreed. Anyway, I wanted to have a working definition to be clear that whatever else anyone might claim about my decision to publish The Detachment with Amazon, one thing I haven’t done is gone back to legacy publishing. Not that I wouldn’t, by the way; I’ve always been clear that for the right terms, I could go back (assuming they’d have me, and assuming there’s anything to go back to). But the right terms are what Amazon offered me. That’s the point. That, and the fact that legacy publishers, because they’re trapped by their own infrastructure and mentality, seem incapable of offering those terms.


Joe: Here are some quickie comparisons between legacy publishers and Amazon's Thomas & Mercer imprint.

Legacy publishers set their prices for ebooks. Amazon went with the list price I desired.

Barry: Gonna chime in here to say that in my contract, Amazon has the power to set the price.

Joe: Yes they do. No publisher will ever give up pricing control. But so far they've honored my wishes.

Barry: Based on my discussions with them; on the dynamic of their battle a year and a half ago with legacy publishers over ebook prices; and on your experience with them, I know we’re philosophically aligned: ebooks should be priced far lower than the legacy norm. So I have no problem with their contractual right to set the price. I understand why they want it and they’ve demonstrated they’ll use it wisely.

Joe: Legacy publishers demand DRM. My Amazon ebooks have no DRM.

Barry: That’s good to know. Someone just asked me that today on Twitter and I wasn’t sure. Agreed that DRM is stupid.

Joe: Legacy publishers pick the cover and the title. At Amazon, I pick the cover and title.

Barry: Right, same here. This one is huge for me. Too many olive-green garage door covers in my past. Amazon was fine with my choosing the cover and making all other packaging decisions, though because they’re smart, experienced, and thoughtful, we’re already organically collaborating on what would work best. If your publishing partner is smart, you want to collaborate with them, regardless of what’s in the contract. And if they’re enlightened, they want to collaborate with you.

Joe: Legacy publishers insist on windowing the ebook release until after the print release. With Amazon, the ebook can be released first--as it should be, because it's easier to create than a paper version.

Barry: Again, same here. Thomas & Mercer and I talked about timing and they were totally game for releasing the digital book first.

Joe: Legacy publishers take from six to eighteen months to release a book after it is turned in. My next Thomas & Mercer book is due in August and coming out in November.

Barry: I think my turnaround might be even faster than that.

Jeez, better turn in that manuscript.

Joe: Legacy publishers offer lousy ebook royalties. Amazon's are much better.

Barry: I don’t want to get too into specifics, but my new digital royalty split is nothing like what legacy publishers insist on. And the paper splits are all comparable. Though even there, Amazon is showing their innovative DNA--we’re discussing a lower cut of paper sales for both of us as a way of boosting brick and mortar paper margins. As you have blogged and as Mike Shatzkin has pointed out, paper is becoming a subsidiary right--but a special kind of subsidiary right, with a lot of advertising value.

Joe: Yeah, I was talking about that a year ago. Whoever gets their name on the most pieces of paper, wins.

Barry: So there’s a great play in here for smart bookstores and authors: sell paper rights for less, achieve more paper volume, and sell more digital via the advertising value of paper.

Legacy publishers, by the way, would find such a notion heretical. Amazon looks at it and says, this could be good.

Joe: Legacy publishers have convoluted royalty statements and cut checks twice a year. Amazon has easy-to-understand royalty statements, and pays quarterly.

Barry: I’ve noticed that. I have two shorts up (The Lost Coast and Paris Is A Bitch) plus a political essay (The Ass Is A Poor Receptacle For The Head), and the royalty statements are completely transparent.

Joe: The imprint statements are also transparent. And the payments are on time. I know several authors whose legacy publisher royalties have been delayed, and the delays are getting longer.

Barry: The timing of advance payments is terrific, too. Execution and publication, half and half. Simple, fair, easy to track.

I have to emphasize again the fact that these entirely sensible and obviously better business practices have never emerged in legacy publishing is further evidence (as though further evidence were needed) that legacy publishing has always functioned as a quasi-monopoly. If there were competition in the industry, new entrants would force improvement.

Joe: Well, that new entrant is Amazon.

Barry: Indeed.

Joe: Legacy publishers often do little promotion. Amazon promotes like crazy.

Barry: That’s the bet I’m making. Fundamentally, I’m giving up certain retail channels in exchange for Amazon making a huge push on all its retail platforms and through the paper wholesale channels its developing.

Joe: Legacy publishers have one-sided contracts. Amazon's are the smartest (and best) in the business.

Barry: The contract they sent me was the best publishing agreement I’ve ever seen: short, transparent, easy to understand. And the really bitchin’ part? Former licensing attorney that I am, I had a ton of suggestions for how they could make it even better, and they listened. They get that treating authors well confers on them a significant competitive advantage. I’m telling you, their new template is a wonder to behold--substance, structure, and style. A lot of authors are going to benefit--directly, as Amazon expands its publishing business; and indirectly, as the Amazon contract pressures legacy publishers to do better or die.

Joe: I just spent a few days talking at length with various members of the Amazon team at BEA. They're smart. They're efficient. They understand what they're doing.

Barry: And man, they like beer.

Joe: All smart people like beer.

Also, as you said, they listen. Really listen. Having a publisher who actually pays attention to what I'm saying, and acts on requests I make, is incredibly fulfilling. Especially after years of my raging against the machine.

Barry: We could have included “ignores author input” as one of the definitions of legacy publishing.

Joe: Timecaster, my sci-fi novel with Berkley/Ace, was released yesterday. I signed a two-book deal with them, and pretty much begged for them to concede on a few marketing and pricing issues I had. They flat-out refused. So I bought back my second book and am releasing it myself (for $2.99 and without DRM).

The "my way or the highway" attitude has sent me to the highway, where I'll sell a lot more books and make a lot more money.

Barry: As you’ve said before, if you're selling eggs, don't piss off your chickens.

Joe: Amazon treats their chickens well. The Kindle Digital Platform and Createspace programs are expressly for self-publishing, so there are no more barriers to reaching readers. And their various imprints now give authors some of the benefits of the legacy system (advances, no author costs, widespread distribution, marketing) without the many disadvantages we've discussed over and over.

When each of us signed with Thomas & Mercer, we weren't turning our backs on self-publishing and embracing legacy ways. Instead, we were getting much of the same control we have with self-pubbing, but with a powerhouse behind us that will ensure we sell more books than we could have on our own.

That said, I'm still self-pubbing like crazy. I'm not going to give that up.


Barry: This is another widespread misunderstanding. It’s not either/or, everyone! I’m still self-publishing short stories and essays and I don’t know what I’ll do with future novels. But every low-priced, self-published digital work I have available will get a huge boost from Amazon’s promotion of The Detachment. Again: publishing is a business for me, not an ideology. And self-publishing is a means, not an end. The end is fortune--the financial kind and the happiness kind both. For that, a mix of self-publishing and the Amazon models seems perfect to me for now.

Joe: Seems obvious. But there are a lot of people out there who don’t get it.

Barry: Some of the most misguided thinking I’ve seen on this issue came from an otherwise good editor I’ve worked with myself, who said of my deal with Amazon, “So much for self-publishing.” But... I’m still self-publishing lots of other works, all of which will benefit from the Amazon deal! And suggesting that because I’ve decided to publish The Detachment with Thomas & Mercer rather than self-publish it means self-publishing isn’t real... come on. What’s most significant about everything I’m doing now is what’s missing: a legacy publisher. Thinking that one author’s decision to publish a single title with Thomas & Mercer means he’s turned his back on self-publishing, or that self-publishing isn’t real... well, let’s just call it wishful thinking.

Joe: It’s not about either/or--

Barry: Wait, I gotta tell you one more amazing comment I came across.

Joe: Go ahead.

Barry: This one’s from Susan Petersen Kennedy, president of Penguin Group USA. The New York Times quoted her this way: “‘There’s a tendency to think that the other guy’s piece of the pie is so much easier, and you can just jump in and do it,’ Peterson said on Tuesday afternoon with a hearty laugh. ‘It’s good for Amazon to go into publishing. Maybe they’ll develop some respect for how hard it is. Come on in, try it. Go ahead. It’s not so easy.’”

Joe: That's similar to something you often say, in a slightly different context. Just because someone knows something, doesn't mean she can execute.

But here's a newsflash, Susan. Amazon CAN execute. They published my Jack Daniels thriller Shaken as an ebook in October 2010, and in paper this past February. I've made more money on that book that I did on my last two legacy books, and soon Shaken will make more money than any of my other legacy novels.

So I don’t know about easy, but they are doing it in a way that's smart, efficient, and beneficial to the author.

I've worked with Penguin. I don't anymore, because I left. I paid them so I could leave.

I don’t see myself leaving Amazon anytime soon.

Barry: Again: treating the chickens right... not a bad practice if you’re in the egg business.

Joe: Or to use another food analogy: Smart businesses don't try to take your piece of the pie. They make the pie bigger for everyone.

Barry: The thing that struck me was Peterson Kennedy’s thinking, or purported thinking. I mean, is it true that people go into new businesses because they think it’ll be easy? Is that why Amazon got into book retailing, because it looked easy? Is that what drew Peterson Kennedy to publishing?

My take on why Amazon is getting in to publishing? The same reason Michael Dell got into computer retail: they recognize legacy publishing’s quasi-monopolistic practices are so screwed up that a better way will create a devastating competitive advantage. That, and the fact that through their “agency model” pricing policy, legacy publishers were forcing Amazon to charge too much for digital books. It’s like Del Monte insisting on pricing a can of green beans for $10.00. Sure, the grocery store will stock it, but they’ll sure as hell also develop a store-brand canned green bean, too, because they know there will be a bigger market for the lower-priced option and they’ll make more money with it.

I’ll tell you, if publishing looks easy, it’s probably because legacy publishers are so screwed up they’re making it hard.

And wait, as long as we’re on the subject of denial, here’s another one--a tweet from a Curtis Brown literary agent: “so the Eisler story meant nothing. he eats at Amazon table for his supper instead of St Martin's.”

Joe: What the hell does that even mean?

Barry: You have to deconstruct it a little. I think he’s saying my decision to leave legacy publishing is meaningless because ultimately I decided to publish The Detachment with Amazon.

Joe: Sounds like he needs to turn Amazon into something comparable to what he's used to dealing with (St. Martins) in order to fit it into his worldview and dismiss the threat. Weird terminology, though. Makes you wonder what’s going on in his head.

Barry: Yes. It’s another instance of an apparently powerful urge to believe, “Amazon’s just like a legacy publisher! So if an author decides to publish a book with Amazon instead of self-publishing it, it means self-publishing is no threat to legacy publishing after all!”

Joe: Denial.

Barry: In fairness, it’s not just him. Here’s another, this one from an author: “So Eisler isn't really going it alone, he exchanged one corporate master for another. Better terms, apparently, but not a revolution as such”

Joe: You have a corporate master? Does he have a leather hood and make you wear a ball gag?

Barry: When I ask nicely. And all this time, I thought I ran my own business and was hiring distribution partners who worked (albeit often ineptly) for me. Who knew?

The comments about supper tables and corporate masters reveals a lot about the worldviews of the people who are making them. The first suggests a kind of serf mentality; the second, one of self-slavery. But aside from the psychological projection at work, which is interesting, the substance of these arguments is just silly. I depend on Amazon, Barnes & Noble, and Smashwords to distribute my self-published works. I depend on my web hosting company and on PayPal to fulfill orders through my website. Am I therefore eating at the “supper tables” of these companies, and are they my “corporate masters,” in this context, too? Why the one but not the other?

Joe: As I’ve heard you say in related contexts: when the voices in someone’s head get too loud, he can’t hear what’s actually being said.

Barry: Yes, and he loses the ability to tell the difference.

We’ve talked in our earlier conversations about how some publishers are in denial, some agents are in collusion, and some authors are in the grip of a weird combination of Stockholm Syndrome and a peasant mentality. The quotes above are evidence--anecdotal, yes, but still suggestive.

Joe: I can’t get over the “exchanged a corporate master” one. How about: “Exchanged a crippled horse for a new Ferrari.” That works better.

I used to call working with legacy publishers a partnership, back when I thought they were smart enough to know how to make money. My take was that if I made money, they made money, and we'd help each other to that effect. But then I started to realize how hidebound they were, that there was this whole set of infrastructure and a worldview that was actually inhibiting them from making money. Then I began to think of them as backers or investors, but with too much say so and power. The one thing I never thought was that I was working for them. Usually when you work for a company, they show a minimum concern for your base needs and future security. An editor works for a publisher, and as a result get things like an office and health care and a 401k plan.

So now I think of them as assailants who force you to thank them after they beat you up.

Barry: The terminology reveals the mindset. A lot of writers think of themselves as employees of the publisher, not as CEOs of their own companies, with the publisher as their customer/investor/distributor.

Joe: Well, at least those folks offered some humor value. And the psychology is interesting, too.

Barry: There is that. Mind if I mention just one more?

Joe: Fire away.

Barry: This one is from a literary agent. She says, “I'm keeping a very close eye on a couple things: the reaction from Minotaur; the reaction from Dan Conaway; and what term Eisler will now use to describe Amazon since ‘legacy publisher’ appears to describe everyone else.”

Joe: Dan was your agent, right? With Writers House?

Barry: Yes. We parted ways after I decided to self-publish The Detachment because we couldn’t come up with a model for self-publishing that worked for both of us. And Minotaur was a reference to St. Martin’s Press, the publisher that offered the deal I walked away from--Minotaur is an SMP imprint.

Anyway, I thought, “That’s it? Your big concerns aren’t about these seismic shifts in the industry and how they’ll affect your clients, but are instead about gossipy, personal stuff? Are you a literary agent, or a staff writer for Us Magazine?”

Joe: She writes that blog to impress her existing clients and attract new ones, presumably?

Barry: Presumably.

Joe: Wow. Hey, isn’t this the same agent who when you first announced you were going to self-publish said she wasn’t optimistic and people should see how it was working out for you in a year?

Barry: That’s the one. Apparently she thinks the appropriate finish line for measuring whether an author has been successful in digital self-publishing is one year, as though after the first year you stop making money or something.

Joe: Does she maybe have a personal issue with you?

Barry: Not that I know of. Anyway, I’m just responding to the substance of her thinking--not because it’s unusual, by the way, but rather because it’s representative of other erroneous thinking I’ve come across. And there’s a tendency out there to treat the personal stuff as more relevant than broad industry dynamics, just as there’s a tendency to think a self-published book only makes money for a year or something, when in fact it makes money forever.


Joe: So what do you call Amazon?

Barry: That’s a good question, and I haven’t come up with anything that feels entirely right. Again, there’s a good discussion on Lee Goldberg’s blog on this topic and I’d be very interested to hear anyone’s thoughts on what would be the most appropriate nomenclature. Speaking of which, I think the right way to approach the question is this:

Are Amazon and, say, Random House, which are clearly both publishers, the same in all relevant aspects?

If not, what are their relevant differences?

And how can we reflect those relevant differences in the nomenclature we use to categorize them?

Trucks and sedans and sports cars are all just types of automobiles. Yet no one would say, "Why do we need all this new nomenclature? They're all just automobiles, right?" And before the Internet, stores were just “stores.” But then we had online stores, and the previous variety became known as “brick and mortar” stores, so that we could distinguish.

At a sufficiently high level of generality, everything is the same. All matter is, in the end, made of molecules. Yet we don't refer to people and chairs and trees as "molecule conglomerations"--and that's because the similarities are less relevant in everyday conversation than the differences. So noting the presence of similarities isn't really the proper way to approach the nomenclature question. The nomenclature question exists because of the presence of differences.

If you believe that Amazon and, say, Random House are in all relevant respects identical, then you won't find any use for a system of nomenclature that distinguishes them. If you believe that in various relevant respects they're different, you'll search for a nomenclature that conveys those essential differences. For the reasons I note above, I think "legacy publisher" perfectly conveys the essential differentiating qualities of what are also colloquially known as The Big Six. I haven't come up with an equivalent for what Amazon's doing. But I'm working on it, and again would love to hear anyone’s thoughts on the topic.

Joe: For now, I'd just call Amazon "much better than anyone else."

Barry: Can’t disagree with that.


Joe: Getting back to that literary agent’s quote, if I were an agent, my thinking would be: “Great! I now have another publisher, Amazon, to whom I can sell my clients' work.” But I suppose watching and waiting to see what other people say is safer than acting.

Barry: Anyway, sorry for interrupting. Just had to mention those. You were talking about the thinking behind your overall publishing strategy.

Joe: Yes. Right now, self-pubbing has incredible advantages over the legacy system.

That does NOT mean I'm a "self pub or die" evangelist.

Self-pub was a terrible business model prior to 2009. It may someday be a poor choice once again.

I change my opinions as new facts come in, and I change my tactics as new opportunities become available. Anyone married to a single ideology, who doesn’t constantly test it and question it, is an idiot. A big idiot.

Barry: Let me approach the either/or issue this way. If Thomas & Mercer wanted to release all your books, would you do it?

Joe: No. I like self-pubbing too much, and I dislike deadlines. I'm thrilled to be working with Thomas & Mercer, and a book a year fits perfectly into my schedule while still allowing me freedom to do whatever I want, when I want.

Barry: Plus T&M’s marketing push for the book you’re doing with them boosts all your self-published books, too. In the face of all this, only an ideologue would suggest an author’s approach should be either/or.


Joe: Let's veer slightly and talk about bookstores.

Barry: Good. We haven’t been veering enough.

Joe: When Amazon announced the launch of the Thomas & Mercer imprint, some independent bookstores in a Yahoo group refused to carry my titles. Blake Crouch and I recently blogged about it, and our post has gotten close to 400 comments.

Barry: Hey man, one of those was mine.

Joe: I'm disappointed that some bookstores would rather blame authors for signing with Thomas & Mercer and point fingers at Amazon for hurting their business instead of responding to some of our suggestions as to how they might improve their sales.

Barry: Yes, what people need to understand is that a lot of the problems bookstores are having are caused by legacy publishers. I know this will sound cold, but in business you have to identify opportunities. And right now, there’s a huge opportunity for retailers to disintermediate the publishers who are inflating the costs of books. Amazon is already doing it. If B&N is smart, it will, too. And, as you and Blake suggested (pleaded, in fact) in your blog post, there’s no reason indie booksellers can’t buy direct from authors, too. Promise to sell a lot of our books and we’ll even sell ’em to you cheap, knowing we’ll make it up on volume and in the advertising power of paper.

Joe: Capitalism is about competition. But indie bookstores (or all bookstores, for that matter) need to realize Amazon is only doing well because they're giving customers what they want. The customers are the ones who are changing their buying habits.

If you're a young bride and your husband is cheating on you, you don't blame the other woman. You blame your husband. He's the one who should have been loyal. The other woman doesn't owe you any loyalty, and doesn't have to play fair.

Don't want him to stray? Make him want you more.

There is a lot of talk about "unfair business practices." Is business fair? Is life fair?

Barry: The frog would say no.

Joe: The frog should have said no.

Barry: Um, I don’t think it could say anything, under the circumstances.

Joe: Hard to talk when your mouth is full.

Barry: Mmmmmmph, maybe?

Joe: Well, the monkey wouldn’t have listened regardless.

Barry: Hey, let’s not include a link this time. I think we’ve done enough damage.

Joe: How about just this one? This isn't about a monkey taking advantage of some poor, helpless amphibian. It's about thinking outside the box.

Barry: I have to admit, I clicked on that link with substantial trepidation. But it was totally safe for work. And interesting.

Joe: And therefore probably disappointing to anyone who’s clicked on any of the other monkey links. Sorry, guys.

The thing is, customers are speaking with their wallets. The one who gives the customer what she wants is the one who gets that customer dollar. That means thinking, and innovating, and listening. You don't make money pointing fingers.

Barry: You make it by solving problems and adapting to situations, like the monkey in the link.


Joe: But you don't have to figure this stuff out all on your own. There are folks who can assist you.

Dean Wesley Smith recently had a blog entry about how some unscrupulous agents are adopting the estributor model and charging clients 50% to perform publishing services (cover art, formatting, uploading) that Dean insists should be one-time costs.

Barry: I just want to jump in here and beg anyone who’s reading to come up with a better term than “estributor.” That is one butt-ugly word.

Joe: You know you love it.

Barry: I know we need something to distinguish the “agent helping authors self-publish” model from the “agents helping authors sell publishing rights” model, but please... not that.

Joe: Heh. I think it’s too late, my friend.

Anyway, I respect Dean, and understand his argument, but I don't agree with him. Here are some reasons why.

I know a few agents who are becoming estributors. They cover all costs, and only take 15% (and they don’t recoup their investment first).

Right now I’ve got 32 self-pubbed books available on 8 platforms (soon to be 10). It’s a full-time job just dealing with properties that already exist.

I just released a new ebook, which took dozens of hours to launch–hours I could have spent

I don’t have a problem giving an agent 15% for negotiating a contract. That’s worth it to me.

Doing the cover art, formatting, and uploading, along with all of the potential benefits of a vetted imprint, is a lot more work, and also worth 15% to me.

It isn’t worth 50%. That’s a rip off.

But I already hire folks to help me: My cover artist, and formatter, and proof reader, and then I upload them myself. This is a time suck. More importantly than that, even though other people are doing the work, I was still forced to learn an entirely new skill set in order to understand who I was hiring.

I wish I didn’t have to deal with all of that. I wish I could just write the book then pass it on to an estributor.

Which, in fact, I’m going to do. And the time it saves me should more than make up for the cost.

One day, I plan on building a house. I have a specific idea in mind of what I want to build. But I DO NOT want to micromanage the building process and hire/oversee every individual contractor. The thought of spending all that time doing mundane things like picking out PVC pipe or getting permits would make me want to shoot myself.

Barry: One thing I know you will micromanage is the choice of bidet.

Joe: Inside joke, people. I just bought a bidet (because I tried one at Barry's--monkey see, monkey do) and am now experiencing a level of clean that I never knew existed. It even has a blow dryer.

I love my life.

Getting back to building a house, I’ll hire someone I trust to do the overseeing. It’s worth it to me. That way, I don't have to immerse myself in doing the hiring myself and learning the construction business.

Of course, you could do it all yourself, and take even more time away from your writing (as well as hurt your sales because you won't do as good a job as an expert.

Barry: Definitely there are estributors who charge an unreasonable amount, take advantage of authors, do a poor job, etc. That doesn't mean some aren't worth what they charge. You don't avoid going to a doctor (and you certainly don’t perform surgery on yourself) because a certain number of them are quacks.

Joe: Right now, I’m making so much money, I’ll gladly pay someone to do the things I hate and that eat into the most profitable use of my time, which is writing. And just as there are unscrupulous agents who will rip you off, there are most certainly unscrupulous independent contracts who could wind up costing you more money. It's not as if all agents are bad and all cover artists are honest and know what they're doing.

It's also worth noting that there isn't a conflict of interest if an agent becomes an estributor. Agents are there to sell rights to books that their clients write. Is there any difference between selling to a Big 6 publisher, or helping the client upload to Amazon? As long as the agent does what her client wants, it's all about offering a service.

I know agents who have hundreds of authors with projects they couldn't sell, or backlists that are out of print. If publishers don't want those books, Kindle and Nook and Smashwords and Kobo and Sony and Apple and Google and Createspace and Scribd do. An author could do it herself. But an author could also negotiate a deal with Random House on her own.

Barry: For me, the way to put to rest the suggestion that authors should never pay anyone a percentage is this. What about an excellent estributor who charges only one percent? Still too much? Even if that one percent would come to less than a flat fee for the same service? What about if you could clone yourself and hire the clone for 15%--not worth it? Okay, but then I'd say this is starting to be a matter of an ideology against percentages, which means there’s no room for further discussion. But if the problem is the amount of the percentage, then, to paraphrase Churchill, we're just haggling over price.

Joe: I suppose I could hire someone full-time to oversee the freelancers and run the ongoing business, but I believe the estribution model will allow for greater ongoing opportunities and ultimately higher income. Group advertising, imprimatur, excerpt exchanges, marketing, and a centralized author hub, to go along with continued subsidiary rights sales and translations, is worth 15%.

If you don’t think it is, don’t do it. But understand you’re taking time away from your writing to do it on your own, which is a very high cost indeed.

Barry: For me, the argument really comes down to, “Don’t pay more than you have to.” If you can pay a low flat fee instead of a percentage, jump on it. If the percentage is 50%, don’t touch it. If it’s one percent, jump on it. If it’s somewhere in between, maybe. It’s all just a matter of, “Make sure you’re getting value for the price, and don’t pay more than you have to.” Not really so controversial, I think.

Joe: Also, like any business relationship, know who you're dealing with and what you're buying. Get recommendations and references, ask for samples, become informed, don't be afraid to negotiate terms.

Barry: One more thought about agents and... damn, I really wish we had something better than estributors to call them.

Joe: Muwahahahaha. I coined that a few years ago and it seems to be gaining traction.

Barry: If Amazon’s approach--an easy-to-understand and fair contract; simple, transparent royalty statements--becomes the standard, some of the value traditional agents have offered as interpreters in these areas will diminish. Smart agents will find ways to offer new value to offset what’s been lost. So the move to an estributor model will become even more important for agents.

Joe: This is all happening pretty quickly, so don't feel bad if you don't know what you're doing. Just try to avoid snap judgements and acting without thinking. Right now the publishing world is in a state of transition.

Barry: AKA, “State of Confusion.”


Joe: Which leads me to something else I noticed at BEA. Though ebooks are now outselling paper, the ebook section of the convention was minuscule--by my rough estimation not even 1/10 of the overall floorspace.

If I were a Big 6 publisher, I would have put an extra booth in the ebook section. There were tens (hundreds?) of thousands of paper books being given away, yet I lost track trying to count all the ereaders and iPads in the hands of attendees.

Why wasn't there an ebook signing booth? The technology exists. Why weren't publishers pushing this new ebook format, which on Amazon is now outselling paper?

But then again, if I were really a Big 6 publisher, I wouldn't have blown all that money attending BEA in the first place. It was like Mardis Gras, but the currency was denial instead of beads. The gigantic booths (meant to broadcast prosperity?) seemed to me more like whistling past the graveyard. What a waste of money and manpower.

However, in the Digital Book section, Blake Crouch and I met with several smart, hungry start-ups in small, modest booths. Among them Overdrive, Kobo, Vook, Autography (where authors can sign ebooks), adboku, Bookrix, and Smashwords. They see where the future is headed, and they're innovating to ensure their place in this future.

These are the companies working to make the pie bigger.

Ebooks are by some measures now outselling paper, but they’re still an early adopter product. The general masses haven't embraced them yet, as they have with DVD players and iPods, though all signs point to that happening.

When a technology reaches that tipping point and becomes a "must buy" for folks, innovation increases dramatically. Right now, ebooks are basically text in an electronic format. They don't do much more than print books do.

Barry: The car was known as the horseless carriage. Initially, television was talking head radio.

Joe: Soon, ebooks will be more than just a replacement. We've talked about what the future of ebooks might be. I believe it will change the way people think about fiction, and bring people to fiction who might have avoided it in the past.

What's your opinion about the book as a social network?

Barry: I think it’s another example of you thinking so far ahead of the current state of affairs that initially a lot of people won’t understand what you’re getting at. But yes, I think it’s a great idea, and I was knocked out by the way Amazon not only listened to it over those disco fries, but by the way they refined and expanded on it, too--all while taking notes. Again, can you imagine a legacy publisher ever having a skull session like that with its authors? Let alone listening and adding value along the way?

Joe: I could imagine a legacy publisher doing that. But it would remain strictly in the realm of imagination. Also, for the uninitiated, disco fries are poutine--French fries with cheese and gravy. I'd been searching my whole life for a way to make fries unhealthier.

Barry: Heh. I swear, you want to get Amazon’s attention? Say, “I have a new idea.”

Joe: Years ago, I proposed that ebooks would someday be free, supported by ads. But whenever I mentioned ads in ebooks on my blog, I got a lot of resistance from people, just as I did when I proposed that books could be social networks. Well, this is exactly what adboku is trying to do.


Barry: One thing I’m learning from the whole changing publishing landscape is that a lot of people just don’t like change. Their arguments--their perceptions--flow from that.

Joe: The legacy publishing world seems to offer up similar resistance to change, and makes a lot of the same excuses as to why the old ways are the good ways.

It's natural to dislike change. Change is scary. It's also natural to assume that because you don't like an idea, no one will like an idea.

But the reason we live in such a cool world now, and why our lives are so much better than our grandparents', is because of change.

So here are some parting words for authors resistant to ebooks, booksellers resistant to Amazon's imprints, and even Big 6 publishers who want to survive the next five years.

Barry: Assuming you’re going to offer fewer than a thousand parting words, I just want to congratulate us for getting this bad boy in at under 10,000 words.

Joe: Yeah, at 9400 this one is a little short. But I think it covers what needed to be covered.

Barry: We probably should have included a few more monkey links. Maybe next time.

Joe: Here’s the thing. Change will happen. The more you fight it, the more you'll fall behind to those who embrace it.

Your goal shouldn't be to fight over a larger piece of the static pie. Your goal should be to make the pie bigger.

That means paying attention to what readers--and writers--want. It means innovating. Experimenting. Learning. Embracing change, and thinking up ways to utilize all of this incredible technology that's coming at us.

You don't want to be the last dinosaur. You want to be the first primate.

You want to be the monkey.

Interview with James Rollins

I haven't blogged in a week, due to attending BEA, and now that I'm back I have three things I need to blog about immediately.

First, many of you may have heard about my friend Barry Eisler signing with Amazon for his next Rain book. Barry and I did another 10k word dialog about that, and some other publishing stuff. I'll post it complete tomorrow, but if you can't wait, Barry has already posted the entire conversation on his blog (he couldn't wait either.)

Second, I have a book coming out today. it's called Timecaster, and my publisher is charging $7.99 for the paperback, and $7.99 for the ebook (ugh.) It's a sci-fi thriller filled with humor, sex, over-the-top violence, and Harry McGlade. The hero is Jack Daniels's grandson. I love this book, and so will my fans. It's easily the craziest thing I've ever written, and loads of fun.

This fall, I'll release the sequel myself for $2.99. I'm also working with Brilliance Audio to release both books as audiobooks for extremely low prices. Stay tuned.

Finally, my friend James Rollins has released a 99 cent short story on Kindle. When a big NYT bestseller starts releasing inexpensive ebooks, it is time to ask questions.

Joe: It's great that you're putting out a 99 cent short story. Why did you do it through your publisher, rather than solo?

Jim: I initially was going to self-publish this story. And I naively thought that my publishing house would have no problem… heck, it’s only a short story. But when my agent approached them about this, they were adamant that I must not do that. And while I certainly could have refused, I also had to respect the fact that HarperCollins had done a great deal to brand my name out in the marketplace, and I couldn’t blithely ignore that, nor trample roughshod over their wishes.

We did come to a compromise, though—moving this story into the gray world between self-publishing and legacy publishing. William Morrow (my house at Harper) and I are co-publishing this book, which means we split all royalties beyond the cost of this book’s production. I’m personally curious to see how this all plays out in the marketplace. Yes, I’m losing half my royalties, but Harper has deeper pockets and more marketing connections to hopefully help get his story some attention. Plus they are more personally invested to use this story as a vehicle to promote this summer’s book (The Devil Colony).

As you well know, it’s a new world out there in publishing. Paradigms are shifting all over the map. So this co-pub deal is yet another experiment, a possible compromise between the old world and the new. But is it the best of both worlds or the worst? Only time will tell.

Joe: I'm a big fan of your Sigma novels, so it's great to read a short featuring those characters. How does writing a short story vs. a novel differ?

Jim: A couple of years ago, I wrote a Sigma short story, titled Kowalski’s in Love It appeared in an anthology edited by James Patterson and explained how Kowalski (who first appeared in Ice Hunt) became an adopted team member of Sigma. I found that a short story is a great vehicle for filling in “gaps” in the Sigma universe. And that’s how this story came about. In this summer’s book, The Devil Colony, the mysterious assassin Seichan arrives on Gray’s doorstep with a package of information. The Skeleton Key explains how she acquired that bit of intelligence.

I also wanted to write this story for those readers who have never read a Sigma novel. So I crafted this thriller so it could be enjoyed by anyone new to the series. Confined to one character and restricted to a self-contained adventure, I hoped this story could serve as a “sampler” for any reader interested in the series but too daunted by a full novel.

As to writing a short story versus a novel, they are definitely two different vehicles in which to tell a tale. While both vehicles need a beginning, middle, and end, a short story requires writing very tightly, sticking to one character and really getting into their head, under their skin. Seichan has always been a bit mysterious. The Skeleton Key gave me a chance to reveal more about her.

Joe: How do you like writing in a shorter format?

Jim: It was a daunting task. I think my mind is too wired to think of “story” in a longer format. To restrict this tale to one character, one setting, one goal was a challenge. I wanted this story to “feel” like a full Sigma international thriller. So I did my best to make Paris come to life as a character. I threaded in a bit of its mysterious history, added a smidgen of strange science, and crafted a larger danger looming over the more intimate threat. I hope this story captures the essence of a Sigma novel in a tight, little package.

Joe: You're also releasing one of your previous novels, Black Order, today as an ebook for $1.99. Your idea, or your publishers?

Jim: It was theirs… and I have to give them credit. It think it’s a great program. They did it last year with Map of Bones, and it was a resounding success and introduced a slew of new readers to my books. And in this new ebook world, this is another area of consternation and confusion: how to price an ebook?

I see that this is still unsettled in the self-publishing world. There seems to be two camps. Price a new novel at $2.99. This seems to work well when an author has the cushion of several books. But I see another school of thought at setting the price point at $4.99. This seems to be the course with authors with their first book or with only a limited backlist.

As to the $1.99, this is purely a promotional price to encourage someone to sample a new author. I believe it’s not so much done to move volume and make money, as it is a loss leader to draw in new readers.

Again I’m curious where this “price point” issue will settle in the marketplace. As I’m sure you are, too.

Joe: You write in your author’s note that the apocalyptic cult, the Order of the Solar Temple, really existed. How did you stumble across this in your research, and what made you decide to feature it in a short story?

Jim: I wish I could say there was some mysterious connection, but it was basically Google. I researched various cults operating around Paris and stumbled upon the Order of the Solar Temple, which believes the Knights Templar are still alive and well and manipulating history. This cult’s suicidal and apocalyptic stance was perfectly suited for the story I wanted to tell.

Joe: What kind of research or travel did you do for The Skeleton Key? Have you visited the catacombs of Paris?

Jim: I did visit those catacombs. As an avid caver myself, I longed to explore beyond the boundaries of the tourist areas. Those catacombs delve beneath half of Paris, encompassing two hundred miles of tunnels and caverns. While I couldn’t go there myself, I learned of amateur explorers who secretly venture into those unmapped sections of the catacombs (they call themselves cataphiles). This story allowed me to become one of them for a short while—and I wanted to take my readers along with me.

Joe: What did you find most interesting or surprising to learn as you mapped out the plot to The Skeleton Key?

Jim: I think it was how fragile those catacombs are. A cave-in back in 1961 swallowed up an entire Parisian neighborhood, killing scores of people. And even today, sections of those tunnels collapse every year, damaging parts of the city—which, of course, made the writer in me wonder: what if something MUCH worse happened?

Joe: The Skeleton Key follows the adventures of Seichan alone, as she is separated from the rest of Sigma Force. Why did you decide to feature Seichan’s point of view?

Jim: I always wanted to feature her in a solo adventure. Being a loner, she was perfectly suited for her own tale. This vehicle also offered me the opportunity to explore more about her, while allowing new readers an entry point into the series. Plus her story allowed me to fill in a “gap” in the backstory to The Devil Colony.

Joe: Do you have a favorite Sigma Force character, one whose point of view you especially enjoy writing?

Jim: I enjoy writing them all. Each has their own unique flare: Gray’s intensity, Kowalski’s humor, Monk’s good nature, Seichan’s internal conflict, Painter’s craftiness. They are like an extended family, and I enjoy visiting with each one of them.

Joe: Without giving away any secrets, will Seichan—and the answers she finds in The Skeleton Key—have a major part to play in the upcoming Sigma Force novel The Devil Colony?

Jim: Indeed. What she discovers in Paris is vital to the plot of the The Devil Colony. It will begin to expose the true identity behind the shadowy organization called The Guild. And trust me, there are some MAJOR surprises coming up in this next book.

Joe: Do you plan to write more Sigma Force short stories?

Jim: In one word: yes. To tell more would ruin the fun.

Joe: Will you ever self-publish?

Jim: Yes. I have some non-Sigma Force short stories that I’m planning on releasing as fundraisers for the Humane Society of America. When it comes to such a cause, I’m not willing to split royalties. Plus I’m starting a new cause to help animals at risk called “Sigma to the Rescue.”

Joe: Where do you see the future of the industry heading?

Jim: I think we only have to look at the music industry to fathom that answer. Publishers will need to adjust, evolve, and transform to survive. If they don’t, the industry is in trouble. As it is, I think we’re heading into a further round of consolidation and winnowing of houses. Will there still be physical books out there? Sure. But the writing is on the wall as a majority of sales move from books to ebooks.

Joe: How are your ebook sales compared to your print sales? Percentages?

Jim: As The Devil Colony is the first new book from me in two years, I can’t personally attest to where the market is at the moment. In just those two years, the publishing world has drastically changed. I did hear from a New York Times bestselling author that the sales of his newest book are split about 70% ebooks and 30% hardbacks. That’s a new world indeed.

Joe: How did you react to Barry Eisler's decision to decline the contract St. Martin's offered and sign with Amazon?

Jim: Barry must have balls of steel (or maybe even admantium). Someone had to strike out first. I know every published author on the planet is watching to see what happens. And I’m no exception. My prediction: he’ll do fantastic. Then again, I’m prejudiced: I love Barry and his books.

Joe: Wouldn't you like to live in a world without deadlines and appearances?

Jim: Of what fantasy world do you speak? What is this mythic landscape? Okay, I get your point, but I think self-publishing has its own headaches. And to be honest, I need deadlines. I’m a deadline sort of writer. If left on my own, having to set and stick to my own deadlines, I’d probably still be a veterinarian.

And while book tours are often hard, I also like meeting readers. Yes, I facebook and tweet. But there’s something about meeting people in person. When you get the right mix of people—all likeminded readers—in a one room, sometimes it’s magical.

Joe: What's next for you?

Jim: I’m working on my third Jake Ransom novel (of my kid’s series), while researching and putting the final touches to the next Sigma novel. Speaking of deadlines…I’d better get back to writing. Otherwise, all this talk of publishing—self or otherwise—is moot, because ultimately if you want to be a writer you have to write. Of course, nowadays that’s the easy part.

Joe sez: The Skeleton Key is classic Rollins, and well worth the 99 cents. If you haven't checked out Black Order for $1.99, that's another great read and a steal.

Both were released today, and both rankings are dropping quickly. Kudos to his publisher for understanding that you sell more ebooks for low prices.

Which naturally makes me wonder why Morrow is releasing Jim's latest, The Devil Colony, for $14.99 on Kindle. Ouch. I can already see the dozens of one-star reviews from annoyed fans who won't pay that much, which is unfair to Jim, and to the book. Plus, guess who is going to be pirated like crazy?

Note to Morrow: The way to fight piracy is with cost and convenience. High cost encourages piracy. No one will pirate The Skeleton Key, or those that do wouldn't have bought it anyway. With The Devil Colony, fans who otherwise would have bought it will become pirates, due to your pricing.

Windowing is useless in a digital world. Ebooks are forever, and there is no longer a shelf life, so we shouldn't be forced to pay a higher premium for things just to experience them sooner.

Buy a hardcover for $25 on the release day, or wait a year for the $7.99 paperback. That's always been unfair, in my opinion, but you are getting a better, higher quality version with the hardcover.

But with ebooks? $14.99 now, or wait a year and it'll go down to $8.99 for the same exact version? Or wait a few years and it will go on sale for $1.99?

There are only two reasons for pricing so high. 1. To encourage and protect hardcover sales. 2. To make as much money as possible before the industry collapses.

Ebooks have zero costs to print and ship. They shouldn't be $14.99. And The Devil Colony should be a #1 Ebook bestseller. Perhaps it will be. But it would be one for much longer at a more reasonable price.

Jim will make $2.23 on each $14.99 ebook sold. I make $2.04 on each $2.99 ebook sold, which is why all of my ebooks are outselling his, even though he's a much bigger author than I am.

Now he's getting big advances, and his house is taking care of all the uploading and marketing. If I had a chance to switch careers with him I'd be tempted. Except for the book touring. Meeting fans and booksellers is a noble, worthwhile thing, but travel is exhausting and cuts into my writing time, and I make my money by writing, not by jetting around the world.

If ebooks are really outselling hardcovers by that large a margin, I have to wonder how long it will be before bestselling authors begin to realize that even with large advances, they're losing money long term...

Jumat, 20 Mei 2011

Indie Bookstores Boycott Konrath?

It's come to my attention that on a Yahoo group for booksellers there has been a call to boycott Amazon's new Thomas & Mercer imprint. I signed with Thomas & Mercer for STIRRED, the eighth Jack Daniels novel, co-written with Blake Crouch (who will chime in on this topic after me).

I've also heard that certain booksellers want to return any books of mine they have in stock as a punitive measure.

So signing a deal with Amazon makes me the enemy of bookstores?

Me, who has signed at over 1200 bookstores? Who has thanked over 1500 booksellers by name in the acknowledgements of my novels? Who has named five major characters in my series after booksellers?

Now I'm the bad guy, for wanting to continue my series and make a living?

You may know that my publisher, Hyperion, dropped my Jack Daniels series after six books, even though they continue to sell well as backlist titles. The only way I could get print books in the series into the hands of fans was to sign with another publisher.

Thomas & Mercer stepped up to the plate to give my fans what they want: more Jack Daniels books.

Amazon allowed me to get into bookstores--something self-pubbing couldn't do for me without a lot of extra work on my part. They offered me a terrific deal, and have done more marketing and promotion than any of the publishers I've previously worked with.

They've treated me with nothing but respect, listened to and implemented many of my ideas, and have been an absolute joy to work with.

They're the new publisher on the block. But they're already doing it better than anyone else.

This trend won't end with me. Amazon will continue to publish more and more authors, because the major publishers are making a lot of major mistakes and a lot of writers are getting hurt by the Big 6.

So my question to indie bookstores is: When other authors sign with Amazon, and they will, are you going to boycott them as well? What happens when it is a major, bestselling author? Is this how you service your customers, by limiting the amount of choice they have?

I'll be honest. I'd love it if my books went out of print, so I could have the rights back. I'm getting financially reamed by my publishers, just like every other author is. Sending my books back isn't hurting me in the least.

But it saddens me that any bookseller would take such a limited view of my intent.

My goal remains what it has always been: to write books for fans and make a decent living.

I get a lot of hits on this blog. I could mention the name of the bookseller that thought up this boycott, and ask my readers to boycott them right back. I bet I could even get a picket line going to protest.

Of course, I would never do anything like that. I love bookstores. I want them to succeed. I haven't done many signings lately, but I'll be at the Printer's Row Book Fair in Chicago on Saturday June 4th at 11:30 am, signing at Big Sleep Books, one of my favorite indies.

I'm not the enemy. Neither is Amazon.

The threat to bookstores is a technology that is rapidly being embraced by readers.

I didn't invent ebooks. But for the first time in my writing career, I'm making a comfortable living because of them. So are many other authors.

This doesn't make us bad. It doesn't make us anti-bookstore.

It just makes us human.

The times are changing. In a few years, there may not be anymore chain bookstores.

The indies have a chance to survive, and even thrive. But only if they embrace change.

Being afraid of change has never lead to success.

So what can indies do?

Read on. Blake and I have a few ideas...


I’ve published four novels with the legacy publisher St. Martin’s Press. For my first two, I toured extensively, on my own dime, across the country, almost solely visiting indie bookstores. I did this because I love indie bookstores, the booksellers, the owners... you can feel the love of books when you walk into one, which is often absent in the chains.

My decision to release RUN on my own has been extensively chronicled on this blog. It had nothing to do with turning my back on Indie bookstores. It had everything to do with seeing the change happening in the market, and wanting to make a living for my family.

My agent tried valiantly to sell RUN to Big 6 publishers, for many months. There were no takers. And yet, I've managed to sell 20,000 copies on my own in just a few months, and I'm currently in talks with a well-known independent bookstore to release a limited edition hardcover version of RUN.

So to have indie bookstores now calling for the boycott of my work is baffling, but I understand this is a scary time for bookstores. When panic sets in, this leads to knee-jerk reactions.

I recently met with the book-buyer at my local indie store to discuss this very thing... what do indies do when they’re losing writers to ebooks.

First of all, I think indies need to understand that the vast majority of the writers whose work they try to sell are getting reamed financially by their publishers. They’re probably not making a living on the books they write. The vast majority of writers get dropped by their publisher. And those who don’t are fighting a battle to survive that is largely out of their control. For every Patterson or Grisham you have, there are hundreds, if not thousands of books that fail. I understand you need those heavy-hitters to keep your lights on. But I need ebooks to keep mine on. This would seem to set our interests against each other, but I don’t think that’s necessarily the case.

Ebooks are here. They’re now the preferred way to read, and lashing out against writers embracing this to make a living isn’t going to change anything.

My choice to sign with Amazon was twofold: (a) it allows me to reach more readers and fans than I ever could on my own; (b) Amazon is also releasing a trade paperback of Stirred, and will have the full distribution power of any major New York publisher. Even on the books I release myself, I make everything available in print, and these are easily ordered from the major distributors.

The bigger question, the one I discussed with the folks from my local bookstore, is what happens next for Indies?

Here are some ideas Joe and I had:

1. Sell used books. There are billions of books in print, and they aren't going away anytime soon. Joe's publisher charges $7.59 for an ebook of Fuzzy Navel. You could sell the used paperback for $1.99.

2. Remember why people shop indie. My local store has the best, most knowledgeable, well-read staff around. They can turn you on to a book you’ll love based upon a short discussion. They read constantly. There is still something about a live, in-person recommendation that beats reading Amazon and B&N reviews any day. I have no doubt that Maria’s Bookshop in Durango, Colorado will survive as long as there are publishers, because the experience they give the customer walking in the door is unmatched, and you simply cannot get it on the Internet.

3. Author events. But you need to give people a reason to attend other than just a signature. Perhaps an exclusive short story from that author, free to everyone who buys a book. Perhaps a $30 admission includes a book, a coffee, a copy of the talk on DVD, and a signed t-shirt. Give your customers something they can't get elsewhere.

4. Start publishing. If you're an indie store beloved by authors, ask those authors for a story to put into an anthology, which you can then publish in print or as an ebook. Or ask favorite authors with out-of-print backlists if they'd like to partner with you to re-release those books. If Amazon is becoming a publisher, why can't you?

Between Joe and I, we have over twenty book-length works available. If you'd like to publish any of them and sell them out of your store, contact us. We'll give you an 85% royalty, send you our already formatted interiors and covers, and you can print and sell as many as you'd like. Or we can do the printing, and ship them to you signed, and give you the same 40% discount the major NY Publishers give you per book.

These are trade paperbacks, 9"x6", priced at $13.95.

Our titles include:
65 Proof (Collected Stories)
Shot of Tequila
The List
Jack Daniels Stories (Collected Stories)
Horror Stories (Collected Stories)
Banana Hammock
Desert Places
Locked Doors
Serial Uncut
Killers Uncut
Serial Killers Uncut
Fully Loaded (Collected Stories)
Thicker Than Blood

You might think, "That's a nice gesture, but how will it help me compete?"

Between Joe and I, we've sold over 400,000 self-published ebooks. I'm betting some of your customers would want the print versions of these.

And we're just two authors. Imagine doing this with a hundred authors. Your own imprint, selling books the chains don't sell, signed copies that Amazon doesn't sell, for a higher profit margin than you get anywhere else.

5. Ebooks. Google Books has been underwhelming so far. But the ABA is a powerful group, and certainly this coalition can get a system in place to get the works of writers to their fans. Indies selling Indies. With the current retailers pretty much letting anyone publish anything, there is a window here for the ABA to hone the overwhelming sea of crap currently offered by other ebook retailers and to present a better Indie bookstore.

Imagine the Indiebound Indie-bestseller list. Indie recommendations. Indie book groups. Then you’ll be able to have virtual events. Internet booksignings using Autography to sign ebooks and Skype for the author talk. We've already partnered with OverDrive to get our books into libraries, and we're on every major (and minor) ebook platform.

Indie bookstores should have a platform. You're a smart, tough, dedicated group who loves to read. You don't need to wait for others to bring you into the fold. You can create your own ebook network.

When this happens, Joe and I will be the first in line to give you our work to sell.

Nobody wants to see the Indies disappear. There is a tremendous opportunity here, but it starts with taking the emotion out of how you view ebooks and looking at it with an eye to what customers want.

What they want hasn't changed. They want your advice about what books to read.

You just need to figure out how you can best serve them in this brave, new world.

Kamis, 19 Mei 2011

Tech Talk and the Active Ebook

Let's talk about technology, specifically in conjunction with media.

There are a few absolutes we can work with.

1. New formats and vehicles are invented that will replace old formats and vehicles.

I'm using the word "vehicle" as a term for the delivery of media, and I'm labeling "media" as content in the form of information or entertainment.

Media can be a novel, a song, a movie. It exists via various formats. A "format" is the form a medium takes.

A song's format can be on a cassette tape, vinyl, CD, mp3, wma, flac, etc.

The vehicle used to play the song depends on its format. We can listen to vinyl on a turntable stereo, mp3s on an iPhone, flac on a computer.

Often formats and vehicles compete with each other until one dominates (vinyl vs. cd, cd vs. mps, VHS vs. Beta, BluRay vs. HD DVD.)

When new formats and vehicles are created, they usually allow a user to enjoy experience media in a superior way over previous formats and vehicles.

The mp3 format allowed for compression of large digital files, which was needed because years ago memory was more expensive. These digital files could then be stored, traded, and many could be carried portably on an mp3 player.

2. As formats and vehicles improve, so does media.

Formats and vehicles often evolve in tandem. For example, as computers improve, software improves, which requires better computers, which allows for better software.

In the case of music, we now have lossless files, which sound better. These files can also carry data other than the music itself; cover art, song title, liner notes, lyrics.

DVD didn't just have a better picture than VHS, it also allowed for extras. Commentary. Alternate endings. Different cuts.

3D is changing movies and video games, taking them in new directions.

3. Prices drop.

This always happens. Once upon a time, a VCR was $1000 (in 1981 dollars) and a copy of Wrath of Khan would set you back $39.99 on VHS. Now you can get a DVD player new for $30 and Khan for $4.99. Or you can stream Khan on Netflix and only pay $9.99 a month for unlimited films.

As prices drop, more people leave their old formats and vehicles and adopt the new, superior ones. Eventually, the old formats and vehicles become niche markets, and the new tech becomes mainstream.

Until another tech takes over and restarts the cycle.

So what does this mean for books?

For hundreds years, the format and vehicle for novels was the bound book.

Then the ebook came along.

The ebook was different than many other new types of technology, because it required users to have both a format and a vehicle for their media.

Readers were used to buying a book and being able to read it. Now they needed special ereaders, and had to buy their media in a specific format.

But the superiority of the technology eventually won out, and now ebooks outsell print. As ereader prices come down, and the technology improves, more and more readers will adopt it.

Being able to hold a thousand books on a single device, adjust font size, and buy ebooks instantly, are just a few of many advantages ebooks have over print.

I have no doubt we'll see $99 ereaders by the holiday season.

Those paying attention to the publishing world may have heard that my upcoming Jack Daniels thriller, Stirred (co-written with Blake Crouch) is being published by the Thomas & Mercer imprint of Amazon.

Amazon is pricing it competitively at $2.99--something no other publisher will do. (In fact, I pulled my second Timecaster book from Berkley because they wouldn't work with me on lowering the ebook price.)

But if prices are coming down, and vehicles are getting better, what about my second rule of tech?

So far, ebooks are just text, which isn't an enhancement over print.

There have been a few efforts to blend video with text, but these require even more expensive vehicles ($500 iPads rather than $140 Kindles) so I don't see these being widely adopted anytime soon. Plus, I don't think a video/text hybrid is what draws people to books.

So I spent some time pulling a Steve Jobs. Instead of guessing what the future holds, I looked at what people are currently doing.

Jobs, as you know, paid attention when music fans began converting and trading mp3s. While the music industry tried to fight it, Jobs created a user-friendly portable device (the iPod) that played mp3s. As a result, a computer company is now the biggest music retailer in the world. All because he watched what fans are doing with music and gave them something to make it easier for them.

That made me look at at what readers are doing with books.

On sites like Amazon, Twitter, Facebook, Shelfari, Goodreads, and Librarything, readers are running book groups, reviewing, recommending, sharing what they've read (and how much they've read), and discussing books.

When a book is very popular, readers are writing their own fan fiction.

Readers often contact the author, to ask questions, or say how much they enjoyed a book, or demand a sequel.

It's important to note that readers are doing these things independently, without the author or publisher prompting them. This is what readers enjoy doing with book, above and beyond reading it.

Which makes me ask: why aren't we giving readers what they want?

Enter the Active Ebook.

I'll make an admission. It kills me that my print books are still owned by publishers, who are pricing them too high and sticking it to me with poor royalties.

Because my agent reserved the "interactive multimedia" clause in my contracts, I've been salivating to come up with a way to release these on my own.

So I thought about enhanced ebooks like the Big 6 did. Maybe I'd add some video and audio. Maybe an mp3 director's commentary at the end of each chapter, explaining things about why I wrote it. Linkable footnotes, pictures, and maybe even some games like word search.

But that wasn't evolution. That wasn't Ebook 2.0.

I was missing something. Something big.

User aggregated content.

I've talked about this before. Google is a billion dollar company because they allow users to navigate websites that other people created.

YouTube is all content created by uploaders, for free.

Most of the big internet successes of the last decade were because of users adding to the site.

And as I explained above, users are eager to add content concerning books. The want to do reviews and recommendations and talk to authors and even write fan fic.

All of this happens outside of a book.

What if it happened inside of a book?

What if you don't join a social network to discuss books, but instead you joined a book that was a social network?

Here's how this scenario plays out in my head:

I'm on my ereader, and I get an electronic invitation from a trusted friend to buy Whiskey Sour by J.A. Konrath. It's only $2.99, and the description looks good. Not only that, but it has a community of 12,393 people, so there will be plenty to do.

I buy the book with the click of a button. But rather than begin reading right away, I message my friend who is also in the book, and we decide to join the 4:00pm Whiskey Sour Book Club. There are eight other people signed up for that time slot, and we can all read and discuss the book together. There is also a 3pm slot open, but that's for fast readers, and my speed is moderate at best. The 4pm is a moderate speed club.

Since 4pm isn't until later, I browse the Whiskey Sour Forum, and read a few reviews. I also join a chat session and meet two of the other readers who are in my 4pm Book Club. One of them is a bit abrasive, but the bot monitoring the chat session warns him, then kicks him off. Typing on my keyboard becomes tedious, so I plug in my headphones and we voice chat for a bit, talking about thrillers we liked.

Four o'clock rolls around. I'm in the kitchen, making a sandwich, but my ereader calls my home phone to remind me of the start time.

I read a few pages, enjoy them, then let the ebook read to me until the chapter ends. There are already two people in the bookclub forum, discussing what they read. I join in. Others enter, and my friend links to the FAQ and Author Notes on Chapter 1, which we all discuss.

Whiskey Sour has a full length, author-read commentary, where Konrath explains where, why, and how he wrote certain scenes.

Some of the group wants to continue, but I'm curious to listen to the mp3 commentary, so I beg off and decide to join the 6pm Club for Chapter 2.

The commentary is interesting. Konrath is an entertaining guy, says a lot of funny things. But I realize I'd enjoy it more after I finish, so I pop into the next book club.

Me and another guy read straight through and discuss the book all night, and when we finish I write a review of it in the forum and recommend it to my friends via my ereader. I also notice that Konrath is having a live chat tomorrow, and sign up for it.

The next morning, I find I can't get some of the characters out of my head, so I pop into the forum again and read some of the user created stories. These are fans who have written about the characters in Whiskey Sour. Most of them suck. Some aren't bad. Some are even as good as Konrath. I rate a few, recommend a few, and vote for the top five.

I watch TV for a bit, until a screen comes up saying it is chat time. I sync my ereader with my TV and watch Konrath's talking head as he fields a Skype chat. Several people express that they wanted a longer ending. Konrath says he's working on one, as well as three new chapters which will be inserted into Whiskey Sour at the end of the week.

"Hemingway said that a book is never finished, it's simply due," Konrath says. "But now, books no longer have to be finished. They can continue to grow and improve for as long as the writer is alive. And beyond."

He says that the new additions will be marked as such. People can read the original, or the new version.

I get on my ereader, and ask it to call me when the new material is uploaded. I also ask for updates when people respond to my forum comments, or vote on my review.

Then I finish listening to the audio commentary, pop into the forum to discuss it, and wind up text chatting with Konrath, who is talking about his latest book.

Sounds pretty good. I click on the link to buy it.

Sure beats surfing the internet and watching TV.


Okay, some of the tech isn't there yet. But most of it is.

The idea of a book as a community (which is basically what a website is) makes complete sense if you look at what readers are already doing.

I also love the idea of a book that never ends, where the author can keep adding to it. That may not be for everyone, but there are dozens of books I wish had been longer. Some authors (Stephen King's The Stand, David Morrell's The Totem, my Trapped) have put out different versions of the same book. But if King wrote an extra chapter to Salem's Lot, I'd be the first in line.

Instead of books simply being static text, this scenario allows them to become active. Alive. Growing. Readers continually generate content about books they're read, in dozens of places. Why not centralize all of that content in the one place it should be; within the book itself.

With an Active Ebook, you would have more than a novel. You'd have an ongoing, regenerating, constantly biggering community that brings fans together, encourages user aggregated content, and allows the author to reach a lot of readers at once.

A book could be its own, miniature website, self-contained on an ereader.

Or you could ignore all of that and just read the book normally.

Either way, isn't it worth your $2.99?