Electronic Publishing: Subsidy vs. Nonsubsidy

by Karen Wiesner

I've received a lot of stellar praise for ELECTRONIC PUBLISHING The Definitive Guide from reviewers, readers and other publishers. I also received some flak -- not a lot, but enough to goad me into writing this introduction. Why doesn't ELECTRONIC PUBLISHING The Definitive Guide include subsidy publishers?

Is this a valid question? Not to my mind. Why didn't I include every single mass market publisher, small press publisher, university press, magazine and/or e-zine publisher? Quite simply, I chose to narrow my focus to a particular topic: non-subsidy, royalty-paying electronic publishers or traditional publishers (mostly small press) who offer multimedia options.

If nothing else, the argument between non-subsidy and subsidy publishing led me to delve a little deeper into the divisions, and I did see that there are myriad changes in the publishing industry. Not the least of which includes the definitions.

For purposes of this introduction, I'm including what I see as the four major divisions of publishers. These are my own categories and definitions, strictly for clarification in this guide:

1) Full-fledged vanity or subsidy, royalty-paying

This type of publisher requires upfront fees. Your book won't get published if you don't accept them.

2) "Cooperative" subsidy, royalty-paying

This is a new breed of publisher, and I have included a few of these, which have been clearly marked. This kind of publisher requires no upfront fees to the author; however, they don't provide some of the basics free. An author has the choice of paying for these "extra" services (like covers or in-depth editing), and whether or not they do them doesn't change an acceptance of the book. This is an adequate alternative for authors who know exactly what they're getting into before signing a contract. Authors, please look at publishers of this type with a scrutinizing eye before making the decision of whether or not they're right for you and your work.

3) Non-subsidy, royalty-paying

The author pays absolutely no upfront fees whatsoever, no fees at any time. Basics are provided free (in-depth editing, covers, all manufacturing and distribution.) Please note that it's my belief that publishers of this type may or may not pay for copyright and still qualify as non-subsidy. Copyright belongs to the author, so it's acceptable, though perhaps not exactly ideal, that the responsibility for obtaining what belongs to them rests with them.

4) Self-publishing

For purposes of this chapter, I'm defining a self-publisher as an author who decides to take on all the responsibilities of publishing their own novel. Many subsidy publishers call themselves "self-publishers" because it sounds much better than "vanity" and "subsidy" and much less stigmatism is associated with this definition. Don't be fooled. Subsidy publishing is subsidy publishing, no matter what you call it.

The intention of this introduction is to explain why I've chosen to include the types of publishers I have and why I've left the others out. With this guide, I feel I'm recommending e-publishing to a world of authors, be they published or unpublished. Mind you, I'm not recommending any specific e-publisher(s) in this task. Each author must choose what's right for them on their own, after doing the necessary research. The Guide is a starting point, a place to learn about the advantages and disadvantages, as well as the facts of e-publishing and for a definitive list of the e-publishers available to any given author. I've never claimed it's more than that.

I have no hidden agenda, no deep-seated prejudice against subsidy publishing. A prejudice implies hate for no good reason. I don't hate subsidy publishing, although I have some very concrete problems with the concept, especially if an author doesn't go into it well-informed. Nor do I begrudge or lose respect for an author who has gone this route. That is their choice. They have to research their options, decide what's best for them and what they can live with. I simply don't believe it's a good deal for the author.

I researched around ten "big name" subsidy publishers for this chapter. I queried a number of subsidy published authors, requesting interviews with them. When I contacted them, I told them I wanted their side of the story; I wanted this to be a balanced and fair account. I hope it is that, but there's really no way to know. Only one author agreed to the interview. This is an author I have the utmost respect for. I've read her books and I know she's one the most talented writers I've ever encountered.

This said, here is my reasoning on these four types of publishing:

Subsidy Publishing

To start off, I'm going to list the services a full-fledged subsidy publisher might give you for a fee, as part of the package:

• Hard cover/trade-size paperback/mass market paperback or electronic book

• Book design

• Manufacturing of books

• Royalties (generally 50-70%)

• Order processing/sales fulfillment

• Web page at the publisher's site

• Author copies (1 or 2)

• ISBN registration

• Copyright registration

• Library of Congress registration

• Registration with on-line booksellers

• UPC/EAN bar code

• Cover customization

• Editing

• Self-marketing kits (promotional items like bookmarks, etc.)

• Conversion (for electronic editions)

Most subsidy publishers have "bundled packages." Each tier of packaging adds more services -- and, of course, a lot more fees to what the author ultimately gets. Some of these fees are considerable. Some of the lower cost publishers charge around $100 for the basic package (usually includes simple manufacturing; not including many of the above services, such as covers and editing.) Some subsidy publishers "job out" these services, so often you'll pay set-up fees for each of the optional services you decide on with the individual company. The high-end subsidy publishers charge at least $300 to $500 for basic packages. If you opt to go further than basic, you'll be paying well over a $1000. These are not nominal fees for anyone but the rich. I would consider my family in the middle-class income bracket. We have house payments, standard monthly bills, etc.; we definitely don't live extravagantly. I feel we're very typical for a middle-class family. I couldn't afford subsidy publishing without going into debt to do it.

The author I talked to who'd gone the subsidy route said she'd spent under $1000 to have her book published (no editing service offered.) She said that the reason she'd gone with a subsidy publisher was "because family members and people in my hometown area are not knowledgeable about computers and they kept asking me how they could get my book." (Her book was published first as an electronic book.) When I asked her if she was disappointed with the final book and whether she felt she spent too much for it, she told me that she was very pleased with the finished product, even if she thought it cost too much. When I queried whether or not she'd go this route again, she said it cost too much to do again.

One of the biggest claims subsidy publishers make is that you, the author, get complete control. Is that really true? Does the author get to decide who does their cover, what goes on their cover? They're paying for it, but they rarely get much input. The author I interviewed said that her cover art options were limited, but she was pleased with her cover nevertheless. Frequently, subsidy published books have very uninspired covers. (Although I did see some very beautiful ones, which must have cost the author a bundle!) This is probably because the author couldn't afford more than something very basic and not necessarily tailored to their book. A huge majority of readers claim they're influenced by the cover when purchasing. So where is all the money (you're providing, mind you) the subsidy publisher is spending on cover design going if not into a professional, appealing cover?

The packages aren't negotiable. If you're not interested in, say, getting bar coding or assignment of a Library of Congress registration, you still have to pay for it if you happen to choose the package it's in. That's control?

Another big claim of subsidy publishers is that their books are selling like hotcakes. Are they really? The only real way to verify something like this is to poll a fair number of their clients. The author I interviewed said her subsidy published book had sold a "fair" amount, though she hasn't recouped her investment in terms of sales.

If you go for a basic package, it's quite likely very few people will buy your book. It doesn't have so many components an attractive book needs to influence a buyer. So if you're truly interested in getting your book out to the public, you'll have to go for one of the more expensive packages.

Where are these books for sale? For a fee, subsidy publishers will submit them to on-line bookstores for you. Some of the publishers have websites and you'll get your own page there (as part of one of the packages.) You most likely won't see your title in bookstores, chain or independent. Do these publishers offer catalogs? Probably not. Some have 800 numbers, but if they can't see the product how many people would buy it? When I asked the author I interviewed where readers found her book, she said, "Through word of mouth, local newspaper ads, my web page, and through being listed at Amazon.com and Barnes & Noble." So what kind of marketing are these publishers doing? The author I talked to told me the publisher did no promotion at all. Should the author do any of their own marketing? While it's probably the only way they'll make any money in this deal, they probably don't have enough left over after paying for the book.

I did ask the author I interviewed if she believed the term "self-publishing" was accurate for this type of publishing. She commented first that she'd never really thought of it, but "Of course, when you get down to the nuts and bolts of it, it is subsidy publishing, but I consider it self-publishing because they made no promises of promotion, or great sales, or any thing of that sort. They produced my book exactly the way they said they would and they have been very forthcoming about royalties, etc. I can certainly see where other authors see it as self- publishing."

Is this type of publishing worth it? For the author I interviewed, she believes it was. She had a specific purpose and she knew exactly what she was getting into. What does an author get from going this route though, if they make it their only means of publication? Sure, they've got a published novel, no doubt about it. But they probably don't have enough in their pocketbook to buy the champagne to celebrate the occasion. I'm not sure many authors would consider this their dream come true.

Let's look at this a little closer. The fees an author is charged are inflated -- count on that. They have to be because the publisher has to make a profit; otherwise there's no incentive to do it at all. So after using the fee to publish the book, anything over that is profit for them. Now, even if they give you 50% royalties (as the author I interviewed received), how is this fair to the author? These publishers are not taking any risks. Every single one of their costs are well-covered and they're taking 30-50% of the royalties in addition to the profit they make from the initial fee. The only person who stands to lose in this situation is the author. I couldn't and wouldn't recommend this route to any author, unless they'd tried absolutely every other route available to them, including self-publishing, and they went into it knowing exactly what they were getting into.

Cooperative Subsidy Publishing

With a "cooperative" subsidy publisher, as I said earlier, there are no upfront fees and that's good. If the publisher likes your book, they'll offer you a contract. You may have to pay if you want a cover, or more than a "basic" cover, or if you feel your book needs more editing. These services are not contingent on whether you're published though. Again, that's good. But I do still have a couple concerns about this type of publishing. What is the author getting as basic services here? Most likely the free services are:

• Hard cover/trade-size paperback/paperback or electronic book

• Book formatting/typesetting

• Manufacturing of books

• Royalties (generally 50-70%)

• Order processing/sales fulfillment

• Web page at the publisher's site/catalog

• Author copies (varies considerably and is negotiable)

• ISBN registration

• Registration with on-line booksellers

• Editing (very, very basic)

• Promotion

• Distribution

There are some publishers that make a distinction between "established" and "unestablished" writers. Basically, this means that if you've been published before, they don't charge you anything. If you're unpublished, you may be charged for some of the basic services, for hosting fees or for distribution and whether or not you pay these fees decides whether or not you get published by them. These types of publishers weren't included in the Guide this year.

The publisher here isn't taking much, if any, risk. They're asking the author to back them if the book doesn't sell well. This is far from ideal and the author should evaluate whether to move on. I highly recommend that authors do as much research as they can when approaching a cooperative subsidy publisher, so they know exactly what they get and what they don't with publication.

Non-Subsidy Publishing

Here's a list of what non-subsidy publishers (including mass market, small press and electronic) might provide free:

• Hard cover/trade-size paperback/mass market paperback or electronic book

• Book design/formatting/typesetting

• Manufacturing of books

• Royalties (generally 8-50%)

• Order processing/sales fulfillment

• Web page at the publisher's site/catalog

• Author copies (varies considerably and is negotiable)

• ISBN registration

• Copyright registration

• Library of Congress registration

• Registration with on-line booksellers

• UPC/EAN bar code

• Cover design

• Editing

• Advances

• Promotion

• Distribution

Do non-subsidy publishers claim their books are selling like hotcakes? Mass market publishers don't have to. You buy the books, I buy the books, everyone I know has bought at least one of their books. E-publishers would never claim something like that. They're very frank about the current state of this particular medium and the potential in it.

Where are the books on sale? Again, depends on the publisher. E-books are in bookstores on an individual location basis. The majority of them are sold on the publisher's website and through on-line bookstores, which isn't a lot different than on-line subsidy publishers. However, the books put out by non-subsidy publishers are generally where the reader can find them.

The publisher in this venture is taking a huge chunk of the risk involved in the process of producing this book. Author risk is very minimal, unless the book bombs completely. Both publisher and author stand to profit, though, in some cases considerably.

Is this worth it? What does an author get from a deal like this? A beautiful book, no loss but definitely profit (how much is individual, of course) and a dream come true. This is the kind of equality publishing (both publisher and author standing to profit, sharing risks) that is the ideal situation for authors.

Self-Publishing

What about self-publishing?

Self-publishing is definitely an option for an author, though generally not as good a deal as with a non-subsidy publisher. The risk is again all on the author, but they truly have total control. An author considering this route should invest in some how-to manuals to smooth the path (http://www.writersdigest.com and Amazon.com have many books on this topic. Just type "self-publishing" in a search engine and you'll come up with a long list. Recommendation: Publishing for Small Press Runs, How to Print and Market from 20 to 2000 Copies of Your Book, 2nd Edition by Gary Michael Smith.)

First, the money belongs to the self-publishing author: They know what's going where -- something you won't get with a vanity publisher. The self-publishing author can spend as much or as little as they want on the book, depending on how aggressively they want to promote and sell it. An attractive package is going to sell the book twice as fast as something cheap and simple. An added advantage is that the author takes 100% of the profits after paying all the costs of having it published.

Other reasons that self-publishing is definitely a better deal for an author than subsidy publishing is that an author can get many of the services a subsidy publisher charges you for at much better costs (i.e. not inflated.) For instance, if I were to self-publish, I know quite a few professional artists. Anyone with access to the WWW can track them down. If you get a hungry one looking for work (and that doesn't mean they're not extremely talented!), you can probably get a good deal. You may even have a very talented friend who is an artist or you may be artistically inclined. As for editing, critique groups may be all you need if they're ruthlessly thorough. Or you may yourself be a ruthless editor of your own work. Otherwise, it would be to your benefit to hire a professional editor to go over your book; that's always money well spent. Web pages: with a small investment, usually under $100, you can teach yourself to design an appealing website to sell your book from. If you're already tech oriented, you can offer your book as an electronic edition for little or no money, especially if you already have the necessary software. Promotional items: all you need is software and a good quality color printer. There are also dozens and dozens of ways to promote yourself aggressively for little or no money. It's also true that sending a copy of the work via certified mail is valid in a court of law. So copyrighting may be an unnecessary expense. But again, an official copyright is a worthy expense. Some self-published authors have been able to get their books into local bookstores (once you purchase an ISBN) or book clubs. With a little ingenuity, you might be able to manage this too. By saving money in some areas, you can spend what's necessary to get to an attractive end-product, something a reader will be influenced to buy. With self-publishing, you truly are in control of your book's destiny and it could very well be your dream come true if you play your cards right.

In conclusion, full-fledged vanity publishing is not a "good deal" from an author's point-of-view. It should be the absolute last option, and then only if this author is well-off because "basic packages" are simply not enough to sell a significant volume to discriminating readers. Cooperative subsidy publishers are not ideal but may be a decent start for a brand-new author, as long as they understand the deal prior to acceptance. Self-publishing is certainly a viable option for the brave of heart. The very best deal an author can find is with a non-subsidy, royalty-paying publisher. That should always be the first place to try to place your books.

Keep in mind this truth: A publisher shouldn't make their money from authors. They should make their money from sales.

Amen!

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