Shannon says: Research your choices.  There are lots of self-publishing companies out there these days.  CreateSpace, Lulu,  iUniverse, BookLocker, Xlibris, and Authorhouse are just a few.  Some are totally free, and some aren’t.  For those that aren’t, check out their contracts or packages that they offer.  Know what you are getting for your dollar up front….

I’ll add: Keep in mind that going through many of these companies is not true self-publishing. AuthorHouse and Xlibris, for instance, are both owned by vanity/subsidy giant Author Solutions. If you intend to sell books and make a profit from your venture, it is recommended you not go this route. (I recently blogged about the different publishing options.)

Shannon says: Know your budget.  If you use a POD company that charges for a package, which package can you afford?  You should also plan on purchasing review copies.  How much money are you willing to invest on other marketing?  Don’t forget postage and shipping supplies!  Are you paying for editing services or for book cover design?…

I’ll add: Make sure you have a budget! In my opinion, you need to have your manuscript edited and you need to have a professional cover design, at a minimum. Yes, there are “free” services out there, but the adage “you get what you pay for” is certainly true. In terms of marketing and promotions, there are plenty of things you can do for very little or no cost, but if this is not your forte, you’ll want to set aside money for promotions. You can write the best book in the world, but if no one knows about it, no one will buy it.

Shannon says: Be prepared to invest in review copies!… 

I’ll add: Absolutely. I have seen more than one author’s attempts at promotion fail because they do not want to send out free review copies. We had one author, in fact, ask us to set up a virtual author book tour for her, but she neglected to fulfill review copy requests. The tour was a failure. My co-author of The Complete Guide to Self-Publishing, 5^th Edition, Marilyn Ross sent out some 500 review copies for her book Jump Start Your Book Sales; it was a valuable promotions tool and she attributes that as the number one reason the book enjoyed excellent sales.

Shannon says: Invest in a decent book cover…. Most POD companies have some sort of automated book cover design program with stock images.  Don’t use their stock images!  If you do, just know there will be other books out there that have the same cover as yours…. Research your options or hire a graphic designer for assistance.

I’ll add: I wholeheartedly agree with this. The templated covers put out by these so-called self-publishing companies scream self-published. Not only will there be other covers out there with your exact same image, but these amateurish-looking designs do nothing to generate interest in your book. I would also venture to say that a professional graphic designer with book cover design experience is essential.

Shannon says: Edit!  Most POD companies offer some sort of editing service, but it can be quite pricey.  If you can’t afford to hire an editor, at least have a smart friend or two read over the manuscript and look for mistakes and misspelled words.  Don’t think that your own eyes will catch everything, no matter how many times you read your own book. I’m guilty of doing that myself, and readers were quick to point out my mistakes. Sure, traditional books even have mistakes in them and some are always going to slip through, but if your book is full of mistakes and errors it can be a big turn off to the reader, and to reviewers!

I’ll add: The POD companies offer sub-par editing that is not worth the (usually expensive) price they charge. And don’t count on friends (unless they are professional editors) and don’t think you can self-edit. (I have been an editor for more than two decades—and I still needed an editor to read through The Complete Guide to Self-Publishing. The editor found plenty me and my co-author had missed.) Find yourself an editing professional whose style meshes well with yours. Ask for a sample edit of a chapter or so to determine whether the editor can edit your work without changing your voice. Where to look? Ask around writer’s groups (on Facebook or LinkedIn), tweet about your needs on Twitter, or look into groups such as the Rocky Mountain Publishing Professionals Guild, which provide listings of editors (and, incidentally, the other pros you may need in your self-publishing venture).

Shannon says: Format your book properly and follow the rules!  I have never, never, NEVER seen a traditionally published book that lacked right margin justification and I’m tired of self-published authors telling me that they did it that way because it’s easier to read.  No, you didn’t follow the rules because you didn’t do your homework, or you don’t know how….

I’ll add: I generally recommend that authors do not attempt their own interior designs. Unless they are well versed in a design program such as Adobe InDesign, they are probably not qualified and the results may not be pretty—or professional. However, if they want to do their own page layout, they should read websites such as The Book Designer so they can learn the elements of what makes good design.

Shannon says: Understand that physical bookstores are not your friends….  And never, NEVER call a bookstore and try to promote yourself over the phone!  They don’t have time to talk to you. Almost all bookstores expect a discount so that they can sell a book and make a profit.  With almost all self-published books, companies charge all customers list price so there is no discount for bookstores.  Or there’s no distribution of your book through wholesale channels for chain bookstores to be able to get your book anyway.  And if there is, the book is usually sold non-returnable so a chain bookstore will require pre-payment….

I’ll add: It is often an author’s ultimate goal to have their book on the bookstore shelves. But Shannon is right; this is really not the most lucrative way to sell books. Although you can get into the trade distribution system by printing with Lightning Source (owned by Ingram, one of the largest wholesalers in the country), you will be expected to offer a deep discount and a returnable product. However, I think it is worth it to have your book available at the bookstores, so this is another reason why I believe going the “POD self-publishing” company route is not a good idea. As Shannon says, companies charge customers list price so there can be no discount. Self-publish the proper way, and you can offer a discount and still make a profit.

As usual, it all comes down to educating yourself about the process and doing the most professional job you can. Your book’s success and your own reputation are on the line.

Upon further discussion, I learned that she had printed 3,000 copies of the book at a cost of about $10,000. Add this to the expensive menu of other production and marketing services she purchased from AuthorHouse, and it turns out her investment totaled about $20,000. It was with a sinking heart that I told her she had more or less wasted a large amount of money on books that would probably never reach readers let alone the library market. I explained the difference between true self-publishing and vanity/subsidy publishing; I told her she could have published books under her own imprint with her own ISBN for a fraction of that $20,000—and she would have had saleable, reviewable, marketable books.

So where did she—and countless other authors who fully intended to self-publish—go wrong?

Her primary mistake was in not understanding the definition of vanity and subsidy publishing.

Here’s how Writer Beware describes them:

A vanity publisher prints and binds a book at the author’s sole expense. Costs include the publisher’s profit and overhead, so vanity publishing is usually a good deal more expensive than self-publishing. All rights and completed books are the property of the author, and the author retains all proceeds from sales. Vanity publishers may exclude objectionable content such as pornography, but otherwise do not screen for quality.

A subsidy publisher also takes payment from the author to print and bind a book, but contributes a portion of the cost and/or provides adjunct services such as editing, distribution, warehousing, and marketing. Theoretically, subsidy publishers are selective. A subsidy publisher claims at least some rights, though the claim may be limited and non-exclusive. The completed books are the property of the publisher, which owns the ISBN, and remain in the publisher’s possession until sold. Income to the writer comes in the form of a royalty.

However, the lines have blurred over the past few years. What you’ll most often find nowadays is neither a vanity publisher nor a subsidy publisher in the classic sense, but a hybrid of the two–following the vanity model in terms of pricing and selection (building a fat profit into its fees and publishing anyone who will pay), and the subsidy model in terms of book ownership and income to the author (the publisher owns the finished books, and the author earns royalties on sales).

Writer Beware goes on to explain about a new player in the publishing arena that has joined the game in recent years: POD self-publishing services. These companies are similar to vanity publishers—upfront fees are charged, they will publish almost anything, and marketing services offered are minimal. The main difference is that it is less of an investment on the part of the author since books are printed only when orders come in, saving authors from printing thousands of books up front. (As an aside, let’s go over the definition of print-on-demand [POD]: It refers to a digital printing technology that makes it cheap and effective to produce books in small numbers, such as one or two at a time.)

POD “self-publishing services” use digital printing to provide publishing services to authors for free or for a very low cost. Most offer free templates that enable authors to upload and format their books. Most also offer fancier packages that include editing, design, and marketing, which can cost several thousand dollars. These services tend to be poorly done and not worth a fraction of what they cost.

It’s also important for authors to realize that the average book from a POD service sells fewer than 200 copies, mostly to the author. Companies like Author House, iUniverse, and Xlibris—all of whom are owned by Author Solutions, Inc.—lay claim to selling millions of books each year. What they don’t tell you is that given the sheer volume of books released, it averages out to only around 40 books sold per title. Lulu.com founder Bob Young admits that the average Lulu author sells fewer than 1,000 books (and I have read in various places that it’s really more like two copies). (Find additional stats here.)

POD services call what they offer “self-publishing” or even “indie publishing,” but it is not. With these types of services, authors are bound to the package deals these outfits offer in terms of production. The bulk of any money made off of sales is kept by the company to offset their costs; authors are likely only entitled to a small royalty. (What this means it that authors pay twice—once at the beginning and again with every book sold.) Most of these services own the ISBN assigned to the authors book, giving them at least some claim on publishing rights.

All that said, what exactly constitutes true self-publishing? It’s incredibly simple.

In true self-publishing:

The author controls all aspects of the publishing process, from manuscript editing to interior and cover design to pricing and promoting. There are many services, including my own company Self-Publishing Resources, that cater to authors in need of help with these services.

The author keeps all profits from sales of the book.

The author starts his or her own publishing company (very easy to do!), purchases his or her own ISBNs, and maintains all rights to the book.

The author works directly with a POD printer, such as Lightning Source, or an offset printer—or both. (Or neither—and simply goes the ebook route.)

The author has mainstream review, distribution, and sales opportunities that are not there with a POD self-publishing service or vanity/subsidy press imprint on his or her books.  

According to Writer Beware, whose mission is to track, expose, and raise awareness of the prevalence of fraud and other questionable activities in and around the publishing industry (the site also includes a much more in-depth explanation of the various publishing options), “POD services often portray themselves as a revolutionary new publishing model that’s opening up a world of opportunity for writers locked out of the market by the narrow standards of the monopolistic commercial publishing industry.” Don’t believe what these services say. The only way you can truly self-publish is to do it under your own imprint and your own ISBN. It’s that simple.

In his blog post yesterday, he announced, “Linchpin will be the last book I publish in a traditional way.” He goes on to call the “architecture of [the] industry…fundamentally broken.”  He pretty much blasts the industry: “Traditional book publishers use techniques perfected a hundred years ago to help authors reach unknown readers, using a stable technology (books) and an antique and expensive distribution system.”

This is exciting news for those of us in the indie publishing industry who’ve felt this way for a long time. Self-publishing is losing much of its stigma (in spite of the trad holdouts who talk about the so-called lack of “street cred” with self-publishing) as savvy authors realize they can circumvent the gatekeepers and reach their readers directly. With heavyweights like Seth Godin on board, the stigma will continue to decrease. That said, however, authors need to have a platform if they want to have any amount of success.

Literary agent Rachelle Gardner makes a good point about this in her blog: “Godin says he is moving to electronic publishing only. If you agree with his perspective, you may want to consider it too, but keep in mind that he has a gigantic platform. (I’ll be interested to see if Godin stays ‘finished’ with traditional print publishing.)” Yes, Godin already has a built-in stable of readers eagerly awaiting his next book—regardless of which form it takes. Because without the platform, the chances of a new author getting signed with a traditional publisher are very slim. And if you’ve got the platform, why not reach them directly by self-publishing? Gardner herself admits that “the traditional publishing industry is shrinking” and “it could serve you well to consider the viability of self-pub from the start.”  

Says Godin:  “The thing is–now I know who my readers are. Adding layers or faux scarcity doesn’t help me or you. As the medium changes, publishers are on the defensive…. I honestly can’t think of a single traditional book publisher who has led the development of a successful marketplace/marketing innovation in the last decade. The question asked by the corporate suits always seems to be, ‘how is this change in the marketplace going to hurt our core business?’ To be succinct: I’m not sure that I serve my audience (you) by worrying about how a new approach is going to help or hurt Barnes & Noble.”

Will he completely shun the printed book? He admits he doesn’t know exactly what form his future projects may take, print or electronic (both?). What he does know is that he is simply weary of the traditional publishing process—and how slow it is. (As someone who was recently traditionally published, I have to agree with that!)

I don’t think we’ll see the total demise of the printed book in our lifetime; too many people still love the tactile quality of paper books. But as a girl who loves her Kindle, I think a lot of e-reader holdouts just haven’t given it a chance.

The writing is on the (electronic) wall: Traditional publishing as we’ve known it is on its way out.

 Authors: Joe Gregory and Debbie Jenkins

 Publishing Academy, 2009

Back cover synopsis: Renegade publishers, Debbie Jenkins and Joe Gregory, share their hard-won experience to show you exactly how to make a fast and impressive income as a non-fiction author in six easy-to-follow steps. This book obliterates the outdated “truths” of the publishing business and shows you what it really takes to succeed in the new publishing economy. Whether you’re a budding author looking for your first break or a published author wanting to take your sales, profile, and income to the next level, you’ll love what you’re going to learn when you read this book.

Traditionally published and self-published authors alike will benefit from this handy guide. It provides a realistic plan for authors who truly want to sell books and make money. I enjoyed the irreverent tone of this easy-to-read book.

Divided into six practical steps, the first three cover coming up with a winning book idea and then getting it down on paper. Even those with a book already in hand will benefit from the tips on creativity, including the WWWD (What Would Walt Disney Do) approach. Word association and Mind-Mapping are also discussed at length. If you don’t already have a finished manuscript but just an idea, this chapter will help you determine whether or not it has bestseller potential.

Step four thrashes out the options for getting your book published. The authors go over the pros and cons of traditional publishing, self-publishing, and subsidy/vanity publishing. (I think my favorite line in the whole book is “I’d basically said, ‘Vanity presses are a complete waste of space!’”) They weigh-in highly in favor of self-publishing for nonfiction books, and they explain why—basically because authors retain intellectual control and they have the potential to make a lot more money this way. The practicalities of self-publishing are also covered, such as obtaining an ISBN, using Lightning Source as a printer, and getting distribution.

Final chapters get into the specifics of “selling loads of books.” There are a lot of lists (the authors seem to favor these and they are peppered throughout the book), such as “3 Reasons Why Brick and Mortar Stores Aren’t Worth It,” “5 Reasons Why Self-Publishers Should Focus On Selling Through Online Bookstores Instead,” and “44 High Impact Book Marketing Tactics That Work.”

Final sections of the book list useful publishing and promotion links, as well as a bibliography. Although the table of contents is quite extensive, that does not take the place of an index, which the book doesn’t have. I am a strong proponent of all nonfiction books having an index.

This book should be on the shelf of every author who wants to make money instead of mistakes.

So what is true print-on-demand printing? It means that books are first sold, then, using digital printing, one or more copies are created to fill the order. Although paperbacks are more common, many companies can now do case-bound books with dust jackets as well. Books are shipped direct from a POD vendor to the customer, who receives what looks very similar to a book printed by a traditional book manufacturer. Many books are shipped from POD vendors—Lightning Source or BookSurge (now merged with CreateSpace), for instance—to wholesalers or retailers such as Amazon or Ingram.

There are some drawbacks to this method of getting into print. Many publishers are still discouraged by the print quality and poor vendor customer service, reporting blacks that look gray and whites that are off-white. Illustration and photo reproduction might be uneven and patchy. Margins can vary from copy to copy. Paper and cover stock choices may be limited and of lower quality.

Yet there are several advantages to print-on-demand: You need no warehouse because there is no inventory to store. And there is flexibility: Suppose you decide you hate your title or cover? Change it! One publisher reports that her company prints each new title digitally and prints just one hundred copies. This is enough to work out any kinks as well as to market that particular title. If you’ve got a backlist title that sells slowly but which you’d like to keep in print, you can do so fairly economically, running just a few copies at a time.

There is also an element of speed. If you’re dealing with a timely topic, POD by a book printing company will get you books faster. Some vendors can turn out a book in two or three days; others promise two or three weeks.

If you go through an outfit such as Lightning Source, your book will be picked up automatically by Barnes & Noble, Borders, and so forth. This is a distinct advantage for self-publishers for whom distribution is often an issue. I predict this circumstance will continue to evolve, making POD books more readily available in brick-and-mortar bookstores.

So what will it cost you to ride the crest of this new wave? Prices vary. Lightning Source prices differently even for the same title, depending on whether the book is being sold to wholesalers for distribution or to the author for resale. This can be an issue if the primary source of sales is going to be back-of-the-room sales by the author, for instance.

An advantage to Lightning Source, however, is that they allow the author to set the discount with retailers. Discounts normally run from about 55 to 40 percent, but Lightning Source allows authors to set the discount as low as 25 percent. Although this technically allows publishers to keep a significantly portion of the profits, some retailers will not want to sell books at such a short discount.

CreateSpace sets a mandatory 40 percent discount to its retailer—primarily Amazon—but will require a deeper discount for publishers who sign up for its expanded distribution service to bookstores.

Generally the charges for printing are based on the length of your book (so much per page) plus a cost for the cover. Get quotes so you can compare costs, terms, and turnaround times. And ask where the normal price breaks fall. Here are a few guidelines: For a 250-page paperback book with a four-color cover, one POD printer charges $8.60 each for a quantity of 50, $5.13 each for 100, $4.49 each for 500, and $3.50 per book for 1,000. Hardcovers are considerably more, going for $15.87 apiece for 250, for instance, and $12.47 per book for 500.

I’ve heard of prices as low as $3.49 per book and as high as $20.00 and more. (POD may not be your answer if you’ve written a 600-page romantic saga!) Be sure to determine both the interior price and the cover price. The hard reality is it’s simply more expensive per book to print in these small quantities, but if you are unsure of expected sales, it sure beats having a pallet of books sitting in your garage, unsold. Do your homework and decide whether book digital printing or offset printing makes more sense.

The reality is that using a “self-publishing company” (which, in actuality, is a subsidy/vanity publisher calling themselves a self-publishing company) is a “kiss of death,” according to many industry professionals, including publishing expert Pete Masterson. Pete is principal of Aeonix Publishing Group and author of Book Design and Production: A Guide for Authors and Publishers. He has graciously allowed me to reprint here a response gave to an author in a self-publishing discussion group. It clearly addresses not only the typical breakdown of discounts offered to retailers, wholesalers, and distributors, but it also shows how thing might not add up when authors go the subsidy publishing route.

________________________________________________________________________

Pete wrote:

…When you publish using Lulu or another of the “self publishing companies,” your book may not be widely available through the distribution process and if it is available, it may not have the “normal” discounts expected.

In publishing, everything is based on the list price of the book. The typical breakdown is as follows:

Retailer receives a 40% discount off the list price. They may set any price they wish to sell the book at, but they pay 60% of the list price to whomever they purchased it from—usually a wholesaler or distributor.

Wholesaler (this would be Ingram or Baker & Taylor, usually) receives a 55% discount off the list price. They pay the publisher (or distributor) 45% of the list price. The wholesaler then sells to retailers at 40% off—so they keep 15% to pay their costs, etc. There are certain incentives and other deals where a retailer may receive up to 48% off list price—but that’s between the wholesaler and the retailer. (Wholesalers do almost no marketing to retailers to promote purchase of specific titles.)

Distributor (could be one of many smaller firms) sells directly to retailers at a 40% off list price discount and sells to wholesalers at a 55% off list price discount. Distributors fees tend to be complex and may vary depending on the specifics of the services they provide to the publishers. Distributors may have a sales force or use other means to generate sales with retailers. Larger distributors usually will not accept single book publishers and, in reality, can’t do much for one anyway. Some fulfillment services have expanded into distribution (in recent years) offering “distribution” to Ingram and (sometimes) Baker & Taylor. These fulfillment service/distributors often are less expensive than a full distributor if your goal is simply to get listed by Ingram. Since prices vary, it’s hard to say exactly what it costs —but typically, the publisher will “give up” 10 to 15% of the list price to the distributor.

Fulfillment services tend to charge for the services rendered. The fulfillment service takes care of work that is normally the responsibility of the publisher (shipping books to wholesalers, retailers, and the public). Some offer order-taking telephone services. Charges vary and it is well worth shopping around.

Now, what does this leave for the publisher? If you can sell through a primary wholesaler, then you “get” 45% of the list price for each book sold. If you use a distributor, you receive 30 to 35% of list price for each book sold.

At this point, you will begin to see the problem. Lulu (and other subsidy publishers) “take” a cut on the sale of every book. Your cost per copy may well be above what you will receive upon paying for the printing and profit to the subsidy publisher. The solution (which is no solution) is to raise the price of the book. That makes books over-priced, and then they do not sell.

Or Lulu has set you up with a “short” discount through Lightning Source, Inc. (that is who prints the books in “global distribution”). If Lulu established a discount below the “standard”55%, then the bookseller would not receive the 40% discount—and then they will not order the book. (Amazon will list the book, because they list everything.) Also, if you have not arranged to have the books “returnable” then the bookstores will, again, not order your book.

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It’s a crazy business like none other, this thing called publishing. But authors who have stars in their eyes about seeing themselves in print and decide to go the low-cost subsidy route need to have realistic expectations about potential profits (if any). They may not pay upfront as they would if they were truly self-publishing, but they will likely pay in the long run.

Sometimes the numbers just don’t add up.