Is Self-Publishing the Future of Publishing?

I find it very interesting that a traditional publisher, Thomas Nelson, just announced a new division–one that is basically providing self-publishing services.

I hinted that this might happen months ago on this blog, because I had heard of another publisher considering this very option. More than a year ago I predicted that publishers would eventually move toward more of a self-publishing model.

It’s really inevitable. The other day someone revealed to me something a traditional publisher told a prospective author:  the author needed to  guarantee they could  sell 10,000 books from speaking in order to be published by them.  That author would have to buy 10,000 of his  own book (usually at a 50-60% discount only), in order to get published!

(I couldn’t help but wonder how the author advance, if any, would stack up against the investment the author would have to make.)

Increasingly, author platform (i.e. a large, loyal following) is a necessary prerequisite for being published by a traditional publisher.

So what’s an author to do who doesn’t yet have that following?

Self-publish seems to be the answer.

I can’t help but wonder if traditional publishers will (perhaps already are) look at the self-publishing route as the “proving ground” for authors before they will consider publishing them in the traditional way.

Here’s the danger, for them.

If an author does well as a “self-published” author, why would they ever need or want a traditional publisher? I just ran figures with one of my clients, who chose to publish with Intermedia. The profit per book (if it’s a $24.95 hardcover) would be $7.62, using the least profitable way of selling it (i.e. amazon).

Compare that to the royalty of 80 cents per book that would be typical. The most the author would get under a typical royalty agreement would be $2.12  (assuming they get 10% royalty on the retail, which is rare. More typical royalties are 7.5% of net, meaning after the retailer discount, and then you subtract from that, the typical 15% agent fee).

So which would you rather do: Get paid an author advance, which you might have to turn around and reinvest in books to sell yourself, and get your $.80-2.12 per book … or pay for all the costs of your book and make a profit of $7.34–13.62 (depending on how you sell it)?

The major factors will be, of course, initial capital, and marketing. You need that capital outlay to finance the initial print run, and you need to be able to sell the books to make your profit.

Which is what makes it truly  “self-publishing.” You now know the factors publishers must look at when they look to publish a book. The answers to the key questions you have to provide a publisher are the same ones you need for yourself as well.

Those questions are covered in my “Write Your Book Right: 12 Questions Successful Authors Always Answer” coaching session, by the way. For more on that, check this out. You can also get my personal coaching along with it if you choose.