Tuesday, April 19, 2011

Kobo Lands $53 Million in Funding to Fuel Global Expansion

Smashwords retail partner Kobo today announced they closed a US $53 million funding round.

Smashwords distributes nearly 30,000 titles to Kobo. Over the last 12 months, we've seen our sales there surge as Kobo added new customers and expanded their retail footprint around the globe.

Several Smashwords-supplied titles are selling well at Kobo. Looking at Kobo's Top 50 Ebooks listing for today, as of this moment John Locke's Saving Rachel is the #7 best-seller; Stephanie McAfee's Diary of a Mad Fat Girl is #16; John Locke's Wish List is #30; and Ruth Ann Nordin continues a nearly 12-month dominance of the Kobo Top 50 clocking in at #36 with An Inconvenience Marriage. Congrats to John, Stephanie and Ruth Ann!

Some highlights from today's press release over at the Kobo web site:
  • Their Kobo bookstore app is bundled in the new Research in Motion BlackBerry PlayBook tablet, which went on sale this week in the US and Canada
  • In addition to Research in Motion's new Playbook tablet, Kobo also powers the ebook stores for tablets made by Samsung and HTC
  • Over 3.2 million users at Kobo: with over 1 million users added in the last 90 days (I assume users = paid customers + free downloaders + people who have downloaded their apps)
  • Kobo's multi-platform e-reading apps run on the iPad, iPhone, Blackberry, Android, Palm WebOS, Windows and MacOS devices
Last week Kobo announced the impending launch of new localized ebook stores in Spain, Germany, France, Italy and the Netherlands.

Congrats to our friends at Kobo! Their continued progress means greater opportunities for Smashwords authors and publishers to reach readers.

Unrelated to this announcement, over the next few weeks we're going to work with Kobo to revamp our ebook distribution systems to take advantage of some of their new ebook ingestion systems. The objective, as it is with all our retail partners, is to help our books achieve faster and more accurate listings. Over the last 12 months, we've completed similar revamps with Apple, Barnes & Noble and Sony.

Thursday, March 31, 2011

(April Fools) Smashwords Acquires Amazon

Smashwords today announced a definitive agreement to acquire Amazon.

As you might imagine, this is exciting news for us. We launched Smashwords three years ago, and now this happens. We are blessed.

In the last 18 months, Smashwords has developed successful ebook distribution relationships with the Apple iBookstore, Barnes & Noble, Sony, Kobo and the Diesel eBookstore. Noticeably absent from the list is Amazon, the world's largest ebook retailer. Problem solved.

The combined company is named Smashazon.

I can hear the naysayers already. Sure, $69 billion is a lot of pay for distribution, but we think it's money well-spent, especially when it's someone else's money. We purchased Amazon with one of those no-money-down deals sponsored by the US Treasury Department. Full details are below in our our official press release.

Other naysayers probably think this is some cruel April Fool's prank. Can we help it that April 1 landed on April 1? Read on and decide for yourself.


FOR IMMEDIATE RELEASE


Smashwords Acquires Amazon in World’s Largest Leveraged Buyout


(Los Mirages, Calif. and Seattle WA) – April 1, 20111Smashwords, a leading ebook distributor, today announced a definitive agreement to acquire Amazon for $149.99 a share or $69 billion, a 20% discount off of yesterday’s closing list price.

The merger will create the world’s largest ebook publishing and distribution platform serving billions of authors, publishers and consumers worldwide.

The combined company, to be renamed Smashazon, will undergo a strategic product line rationalization.

Although Amazon has achieved minor success in the ebook market, the Smashwords management team believes it can lead Amazon to greater success by eliminating its distracting non-book operations.

“Amazon’s doing bang-up business in edible undergarments,” said Mark Coker, founder and CEO of the company formerly known as Smashwords. “Although we appreciate their focus on customer satisfaction, these products don’t fit with our palate or long term vision. We’d rather please the customer with words. The words of great stories light up our imaginations to create sights, sounds, smells and experiences more vivid than reality.“

The Smashwords management team is optimistic the former Amazon can leverage some of their non-book experience to sell more ebooks.

“Ebooks could taste and smell better,” said Jeffrey Bezos, former Amazon CEO who will assume the new position of Chief Satisfaction Officer at Smashazon. “We will fully service the needs of our customers.”

Following the acquisition, Smashazon will operate as a private company. The combined companies’ physical operations will be consolidated into the current Smashwords Smashoplex campus in Los Mirages, California.

Financing for the leveraged buyout was arranged by Smashwords Bank, N.A., a newly formed FDIC-insured banking institution that has secured a $69 billion credit line facility. The massive credit line, which makes this the largest-ever leveraged buyout in world history, was enabled by a new US Federal Reserve zero –interest– rate economic stimulus program called “Regulated Overnight Treasury Facilitation Loan Maturity Acquisition Obligations,“ better known as ROTFLMAO.

At a press conference to announce the acquisition, Coker said he expects the new Smashazon will pay off the US taxpayer-funded loan within five years, based on his projection that ebooks will grow from 10 percent of the overall book market today to over 450 percent of the market within three to five years.

“Amazon generated over $3 billion dollars in cash flow in 2010, and Smashwords generated nearly that much,” added Coker with an air of understated modesty that led some market observers to infer Smashwords’ cash flow might actually exceed Amazon’s.

“This acquisition proves that Smashwords is bigger than Amazon, otherwise the acquisition wouldn’t have been possible,” said one publishing industry consultant in attendance who requested anonymity.

When a reporter challenged Coker about the mathematical impossibility of any market growing to 450% of its future size, Coker responded, “We were wrong to underestimate the growth of ebooks to date, so the laws of probability therefore indicate an underestimation of the probable potential of ebooks in the future, no matter how improbable. The market will grow faster than any of us expect, which means my projections understate the true potential of the ebook market.”

Smashwords, which was founded a mere three years ago, now publishes and distributes over 41,000 ebooks from 16,000 authors and publishers around the world. The company’s catalog, which added 5,400 books in the last 30 days, is on track to surpass over 75,000 ebooks by the end of 2011.

Smashwords distributes ebooks to most of the major ebook stores, including the Apple iBookstore, Barnes & Noble, Sony, Kobo and the Diesel eBook store. Noticeably absent from this list is Amazon, a problem now remedied by the acquisition.

“We’re thrilled our ebooks can now flow to our new Smashazon KindleWords store,” said Coker.

One Smashwords insider, who asked not to be identified, commented, “We reached profitability last year, but billions in profits? I want a raise! Our office is only 1,200 square feet, so where are all those thousands of Amazonian employees going to fit? And we’re based in Los Gatos, not Los Mirages. This smells of an April Fools prank to me.”

About Smashazon
Created by the fictional merger of Smashwords and Amazon on April 1, 20111, Smashazon, Inc. will again become known as Smashwords starting April 2, 2011. Founded in 2008, privately held Smashwords operates the world’s leading ebook publishing and distribution platform serving authors, publishers, readers and retailers. Smashwords makes it free, fast and easy for the world’s authors and publishers to publish and distribute multi-format ebooks. Smashwords puts authors and publishers in full control over the pricing, sampling and marketing of their works. Authors and publishers receive 85 percent of the net proceeds from sales of their works. Smashwords has distribution relationships with leading online retailers such as Apple, Barnes & Noble, Sony, Kobo and the Diesel eBook Store, and also distributes to the leading mobile e-reading apps including Aldiko and Stanza. Smashwords is based in Los Gatos, California, and can be reached on the web at http://www.smashwords.com/. Visit the official Smashwords blog at http://blog.smashwords.com/.
###


Our previous April Fool's prank was in 2009 when we announced an ebook deal with JK Rowling (we can wish, can't we!?!)


Tuesday, March 29, 2011

Where U.S. Ebook Buyers Live

Have you ever wondered where the most voracious ebook readers live? Probably not.

It's a fun question, though, and for the first time ever I present the data to you.

I set out to determine which states ebook buyers live in, and then I wanted to know how the states stack up against one another.

The numbers are surprising, especially when you look at per capita consumption.

Here's how I pulled together the numbers below. Smashwords distributes over 20,000 ebooks to Barnes & Noble. They report to us a breakdown of sales by state. I summed up all Smashwords sales, broken down by state, from Barnes & Noble for the three month period of December, 2010 through February, 2011. Next, I divided each state's sales by the sum of the total to determine the percentage of all ebooks sales from each state. Then I added US population data from the latest US census. Next, I determined what percent of the US population lives in each state. Finally, to determine the how states rank against each other on ebook sales, I normalized the data on a per capita basis. I did this by dividing each state's percentage of overall sales they represent by the percentage of the US population they represent. Dizzy yet? This gave me the final, coolest numbers of them all, a normalized measure of per capita ebook consumption for each state.

So here's the first set of data, where I look at which states generate the highest (and lowest) overall sales. Obviously, the states with the largest populations are likely to purchase the most ebooks.

US States, Ranked by Aggregate Ebook Purchases
Source: Smashwords data

Rank State Percentage of US Ebook Sales

1 TX 8.57%
2 CA 7.99%
3 NY 5.99%
4 FL 5.93%
5 PA 4.13%
6 IL 3.90%
7 VA 3.62%
8 NC 3.36%
9 OH 3.16%
10 MI 3.12%
11 GA 2.88%
12 WA 2.81%
13 NJ 2.77%
14 IN 2.46%
15 MO 2.40%
16 AZ 2.26%
17 CO 2.09%
18 MN 2.07%
19 MA 2.04%
20 WI 1.91%
21 MD 1.91%
22 SC 1.78%
23 TN 1.63%
24 LA 1.52%
25 AL 1.45%
26 UT 1.44%
27 OK 1.38%
28 OR 1.35%
29 IA 1.33%
30 KY 1.31%
31 CT 1.13%
32 KS 1.09%
33 AR 0.98%
34 NV 0.83%
35 MS 0.72%
36 AK 0.66%
37 NE 0.66%
38 ID 0.65%
39 NM 0.65%
40 NH 0.61%
41 ND 0.48%
42 WV 0.45%
43 MT 0.42%
44 RI 0.37%
45 HI 0.32%
46 ME 0.32%
46 SD 0.29%
48 DE 0.29%
49 WY 0.26%
50 VT 0.20%
51 DC 0.09%


Now here's where it gets really interesting. Let's look at per capita consumption. Take a look at the Ebook Per Capita Sales Ratio column. This is how each state stacks up against the others, adjusted for population. Alaska, which ranks #47 in terms of overall population, ranks #1 for per capita ebook purchases measured by dollar volume. With a score of 2.92, this means they purchase 292% of the per capita than the average state, or almost triple the national average. A score of 100% means average, 200% means double the average, etc. So as you see, Alaska, North Dakota and Utah round out the top three, and Mississippi, California and the District of Columbia round out the bottom three. My home state of California, really?


Per Capita Ebook Consumption
Source: Smashwords data

Rank State Ebook Per Capita Sales Ratio Percentage of US Ebook Sales State Pop US Pop % US Pop
1 AK 2.92 0.66% 698,473 307,006,550 0.23%
2 ND 2.29 0.48% 646,844 307,006,550 0.21%
3 UT 1.58 1.44% 2,784,572 307,006,550 0.91%
4 WY 1.44 0.26% 544,270 307,006,550 0.18%
5 VA 1.41 3.62% 7,882,590 307,006,550 2.57%
6 NH 1.41 0.61% 1,324,575 307,006,550 0.43%
7 IA 1.36 1.33% 3,007,856 307,006,550 0.98%
8 MT 1.32 0.42% 974,989 307,006,550 0.32%
9 ID 1.30 0.65% 1,545,801 307,006,550 0.50%
10 WA 1.29 2.81% 6,664,195 307,006,550 2.17%
11 CO 1.28 2.09% 5,024,748 307,006,550 1.64%
12 MO 1.23 2.40% 5,987,580 307,006,550 1.95%
13 MN 1.20 2.07% 5,266,214 307,006,550 1.72%
14 SC 1.20 1.78% 4,561,242 307,006,550 1.49%
15 KS 1.18 1.09% 2,818,747 307,006,550 0.92%
16 IN 1.18 2.46% 6,423,113 307,006,550 2.09%
17 OK 1.15 1.38% 3,687,050 307,006,550 1.20%
18 NE 1.12 0.66% 1,796,619 307,006,550 0.59%
19 SD 1.10 0.29% 812,383 307,006,550 0.26%
20 NC 1.10 3.36% 9,380,884 307,006,550 3.06%
21 OR 1.08 1.35% 3,825,657 307,006,550 1.25%
22 RI 1.07 0.37% 1,053,209 307,006,550 0.34%
23 TX 1.06 8.57% 24,782,302 307,006,550 8.07%
24 AZ 1.05 2.26% 6,595,778 307,006,550 2.15%
25 AR 1.04 0.98% 2,889,450 307,006,550 0.94%
26 WI 1.04 1.91% 5,654,774 307,006,550 1.84%
27 LA 1.04 1.52% 4,492,076 307,006,550 1.46%
28 MD 1.03 1.91% 5,699,478 307,006,550 1.86%
29 PA 1.01 4.13% 12,604,767 307,006,550 4.11%
30 VT 1.00 0.20% 621,760 307,006,550 0.20%
31 DE 0.99 0.29% 885,122 307,006,550 0.29%
32 CT 0.99 1.13% 3,518,288 307,006,550 1.15%
33 NM 0.99 0.65% 2,009,671 307,006,550 0.65%
34 FL 0.98 5.93% 18,537,969 307,006,550 6.04%
35 NJ 0.98 2.77% 8,707,739 307,006,550 2.84%
36 NV 0.96 0.83% 2,643,085 307,006,550 0.86%
37 MI 0.96 3.12% 9,969,727 307,006,550 3.25%
38 MA 0.95 2.04% 6,593,587 307,006,550 2.15%
39 AL 0.94 1.45% 4,708,708 307,006,550 1.53%
40 NY 0.94 5.99% 19,541,453 307,006,550 6.37%
41 KY 0.93 1.31% 4,314,113 307,006,550 1.41%
42 IL 0.93 3.90% 12,910,409 307,006,550 4.21%
43 GA 0.90 2.88% 9,829,211 307,006,550 3.20%
44 OH 0.84 3.16% 11,542,645 307,006,550 3.76%
45 TN 0.80 1.63% 6,296,254 307,006,550 2.05%
46 HI 0.77 0.32% 1,295,178 307,006,550 0.42%
46 WV 0.76 0.45% 1,819,777 307,006,550 0.59%
48 ME 0.75 0.32% 1,318,301 307,006,550 0.43%
49 MS 0.75 0.72% 2,951,996 307,006,550 0.96%
50 CA 0.66 7.99% 36,961,664 307,006,550 12.04%
51 DC 0.46 0.09% 599,657 307,006,550 0.20%

A good statistician (and I don't claim to be one - I earned a D+ in statistics at UC Berkeley, and after retaking the class I earned a B-, nothing to brag about so I won't), I should poke some holes in my data. This data only looks at sales through Barnes & Noble. It doesn't take into account the geographic distribution of B&N's physical stores (this might impact where they've sold nooks, which would then impact customer counts). It doesn't take into consideration B&N's market share in each state. It doesn't take into consideration the age, sex, per capita income levels or language breakdowns of each state's population, or the penetration of broadband or dial-up access. I don't disclose the total number of books represented by these three months of sales, or the aggregate sales value, or the average price per book, or the category of book sold. We're a private company, so we don't disclose these numbers (though I can tell you it's a statistically significant number).

I published my raw data online over at the Smashwords Slideshare channel. I invite the true statisticians among you to download my numbers as a starting point for further number crunching. For example, the US Census Data page, where I gathered the population data, has other interesting data sets you can throw against my data, such as median household income, age of population (under 18, over 65), college education, home ownership rates, etc., so I encourage others to mine the data for more meaning. All I ask is that you reference Smashwords as the source of the data and link back to the blog (oh, and please encourage your favorite authors to publish and distribute with Smashwords! Okay, that's optional). Also email me links to your analysis and I'll link to it below so others can enjoy your findings.


Graphic partially produced at Wordle.

Sunday, March 27, 2011

Smashwords Publishes 40,000th Book

The 40,000th book entered the Smashwords catalog last week.

Smashwords authors and publishers have released over 5,000 new titles in the last 30 days.

To put this in perspective, we published 140 titles in all of 2008. In 2009, our catalog grew to 6,000, and at the end of 2010 (only three months ago), our title count stood at 28,500. We're on track to meet or beat my goal of 75,000 titles by the end of 2011.

1.7 billion words are now published at Smashwords.

We're witnessing the unfettered liberation of the collective creative efforts of over 16,000 Smashwords authors and small publishers from around the globe.

We put the printing press in the sky and made it freely available and accessible to all. Indie authors and small presses are using Smashwords to publish and distribute direct to readers.

Readers are the new curators. Reader word-of-mouth, catalyzed by social media, drive book discovery and sales.

Critics of self-publishing will say that many of these books are drek and not ready for prime time. Certainly, this is true of some of these books. We make it almost too easy to become a published author, but we don't make it easy to become a great author. That's the author's responsibility.

Some authors, despite our best advice, cut corners and upload books that haven't been thoroughly edited, revised and proofed. Others upload books with poor-quality ebook covers. Readers have little patience for such shoddy, unprofessional work. These titles either earn scathing reviews or receive the worst punishment any book can face: they're ignored by readers.

Despite the inevitable drek, the upside of an open printing press is that we allow books to get out there that would never be published by a traditional publisher. Quality books. Books from authors who made the effort to honor their reader with a great read. This advantage of the open printing press, in my opinion, far outweighs any downside.

Traditional publishers are in the business of publishing books that sell. As I mentioned here previously, they judge books through a backward-looking commercial filter. They acquire today what was selling yesterday so they can publish more of the same 12 months from now.

Often, commercial appeal and quality intersect, but not always. Books with small target markets, or authors without established platforms, or authors who are ahead of their time are of little interest to Big Publishers. These commercial publishers also have difficulty predicting which books will have commercial appeal. They make their best guess but ultimately it's the readers who decide.

Does size matter? Yes. Hidden in these numbers are works of genius and yes, here and there, tomorrow's best sellers.

Wednesday, March 16, 2011

Readers, Authors and Librarians Against DRM

Artist Nina Paley has created a cool collection of images for those ready to rail against DRM.

She created versions for Readers Against DRM, Authors Against DRM, and Librarians Against DRM.

If you share these sentiments, go to the ReadersBillofRights.info site, download the images and sprinkle them on your blog or web site. The images can be freely distributed, though please cite http://readersbillofrights.info as the source of the images.

DRM stands for "Digital Rights Management." It's a copy protection scheme designed to prevent piracy.

While few would disagree that authors deserve compensation for their hard work, the problem with DRM is that it treats law-abiding customers like criminals. DRM controls how, where and when a reader reads books.

Oh, and then there's the small matter that DRM doesn't work.


Five Reasons to Say No to DRM:
  1. Readers (who know about DRM) don't like DRM
  2. DRM adds expense to books
  3. DRM makes books complex
  4. DRM limits accessibility to books, especially for those with vision disabilities who require Text-to-Speech (TTS)
  5. DRM doesn't prevent piracy

At Smashwords, we've always been DRM-free. I've written about my views here on the blog, at HuffPo, and elsewhere.

The biggest threat facing authors and publishers today is not piracy, it's obscurity. Anything that makes a book less accessible and less enjoyable makes it more obscure.

Piracy is an indication your content is in demand, yet it's also an indication your content is not available, accessible or affordable to those who want it. Pirates satisfy demand not satisfied by the publisher.

The best method of combat piracy is to make purchasing preferable to pirating.

How do you do this? First, distribute your book to as many retailers as possible. If your book is available where customers want to shop, it's easier for a reader to buy it than to look for an illegal copy. Second, price your book fairly. If the book is affordable to your customers, they have less incentive to steal it. Third, make your book available in multiple formats so it can be read on any e-reading device. Fourth, trust your customer by going DRM-free, and communicate to them that you trust them. Rather than threatening the customer with legal action, gently remind them of their ethical obligation to support the hard work of the author (This is the thinking behind the Smashwords License Statement).

At the risk of beating a dead horse (literally and figuratively), if a publisher were to do the opposite of my above four recommendations, then what you'd have are the practices of the big 6 traditional book publishers.

Isn't it ironic that the DRM they require for their books is in reaction to a fear of a practice (piracy) encouraged by their own customer-unfriendly business policies? I'm referring to their practice of scarcity-as-a-business-model, high ebook prices, limited worldwide distribution, limited formats and unwillingness to trust the customer. For more horse-beating, see my last post, The Author Uprising against Big Publishing.

There will always be scoundrels and cheapskates who will never pay for anything. Those people would never be your customer anyway so they don't represent a lost sale. And who knows, they might even love your book so much they rave about it to their more ethically-inclined friends.

Some best-selling authors such as Paulo Coelho are known to have deliberately encouraged piracy of their books. Kevin Kelly, last year at the Writing for Change Conference in November, told the crowd he views piracy as a tax on success, a tax he said he's happy to pay.

A couple years ago, I remember one prospective Smashwords author wrote me and said, "Do you think I'm an idiot? There's no way I'm going to publish DRM-free at Smashwords. Within days there will be millions of stolen copies across the Internet!" I shared this story later in a talk I gave at the IBPA's Publishing University conference in New York, and afterward one author walked up to me and said, "Are you kidding? I'd pay to have my book stolen a million times!"

There's also a growing body of evidence that piracy doesn't harm sales. Might piracy even improve sales? This is the conclusion author Neil Gaiman came to, as he explains in this must-watch video below.



Several major ebook retailers, including Apple, Barnes & Noble and Amazon, have already dropped DRM as a requirement in their ebook stores. Authors and publishers now have more freedom to publish DRM-free.

Some readers are rebelling against DRM. Check out Lost Book Sales. It's a fun site sponsored by Jane Litte of Dear Author in which readers list books they would have purchased but didn't because the books were DRM-infected.

Are you a reader? How do you feel about DRM?


My thanks to author and blogger Karl Drinkwater, whose interesting blog post, DRM Will Kill us All is where I first discovered Nina's images.

Thursday, March 3, 2011

Nietzsche and the Downfall of Big Publishing

In the dark alleyways of publishing, an author uprising is brewing against Big Publishing.

I’ve been thinking a lot about revolution lately thanks to the events unfolding in North Africa.

My wife, Lesleyann, has friends in Egypt, and they’ve kept us up to date via email. Their dispatches alternate between fear, uncertainty, optimism and celebration.

Revolutions are an awkward and messy business. They represent the end of one paradigm and the beginning of the next. While the root causes can trace back decades, when the uprising arrives it can occur with alarming rapidity.

The events in North Africa have recalibrated the meaning of "revolution" for me. I’m thinking now about revolution in the context of a popular uprising.

At the heart of any revolution is a loss of faith in the prevailing regime. In Egypt’s case, a number of catalysts precipitated the revolution; chief among them an oppressive political environment that offered little opportunity for democratic participation, freedom of speech and economic opportunity.

Frederick Nietzsche wrote, “God is dead.” I recall my philosophy professor at U.C. Berkeley 25 years ago explaining the quote with great passion. He said the beauty of the quote went beyond its immediate religious connotation – it was a metaphor for the power of faith. When you believe in something, your faith powers that in which you believe.

If we lose faith in an institution, a regime or a belief system, the very survival of that institution is imperiled.

Every institution is powered by faith. If your house catches on fire, you have faith the local fire department will respond. If you purchase a tomato from your local farmer’s market, you have faith the item you purchased will indeed taste like a tomato.

Often, faith is based on some future expected result. You can’t touch, smell or see it in the present. If we are rewarded for our faith, such as trusting that fire truck to come when we expect it, then our faith in that institution is reinforced.

Faith is the single most important force-of-nature driving all human experience.

Faith, religion, revolution, and publishing. Trust me, I’m going somewhere with this. The embedded PowerPoint below represents my attempt to pull it all together and make sense of where the publishing world is headed.



In the presentation, I draw parallels between the catalysts for the Egyptian revolution and the author uprising I foresee taking root in publishing.

If authors – the beating heart powering Big Publishing – lose faith in Big Publishing, then big publishing as we know it will die. By “Big Publishing,” I’m referring to the old, pre-self-publishing system embodied by the Big 6 New York publishers, in which the publisher serves as the author’s judge, jury, gatekeeper and executioner.

If Big Publishing approves of your book, they acquire it. Post-acquisition, an author can die happy knowing they’re a published author with all the esteem, respect and future possibilities embodied in this blessing. At least, that's what most authors are trained to believe.

Unfortunately, it’s tough to find a traditionally published author who waxes eloquent about their post-publication experience. It’s like the author goes to heaven and reports back via John Edward (the guy who talks to dead people) that they discovered famine on the other side of the pearly gates.

Big Publishing, although it employs thousands of talented and well-intentioned professionals, is built upon a broken business model.

The cracks are growing more apparent, and before long, authors – both traditionally published and otherwise – will lose faith in the institution. When that happens, the seeds of revolution are sewn. Some might argue we’re already there.

Ask Not What your Publisher Can Do for You

Two questions and their answers will drive the author uprising against Big Publishing:
  1. What can a publisher do for me that I (the author) cannot do for myself?
  2. Might a big publisher actually harm my prospects as an author?
Ten years ago, the answers to these simple questions validated the need for Big Publishing. Why? In the old print world, Big Publishing controlled access to readers. They controlled the printing press and the access to retail distribution.

Yet these same questions asked today yield mixed results. In the last four or five months, Joe Konrath started urging readers of his blog to abandon Big Publishing (he calls it “Legacy Publishing”). He contends indie authors can produce, publish, price and promote a book more effectively than Big Publishing.

Amanda Hocking, in her recent interview with USA Today, was quoted as saying, "I can't really say that I would have been more successful if I'd gone with a traditional publisher."

No doubt, much of Hocking’s success is because she’s an indie author. She writes great books her readers love. She prices her series-starters at only $.99 and the rest at $2.99. Great books + low prices + enthusiastic fans + an author directly engaged with her fans = viral readership. Few big publishers are prepared to play by these new rules.

Every week we hear of self-published authors who were previously rejected by Big Publishing finding success with self-published ebooks. My presentation lists 50 Indie Ebook Authors to Watch. Brian Pratt, profiled here in December, is one such author. Ruth Ann Nordin is another. Nordin's An Inconvenient Marriage is the #2 best-selling romance title today in the Apple iBookstore’s romance category, and #35 among all paid titles at Apple.

Two or three years from now when ebooks account for more than 50% of the book market, the same two dangerous questions above will yield a more unequivocal answer in favor of self-publishing.

All the major ebook retailers – Apple, Barnes & Noble, Sony, Kobo and Amazon – have embraced indie ebook authors and grant them equal shelf presence alongside Big Publishing authors. Smashwords is now distributing over 20,000 titles to most of these retailers (we're not at Amazon yet). Readers, not publishers, decide what sells.

Do authors still need publishers in this new world order? I think it all goes back to my first question. To survive and thrive, publishers big and small must do for authors what authors cannot or will not do for themselves.

Welcome to revolution.

Thursday, January 13, 2011

Smashwords Adds Longer Book Descriptions

You asked, we listened. Smashwords today added support for longer book descriptions.

Our previous book description supported only 400 characters. Many authors found this limiting. We now offer an optional second, longer description that supports 4,000 characters.

The longer descriptions are available immediately for all new book uploads.

For our current 30,000 + titles (yeah! we surpassed 30K the other day!), you can add the new descriptions by clicking to Dashboard: Settings.

In the next few weeks, the longer descriptions will begin appearing at Smashwords retailers such as Apple, Barnes & Noble, Sony, Kobo and Diesel.

If your book is already approved for the Smashwords Premium Catalog, your longer book description will trigger the "Resubmit this book for premium distribution" button. Click the button. This will put your description into our fast track queue for approval (see the approval requirements below). While the description sits in the queue, the previous version will continue to ship to retailers. Some of our retailers support both short descriptions and long descriptions in their feeds, so we'll provide both if available.

After you upgrade your description with the addition of the longer version, we'll automatically ship the longer version to retailers that support it.

As I write this, the feature has been live for only a few minutes and already I see Smashwords author DN Charles from Australia has become the first author to create a long description for their book, Child of the Moon.

As with the previous descriptions, there are some basic dos and don'ts we and our retailers ask you to follow.

First, the "don'ts":
  • Don't assume the reader has read your short description
  • DON'T WRITE THE DESCRIPTION IN ALL CAPS. AVOID ALL CAPS.
  • Don't include email addresses or web addresses
  • Don't add Smashwords coupon codes (our retailers cannot honor them)
  • Don't mention limited-time pricing or other promotions
  • Don't mention our retailers' competitors in the description (or in the book for that matter)
  • Don't insert fancy glyphs or symbols, because these will turn into "?" marks at retailer sites
  • Don't make promises the book or the retailer cannot keep

And here are some recommended "Dos":
  • Do make it a complete, standalone description
  • Do make a good first impression. Write snappy, articulate copy that hooks the prospective reader from word one. I'm often surprised when I see authors write an uninspiring description such as "This is my poetry. I hope you like it." J.K. Rowling or Dan Brown could get away with that, but you can't. Take advantage of your description to celebrate your book. Sell!
  • Do check your description for typos and grammatical errors (common sense).
The longer descriptions are consistent with our ongoing effort at Smashwords to help our authors, publishers and retail partners improve the visibility and discoverability of Smashwords books. These improvements also improve discoverability of your books at Smashwords.com and in search engines.

In the last few weeks, we've begun distributing author bios and other enhanced metadata to some of our retail partners. At Barnes & Noble, for example, we're now shipping author bios and double BISACs (BISAC codes are industry-standard category identifiers that help retailers place the book on the proper virtual shelf). More to come as we continue evolve our enhanced retailer metadata feeds.

Friday, December 31, 2010

Smashwords Year in Review, Plans for 2011

Welcome to my annual Smashwords year in review where I report our progress and plans for the new year.

2010 was a breakout year for us. It was also a breakout year for our indie ebook authors and publishers.

Exactly two years ago we were publishing 140 books from 90 authors. We thought that was fantastic for our first year in business.

Last year at this time we hit 6,000 books from 2,600 authors and publishers. We were thrilled.

Today we're listing 28,800 books from over 12,000 authors and publishers. We released 3,200 new ebooks in the last 30 days alone. We're pinching ourselves now, not just because of how far we and our authors have come, but because we know we've barely scratched the surface of the possible.

Six years ago Smashwords was a jumble of simple ideas scribbled on a sketchpad. Today it's a reality.

My original idea was simple: Create a free ebook publishing platform that would allow any author, anywhere in the world, to instantly publish an ebook at no cost. Authors, I believed, should have the right to publish whatever they want, and readers should have the freedom to decide what's worth reading.

From the beginning, just about every conceivable odd was stacked against us. When we launched, ebooks accounted for about 1/2 of 1% of the overall book market; self-publishing was considered the option of last resort for failed authors who couldn't find an agent or publisher; and self-published books weren't selling. All the ingredients for a successful business, right? I thought so. I had a hunch all of this would change because it needed to change.

I believed traditional publishers were squandering the future of books. After decades of consolidation, big publishers began sucking the soul out of publishing. They began judging the merits of a book through the myopic prism of perceived commercial potential - a recipe for dumbing down publishing with more milquetoast celebrity books. Wanna buy a book from Justin Bieber, Snooki or the Kardashians?

The shift to this commercial filter meant that authors who otherwise deserved publication were denied the opportunity, therefore depriving readers of their ability to enjoy these books. If you value books, and if you believe as I believe that books are essential to the very future of mankind, then it's time to rise up and do something about it. I've always had this higher purpose in mind with Smashwords. If you look at our logo, the fist symbolizes the indie author revolution.

We're also building a business as we try to change things for the better. In my 20+ years of technology entrepreneurship, I've always been drawn to startups that have the power to effect positive social change. This was certainly the case with my last startup, Bestcalls.com, where I helped level the playing field for small stock market investors.

Smashwords, to me, is the startup of a lifetime. Every day I'm excited to be part of it. Smashwords will only ever be as great as the authors and publishers we enable. Considering the vast reservoir of creative talent we have yet to help unleash upon the world, I'm confident our best days are ahead of us.

Back to the business. What a difference a couple of years make. Today, ebooks account for nearly 10% of trade book sales. This number will probably double in 2011, and as I predicted over at GalleyCat earlier this week, I think on a unit volume basis, ebooks will account for one third or more of all book consumption come December 2011. I never imagined this would happen so fast, and it's possible I'm underestimating the growth this market will experience in the coming year.

After 31 months of advocating the indie ebook gospel, I still wake up every morning invigorated by our possibilities and potential. We attack every day with the tenacity of a newborn startup. Like I said last year, and I'll say it again, we're just getting started.

Some of the highlights of the year in addition to the numbers I shared above:

Distribution highlights:

  • Smashwords is now one of the largest distributors by title count of indie ebooks to retailers such as Apple, Barnes & Noble, Sony, and Kobo
  • I'm very pleased with the support these retailers have shown our indie authors and publishers. Retailers are starting to earn real profits from our indie ebooks. This is cause for celebration for all indie authors and publishers, because it means access to more distribution in the future.
  • In April Smashwords became one of a small handful of global aggregators serving the Apple iBookstore. On launch day of the iPad, we had over 2,000 books in the Apple iBookstore. When Apple launched the iBookstore in Australia, we had nearly 10,000 books in the store.
  • In December we successfully transitioned all of our retailers to agency pricing. This means authors and publishers set the price at retail, and earn 60% of the list price.
  • Preliminary sales reports from Apple and B&N indicate that sales tripled in the couple of days following Christmas. It will be interesting to see how these numbers moderate over the coming weeks.
Traffic to Smashwords.com:
  • In the past year, people visited Smashwords from 227 countries
  • 59.6% of visits came from the U.S.; 40.4% came from outside the U.S.
  • Top 5 countries (U.S., U.K., Canada, India, Australia) accounted for 80% of visits
  • Top 20 countries accounted for 90%
  • Top 40 countries accounted for 95%
  • Millions of people visited Smashwords.com this year for the first time
  • Smashwords.com receives millions of page views each month, and our traffic continues to grow each and every month.
  • Yesterday, December 30, was an all-time record for number of visits to Smashwords.com

Business Highlights


  • Way back on October 7, 2009, when we reached 150 million words published, I set a crazy goal to reach one billion words by December 31, 2010.
  • On October 20, 2010, we reached one billion words nine weeks early.
  • Today, December 31, 2010, we've beat the goal by over a quarter billion words.
  • We redesigned our web site infrastructure this year to support faster performance and greater reliability. The site's uptime and performance is excellent now, and has been scaling very well as we achieve record traffic each month.
  • We made multiple enhancements to our Meatgrinder conversion system this year, and as a result the quality of our ebook outputs is better than ever.
  • A few months ago we reached profitability. Nothing spectacular, and not enough to pay me a salary yet because I'm reinvesting any excess cash back into the business. What this means is the business is now fully self-sustaining and we're adding staff. We're here for good. We accomplished this while also paying some of the highest royalty rates anywhere. Unlike other services that make much of their income by charging authors upfront fees for publishing packages, set-up, conversion, and other services of nebulous value, our services are free and accessible to any author. We believe our interests are aligned with our authors and publishers. The platform we created allows us to take a risk on every author. If we don't sell anything, we don't earn our commission.
What's coming in 2011:

Competitive front: Fight to survive and thrive. Despite our initial traction in the marketplace, our future is by no means guaranteed. We will continue to pursue our business plan with vigor because there's no room for complacency. We've already seen multiple upstart competitors try to launch Smashwords knockoffs. Good luck to them. They'll soon learn how tough it is to make a buck in this business. Have I mentioned I'm competitive?

Distribution: We love ebook retailers because they're expert at putting our ebooks in the hands of readers. Over the next 12 months we'll continue to add more retailers to the Smashwords distribution network, while working to build broader and deeper relationships with our existing retail partners. We understand that authors and publishers often have the option to go direct to retailer. Our mission is to make it more profitable for authors and retailers to work through us. We think we add a lot of value to the ebook supply chain for authors, publishers and retailers alike. If we don't add value, we don't deserve to be here.

Meatgrinder: As I mentioned above, we made a lot of enhancements to Meatgrinder. We'll continue to iterate and improve it in the months ahead, especially in the area of automated TOC detection. We'll also add more error-correction.

Premium Catalog reviews: For most of the year, we managed to maintain one week or less turnaround times on Premium Catalog reviews, though a few times we got backlogged up to two weeks. We're working on plans that should help accelerate Premium Catalog approval cycle times, so we can help you get your book in the catalog and distributed to retailers faster with less back and forth.

Surprises: We have several surprises planned for 2011. I can't tell you what they are otherwise they wouldn't be surprises.

Stretch Goal: Our goal is to hit 75,000 indie ebooks published at Smashwords by December 31, 2011. This means we need to add 47,000 books in 12 months. That works out to 130 new releases each day or one new book every 11 minutes.

Ongoing Education: While I sometimes criticize some of the practices of big publishers, I continue to have enormous respect for professional publishing and the people in publishing. Although we make it easy to self-publish an ebook (some have said "too easy"), we don't make it easy to produce a book worth reading. That responsibility lies in the hands of the author who must now step up to the plate and become a professional publisher. They must adopt proven best-practices of publishing, such as professional editing, revision and proofing prior to publication, and professional cover design. We'll do our best in the coming year to continue to help authors and publishers improve the practice of publishing so they honor their readers with books worth reading.

Smashwords Direct: Right before Christmas, we began working with a large publisher of public domain books to convert and distribute 10,000+ titles across the Smashwords distribution network (the numbers above don't reflect these direct titles). Since we don't accept PD titles at our Smashwords.com retail site, these titles will only go to retailers. In the year ahead, we'll look for additional opportunities to help other large publishers take advantage of our expanding distribution reach.

Smashwords.com Refresh: We're noodling on multiple ideas to give the site a refresh so we can do a better job of showcasing the higher quality titles, as determined by real customer downloads, purchases and reviews. Ever since we launched in May 2008, it was important to me that every new Smashwords book receive its 15 minutes of fame on the home page as a new release. This gives every book a fair and equal chance to find its first readers, and if the book is truly wonderful, the readers can take it viral from there. The downside of this democratized feature process is that everything new hits the home page, and often the work isn't ready for prime time. It might be missing a cover image, or the author didn't properly format it to the Style Guide. Our current policy of showcasing all the latest releases - even the obviously poor ones - ultimately gives first time visitors a warped perspective of the true talent captured within the Smashwords catalog. Another issue I want to tackle is adult content. We're big supporters of free speech, but we often receive complaints from visitors and authors shocked by some of the erotica images they see on the home page - images they'd never see on the home page of another bookstore. We also have kids who hit the home page for their first visit, and such content isn't appropriate for them either. We're working on ideas in this regard that can strike a fair balance, while still allowing our professional erotica authors and publishers to get their books exposed to more customers who are searching for that content. Stay tuned as we work to strike a good compromise that benefits all parties involved.

Responsible Adult Content Publishing: There have been reports that Amazon has clamped down on incest-related titles, and some authors and publishers worry this is the start of a trend toward increased retailer censorship. At Smashwords, we've always articulated a very clear policy in our Terms of Service regarding acceptable content, and we were probably one of the first to define a clear policy against publishing erotica that includes underage characters, even if those characters are bystanders in the story. If the story is intended to titillate, kids don't belong in it. Simple. We've started encouraging our erotica authors and publishers to clearly state inside their books, if not in the book description, that all characters are 18 years of age or older. I think it's important that responsible erotica authors and publishers self-enforce these reasonable guidelines, otherwise retailers will be forced to think twice about carrying such content. Smashwords was founded with a fierce belief in free speech and no censorship, and our conviction on this issue remains true, but that doesn't mean anything goes.

For those concerned about censorship in the retail channel, I can happily report that I'm aware of fewer than a dozen titles that have been outright rejected by our retailers, and in some of those cases the content violated our Terms of Service anyway. In other cases, the authors were able to make minor modifications to cover images to satisfy retailer requirements. This works out to less than one thousandth of one percent of our titles. I think the small number reflects not only the responsibility shown by erotica authors and publishers to comply with our Terms of Service, but also the benefit of our manual vetting process at Smashwords for Premium Catalog distribution. I know our retailers appreciate we self-police. We're also thankful to Smashwords readers and customers who report potential violations to us, so we can work with the author/publisher to proactively remove or fix the content.


My New Year's Thanks to All

To the 12,000+ authors and publishers who entrusted your precious books to Smashwords over the last 2.5 years, and to those of you who stood by us despite our many inevitable growing pains, and who always believed in our commitment to do right by you, thank you for believing in us. We will continue to run our business with the highest ethical standards and transparency as we always have, and will work to earn and deserve your continued trust every day. Happy New Year!

Tuesday, December 28, 2010

2011 Predictions for Book Publishing

It's annual prognostication time when folks like me stick out their necks and try to predict the future. I invite you to join in the fun. Brush up your crystal ball and share your publishing predictions for 2011 in the comments field below.

Earlier today, Jeff Rivera over at MediaBistro interviewed me for my ten book publishing predictions for 2011.

I'll list five below, and then I encourage you to click over to Mediabistro for the full ten in his interview, Publishing Predictions for 2011 from Smashwords.

If 2010 was the year ebooks went mainstream in the U.S., 2011 will be the year indie ebook authors go mainstream. We've already seen this start to happen with some tremendous indie ebook author breakouts in 2010. I wrote about Smashwords author Brian S. Pratt a few weeks ago.

So here are five predictions for 2011:

1. Ebook sales rise, unit consumption surprises – Ebooks sales will approach 20% of trade book revenues on a monthly basis by the end of 2011 in the US, yet the bigger surprise is that ebooks will account for one third or more of unit consumption. Why? Ebooks cost less and early ebook adopters read more.

2. Agents write the next chapter of the ebook revolution – Agents, serving the economic best interests of the best-selling authors, will bring new credibility to self publishing by encouraging authors to proactively bypass publishers and work directly with ebook distribution platforms. Agents will use these publishing platforms for negotiating leverage against large publishers. The conversation will go something like this: “You’re offering my author only 15-20% list on ebooks when I can get them 60-70% list working direct with an ebook distributor like Smashwords or a retailer like Amazon?”

3. More big authors reluctant to part with digital rights – Indie ebook publishing offers compelling advantages to the author. The economics are better (see #2) and the publishing cycle times are faster (an ebook manuscript can be uploaded today and achieve worldwide distribution in minutes or days, not years). Ebooks also offer greater publishing flexibility (shorts, full length, bundles, free books), and the opportunity to reach more readers with lower cost (yet still higher-profit) books. The advantages will entice more professional authors to self-publish some or all of their future catalog, and all of their reverted-rights catalog.

4. Self Publishing goes from option of last resort to option of first resort among unpublished authors – Most unpublished authors today still aspire to achieve the perceived credibility and blessing that comes with a professional book deal. Yet the cachet of traditional publishing is fading fast. Authors with finished manuscripts will grow impatient and resentful as they wait to be discovered by big publishers otherwise preoccupied with publishing celebrity drivel from Snooki, Justin Bieber and the Kardashians. Meanwhile, the break-out success of multiple indie author stars will grab headlines in 2011, forcing many unpublished authors off the sidelines. As unpublished authors bypass the slush pile, publishers lose first dibs on tomorrow’s future stars.

5. Ebook prices to fall – It’s all about supply and demand. Demand is surging, but supply will overwhelm demand. Average ebook prices will decline, despite attempts by Agency 5 publishers to hold the line. The drop will be fueled by the oversupply of books, abundance of low-cost or free non-book content, influx of ultra-price-sensitive readers who read free first, fierce competition for readership, and digitization of reverted-rights and out-of-print books. Indie authors, since they earn 60-70% retail price, can compete at price points big publishers can’t touch.

Read all ten of my predictions in the full interview over at Mediabistro, and please share your own predictions in the comments below.


Image credit: Wikipedia

Wednesday, December 8, 2010

Smashwords Author Brian S. Pratt to Earn over $100,000 in 2011

At first glance, Brian S. Pratt of Boswell, Oklahoma doesn't fit the stereotypical profile of a best-selling author. Yet he, and others Smashwords authors like him, represent the future of publishing.

Pratt began publishing with Smashwords in early 2009. His first quarterly royalty payment was $7.82. While most authors would find that number discouraging, Pratt was encouraged. It was a start.

In the quarters since, Pratt's earnings have grown, and in recent quarters he's become a veritable breakout success. Last quarter, he earned over $18,000 from sales across the Smashwords retail distribution network. This quarter, with three weeks to go, he's on track to break $25,000. He's on track to earn over $100,000 in 2011 at Smashwords, and up to $200,000 total when he includes his projected Amazon sales. Not one to count his eggs before they're hatched, though, he's fast at work on a next series.

The road to here was anything but easy. At age 43, he's held a number of eclectic jobs, ranging from an U.S. Air Force avionics technician to a taxi driver. Until recently, as he shares in the interview below, he was living below poverty level.

He writes fast-paced, can't-put-it-down fantasy. Pratt started writing because the series authors he enjoyed reading weren't completing their series fast enough. So he started writing books he'd like to read. Unlike some ebook series writers who carve up books into short serialized chunks, Pratt's books are full-length, with most clocking in around 150,000 words.

His writing style is completely his own, and any New York editor would surely bristle at the rules Brian breaks. His most popular series, The Morcyth Saga, is written in the present tense (though he changed to past tense for subsequent series). It's no wonder that after years trying to land an agent and a publisher, he faced unanimous rejection from publishing experts.

Yet readers had other plans for Pratt, as we learn today in this interview.

Lacking a traditional outlet for his work, Pratt self published in 2005, first in print and later ebooks. Today, his ebook sales far outpace his print sales by a factor of more than 100:1.

Today, Pratt has 17 books at Smashwords, and we distribute the books to Barnes & Noble, Apple, Sony and Kobo, as well as to online mobile app catalogs of Stanza and Aldiko.

His Morcyth Saga, a seven-book fantasy adventure series, is by far his most popular collection.

Below in this exclusive interview, Brian S. Pratt recounts the long road to his overnight breakout success.


[Mark Coker] Brian, tell us about your books

[Brian S. Pratt] I have 17 books completed spread across several series. Most are full length, epic fantasy type novels, each anywhere from 120,000-190,000 words. I have a few I call my mini's that are just plain fun and get the reader into the adventure from the get-go. These range from 60,000-90,000 words.

[MC] How did you get started as a writer?

[BSP] Back in 2005, I found myself waiting for several of the main authors to get around to finishing their next novel. The biggest one that annoyed me was The Wheel of Time by Robert Jordan. Don't get me wrong, I absolutely loved the series up to around book 6; then it lost me. Action grew infrequent and far between. It got bogged down in mundane details. Jordan wasn't the only one I was impatiently waiting for. So, on March 1, 2005, I sat down at my computer and decided to write The Morcyth Saga. Figured I could do a good job and write the kind of book I wanted to read. One that had action in every chapter, you followed the main character throughout, and descriptions were down to a minimum. That is exactly what you get in The Unsuspecting Mage; Book One of The Morcyth Saga.

[MC] What training do you have as a writer?

[BSP] Training??? Not a bit. All I started with was the drive to write a story and everything else followed. I ended up writing a seven book series in Present Tense, rife with errors in grammar, spelling, and punctuation. Most of the errors have been fixed in subsequent editions. My word usage was not what one would find in the traditionally produced books, some said it was too simple. I don't know about that, but at least you don't need a dictionary at hand when you read my books. Some have liked it, others less so. My books feel different than others for that reason.

[MC] Tell us about some of the first customer reviews you received, and how you reacted?

[BSP] Reviews, yes there have been some dillies. Here's the first one-star I ever received. It was at Amazon.com less than a month after I first published The Unsuspecting Mage.

1.0 out of 5 stars - January 15, 2006
Present tense is an amateurish way to write.....,
.....and this book reads like it was written for a high school English class. Worst book I've read in a long time. I like lots of books, especially ones written by Robin Hobb, George Martin, and Stephen Donaldson to name but three. These books were well written. This one was not. Just wondering - how many of you are still in high school yourselves?
The last line was directed at the other reviewers who said they liked my book.

Needless to say, this devastated me and I stopped writing for a few weeks. Of course, I've had much worse ones since. But then, my books kept selling. And I always told myself that as long as my books keep selling, even if it is marginally, then it would be worth it to continue. I've come to realize that there will always be those that do not like my books, and so what? They simply are not in my target audience. And my target audience is me. I write what I would like to read. And it looks like there are many "me's" out there for I've sold lots of books. If you want to see what may be in your future, check out The Unsuspecting Mage at Amazon.

[MC] You joined Smashwords March 27, 2009 10:26pm (I checked!). Can you take us back to that moment in time, and recall what was going through your mind

[BSP] Let's see. I was a single dad living with three kids and boy, was I poor (under the poverty level). Up until then, I hadn't really thought much about eBooks. I tried Mobipocket for a while and had great sales for three months, then it died off. Sales for my paperbacks, which I had published through iUniverse had fallen off dramatically. Where I had been breaking 4 figures a quarter, I was now less than 600 per quarter and bleeding red. I typed in "self publishing" and saw a quirky little site called Smashwords. It said, Your eBook, Your way. Didn't cost a thing so what did I have to lose? First quarter sales at Smashwords were dismal, 2009-04-07 — $7.92 As it happened, April 7th is my birthday. That was cool. But I wasn't deterred. Books were selling. Sometimes, one or two a week, but they sold. I stayed with it and refused to allow all the naysayers (and there were those by the droves) to stifle my dream. Sales gradually improved and, well, here we are. Can't give up on your dream, EVER!

[MC] Your first quarter at Smashwords you earned $7.92. I've seen some new Smashwords authors jump for glee over a number like that, and others have unpublished their books and quit Smashwords in disgust. What was your reaction?

[BSP] My reaction was "I'm ahead, $7.92” By this time I had been published for a little over 3 years and had seen sales go up and down. Can't make any kind of decision based on just one quarter. Plus, I was getting the hang of how to make Smashwords work for me. You can't just publish your book, sit back and think, "Okay, the money is going to roll in now." It ain't gonna happen. The industry is stacked against anyone who is just starting out. You have to get out there and grab readers by the collar and shout, "Here I am!" They won't find you or care about you until you do.

[MC] Your sales started small but then grew steadily, and in more recent months you've broken out into the best-seller lists at some of our retailers. What was the secret?

[BSP] After receiving my second royalty check which was only $183.60, I figured I needed to get busy and get creative. So I first looked around for a good place to advertise and found Project Wonderful. They suited my needs perfectly; ads would run on websites for pennies a day. I then created a coupon code that would discount my first book for free. I then created a series of ads stating that a free copy was available, all they had to do was copy down the code and go to Smashwords for their free copy. Well, that bombed and bombed badly. Came to realize that I was asking way too much of customer. In order to get my book, they had to go to Smashwords, create an account, put in the code, then download.

People are inherently lazy about shopping, especially in this world where everything is a click away. I pondered on the lack of success with my coupon code, then realized that if I just made the book free, they would only have to click the link in the ad, then download a free copy. Simple. (Keep it Simple-Stupid) I made it so easy for people to download my book, that downloads jumped. Subsequently, sales for books 2-7 jumped as well.

If it’s free and downloading is just a click away, people will do it. Very few can walk away from a free deal. Unknown authors are risky to readers and few wish to risk money, or time, to try a book they are not sure they will even like.

When Smashwords signed the deal with Barnes and Noble, my sales jumped 300% that quarter. Barnes and Noble have one of the best “Free eBook” sections and now people could find my book without having to see a small ad. Without Smashwords free copy of book one at Barnes and Noble, I would hardly be doing the sales I am today. That was the one act that set into motion sales the likes I never thought possible for an Indie without agent, editor, or publisher.

[MC] Prior to publishing at Smashwords, multiple agents and publishers rejected you. Tell us about your most memorable rejections.

[BSP] No one wanted me. All the rejection letters were worded very politely, but you can’t help but adding phrases to them like “You suck as a writer” or “Your book would be good to keep my table level but as for making money, it has a better chance to spontaneously combust.” When I published it through iUniverse, I opted for an editorial review ($300 at the time). They basically said the manuscript would need a serious overhaul before it would become commercially viable. And oh by the way, we do have many such services available…for a price. At the time I thought it was a complete waste of time. But now looking back with five years experience under my belt, many of their comments had merit. Although one must keep in mind, had I continued working with my first book to get it right, I’d still be working on it to this day and all subsequent ones never having seen publication. There comes a point when a writer has to say, “It’s ready. Good or bad, let’s see what happens.” What happened in this case was that there were many people out there who enjoy a good adventure and have since traveled with James through 8 books and are patiently (impatiently might be a better word) waiting for the second installment of the follow-up series, Travail of The Dark Mage.

[MC] What does it mean to you to be described as a self-published author, or an Indie author?

[BSP] The biggest worry a writer had back in 2005 was whether or not they wanted to be stigmatized as “self-published.” Once stigmatized, I was told, never again would a traditional publisher take you on. Unless you sold over 50,000 copies. But then, I thought, if I sold 50,000 copies, what would I need a publisher for?

Now, I think of it as a badge of pride. My success is mine, no one else’s. Everything that comes from my books, comes because of the hard work I, and I alone, put into it. Others have helped, but I spearheaded it and got it done. Even if today I was to get a publisher, from what I’ve heard of other author’s experiences, they still do most of their own publicity and get tied into restrictive contracts and unrealistic demands. Case in point, the movie Back to the Future. The head of the studio sent the producers a memo in which he stated that “Frogman from Mars” would be a better title. What a nightmare to have to deal with that. As a self-published author I don’t have to worry about another’s “taste” or “ideas.”

Of course, if you fail, again you have no one else to blame. But the only failure you will have, is if you quit. Try new ideas, talk to those who have succeeded, most of all don’t give up.

[MC] What's your view of the future of indie authorship, and where do you think traditional publishers fit into your plans, if at all?

[BSP] Indie authorship is here to stay and the traditional publishing houses better get used to it. They also better not discount the effectiveness of its appeal or they’re going to regret it. I think they are going to wake up one morning and wonder where all their profits have gone. The better authors will do it themselves because they are going to make more money at it. Also, as the Indie Revolution continues, more and more authors being sought by publishers will be taking hard looks at their contracts. True, if you only have a single book, traditional publishers may be the best route. I make money because I have a series, a completed series, and give the first one away free. Can’t beat free for advertising.

As of today, I no longer send query letters (what a waste of time that was) to agents. No longer submit to publishers or even enter contests. My books are not award winners. They are merely fun books. I’ve tracked winners in the past and they don’t always do well.

What would happen if I got an email from a publisher asking for publishing rights? I’d listen to what they have to say. I’d carefully scrutinize any contract for how future books would be affected and so forth. I feel the restriction and demands made by them would far outweigh any increased royalties. But I could be wrong. Never say never to anything where money is concerned.

[MC] Where does print fit into your publishing strategy going forward?

[BSP] Print goes hand in hand with eBooks. You have to have a print copy of your book. I sell maybe 2 or 3 books per 1000 eBooks. Not much, right? Keep this in mind. eBook readers tell their book reader friends about your books. If you want them to buy it, it needs to be available. My biggest hurdle with print has always been pricing. Not much you can do about that, self-publishing print books is expensive no matter where you do it. I’d suggest Lightning Source Inc. they’re the best and will put your books before the most customers.

[MC] Imagine you're mentoring a new author today. What three secrets to success would you share, and why?

[BSP] Actually, I’ve already helped over a dozen authors with getting started. I take the time to answer questions and give advice freely.

  1. First thing I advise is to be approachable. Have an email address solely for those contacting you as an author and post it everywhere. If someone sees your book, that email address had better be there too. And remove the spam filter. About a year after I published my first book, I happened to check my spam folder and found 3 emails from readers. Made me mad. Also made me wonder how many others couldn’t get hold of me due to my (censored) spam filter. There was this one author, forgot who, but I saw his profile on Amazon. It basically said that he didn’t want to be bothered with questions from readers, nor did he want to hear from other authors. And oh by the way, won’t you buy my book? –Not word for word, but that was the gist of it. Needless to say, I didn’t even look as his book and have since forgotten the guy. I’ve earned many steadfast fans simply because I responded to them in a personal and friendly manner.

  2. Get a website. They’re pretty cheap and are absolutely invaluable. Your readers need a place they can go to learn more about the books, and about you.

  3. Listen to your heart, not reviewers. If you can’t stand criticism, find something else to do. Also, when you get your book first published, friends and family always like to post reviews. Well, there are certain things you need to explain to these reviewers before they post.

    A.
    One line reviews are worthless. Saying, “This is greatest book I’ve ever read!!!” is a waste of time. It means nothing to no one.

    B.
    Tell potential customers about the book. Why is it great? Why did you love it? Why should they spend time and money to read it? Give an example from the book. If you use an example, it gives your review more weight for it lends credence that you actually read the book.

    C.
    Don’t talk about just the good. Pick something negative and write about that too. A balanced review is more helpful, and more believable than one that just gushes praise. No matter the book, there has to be something that bugged them. If the book is self-published, there will be something to criticize. I received an email from one reader that said he read a review in which a previous customer complained that my book read like a D&D game transcript. The reader, a gamer by the way, checked it out on that basis alone and ended up buying the entire series. So never assume that a negative review will be negative to all readers.

  4. Here’s the biggie. Write. Seems simple doesn’t it? You’d be surprised how often we come up with excuses why we can’t write. If you’re a writer, then you better be writing. Finished a book? When’s the next one going to be published? Don’t stand still and see if the first one sells well before starting the second. Do you believe in what you are doing? Then for heaven’s sake, write. Set a goal. In the beginning, my goal was 20,000 words a week, or an equivalent time editing. I met that and in fact wrote Shepherd’s Quest, a 130,000 word book in 5 weeks. I was on roll.

  5. Don’t go to your family with your manuscript and ask, “How is it?” If you want an honest answer, go to Fanstory.com and join. You’ll find out fast just how good/bad your manuscript is. Friends and family are biased and will have a hard time seeing your work for what it truly is. If you ask for an opinion from someone who knows you, the person answering you knows that they’ll have to deal with you afterward so will say “it’s great” or give some other affirmative response. They don’t want to crush your spirit. I watched this one show once where a guy wore this t-shirt that said, “My mom thinks I’m cool.” Enough said.

  6. I have posted lots of useful info for self-published authors, or those thinking of going that route on my website. If you’re interested, check out my site, Brian Pratt Books. It’s a year old, but most of the info should still be fairly current. It will definitely give you some things to think about.

  7. We’re all in this together. Email me should you have questions or anything.

[MC] Every author must compete against hundreds of thousands of other books. What's the secret to breaking out?

[BSP] Write, keep writing, and when your fingers are sore, write some more. The more books you have out, available through the most channels, the better your exposure. Never cancel a channel unless you know another will fill the void. Best channels right now are Smashwords and Kindle. Neither costs you anything but time. From the first sale, you’re making a profit. If you give up, it’s over. Until then, anything can happen. I’m a prime example of that.

Find ways to get your book in front of people. Don’t expect glowing reviews to sell your book. After all, if readers don’t find your book in the first place, no amount of “good” reviews will help.

[MC] Now that you've achieved success as a writer, how might your writing change, if at all?

[BSP] I now understand why some authors take a long time in getting out the next book. The more books you have, the more time ends up being devoted to previous titles and other things (this Q&A is a prime example). Editing has always been a sore point with [my] readers, or rather, the lack of it. My books have never seen a professional editor and could use a touch of polishing. I’ll be looking into that with the new year.

[MC] Now that you're able to devote full time to your writing, what's your typical day like. What's your process?

[BSP] I spend far too much time on the internet checking sales, answering emails (I love that part) and seeing what’s going on in the world of publishing. Smashwords is usually the first page I visit in the hopes that sales have posted. Most days, I’m disappointed. There have been times when I thought, “What the heck is going on? Where are my sales?” But you know, they all come in before the quarter payout, and I’ve never had a problem with getting my money from Smashwords. [Note from MC: We hear you Brian! Faster reporting is one of our top priorities for 2011]

After that, I try to get some editing done on my newer works, then an hour or so of computer gaming. I write some, check emails again, and so forth. The longer a series goes, the more complex it becomes. You need to take into account all that has gone before, keep your characters consistent, and make it all seem flawless.

[MC] What's coming next?

[BSP] Finish Travail of The Dark Mage. I’m on book 2 and figure the series will be around 5 books. Never know for sure until I’m done. The initial plan for The Morcyth Saga was 10 books. Can you imagine what would have happened if I had contracted for 10 books with a publisher and instead came through with 7? Love being an Indie.

I do have ideas for another 2 series after Travail, as well as off-shoots like The Improbable Adventures of Scar and Potbelly, a series of short adventure books based on the duo from the series. One thing I do know for sure. I will not release another series unless I have it already completed. I hate making readers wait.

[MC] Thanks for sharing, Brian!


To sample or purchase the ebooks of Brian S. Pratt, visit his Smashwords author page