EntriesOne of my favourite TV shows is Dragons Den. A panel of multi-millionaire entrepreneurs (or businesses in marketing, branding and so on) sit in judgment as they get pitched business ideas, mostly for inventions. Some contestants have done prototypes and small-scale production runs. All are looking for cash investment and mentoring in marketing, branding and taking a start up to a fully fledged viable business. My favourite bit is when one of the Dragons decides there is a good idea that they think they could make fly and then they offer X cash to buy in to the company for Y percentage partnership. Almost without fail, the person will reject the offer of lots of money because the deal is for more than 50% ownership of the company.
Their thinking being that an idea is worth equal or more than its execution. Or that having an awesome idea is enough alone to make it successful. The Dragons usually smile serenely. To them, it’s easy come, easy go. They know that an idea is not enough. That there are more ideas in the world than can be developed. The negotiation also tells them a lot about what that partnership might be like. Are they going to be overly possessive and territorial? Are they going to be open to mentorship? Are they going to step aside to let others with experience handle things like packaging, branding, marketing, promotion and access to delivery channels? Where will they decide the line is between “mine” and “ours”?
I think a lot about this show as I watch the narratives about the evolving models of publishing. Publishing is (as always) in a state of flux, in a reinvention of sorts. Small press models don’t look anything like they did when I started my press back in 2007. And it’s not a risk to say it will look markedly different in five years time. I’m very passionate about speculative fiction and about writers. As a small press, we sit very decidedly outside mainstream/big publishing and our role is very distinct. We try to offer the best and fairest deals we can when we acquire manuscripts and we try to offer a value addition of personal care and interest beyond the publication date. I like to think there is a very clear narrative that runs through the books I acquire that embody the ethos, direction, and yes, branding, of Twelfth Planet Press. I’m gradually building an argument, a response, a discussion point and when I read submissions, I’m looking for pieces that will expand, broaden, deepen or emphasise that narrative.
Of course, the other aspect that I look for at acquisitions is whether I think a work is likely, or has the potential, to sell to break even, or, you know, one day, make profit. I’m running a business after all. So far, I’m still waiting for the long tail to kick in and kick back most of my investment dollars. The thing about the old skool publishing model is that it works across all the titles bought in a year – some you win (make profit), some you lose (make losses) and across the board you cross your fingers and hope you come out ahead. This approach is what enables publishers to invest in books they know won’t ever earn out or end up in the black but that they believe should exist.
It’s a different model to self publishing. And like self publishing, it works for some cases, and not others. But I saw a t-shirt the other day that said “What part of 70% royalties do you not understand?” and it took me back a bit. Sure, there is an element out there with a pretty strong hate on for publishers but it strikes me as a bit naive or deliberately simplistic. It comes back to the Dragons Den and the idea that the only person who works to create a book is the writer. And that the only costs are paying said writer. Or that the writing might be the most expensive/only part of creating a book.
I’ve run the maths of going to digital only publishing to play with the business model. I’ve also tried to look at offering our ebooks at that $0.99 or $1.99 price point. I really hope we don’t see this flux in the business model end up with books only costing 99 cents. It’s such a huge undervaluation of what it costs to produce the product. To think that you deserve 70% royalties means you think that the cover artist, the book designer, the layout, the editors, the proofers, the marketers and promoters, the promotion material including launch events, and overheads like electricity, software, website management, bank charges, fees for online sales transactions and so many other costs, as well as publisher reputation and branding should somehow be covered by that 30%. That’s one helluva turnover of book sales. It also suggests that all those people take almost no role in the success of your book. I mean, as we all know, no book of excellent quality has ever been overlooked or failed to succeed, since cream always rises to the top, all on its own.
Which is not to say that 70% isn’t a great deal. I don’t have anything against self publishing. It’s the obvious choice in some situations. But when considering all those choices, that 70% really needs to be viewed honestly – what costs will also need to be covered by that? Editing costs? Proofing? Ebook conversion? Buying a cover? Spending time learning layout and publicity? Advertising and promotion? How much time will be required to be invested in product awareness? There are outdated aspects of the publishing business model. And the changes we are currently experiencing will force that hand. But the changes that will happen, and need to, will happen within the realm of economics and viability.
Tags: publishing, publishing industry