Self-Publishing Business Model Analysis
I wrote this analysis of the self-publishing model as part of my graduate work at Parsons School of Design.
The Long Tail of Self-Publishing
Chris Anderson’s concept of “The Long Tail” is growing in book publishing, thanks to an array of digital self-publishing tools and platforms that allow individuals to format and distribute their work without the aide of a traditional publisher. Lulu.com, for example, provides online tools to format a book, print it in hardback or paperback in small quantities, offer it as an eBook on Amazon, iBooks, Barnes and Noble, or the author’s own website. The site has built-in community support and forums for online Q&A, assisting self-publishers as they navigate the process. Another self-publishing option, the Kindle Direct Publishing program, allows authors to publish in five minutes, making their books available globally on Amazon within 24 hours.
These rapid and openly accessible self-publishing tools also have the markings of the Maker Movement. It was not only the emergence of the eBook, but more importantly, the democratized tools and platforms to create them, that have enabled an author to own the process of creation and distribution. Just as a designer can create a product such as a teacup using 3-D software and send the design to factory for small-scale production, never having to work with clay or a kiln, an author can provide content to a platform, and take advantage of tools to format, print, bind and distribute. Additionally, crowd-funding platforms like Kickstarter and Indiegogo allow prospective authors to raise money and awareness for their projects, simultaneously funding the project and building an audience early in the process.
The availability of self-publishing Maker tools for individual authors raises the question of how their use will impact the business of traditional publishers. The self-publishing system eliminates the necessity of involving a traditional publisher; authors can offer their product directly to the reader. This implication will likely have an effect on traditional publishing, but not a crucial one. Some major authors might choose to turn down publisher offers, favoring the benefits of self-publishing: retaining creative control, keeping more of their proceeds, and reaching a larger audience more quickly (for example, as an eBook through Amazon). While there is a risk that popular, established authors could leave their publishers in favor of taking full control of their work and its editing, distribution, and revenues, those authors might find that they still need to hire a small team of copyeditors and publicists to ensure the quality of their work, and schedule signings and interviews, respectively. Also, a major author is only afforded the viable option of switching to a self-published model because they have already connected with a large audience; they don’t need a publisher to launch and market their product. Self-publishing authors don’t have—and can’t easily outsource—the robust development, publicity, and marketing services of a publisher. The lack of marketing power is a critical reason that few self-published authors find huge success (but it is important to note that some do find significant success).
In fact, a small percentage of self-published authors earn most of the revenue in the model, with the others making very little. Even at the end of the Long Tail of book publishing, the self-published market shows evidence of its own long tail. But, viewed from the perspective of the Maker Movement, the principal value of the self-publishing model is in the empowerment of the individual author, not necessarily in success. (An article written by Alison Flood for The Guardian notes that only 5% of self-published authors consider themselves to be “unsuccessful.”) Self-publishing allows for books to be created and shared by individuals on a scale that was previously unthinkable; for the authors who just want to be able to put their stories out into the world, a self-publishing platform is the comprehensive, enabling tool. Because their books would likely be appropriate for small—and, perhaps more significant to the publisher, unidentified—markets, they would probably not be picked up by a publisher. Now, those authors have the tools to connect with their audience directly, aided by recommendation systems like Amazon’s, which can use consumer interest in more popular books to help drive traffic to self-published titles that otherwise wouldn’t receive attention on their own.
Another important consideration that factors into the potential success of a self-published book is its genre. According to Flood’s article, romantic fiction authors make 170% more than their peers, with most other genres performing far below average. This implies that self-publishing may only be a valuable model for a specific sub-set of fiction authors—not every genre is enabled equally. For purposes of contrast: scholarly and academic authors will not likely find a home in the self-publishing model – the importance of credentials in scholarly publishing requires the bolstering authority of a traditional publisher.
While the self-publishing system may have an effect on traditional publishers, it will not pose a threat. The self-publishing model could even assist traditional publishers by identifying potential authors. A publisher could view self-publishing as an independent pilot platform to determine marketability of an author, without the publisher putting any of its own money on the line. If a self-published author achieves success on his or her own, and establishes strong connections with an audience, this is a strong indicator that the author would be a lucrative signing for a publisher. The self-publishing model could take some of a publisher’s uncertainty out of signing a new author.
In addition to a potential positive impact on book publishing, self-publishing is seeing the creation of new markets and companies supporting the movement. There are websites and platforms that cater to self-publishing authors, offering important information about the process (like Bowker’s SelfPublishedAuthor.com, and IndieAuthorLand.com), free tools, varying levels of customer support, formatting and distribution options. There are even a number of Kickstarter projects for authors wanting to self-publish books about how to self-publish books. The model is alive and growing, becoming its own potentially influential entity within the long tail of book publishing.
References:
Flood, Alison. “Stop the Press: Half of Self-Published Authors Earn Less Than $500.” The
Guardian. May 24, 2012. Accessed October 13, 2013. http://www.theguardian.com/books/2012/may/24/self-published-author-earnings