Warning: More Sharks are Fishing the Waters

Penguin's recent acquisition of Author Solutions is barely an indication of what is beneath the surface. For a traditional publisher as large as Penguin to add themselves to the mix of "self" publishing brings an annoying new challenge to those independent authors who have chosen to truly self publish. I'm talking about those true self publishers who hire and pay experts to provide services to get them up and running. I'm talking about those true self publishers who have their own distribution and marketing operations, and those who can't get a media person to look their way because the media are so busy selling their own titles on their own shows. (How freaking hard is it to get airtime for your book when it is your own freaking show?)

Penguin: Don't even try to continue to apply the term "self publishing" to the services provided by the companies you just acquired, because it gives the industry a bad name. They hijacked the term and we want it back.

Authors:  So many hooks are dropping in the waters around you -- many have sharks on the other end of the line. Their revenue comes from you, not consumer sales of your books. Understand what you are signing before you enter into any contracts with businesses that use the term "Self Publishing company" if their own logo goes on the back or if your book will be in their own distribution account. Don't be fooled when they tell you "You own the copyright to your book" because you own it anyway. What you don't usually own with these companies are the layout of the interior and the cover they did; nor do you usually own the publishing rights for that book, and you may not own any subsequent formats for that book (like ebooks). Please know what all the terms really mean and don't get caught up in their nets even if they dangle big publishing promises on their hooks (as was indicated in the press release).

Self Publishing Contracts - What's the story?

When it comes to publishing contracts, be careful before you jump in with a self publishing company. Read any and all contracts and know what you are signing and who you are dealing with. I have been watching as new consultants sprout up everywhere, with people who have done one book -- their own -- and then suddenly they are doling out publishing advice. I've also seen several people who have been laid off or fired from the traditional publishing world, where they performed one part of publishing, who are now opening up their own consulting firms. So dangerous for you! They often don't understand the whole-picture hurdles and, conversely, the special opportunities in the self publishing world.

If you are considering working with a self publishing company, read the contract, look at the books they have already done, request a detailed proposal or scope of work; also check references. If any vendor holds any rights to any aspect of your book, question it and make darn sure you understand the answer! Don't settle for commonly found lines like "You own 100% of the rights to your work."  You want to know who owns the layout and design of the book when it's done.  That's a good place to start questioning. 

CAUTION:  A check or payment is an implied contract. If you don't sign a specific contract, but you gave them a check or paid them anything, you now have a contract with them anyway. One additional note regarding contracts, don't rely on your regular attorney to know what the terminology means either...you need an intellectual property lawyer (and you want to make sure you know what the terms mean before you talk to them, too.)

Protect yourself by arming yourself with lots of information -- and make sure you really UNDERSTAND everything.

We're Thinking of Starting Our Own Writer's Strike...

To begin my rant... last week I was in a music CD store where they sell used CDs. The clerk told me that they pay a royalty to the artist for the secondary market merchandise. Finding this unbelievable, I called around to other second hand intellectual property merchants and I couldn't find another one who does this. I even doubt that the first one was telling the truth, but who knows.

Actors, as well as the writers who write for them, get royalties every time their ad is shown, or their tv program is broadcast, or their video is sold...this may bring to mind the writer's strike of 2007-2008, in which the Writer's Guild of America went on strike against major production companies to demand an increase in royalties from DVD and online downloads. Eventually they came to an agreement siding with the writers.

With this in mind, why doesn't an author get a portion of their secondary sales? Why does the bookstore get rewarded with a full refund for damaged, mistreated, mispackaged, over-ordered books?

Bookstores "display" rather than "stock" books in their stores (on consignment); thus meaning bookstores are allowed to make irresponsible buys or damage the merchandise with no repercussions (they can return overstock for full credit virtually forever). Bookstores get the largest percentage of the final take on a book sale no matter how it is published (traditional versus independent) -- 40% of the retail price. If they paid for merchandise they damaged, it wouldn't be so bad, but they don't.

And these bookstores that take trade-ins or buy backs -- wouldn't you think that on the second hand books they take in, (which I BET they return to publishers as damages on occasion), they would need to pay a royalty?

It's tough enough to be a small publisher, with all of that, but then have to deal with the wholesalers that require publishers to have an open return policy no matter who damages the books or how many they over-order.(Wholesaler takes 55% [and publisher pays shipping], wholesaler then sells to a bookstore at a 40% discount.) If you do the math here, you'll easily see that the big loser is the one who spent a large part of their life writing the property that is being juggled among the profit takers.

If the printed book is to survive, it should be a booklover's mission to make sure that the publishers and authors who create the masterpieces get paid their fair share -- just like actors do when some broadcast medium shows a movie or tv program (or ad) that includes them in it or a musician when they play a song on the radio.

Publishers and authors who foot the real bills in publishing could use some industry changes. Sooner rather than later.

End of rant, but frustration continues...

Lisa Pelto, President
Concierge Marketing
and Publishing Services