Agents, and Authors, and ebooks Oh my!
Agents, and Authors, and ebooks
Oh my!
Nathan Maharaj
@nrmaharaj
ebooks
and newspapers & magazines
200 "countries"
aka. ISO territory codes
>4MM users
~18 months
Apps everywhere!
<
Director, Merchandising
aka. "head bookseller"
30 minutes
April 1, 2010
$2.99
$9.99
John Locke
No, not that John Locke.
January 27, 2010
The Agency Model
Agency vs. Wholesale
Wholesale:
• Publisher sets List Price.• Retailer pays publisher a
% of List Price for every unit.
• Retailer sets Sell Price. • Retailer owns the whole
transaction.• Just like how print works
(except publishers get paid only on units sold).
Agency:
• Publisher sets List Price. • Agent (fka. Retailer) is
granted a commission as a % of List Price.
• Agents don't set Sell Prices. Publishers do. It's the same as the List Price.
• Agents transact on Publishers' behalf. (Tax implications).
• Legal?
April 1, 2010
Price
Mike Shatzkin on how publishers set prices
"Smart agents will be watching this carefully. They’re all aware that the ebook royalty they collect is the percentage they work so hard to negotiate times the revenue the publisher receives. Now the revenue is clearly affected by the publisher’s ability to set prices that capture the most possible consumer dollars. It will become clearer over time that changing those prices intelligently is necessary to maximize the revenue which maximizes the royalty. The publishers who figure this out first and best will have a powerful argument that publishing with them puts extra coin in their authors’ pockets."
http://www.idealog.com/blog/dynamic-pricing-what-it-is-and-what-it-isnt
Direct Publishing
70% 35%
70% Royalty
$2.99 $9.99
MFN
35%
John Locke