Getting Ready for BEA and First Look at New Book

Book Expo America is coming up in just a couple of weeks and we have a booth there!

Getting Everything Ready

Getting Everything Ready

We’ll be doing the trade show portion this year.

The really exciting thing we’ve got at the booth is the first look at our new book Crossing The Line by Caitlyn Armistead. We will be handing out ARCs to the first few lucky people and we will also be passing out cards with a coupon code to download it free from Smashwords when it comes out in September.

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We’re bringing plenty of other swag with us too. Looking forward to getting our name out there!

Bookstores and Getting Into Them (Starting a Small Press Publisher)

The holy grail of starting a book publishing company: getting your books onto bookstore shelves.

I’ve focused most of my efforts on ebooks and print-on-demand Internet orders for physical books. It’s a great model since it has such low overhead cost. It’s a pretty new model too, with ebooks taking off in popularity only in the last four years or so.

But I have my eye on getting my authors’ books onto bookstore shelves.

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The biggest thing holding me back is the nature of returns. Basically, books go to bookstores on a consignment basis. The books sit on the shelves and if they don’t sell, they get returned to you for a refund. You shipped out a bunch of books, got paid for them (at the steep discount that bookstores get) and then months and months later all that money has to be refunded! It can be a nightmare for a small business’s cash flow.

So you can’t count on any of the bookstore money until there are actual sales.

Okay, once I’ve got some money saved up so cash flow isn’t an issue, what is the process to actually get books into bookstores?

Who Is Your Distributor?

Createspace and Lightning Source both use Ingram as a distributor which means that working with them your books will show up as available for bookstores to order. The only trouble is, they set the terms not you. And they tend to set terms that aren’t attractive to bookstores. If you want bookstores to stock you, you’ve got to be willing to accept returns and give them a significant discount so they can maintain their profit margins.

I had a friend who works at a bookstore look up our books in her system and they are marked as unreturnable. That means the store is not going to take a chance on them.

Lightening Source may claim that with a fee you can make your books returnable, but my friend said in practice they are still effectively unreturnable.

The reason why? Because it is literally “print on demand” they don’t have a warehouse for returned books. The book is created when someone buys it so there is no inventory sitting around. I’m told that you may be able to tell bookstores that they can buy through Ingram but return directly to you. I’m going to try that out before I start looking for a non-POD printer, but that is probably in the future for this company.

Book Reps

Book Sales Representatives are people who travel to bookstores and present various potential books to the bookstore buyers. You can hire them to add your book to the list, but the issues with that are:

  1. Your bad terms still show up if the bookstore is interested in buying some stock
  2. It’s very expensive
  3. Your book is just one of a bunch they are representing and if it isn’t as flashy or exciting as another book they’re repping, then yours might not get much attention

More on hiring book reps here:

http://blog.bookmarket.com/2005/02/hiring-book-sales-representatives.html

http://www.andrewsmcmeel.com/for-the-trade/find-a-sales-representative

Talking To The Manager

It seems like the best way for a small press to start getting into bookstores is through the local route. Get to know the book sellers in your area. Go in and talk to them.

If you are the author or you are nearby the author, present your books as local. A lot of bookstores have a special section to highlight local authors.

Just ask if you can do a test run of books on their shelves. If they stock just five or ten copies, that’s a start!

Once those books are on the shelf, make sure they sell. Tell your friends and family, ask for help. The most important thing for bookstores is that the books sell. No matter how small the first run is, if it sells out than they will be interested in getting more copies in.

(Here is a great description of how an author did exactly that: http://www.selfpublishingadvice.org/selling-self-published-books-in-bookstores/)

Ask if you can do a test run on a consignment basis where the bookstores don’t pay for your books up front but they pay you back a percentage on sales. (Here is a list of examples of different bookstores and the terms they offer for self-published authors [which are going to be at least very similar to the terms for small presses particularly if they’re using POD technology]: http://www.mediabistro.com/galleycat/how-to-sell-your-self-published-book-into-bookstores_b51732 Note how important it is to be up to date on industry pricing).

You can also call bookstores and speak to the manager about your book. Here is one author’s advice on how to get them to carry your book:

But … if your self-published POD book is not picked up by Barnes & Noble corporate (the dream, as it saves plenty of time), you can still get it in the stores. How? By calling the stores individually, or hiring a salesperson to work on commission. This is what I do. Though several hundred Barnes & Noble stores still need to be called (ugh!), the book has been ordered by nearly 100% of the stores individually contacted.

Here’s the spiel. First, you give them the book’s title or ISBN number. Then, as the bookstore staff person is looking it up in the computer, say, “Though it is POD, it is through Ingram and fully returnable with regular terms.” If you do that, nine times out of ten Barnes & Noble will at the very least “short order” the title, that is, order two or three to see how it goes, before they place a larger order. This is assuming, of course, that you can sell the virtues of your title.

Shouldn’t be a problem, though, if you add, “Could you just short order a few and see how it goes?”

You’ll be surprised at your results. –http://www.absolutewrite.com/novels/how_to_get_your_self.htm

Just, check and make sure that it is fully returnable and if not, remember to say it can be returned to you directly.

Set Up A Signing

Ask your local bookstores if you can do an book signing at their location and offer to supply the books yourself.  Bookstores like events that will draw people in and if your book is selling well, they may consider stocking it.

Make sure that you get lots of people to your signing. Again, call in any favors you’ve got! If you bring the bookstore traffic, they will be interested in working with you.

Ask Fans To Request the Book

You can also create demand for the book before it is on shelves. Ask your fans to request them. If a bookstore doesn’t have the book, it can be special ordered for a customer. Tell your fans to ask at the customer service desk. Enough demand and the buyer at the store may want to stock it.

Networking

Up next for me are to look into getting a non POD printer and hiring my own distributor. I plan to make some connections to help me do that when I go to Book Expo America next May!

I’m super excited to have a booth at the trade show. This will allow me to present my books to bookstore buyers, library buyers, big chain buyers, as well as distributors.

It’s expensive to attend but it has fantastic potential to grow my business. Later on we’ll talk about booth set up because it’s important for both trade shows and bookstore signings!

One of the nice things about doing ebook first is that I have a sales record to show buyers and reps. I have books that have shown their market potential already. That’s a big benefit!

As the publisher, you’re going to be thinking about sales and proving your book’s sales potential. That’s a big part of the job or a publisher.

Keeping Track of Money (Starting a Small Press Publisher)

Once your books start selling you’re going to have a business bank account with a big (or maybe not so big) pile of cash in it. You know you want to use some of that to pay yourself, some to pay your authors but then you also know you want to use some of what’s left for advertising or for saving up for future editing and cover design. How do you keep track of how much money you have for each thing and not overdraft your account?

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I have tried a number of different systems from Excel spreadsheets to Mint.com to the “envelope system.” Then I found the YNAB program:

YNAB stands for You Need A Budget. And you really do! Let me show you some screenshots of my YNAB budget and take you through a little bit of how it works:

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So first, every time money comes in or goes out you record it on the account page (number 1 above). Then the balance that you have appears in “available to budget” (number two above). You divide that into each category (the first column) as you desire until the “available to budget” is zero. This way you know what every single individual dollar is doing for you! The third column (circled above) are like your envelopes. Any money you put into them stays there and builds up as each month goes by and you add more to that category. If you spend it that’s recorded on the account page (number 1 above) and it shows up in the second column, automatically updating your “envelope” to how much you have left.

You can also put a note to yourself when you set up the categories if you want to have a particular percentage of your income go to each category. For example the “Cover Artwork” category could also say “Cover Artwork 2%” and each time you get money in, you put 2% of it into that category. The YNAB does allow you to be flexible, though, since you can always see how much you have in each category and if you need to pull some from something you don’t use as often for an immediate need, you can.

YNAB2

Eventually you get to a point where you’re recording your money in as income for the next month. So when you get money for, say, July, you record it as available for August and it shows up in August’s “available to budget.” This way you are always working from and paying bills from money that you earned already the previous month and is in your account. There’s no speculating.

It will take a few months of sales to get you there. Many sales channels, as with most businesses, will pay you in March for money earned in January. So there’s going to be a two month lag to start seeing money for your first sales. (This is called Net-60 and it means that the business has 60 days from the time you earned the money to get you paid. So for money earned in March, April first they know the full amount of March’s money and then they have 60 days so they will likely pay you at the end of May. Some, like Smashwords, only pays you quarterly and that based on how much of your money they have managed to collect from their sales channels. So there can be a bit of a wait for your cash).

You can also save for yearly or irregular bills by adding a small amount to the category each month, such as paying for this website which happens annually.

Here you can see some of the categories that I have. There’s also payroll, taxes, and paypal fees and a “to invest” category. I figure I can save a little bit each month until I have enough to put into a high-yield savings account and start generating some interest to put back into the business. But I’m not even close to that yet!

Membership fees are for professional organizations like Romance Writers of America and small business guilds.YNAB4

I completely adore YNAB. I use it both for Dev Love Press and for my household finances (you can easily create another budget and switch between them). It gives me a lot of peace of mind knowing exactly how much I have that I can spend on each thing and allows me to switch amounts around if I really want to buy a thing or a service that I haven’t budgeted enough for.

That said, I have not tried many official business softwares like Quicken. In the future I may need to upgrade to a system that has payroll included in it (Right now I pay my authors through Paypal and I have a category of money just for the Paypal fees).

I highly recommend trying out the free 30 day trial. Also, sign up for the web seminars teaching you how to use it. They are free and plentiful!

The cost to buy it is a one time $60, however you can save $6 by buying it through my referral link here. I bought it for $54 through another person’s referral link (after the trial period I went back to her website, which is where I first heard about YNAB, and bought it through her link). You get $6 off and I get $6 for you buying it through me, so it’s a win-win.

Whether you use this system or another, you’re going to need something that helps you manage your money!

There’s a lot of advice on this in the book Publishing for Profit by Thomas Woll. He has a ton of information about money management for publishers and some of it is a bit over my head, but I’m processing it piece by piece and integrating it into my business. He also has an appendix with recommended software for publishers that integrate sales, inventory, royalties, etc. I’ll be looking into some of those to see if they will be better than YNAB paired with a whole lot of Excel spreadsheets.

The book also has a number of suggested spreadsheets for things like Profit and Loss statements (to determine if a manuscript you want to acquire will be worth the cost to produce it) and Editorial Plans, Comparison of Books Sold, etc. I highly recommend picking up a copy. It will give you a great sense of the business side of publishing!

Starting a Small Press Publisher: What Is It You Do?

It can be hard for people outside the book industry to understand what publishers are there for.

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When I told my family that I was starting a publishing company, they thought what I meant was that I’d be charging writers to format their books for them and put them up for sale. That’s what’s called an Author Services Company (or Vanity Press) and the vast majority are super scamy.

If you’ve been a writer for any amount of time I’m sure you’ve heard the saying that publishers don’t charge authors, they pay authors. You as an author should never be asked to pay fees or to pay for publisher’s services. That’s because authors are not a publisher’s clients.

The authors are not my clients.

The authors are, to make an analogy, my manufacturers. They create the product that I then sell. (By the way, going back for a moment to the legal side of things, my accountant has told me that the authors are 1099 contractors for me and as such I need to have them fill out a  W-9 form providing either their social security number or the EIN of their own business identity in order to report on taxes how much I’ve paid them. Check with your own accountant about this).

So who is my client? Readers. Anyone who buys books.

What’s the problem with Author Services Companies?

As with most things, you have to look at what the incentives are. If I’m making money from charging an author to edit her book or format his book, then what motivation do I have to hussle and sell that book? I’m already making money! Why would I care if it sold? I would be incentivized by the wrong thing.

The way publishing companies are set up is that we get paid when the book sells. We are incentized and motivated to sell that book as much as possible because the more money it brings in, the more money we all make.

I could have created a company around charging a small fee to format someone’s book or upload it to Kindle for them, and there’s be nothing wrong with that (as long as I was upfront with the authors about what service I’m providing), but that’s not being a publisher. That’s not the business I’m interested in being in.

So what do I do?

Get the book ready to sell and then sell it! Basically all the things on this list I either do or coordinate the hiring of someone to do and then I do all the publicity and talking to bookstore reps too. I hope that this series is illuminating the many things that a publisher does do for their authors’ books…there’s plenty of work left between finished manuscript and finished book!

From Manuscript to Book (Starting a Small Press Publisher)

Sometimes authors wonder why it takes a publishing company so long to go from manuscript to book. There’s good reasons for it!

There’s a lot that goes into getting a book into shape and ready to sell.

For each of these things, you’ll need to decide if you are the best person to do the task (thereby saving on costs) or if the book would be better served by hiring someone else to do the task.

blogpostmanuscript

Someday perhaps we’ll have a staff of people but for now it’s just me and a bunch of people that I contract for individual jobs.

Editing

The first step when you get a new manuscript that you want to publish is to do a content edit. If it’s your own book of course you’ll want to hire someone else to do this. I usually do for all the books we have. I might do one pass of editing first and then once the author has worked on those changes, send it out to another professional content editor.

The author doesn’t have to take all the suggestions that come up. The purpose here is to make the story itself better: tighten it up, make sure the conflict is strong and serves the story, make sure everything makes sense and flows from one plot point to the next in a believable way. This will do a lot to make the book better.

Next you’ll want a copy edit to check on facts, style issues, and consistency.

After that you need a line editor or proofreader to scour the manuscript for typos and mis-spellings.

After each of these edits the author will go over it and make sure of all the changes. You and the author need to come to an agreement on changes at this stage before you can move on to getting it out for sale.

Formatting

The book will need to be formatted for print and ebook. There are lots of people you can hire to do this, but it’s one task I prefer doing myself. This will involve things like putting together the look of the front matter (the copyright page, notice of other books available, etc.) This will look different in a print book v.s. a digital book (examples of mine at the end of the post). You’ll need to choose how a new chapter looks (Do you call it Chapter One or Chapter 1 or One? Do you have it in a different font from the rest of the text?)

Ebook formatting isn’t too intimidating. The key factors are that you should not have page numbers and you should not have hard tabs (tabs should be created in the formatting, not by hitting the “tab” button. You can find these in “find and replace” with ^t).

For most ebook vendors you won’t need to have it in their formats, they will take a Word document and turn it into their own format. But you may still want to get a program like Calibre to convert between formats (This is particularly good for ebook giveaways and free review copies that you can give people in whatever format they would prefer).

Cover Design

Cover design is crucial. You may have heard not to judge a book by its cover, but nearly everyone does! You can put together a cover yourself with GIMP (ironic name for my business to use, don’t you think?) or Microsoft Paint, but it’s usually painfully obvious that you did it yourself and it makes the whole thing look unprofessional.

There’s lots of great book cover designers out there and having a high quality cover will do a lot for your book sales and credibility.

For example, I’m super proud of the cover for The Boy Next Door, which I did myself. I paid for high quality stock images, I modified them into the characters, I picked the fonts, I picked the color, I blended it all, I got feedback.

The Boy Next Door

 

 

 

 

 

 

But look at it next to the pro designs for (W)hole and The Time Traveler’s Boyfriend and it’s still a little bit…lacking.

 

 

 

 

 

 

 

 

 

 

You’ll want to have your cover designer put together both an e-book version and a print version (and for that you’ll need to know the dimensions of the paperback including the spine width, which depends on the number of pages, and you’ll need to have your back cover copy ready or an ability to add it later with your designer).

Blurbs

There are different names for this, but I’m talking about the quotes of endorsement from other authors in the genre or from reviewers. Look for well known authors with books similar to yours and reach  out for quotes. It’s beneficial to both of you. That author will get their name on a book and you’ll get an endorsement. You’ll also be sending out pre-pub review copies, so when you get reviews in from that you can pick a flattering line and put that on your book. Figure out where to place this on your cover and include it in the book description.

Back Cover Copy

After the cover, this is the next most important element of selling a book (in my opinion!). It’s difficult to get back cover copy just right. It’s got to be interesting, to the point, snappy, and draw people in. It has to intrigue while not giving away too much. Writing this kind of copy is a real art form unto itself.

You can hire someone to work on it, but most of the services I’ve seen for this the person doesn’t read the book, so it’s not ideal. For Dev Love Press the authors and I work together on these descriptions, trading drafts and suggestions. Though actually, Annabelle has such a talent for it that I often just end up putting her copy on it directly.

Setting up Publicity

You’ll want to put together a plan for how you are going to market the title. I’ll go into more detail about how I do that in a future post!

Buy An ISBN

If you’re only going to be doing ebooks, you don’t strictly need an ISBN. If you’re doing print books, you’ll want to be the owner of the ISBN. If the company you’re working with offers you free ones, it means that their name will be listed as the official publisher. For self-publishing that doesn’t matter a whole lot, but to build your company you’re going to want to be the owner of your own ISBNs.

I buy them through https://www.myidentifiers.com/ and buying in bulk will save quite a bit of money.

An ISBN identifies both the book and its edition so if you have a hardcover and a paperback you’ll need two for that book. If you decide to put an ISBN on your ebooks (I don’t) you’ll need a separate one for that, etc.

Apply for Copyright

A literary work is automatically the property of the author, but it is good to officially register it with the copyright office. Typically you would put the copyright in the name of the author but in some cases you might use your name as the publisher. Make sure this is part of the contract between you and the author.

It will involve a small fee and sending a copy of the work to the copyright office. More info here: http://www.copyright.gov/fls/fl109.html

Sending for Pre-Pub Reviews

Four or five months before your publication date, you’ll be sending out what’s called ARCs to reviewers. ARC stands for either Advanced Reader Copy or Advanced Review Copy. These can go out before the proofreading is done and before the cover is done. Traditionally they were sent out with plain cardboard covers, but these days a rough draft cover is okay as long as it clearly says ARC on it. You’ll want to send a cover letter with it too telling the reviewer about your new company and what the book is about. (Make some business letterhead to send it on too).

We’ve had wonderful luck sending to The Romantic Times. I was intimidated at first to try them, but I decided I had nothing to lose and they’ve actually been wonderful to work with. We’ve gotten two print reviews, one web review, and done a print ad with them. Being able to show that our books got good reviews from a respected magazine in the genre makes me really proud.

Here are some places to send (but definitely look into magazines in your company’s genre!) Also consider looking into book review sections of your local newspaper. They may also be interested in a story about a local entrepreneur starting a publishing company.

(More info here: http://www.sellingbooks.com/get-pre-publication-book-reviews/)

You can also send review copies to book review blogs but it’s less critical usually to do that ahead of the launch date. Blogs depend less on these books being brand new than print reviewers do. (A later post will go into how to get reviewed at book blogs).

Choose Distribution

You need to decide who you’ll be working with to get the book out.

Print:

For the print book, the most important thing is that you work with a service that will get you in the Ingram database. If your book is there, bookstores will be able to order it.

The big choice is between Createspace (owned by Amazon), Lightning Source (LSI), or a local printer. I would cross off the local printer right away because most print shops are not equipped to handle something as specialized as professional book printing. Lightning Source is well respected and is what indie publishers have been using since before “indie” became a euphemism for “self-published.”

Personally I find LSI a little intimidating to get started with and I’ve been very happy using Create Space. Now that I’m starting to grow a little bit and working on expanding into more print sales I will be researching and reconsidering LSI.

LSI does give you more choices and has hardcover as well as paperback options. For just getting started, Create Space is simple and easy. (The only paid service on Create Space I ever use is the expanded distribution for $25).

(Post later on how to get into bookstores)

e-Version:

The big choice you have here is whether to enroll your books in the “Kindle Select” program. It requires that your book be exclusive to Amazon for ebook format for 90 days at a time. In return Amazon gives you the ability to run promotions like free days (that can help you gain visibility) and countdown deals. Typically I start a book out exclusive to Amazon, take advantage of those deals and then don’t renew after the first 90 days. So three months after launch I add the ebook to the other channels. I am strongly considering changing that for the future. I have not been finding the Kindle deals to be doing as much as they once did for sales.

The other big channels are Smashwords, Barnes and Noble Nook, Kobo, and a handful of others. You can get distribution to Nook and Kobo through Smashwords, but it’s often a better deal to upload directly with each one. Smashwords’s big advantage is that they make your book available in every ebook format from HTML to PDF to Epub and .mobi (Nook and Kindle formats).

Uploading

Getting your book uploaded is a pretty straightforward process. Just follow the instructions. One question that you’ll get asked is about whether you want to add DRM to your books.

DRM decision: I never put DRM on any of my books. It is supposed to discourage pirating, but in practice it usually doesn’t at all. Being a player of video games, I’m used to DRM being something that punishes the honest people buying something and does nothing to deter pirates. Put a Google Alert on the name of your books and authors and send take down notices to any pirate sites where you find them. That’s about all you can do to combat piracy. Here’s an article about DRM when it comes to book selling.

In a future post I’ll go into details on optimizing the look of your books’ pages as well as SEO and keywords/tags.

***

Oh man, I have promised you SO MANY future posts! Don’t worry, I’ve already got drafts started on at least half of these!

Sample front matter for paperback and ebook (for the ebook versions, keep the front matter as brief as possible. You want to make sure people can see a sample of the story itself and also that they don’t feel cheated by a huge file that is mostly filler:

print front matter

 

ebook front matter

Starting a Small Press Publisher: Setting the Terms

It’s possible to just make up a name for a fake company and slap it on your books when you’re self-publishing. But once you decide to publish other people, you’d better gets some legal things in order first.

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Choose a Name

I did a poor job of this one. I didn’t take my time and just picked a name quickly. I didn’t think about how important a name is and how I needed to be able to say it with pride, tell friends and family about it, put it on everything. I think our name is okay but it’s not great.

So don’t do what I did!

If you’re starting your own company, take some time to think about the best name for it. Particularly think about the connotations of the name and what people (like your target audience) will think when they hear it.

The book The Brand Called You recommends always using your own name but I’m not sure how well that advice works for forming a publishing house. Perhaps your last name will sound good and elegant as a publisher name. I agree with a lot of the premise of the book, which is that the brand you are creating is centered on you and who you are as a person. I don’t think that means you have to name it after yourself, though.

Form an LLC

Okay, so it turns out some of my background actually has come in handy! For the previous five years I’ve worked as an office manager handling a lot of accounting for a small company. Before that I took a number of night classes in the paralegal field.

Both those things helped me understand how to go about setting up a legal entity and running it!

The LLC stands for “limited liability company” and this means, to my understanding (and please know this is NOT legal advice) that if something goes catastrophically wrong or you get sued, you personally are not responsible for the money. Just your company is. Keeping yourself a little separated from the entity of your company is a wise move.

It’s been two years, but if I remember right, I think a DBA, or “doing business as” is another option. You can find out what you need by doing some Internet searching. How to get an LLC or a DBA depends on where you live. I found the process to be very simple and easy. So easy I wasn’t sure I’d done it right! (One thing I did need to have was a mission statement/explanation of what my company is. See more about that below).

Apply for an EIN

An EIN is an Employer Identification Number and it is your business’s equivalent of a social security number. You’ll use that number rather than your personal ssn when doing anything connected to money and taxes with your business.

Apply for a Bank Account

Use that EIN to set up a business bank account separate from your personal one.

This is easier for taxes and it gives you a clear idea of what money is for use within your company and to pay your authors and which money is for you to take home. You’ll pay yourself either a salary or a royalty from the profits of your company and you’ll transfer it over to your personal account with the same level or paperwork you would for any of your authors.

I can’t stress this enough: keep your business’s money separate from your personal money!

How much money will you need as seed money? Not that much.

Some businesses require a lot of money in start up costs: renting a space, furnishing it, getting the things to sell. This is not like that. You’ll need money to pay for things like editing, cover design, ISBN numbers. The way I have started is by using print-on-demand for physical paperbacks and that means not having to pay to print thousands of books or warehouse store them. I’d say probably $1,000 to $2,000 will get you started.

Write a Mission Statement and Business Plan

A business plan doesn’t have to be the size of a PhD thesis. The word can be intimidating, but in reality it doesn’t have to be more than a single page laying out your intentions. Answer questions like why you want to go into business, what your company offers that’s different from what’s already available, your practical steps to get books visibility. It’s like writing a query letter for your business instead of your book!

As part of this you’ll want to create a profile of your target audience. Who do you think is going to want to buy the books you publish? Get as specific as you possibly can because you can use that profile to figure out where to go to reach those people.

Having a niche is a great thing. It gives you focus and allows you to remember what you’re doing that’s different from the big guys. On the other hand, you have to be careful in selecting your niche that it’s not so narrow that you have no audience.

Being small, we don’t have a lot of overhead so we can afford to take on these quirky books that wouldn’t find a home in a bigger publishing house. Also, because it’s our sole focus, we know where to market them to.

Having a Niche: It’s a double edged sword, as they say. You want a narrow focus so you know exactly who to market to but you also want an audience large enough to sustain your company. The balance that I try to find with Dev Love Press is to take on books that my core audience, people like me who enjoy “wounded hero” romances for whatever reason, will love but also promote the books to general romance novel readers who have never considered giving a disabled hero a chance. I love when we see reviews where someone says that they would never expect to find one of these guys sexy but they totally do. A mainstream person comes to realize that a guy with a disability is still a guy and still a viable romantic partner. Now that’s what I call success!

Make a Contract

Again my paralegal classes prepared me pretty well for this. I had taken one class specifically in business law and contracts because at that point I knew that I was heading towards creating a company.

I got a lot of inspiration and ideas from the book Business and Legal Forms for Authors and Self Publishers.

You’ll need to decide on a fee structure. How much royalty will you be giving your authors? Will that be gross or net? How much will you take as your own salary (in any) and what percentage will go towards advertising, towards getting new business, towards maintaining your office systems?

I regret the current way we’re set up. I think for future books I’ll do things a little differently. One thing that is a priority for me is getting the author’s a good royalty rate.  You’ll need to figure out what percentage of profits you’ll want to:

  1. pay authors
  2. pay yourself
  3. put into advertising and other promotional activities
  4. put towards physical copies for reviewers, giveaways, conferences
  5. save for taxes (I’ve been setting aside 14% for that)
  6. put into office supplies
  7. put towards future editing, cover design, ISBN numbers, etc.
  8. put towards future advances
  9. put towards professional development like conferences or organization fees

Since it’s a start up, you may want to not pay yourself for a while and put all your profits back into the business. That’s up to you. Luckily with Print on Demand and ebooks there is not much initial cost. I’ve focused on those while I build up enough money to branch into more traditional physical books.

In a later post I’ll talk to you about my favorite budget software and how to keep all these categories separate!

And make sure that you are clear on what rights you are getting! If you’re going to focus on e-books (as I do) then you’ll have to make sure that you have both digital and print rights!

Get an Accountant

Your taxes are about to get more complicated.

So get a professional to help you with them. No more TurboTax or Dad doing your taxes for you!

It’s going to be worth it because someone who understands taxes for small businesses will know what deductions you can get and will often save you money. So far for the last two years, my accountant’s fee has been completely covered by the refund he’s gotten me (and there was leftover too).

So you’re prepared for tax time, use having a business bank account (or budgeting software that I’ll talk in more detail about in the future) to keep totals of certain categories like: money spent on advertising, money spent on business travel, money paid to authors, money paid for office supplies and equipment (and keep receipts too)

 ***

Does this sound horribly unsexy? Perhaps surprisingly, I found it fun. I enjoyed the process of getting all my ducks in a row.

 

Recommended Reading:

business and legal formsbrand called you(This last one recommended by Jane Friedman)

Last Week: Taking the Leap             Next Week: Finding Your Manuscripts

There But For the Grace of Low Overhead Go I

Yesterday I heard some very sad and disturbing news: two publishing imprints shutting their doors.

Strange Chemistry and Exhibit A were closed by its parent company because they have  “been unable to carve out their own niches with as much success.” [as parent company Angry Robot]

These imprints were at a level that I’m still only dreaming of: releasing a book a month, having multiple employees, being able to release a paperback to bookstores in both the US and the UK at the same time, having journalists waiting with bated breath on their releases! I’m told also that Strange Chemistry has the most unique and interesting YA books on the market today.

To have all that and still say that you can’t compete in the marketplace is pretty terrifying to hear.

It’s a strange business, book publishing. You may have heard how most books never earn back the money that was put into them. Big publishing houses depend heavily on there being a few run away best seller successes to carry the cost of all the loses.

Defining loss is a matter of perspective, of course. Even though I don’t sell as many books as I’m sure Exhibit A and Strange Chemistry did, I also have low overhead costs and can afford to wait for books to make a profit over a much longer time period than traditional publishers can. We only have one full time employee (me) and I don’t make a living from this yet. But we’re continuing to grow bigger and stronger with every passing year. For me I see no reason for that to change even given that our niche is extremely small and unusual.

For a lot of publishers, success of a book is defined by earning back their advances. I have not yet been able to offer advances at all. And even though that is changing, the advances I am able to offer in the near future are going to be very low. Someday I hope to give good advances, but in the meantime I make sure that authors get a high percentage in royalties.

For me publishing books is a lot more about a passion for stories than it is about making money. Of course I want my business to be profitable and to be able to keep devoting my time to the books I care about, but the top priority of Devoted Love Press is making great and unusual books available.

Writer Beware is where I first heard this news. They linked to this author’s blog and reading her story makes me very sad. I would do everything in my power to avoid leaving an author in the lurch like that.

[Side note: I live in fear of Writer Beware. It’s one of my very worst fears that I ever end up on their blog! I read them religiously. ]

My heart goes out to the authors and the staff of these imprints.

Books From Strange Chemistry

Books From Strange Chemistry