This presentation was given by Mark Coker to the Published Authors Network (PAN) group at the Romance Writers of America (RWA) 2012 annual conference in Anaheim. It explores the major trends facing authors and book publishers.
1. THE FUTURE OF PUBLISHING
RWA Published Authors Network (PAN) keynote
July 25, 2012
Mark Coker
Founder, Smashwords
Twitter: @markcoker
2. Note to viewer: This presentation
was given on July 25, 2012 at RWA.
I’ve made minor annotations to
capture some of the information that
was conveyed verbally.
Please share this presentation with fellow writers. Permission
granted to copy and share this presentation with anyone, provided
it remains in its unaltered state, and the recipient is not charged
for the information.
3. I bring you a message
“a message of hope for those
who choose to hear it, and
warning to those who do not”
~ Lyrics from Rosetta Stoned by Tool
9. The Problem with Big Publishing
• Books judged on perceived commercial merit
• Difficult to identify potential bestsellers
• Readers decide this!!
• Reject many great authors
• Publishers deciding what readers can read
• Readers shut out
• Slow production cycles
• Books too expensive
• Cannot take a risk on every book
10. My Answer: Smashwords
• Ebooks + Open Publishing
• Free ebook publishing tools
• Distribution to major ebook stores
• Promote publishing best-practices
• Power to the author
12. Smashwords and Romance
• Romance = 30% of our sales across our
distribution network (Apple, B&N, Sony,
Kobo, etc.)
• 18% erotica
• Average romance title sells 2X the
average title at Smashwords store
• Romance authors have led the ebook
revolution, and will continue to lead
13. Smashwords, Apple and Romance
• Apple iBookstore July 26, 2012
• 4 of top 10 Apple Romance bestsellers,
and 10 of the top 20 are from
Smashwords
• 5 of top 20 bestselling titles store-wide
are from Smashwords, and ALL ARE
ROMANCE!
• 10 of top 40 store-wide bestsellers are
from Smashwords, ALL ARE ROMANCE!
21. You were taught to bow subservient before
the altar of Big Publishing
22. … taught you weren’t an author until a
publisher blessed you as such
… and until you were blessed, you were a
failure
23. Publishers were the bouncers at
the pearly gates
• You were told a publishing contract
would confer…
• blessing
• acceptance
• validation
• entry into the afterlife as a
“published author”
24. Publishers controlled Heaven
• Promised Perks of the Afterlife
• editing
• printing press
• distribution
• marketing
• royalties
• fame and respect
• readers
• “published author” inscribed
on your tombstone
25. … and if you dared indulge in the carnal
pleasures of self-publishing...
26. You were told to keep toiling and waiting.
And waiting….
… you’d get a deal when you sacrificed
enough of your soul like these other great
writers…
32. “GOD IS DEAD”
Friedrich Nietzsche
(Message: Institutions live and die based
on the trust, faith and confidence placed in
them by the believers. Those of us who
stand between the author and reader must
add value, otherwise we cease to exist.)
36. BOOK PUBLISHING IS CAUGHT
IN THE TURBULENT CROSS CURRENTS OF
MULTIPLE CONVERGING FORCES
37. TECHNOLOGY IS COLLIDING WITH BIG
PUBLISHING
(Notes: Technology is a catalyst for rapid
evolution. Successful technology is that which
satisfies human desires for greater
empowerment, and for products and services that
are faster, cheaper, more accessible and more
useful. Technology can be disruptive by
rendering old business models and practices
obsolete. )
40. FIVE TRENDS TO ROCK THE WORLD OF
PUBLISHING
(notes: to prepare for the future, it’s more
important you understand where you’re
heading, rather than when you’ll get there.
Here, I will share macro representations of
where your world is headed
42. Percentage of book purchases
made online vs B&M, Print and E-
Web
Brick &
Mortar
Today?
43. Bookselling moves to the Web
• The decline of brick and mortar
• Consumer drivers:
• Price
• Convenience
• Selection
• Self-published books displayed
side by side with traditional books
• Big publishers no longer control
distribution
47. Ebooks as a percentage of US
wholesale trade market
30
25
20
15
10
5
0
2002 2004 2006 2008 2010 2012
Source: Association of American Publishers, publishers.org. 2012 Smashwords estimate
48. Why ebooks are hot
• Screens offer better reading experience than
paper
•
Changeable font size A A A A
• Portable and compact
• Screens will get better/faster/cheaper
• Amazon, Apple, B&N, etc
• Ebooks offer better consumption experience
• Lower cost than print
• Convenient sampling and purchasing
• Huge selection
52. New tools open book publishing
and distribution to all
• Tools such as Smashwords
empower you to become your own
publisher
• Free printing press in the cloud
• Distribution to major online
ebookstores, libraries
53. Indies are Now Out-Publishing
Big Publishers
• Indies scaling all the bestseller lists
• (Aug 1, 2012 update: Four Smashwords authors in
August 5 NY Times Bestseller list.)
• Indie author advantages
• faster time to market
• greater creative control
• lower prices to consumers
• lower expenses
• better distribution to global market
• never go out of print
• earn more per book
54. Indie Ebook Authors Earn Higher
Percentage of List Price
Indie Traditional
60-80% 5-12-17%
• Indies earn more at lower prices
• Indies earn more selling a $.99 ebook ($.60-$.70)
than a traditional $8.00 MMP ($.40)
• At $2.99, indies earn $1.80. Trad. author would
have to sell at $10.25
• Lower price = reach more readers = more sales at
higher profits per sale
58. Big Publishers Have Lost Their
Monopoly
• Printing press is free to all
• Distribution free to all
• Knowledge to publish,
distribute and market high-quality,
professional books is free to all
• Big Publishers overprice
• Professional authors asking:
• “What can a publisher do for me that I can’t
do for myself?”
• “Will a publisher actually limit my ability to
reach readers?”
59. Stigmas to Flip?
Aspire Aspire
Traditional Indie
Aspire
Indie
Aspire
Traditional
4 yrs ago Today? Future?
63. The Interplay Between Unit
Volume and Dollar Volume
• Per research released at RT Booklovers,
lower prices sell more units, and $2.99-$5.99
earns authors more than $6.99+
• Implications
• Lower priced books sell more units, build author
brand and author platform faster
• If given option to earn equal or more income
selling $2.99 ebook vs. $6.99+ ebook, $2.99 author
wins the long term game because they’re building
platform and author brand faster than traditionally
published authors. See recent SW blog post,
How Traditional Publishers Can Harm Author’s Career
.
• Indie ebook authors may have long term
advantage over trad. authors
64. How Price Impacts Units Sold
A book priced at $2.99 sells approximately 6.2 times as many units as
a book priced over $10.00, and about 4 times more than $9.99
66. Interplay of price, volume, royalty:
Indies building platform, earning
more per unit sold
Author earnings
Traditional 17.5% Indie would
list earn 60%+ list
$2.27 $7.80
$.60
$2.40
67. How Big Publishers can Regain
the Faith
• Do for authors what authors cannot or will not
do for themselves
• Change the publishing mindset
• Serve authors first
• Empower editors (the heart and soul of great
publishers!)
• Develop long tail strategies
• Forget about selling, focus on publishing
• Increase author royalties
• Abandon DRM
80. The market for your books outside the US
will soon dwarf the US market
Apple operates iBookstores in 32 countries.
We distribute to Apple. In May 2012, ~45%
of Smashwords Apple iBookstore Sales
were Outside the US
81. You Have the Tools to Reach a
Worldwide Market Today
The Tools are FREE
82. Final Thoughts
• Change brings opportunity
• Writers are in charge now
• Publishing is easy, professional publishing
takes work
• Readers, not publishers, control your
destiny
• Indie vs. Traditional is not an either/or
decision. Some authors straddle both.
• You are the future of
publishing!
83. Free Ebook Publishing Resources
• NEW! Secrets to Ebook Publishing Success (best
practices of successful authors)
• Smashwords Book Marketing Guide (how to market any
book)
• Smashwords Style Guide (how to format an ebook)
84. How to Publish and Distribute
Your Book with Smashwords
Useful Links
How to Publish and Distribute an Ebook with
Smashwords FAQ
(This slide not included in RWA presentation)
85. Thank you for considering the
future!
Q&A
Connect with Mark Coker and Smashwords:
Web: www.smashwords.com
Blog: blog.smashwords.com
LinkedIn: linkedin.com/in/markcoker
Facebook: facebook.com/markcoker
HuffPo: huffingtonpost.com/mark-coker
Twitter: @markcoker