In traditional book publishing, authors get the short end of the stick. You already knew that. We are talking about income in the form of book royalty.
So if an author does all the hard work of writing the book and the reader does the (harder?) work of patiently reading it, where does the rest of the money go?
This is where the supply chain comes into picture and it might help understanding the behind the scenes dynamics, so you are better positioned to write that bestseller.
If you thought you were writing your novel for the reader, you are only partially right. It’s true that a happy reader will buy your book and recommend it to other readers.
But before your readers can go gaga over your novel, your book also needs to make many other people happy. People for whom the commercial aspects matter more than the content of your book.
Between the writer and the reader there is a full-fledged business model competing for resources – primarily shelf space. And this massive machinery needs fuel to keep its wheels turning. The money from each book sale goes into incentivising each player in the publishing game.
Here’s the chain.
–> You sell the book to a publisher (or your literary agent does it on your behalf).
–> Your publisher doesn’t want to be stuck with several thousand copies of your book in their backyard. So they need to sell the book to distributors.
–> The distributors also have hundreds of thousands of copies of other books in their warehouses. So they need to push it down to retailers.
–> Now the retailers have smaller storage space for the thousands of other books. So they need to get rid of your book in one of two ways:
- A fan (or an unsuspecting reader) comes along and buys your book.
- If your book has been lying for too long, the book starts a reverse supply chain i.e. it goes back to the publisher, adding to the woes of your publisher.
Compared to the wonderful, imaginary worlds that lie inside the book, the real world has tough expectations from the book. There’s a risk at each stage of the supply chain. And the guys taking that risk demand their pound of flesh (replace with appropriate phrase, if you are a vegan).
Here’s how the revenue gets broken up:
Retailers: 40% (the shop-keeper has enough buffer to give the buyer a discount. The smaller ones do, the bigger chains don’t)
Distributors: 10%
Printers: 10%
Publisher: 30%
Author: 10% (could range from 5%-15%, lower for new writers)
And that’s how the cookie crumbles.
In some cases, the publisher may involve a few big distributors in the decision making process before agreeing to sign you up.
The digital medium disrupts the traditional model by taking out a few key players in the story. More about that later.
If you are placing your bets on the traditional publishing industry, what do you think the distributors or retailers are looking for to give the thumbs up to the book?
Comment By: Navin
April 12th, 2012 at 6:03 pm
Thank You for this post Sameer. I am hating it that Authors are treated like this: ( – Mr. 10% i.e.
Comment By: Sameer
April 12th, 2012 at 8:28 pm
Navin,
For authors who want to get their royalty rates higher, there are other options – self-publishing, ebooks on Kindle etc – but each comes with strings attached.
Comment By: Ritu Chaudhry
April 15th, 2012 at 11:41 am
I daresay the distributors and the retailers would be more likely to consider a book/manuscript as a viable investment if:
- If the book is topical and in-sync with larger societal and media-consumption trends.
- If the author has been long/short-listed for awards for previously unpublished authors – the Man Booker, fr’ex. It may not impact the domestic market much in terms of numbers but it is still a selling point to mention to customers. Also, I assume this would make the publishers more keen – international rights are more likely to fetch a good price – so the RoI cycle is shorter.
- If the author has a visible on-line presence and enough regular readers to make the idea of selling the book seem more feasible.
- If the book starts with a good hook and the author is ‘connected’ enough to ensure a decent starting buzz….strong enough for people to flip through the first chapter and swallow the hook.
Your question assumes a different significance in context of a recent conversation we had. A couple of ideas begin to emerge but they are still germinating and my focus is still elsewhere.
Comment By: Sameer
April 15th, 2012 at 11:51 am
Excellent points, Ritu.
You’ve got all the fundamentals sorted out. Just a matter of implementation now.
Comment By: Ritu Chaudhry
April 16th, 2012 at 7:53 am
Between fundamentals and implementation lies a detailed cohesive plan that has been tested out on a segment of the target audience.
But when it comes to particulars, I was thinking of something else altogether. And since I do not intend to think of the branding baby until noon, let me request your indulgence:
Certain genres are mainstream and, to my bibliophilian eye, are meant to be a part of the traditional publishing industry. But there are certain other genres, say self-help or spirituality. Such genres find representation in many different industries – multi-media industries, spirituality industry, ancient traditional practices etc.
I am wondering how easy it would be to identify a few already established distribution networks in such sectors, form a distribution consortium, and then approach a major player in the multi-media sector and ask for their investment.
The actual cost of printing a book is not that high after all. And I suspect this might well be a viable method if a major brand supports the project.
Comment By: Sameer
April 16th, 2012 at 10:39 pm
Spirituality is a perfect example of an author (generally a Baba with a huge following) bypassing most traditional distribution channels to sell millions of copies that can put any best-selling (professional) author to shame.
Probably a good case study for another independent post.
Comment By: Ritu Chaudhry
April 17th, 2012 at 9:06 am
If it works for you, please do go ahead.
Sometime in the last few weeks, I did one post because of something you wrote on Firstpost….and right now my plate is so full that researching this notion will take me ages. Writing about it is not even on my agenda right now.
Comment By: Sameer
April 17th, 2012 at 9:15 am
That was meant to be a to-do for myself, not for you
Comment By: Ritu Chaudhry
April 17th, 2012 at 9:30 am
That is precisely what I had hoped for.
Comment By: ANKUR SAXENA
June 30th, 2012 at 11:00 am
very true indeed!even my father is an author who has published several books on Physics from leading publishers in India and abroad-it,i.e. the royalty is never more than 10-15%.
Comment By: Krishna
July 17th, 2012 at 10:30 pm
write a post for how the new authors books published by small publishers can get some popularity
Comment By: Sameer
July 17th, 2012 at 10:49 pm
Krishna,
Book promotion concepts are similar for authors of big and small publishers.
I’ve written several posts on book marketing including some creative and unconventional methods (like book trailers and in-person promotions). Do check them out.