Call them what you will — “print-on-demand subsidy publishers” or “glorified vanity houses” — the three leading POD publishers are subtly rethinking their roles in the realm of pay-to-play publishing. Collectively, iUniverse, Xlibris, and 1stBooks Library are banging out some 20,000 titles per year — with that market growing 40% or more annually — and new authors are signing on by the bushel. But “the leverage is not in getting another few hundred authors a month,” says one executive. “The real leverage is getting the book sales.” Authors grabbing at that holy grail, though, are forced to negotiate a bewildering array of “add-on” services (“Book signing kit? That’ll be $250.”), marketing affiliations, and remittance routines that are making the road to royalties seem as tortuous as ever.
Perhaps the biggest POD paradigm shift has come at iUniverse, where authors are now considered part of a “farm team” playing their hearts out for the big-league scouts. “Our aim is to behave as an agent,” explains President and CEO Kim Hawley, “to identify authors that have a huge amount of talent, and work within our system to give them the visibility and sales figures to take them to a traditional publisher.” In this model, iUniverse operates as an incubator, armed with traditional publishing services such as its new editorial review program, whereby “industry experts” (typically people who are editors in their day jobs) score the quality and viability of a book, and offer feedback on theme, structure, marketability, and the like. The service will be available to all iUniverse authors beginning May 1 at a cost of $249, but is included with the “Premier Program” package (see chart below). Then there’s “performance-based marketing support” such as the “Star Program,” which targets books with strong initial sales — at least 500 units worth — and ponies up cash to cover some of the costs of securing book reviews, direct marketing initiatives, book repackaging, and co-op advertising (iUniverse retains a financial stake in the titles). The program’s first 36 titles have been selected, and another 45 will roll into the pipeline in August.
iUniverse also announced that investor Barnes & Noble will review books in the Star Program and stock the “cream of the crop” in stores, probably 18 to 25 books per year. “That does take us into a more traditional publishing business model,” Hawley says. “These books are all run offset, they’re all inventoried, and they’re all returnable.” Completing the company’s semi-makeover — which began when it abandoned the corporate documents business last year to focus on author publishing — Hawley is stepping down as the company’s “interim” chief and helping iUniverse seek “someone who really understands the publishing industry” to fill the Lincoln, Nebraska–based job.
Of course, iUniverse hasn’t been the only one to do some soul searching. “We spent the vast majority of 2001 in an epic battle to rebuild the business and become economically sustainable,” says Xlibris CEO John Feldcamp. “Random House was our remarkably stable and supportive partner through that whole exercise.” The company is up to around 9,000 authors, and expects to publish 4,000 titles this year. Feldcamp says one prime focus at the moment is to buckle down on the basics: namely, ferreting out “highly inexpensive but highly effective copy editing,” mostly done overseas. “We have very little interest in being the least expensive service,” he adds. “We work unbelievably hard to make our customers happy.” About 100 authors per month use the picture-book service, which offers full-color titles between 24 and 80 pages in length, starting at $999 for up to 25 images. The business has now been growing at 50% per year, Feldcamp says, and “at this point the company is essentially profitable.” The market position? “Upfront, professional service and support, but without the sideshow barker.”
Business has been more stable at 1stBooks, which published 5,000 titles last year and will ramp up to 8,000 this year, reports President Robert McCormack. The average title sells around 175 copies, with 99% of sales made in printed versions (ebooks are “a thimble in the ocean,” he says). Manuscript reviews are not a top priority — the site notes flatly: “1stBooks Library does not edit manuscripts; you decide exactly what the public reads.” — and McCormack plays up his promotional offerings, including a NYT ad option. The bottom line: “We’re still profitable and growing. The business model has proved to be a solid one and we see nothing but continued success for ourselves.”
Back at Xlibris, the journey embarked upon by POD publishers is summed up in more, well, eschatological terms. “We have not found the promised land,” Feldcamp says. “But we still have a strong sustainable business that’s experiencing pretty good growth. It’s not like we’re lying in the middle of the desert wondering when the buzzards are going to get to us.”
The POD Contenders
iUniverse
Program/Cost: Premier Program: $449
Format: Trade paperback. Add $199 for hardcovers, which are sold exclusively via iUniverse.
Royalty: Print: 20% of net receipts Ebook (optional service for $99): 50% of net receipts
Other: Service includes pre-pub editorial review by an “industry expert” who evaluates book for style, content, and overall quality. Includes marketing toolkit with templates for posters, bookmarks, sell sheets, etc. Copyediting for $.012 per word.
Xlibris
Program/Cost: Basic Service: $500
Format: Trade paperback and Adobe Acrobat ebook.
Royalty: Print: 25% of printed list price (direct Xlibris sale), 10% (via reseller) Ebook: 50% of retail price (direct sale), 25% (via reseller)
Other: Print cover prices are based on page count (a 250-page paperback sold via a distributor is priced at $21.99). Ebooks are priced at $8. Bookseller discount is 20% on hardcover, 40% on trade paperback. Marketing Starter Kit (postcards, etc.) is $125. Copyediting is $3.50 per 500 words.
1stBooks
Program/Cost: Standard Agreement: $399
Format: Adobe ebook or Rocket eBook. Add $199 for paperback and $350 for hardcover.
Royalty: Print: 10%-50% of printed list price Ebook: 100% of first $300 in sales via 1stBooks, 40% of retail price thereafter; 50% of net for resellers
Other: Author sets cover price and takes corresponding royalty rate. Marketing kit with 100 bookmarks, 100 postcards, and 100 business cards costs $200. Copyediting is $4.50 per page. An optional 3.5” x 1.25” ad in the NYTBR costs $2,650.
