Comments on: The Economics of E-books http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/ America's Mad Professor of Fiction Writing Mon, 21 May 2012 04:16:37 +0000 http://wordpress.org/?v=2.1.3 By: Trey http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17607 Trey Sat, 12 Mar 2011 02:40:26 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17607 Would you consider epublishing your next work, Randy? <strong>Randy sez</strong>: I will soon be rereleasing all my out-of-print novels as e-books over the next several months. If those work out as expected, I have some e-book originals planned. Stay tuned... Would you consider epublishing your next work, Randy?

Randy sez: I will soon be rereleasing all my out-of-print novels as e-books over the next several months. If those work out as expected, I have some e-book originals planned. Stay tuned…

]]> By: Cori Fedyna http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17631 Cori Fedyna Sat, 12 Mar 2011 13:11:06 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17631 Thanks Randy for the heavy number lifting. The ROI for us less math oriented is invaluable, because it would have taken 3.341 times longer to arrive at this analysis. LOL Thanks Randy for the heavy number lifting. The ROI for us less math oriented is invaluable, because it would have taken 3.341 times longer to arrive at this analysis. LOL

]]> By: Edwin D Ferretti III http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17637 Edwin D Ferretti III Sat, 12 Mar 2011 14:44:34 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17637 Hello Randy, I read Mr Bransford's article and wondered what a successful (eBook) self published author did to his model. His two previous posts covered this topic and he failed to tie the two together. Like you, I see a revolution in progress, one that will eventually take the eBook out of the traditional publisher’s hands, especially for authors who own the rights for their previously published books. Over the past year I have read several offers from new emerging eBook only publishers, who state they will publish your book in multiple formats (Kindle, Nook, Sony E-reader, to name a few). The return for the author is 70% of the price you set. With the free apps of the buy-it-now button an author can direct sell his/her books from their Blog, Web and Facebook sites, etc. I also see a time approaching when agents will eagerly seek out successful eBook authors with a new contract for printed books only. Hello Randy,

I read Mr Bransford’s article and wondered what a successful (eBook) self published author did to his model. His two previous posts covered this topic and he failed to tie the two together. Like you, I see a revolution in progress, one that will eventually take the eBook out of the traditional publisher’s hands, especially for authors who own the rights for their previously published books.

Over the past year I have read several offers from new emerging eBook only publishers, who state they will publish your book in multiple formats (Kindle, Nook, Sony E-reader, to name a few). The return for the author is 70% of the price you set. With the free apps of the buy-it-now button an author can direct sell his/her books from their Blog, Web and Facebook sites, etc. I also see a time approaching when agents will eagerly seek out successful eBook authors with a new contract for printed books only.

]]> By: Alastair Mayer http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17647 Alastair Mayer Sat, 12 Mar 2011 21:51:47 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17647 The Big Six may have enough clout with Amazon to get a different deal on e-book pricing, but as far as I know a $12.99 e-book is only going to get the publisher 35%, not 70%. Amazon limits the 70% rate to e-books priced between $2.99 and $9.99. A publisher gets less money per copy selling at $12.99 than at $9.99. Two reasons they may price ebooks higher: 1 - the prices are set by different divisions within the publishing house (the left hand vs right hand problem); 2 - the publisher doesn't want ebook sales to cannibalize their paper sales. Publishers are slowly catching on to the idea that the latter doesn't make much sense if they can make more money off the ebooks. Setting the best price for ebooks to balance the trade-off between volume and per-copy royalty is still a black art, as far as I can tell. <strong>Randy sez</strong>: You are correct! My mistake. I knew that but simply forgot it when doing my analysis. I'll try to correct my numbers shortly. The Big Six may have enough clout with Amazon to get a different deal on e-book pricing, but as far as I know a $12.99 e-book is only going to get the publisher 35%, not 70%. Amazon limits the 70% rate to e-books priced between $2.99 and $9.99.

A publisher gets less money per copy selling at $12.99 than at $9.99. Two reasons they may price ebooks higher: 1 - the prices are set by different divisions within the publishing house (the left hand vs right hand problem); 2 - the publisher doesn’t want ebook sales to cannibalize their paper sales. Publishers are slowly catching on to the idea that the latter doesn’t make much sense if they can make more money off the ebooks.

Setting the best price for ebooks to balance the trade-off between volume and per-copy royalty is still a black art, as far as I can tell.

Randy sez: You are correct! My mistake. I knew that but simply forgot it when doing my analysis. I’ll try to correct my numbers shortly.

]]> By: Cathi http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17650 Cathi Sun, 13 Mar 2011 02:09:13 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17650 I read Nathan's blog religiously and nearly had a stroke when I read this article. Even with Randy's recalculations I feel the left side of my body going numb...it never ceases to baffle me how much the writer gets screwed when it comes to getting paid for their efforts. Good thing I'm not in this for the money! I read Nathan’s blog religiously and nearly had a stroke when I read this article. Even with Randy’s recalculations I feel the left side of my body going numb…it never ceases to baffle me how much the writer gets screwed when it comes to getting paid for their efforts. Good thing I’m not in this for the money!

]]> By: David http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17681 David Mon, 14 Mar 2011 22:22:09 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17681 Yikes, this is pretty scary stuff. Well, maybe not scary. An unrestricted free market in the arts is pretty chaotic though. I can't imagine what fiction will look like without a publishing industry. Yikes, this is pretty scary stuff. Well, maybe not scary. An unrestricted free market in the arts is pretty chaotic though. I can’t imagine what fiction will look like without a publishing industry.

]]> By: Sanne Udsen » Blog Archive » Mere om e-bøger og deres økonomi http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17692 Sanne Udsen » Blog Archive » Mere om e-bøger og deres økonomi Tue, 15 Mar 2011 12:43:39 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17692 [...] er der da også god grund til at studse over. For den interesserede læser er her en artikel , der stiller regnestykker op bag forskellige modeller for fordeling af pengene mellem forlag, [...] […] er der da også god grund til at studse over. For den interesserede læser er her en artikel , der stiller regnestykker op bag forskellige modeller for fordeling af pengene mellem forlag, […]

]]> By: Daniel Smith http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17694 Daniel Smith Tue, 15 Mar 2011 14:57:12 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17694 Brilliant. I confess I skimmed Nathan's blog and it didn't quite make sense. You've explained what I picked up on intuitively. Thanks! Brilliant. I confess I skimmed Nathan’s blog and it didn’t quite make sense. You’ve explained what I picked up on intuitively. Thanks!

]]> By: Nathan Bransford http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17697 Nathan Bransford Tue, 15 Mar 2011 15:38:08 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17697 My example was for a new hardcover/new e-book, not one with a trade paperback edition available. Not sure why it's being compared to one with a trade paperback edition available? <strong>Randy sez</strong>: I believe you've misread my article. My point is that these days, books that are available in hardcover may carry a retail price of $24.99, but the corresponding e-book will NOT. This is true, whether there is a trade paper version or not. If you look on the Amazon Top 100 Kindle list, you'll find a very few e-books priced as high as $14.99. (I counted 3 today.) You'll find a few others priced as high as $12.99 or $11.99. But the vast majority are priced at $9.99 or lower. I suppose there may be a few e-books on Amazon with a retail price identical to the retail price of the hardcover, but I can't remember when I last saw one. The purpose of my article was to compare the actual revenue coming to the publisher/Amazon/author at current price points. My example was for a new hardcover/new e-book, not one with a trade paperback edition available. Not sure why it’s being compared to one with a trade paperback edition available?

Randy sez: I believe you’ve misread my article. My point is that these days, books that are available in hardcover may carry a retail price of $24.99, but the corresponding e-book will NOT. This is true, whether there is a trade paper version or not. If you look on the Amazon Top 100 Kindle list, you’ll find a very few e-books priced as high as $14.99. (I counted 3 today.) You’ll find a few others priced as high as $12.99 or $11.99. But the vast majority are priced at $9.99 or lower. I suppose there may be a few e-books on Amazon with a retail price identical to the retail price of the hardcover, but I can’t remember when I last saw one. The purpose of my article was to compare the actual revenue coming to the publisher/Amazon/author at current price points.

]]> By: Sheila Deeth http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17700 Sheila Deeth Tue, 15 Mar 2011 19:40:35 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17700 Great to see the math and the assumptions. Thanks. Great to see the math and the assumptions. Thanks.

]]> By: J.A. Marlow http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17703 J.A. Marlow Tue, 15 Mar 2011 20:12:20 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17703 I see someone else beat me to pointing out that a price point above $9.99 is a 35% royalty rate. The big guys might have made a better deal with Amazon. Although, Amazon was ticked off enough when the Agency Model was shoved down their throats that they might not. Somehow I doubt the big publishing houses will be willing to release the details of the terms of their agreements. I see someone else beat me to pointing out that a price point above $9.99 is a 35% royalty rate. The big guys might have made a better deal with Amazon. Although, Amazon was ticked off enough when the Agency Model was shoved down their throats that they might not. Somehow I doubt the big publishing houses will be willing to release the details of the terms of their agreements.

]]> By: NakedSushi » Blog Archive » I Don’t Get Publishers http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17792 NakedSushi » Blog Archive » I Don’t Get Publishers Mon, 21 Mar 2011 17:03:48 +0000 http://www.advancedfictionwriting.com/blog/2011/03/11/the-economics-of-e-books/#comment-17792 [...] as that. After reading some helpful articles (Why Some E-books Cost More Than the Hardcover and The Economics of E-books), I saw that my earlier reasoning was [...] […] as that. After reading some helpful articles (Why Some E-books Cost More Than the Hardcover and The Economics of E-books), I saw that my earlier reasoning was […]

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