Tag Archives: the necessity of book distributors

Making Indie Publishing & Social Media Work Together: Part II

“Social media has one foot in the highly commercial world of advertising and the other foot in the realm of human communication—hopefully sincere human communication. This combination might not always be a comfortable one; but it is now possible to glimpse some social media strategies that may be especially well-suited to the needs of indie publishers.”

Making Indie Publishing and Social Media Work Together Part IIEffective social media marketing has to at least appear to have a higher purpose than just selling a product. It needs to support the idea that community-building information is being exchanged. But can you really make an effective sales pitch, somehow hidden inside friendly communication, in a tweet or a blog or a Facebook post? I think authors and independent publishers can pull it off.

How? With the exception of bestsellers, marketing books has always been a question of bringing the right title to the attention of a buyer already interested in the book’s subject. It has always been a question of matching rather than convincing, a soft sell rather than a hard one. And traditional book marketing has long had a crucial social aspect: word of mouth—information passed among members of a community—is really what drives book sales. Since authors and indie publishers have all along aimed to create some degree of community rather than just driving sales, social networks present a new opportunity to further this goal.

I believe that social media marketing can be particularly effective at the author level. Authors can get away with a little obvious self-promotion. Writing a book is very hard work, often for little pay (again excepting the bestsellers), and most importantly requires a level of self-exposure and risk of failure that most of us simply shy away from. There is a heroic aspect to authorship that serious readers appreciate and admire.

This special connection allows authors to promote their own books, as well as those of their compatriots, without violating social media etiquette. They can inspire readers to buy books through tweets, blogs, and other forms of social media and can use those social outlets to steer customers to their publishers’ websites. After all, to the extent that their publisher is working a niche, that website will in itself amount to a sort of community where publishers, authors, and readers can connect over a shared interest. Over time, it is possible to build a bridge that leads from the author’s social media efforts to the publisher’s website.

What can a distributor do to turn the social media efforts of authors and publishers into sales? IPG has constructed sophisticated shopping carts, at no charge, for some of our client publishers’ websites. These shopping carts are customized to match the look of each website or meet the design preferences of the participating publisher, and they offer eBooks, print books, and streaming audio and video directly to consumers. IPG takes care of all of the back end processing and fulfillment services, as well as automating product and stock information and providing options for promotions. IPG is also developing a “buy button” which can easily be attached to author and publisher social communications, taking readers directly to the relevant book page on a publisher’s new shopping cart. These initiatives are still in beta, but they look very promising and will offer authors and publishers a chance to capitalize on the online communities they’ve cultivated through their social media efforts.

At a macroscopic level, every participant in the publishing industry can be a participant in the larger social conversation revolving around books and the people who love them. By engaging in these conversations, indie publishers (and distributors) can join vibrant communities of authors and readers, leading these groups to their websites, and thus, their books.

**Check out some of IPG’s new shopping carts here: Urban Land Institute Bookstore, American Cancer Society Bookstore, and Nomad Press Bookstore

Curt Matthews
CEO, IPG/Chicago Review Press, Incorporated

Curt Matthews is the founder and CEO of Chicago Review Press, Incorporated, which is the parent company of Chicago Review Press and of Independent Publishers Group (IPG), the first independent press distributor and now the second largest. Curt has served on the Independent Book Publishers Association (IBPA) board and has also served as its president.

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The Trouble with eBooks: A Recap

Most of the blog posts put up in this space over the last two months have circled around three very major issues in regard to eBooks. Here they are, together with an account of what if any progress has been made in resolving each of them.

eBook Distribution: What’s the Deal?:
No one who is really privy to hard information about what is going on is able or willing to speak out.

Non-disclosure and Confidentiality Agreements, Most Favored Nation Clauses in distribution contracts, and then out of nowhere, the Department of Justice restraint of trade litigation against most of the biggest houses—all these things conspire to silence any informed debate about the issues. And to be blunt about it, most independent publishers feel abject terror at even the thought of confronting Amazon’s enormous market power. This part of the problem has not improved at all.

Market Share: You’d Be Surprised What the Big 6 Controls:
“The Big Six publishers, who control about half of the entire market for trade books, have been able to drive a better bargain with Amazon than the independent publishers could.”

A structural difference of that magnitude (roughly 20 points of discount) would put the independents out of business in short order (See also At What Discount Should Publishers Sell Ebooks to Resellers). This part of the problem may have eased a bit. The Department of Justice’s litigation could have the effect of largely taking away the discount advantage briefly enjoyed by the Big Six which would level the playing field. We will see.

The Oxymoronic Notion of Digital Content: Part II:
“The 50% plus take that Amazon insists on for distributing eBooks from independent publishers bears no relation at all to the cost of delivering that service.”

A free market and real competition would squeeze out excessive margins wherever they might be found in the supply chain from author to book consumer. So far we have not had anything like a free and competitive market for eBooks. On this issue, however, there is some very good news on the horizon. Microsoft’s investment in Barnes & Noble’s eBook programs is very welcome. Two other eBook programs, which look to be robust and publisher friendly, are well in the works. Of course for the reasons explained in point one above, I can’t tell you a thing about them.

Curt Matthews
CEO, IPG/Chicago Review Press, Incorporated

Curt Matthews is the founder and CEO of Chicago Review Press, Incorporated, which is the parent company of Chicago Review Press and of Independent Publishers Group (IPG), the first independent press distributor and now the second largest. Curt has served on the Independent Book Publishers Association (IBPA) board and has also served as its president.

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Book Distributors in the Age of Electronic Publishing

Will there be a need for book distributors in the age of electronic publishing?

This post will cover what distributors do now at a time when printed books still dominate book sales overall. The next post will describe the role of distributors as the industry transitions to eBooks.

For most of the forty years that book distributors have been around, our major function has been to gather together many independent publishers, thereby creating an entity that booksellers can deal with just as easily and profitably as they deal with the major publishing houses.

IPG, for instance, now actively markets about 50,000 different titles, and another 10,000 eBook titles, to consumers, wholesalers, and resellers down every viable sales channel for books. This marketing effort involves a combination of in-house and commissioned reps that adds up to a sales force of over 200 people, a plethora of sales materials, and a state of the art warehouse that turns out most orders in under 24 hours.

There is never any haggling with our customers over discount or returns because our terms of trade are clearly stated and consistently applied. Our accounts are clean and complete. Our service to our customers is as good (sometimes better) as the largest players in the book marketplace provide.

Many participants in the book business understand the important functions of distributors which I have just described. There are, however, other less obvious yet crucial benefits that distributors bring to the table. Here are three of them:

  1. Independent publishers are independent in more than just one sense. They are independent thinkers down to the soles of their feet, and they do not suffer received wisdom, or fools, gladly. They certainly are not in this game just for the money. The cross-grained mind set of most indie publishers is exactly why they are indispensable to our culture, and why they are often extremely interesting people. No middle of the road for them; they beat the bushes. But working with these interesting people one-on-one takes time and can therefore be expensive. Distributors cheerfully undertake this work because it is an essential part of our job. The other players in the book business are happy to leave this to us.
  2. In addition, there is a very large educational component to what distributors do. Good distributors offer their client publishers solid advice, all of it free, on titles, covers, print runs, publicity, business strategies, and much more. Even the most accomplished authors need editors; even the most sophisticated independent presses can benefit from informed feedback.
  3. And finally, the major distributors have made major investments in the technology that increasingly drives success in the book business. EDI, ASN, and ONIX metadata feeds weekly to hundreds of customers; data mining, POS information gathering and analysis; reorders generated by algorithms trolling through huge databases—these are just a few of the competencies distributors have had to master in order stay competitive with the big publishers. It is certainly no longer just the shoeshine and the smile that brings in the orders. IPG, for instance, now has an IT staff of thirteen highly-trained people working feverishly on new ways of storing, sharing, and interpreting data; and an IT budget of almost a million dollars a year. Very few independent publishers could afford anything like this level of expense, and very few would want to master a technology which is, after all, not what brought them into the book business in the first place. Yet without this sort of technical support at their backs, independent publishers are unlikely to thrive in this changing environment.

For all of these reasons distributors no longer think of themselves just as a conglomeration of publishing companies. Many of the difficult and expensive services we offer our client publishers greatly benefit our customers because these services improve the quality of the books we sell to them, and because our IT expertise makes us a profitable trading partner for them.

Distributors will continue to have an important role to play in the print book business. But will this role disappear as the book business shifts from “tree” books to eBooks? I should say not.

Photo: Curt Matthews, CEO, IPG/Chicago Review Press, Incorporated. Courtesy of The Chicago TribuneCurt Matthews
CEO, IPG/Chicago Review Press, Incorporated

Curt Matthews is the founder and CEO of Chicago Review Press, Incorporated, which is the parent company of Chicago Review Press and of Independent Publishers Group (IPG), the first independent press distributor and now the second largest. Curt has served on the Independent Book Publishers Association (IBPA) board and has also served as its president.

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