Friday, November 20, 2009

SFWA Joins RWA and MWA

Last night at 11:07 PM, the Science Fiction and Fantasy Writers of America (SFWA) posted their comment about the new self-publishing division of Harlequin.
The Science Fiction and Fantasy Writers of America, Inc. (SFWA) finds it extremely disappointing that Harlequin has chosen to launch an imprint whose sole purpose appears to be the enrichment of the corporate coffers at the expense of aspiring writers. According to their website, “Now with Harlequin Horizons, more writers have the opportunity to enter the market, hone their skills and achieve the goals that burn in their hearts.”
SFWA asks that Harlequin:
  1. Admit that the Horizon titles are not going to be on bookstore shelves
  2. Acknowledge that no editor will be reviewing the Horizon manuscripts with an eye to publishing them.

SFWA believes that money should flow TO the writer, not FROM the writer and warns that writers publishing with Horizons may "injure" their writing careers.

So now we've heard from the romance writers, the mystery writers and the sci-fi and fantasy writers. Everyone is dogpiling Harlequin.

Once again I ask, "Where are the Christian writers?" Why did they NOT greet the news last month that Thomas Nelson was launching a self-publishing imprint with the same amount of outrage?

In my mind, Nelson deserves more criticism than Harlequin for their statement that they will pay a referral fee to agents who send newbie authors to Nelson's WestBow.

Go here to read about Nelson's initiative.

Go here to read the SFWA statement.

Thursday, November 19, 2009

Harlequin Horizons Provokes Controversy

On Tuesday I reported that Harlequin had announced it would be launching a "self-publishing partnership with Author Solutions, Inc."

That announcement has provoked comment and reaction across the publishing industry.

First, Romance Writers of America (RWA) issued a letter to its members from its president, Michelle Monkou. Here is a portion of that letter:
Dear Members:

Romance Writers of America was informed of the new venture between Harlequin Enterprises and ASI Solutions to form Harlequin Horizons, a vanity/subsidy press. Many of you have asked the organization to state its position regarding this new development. As a matter of policy, we do not endorse any publisher's business model. Our mission is the advancement of the professional interests of career-focused romance writers.

One of your member benefits is the annual National Conference. RWA allocates select conference resources to non-subsidy/ non-vanity presses that meet the eligibility requirements to obtain those resources. Eligible publishers are provided free meeting space for book signings, are given the opportunity to hold editor appointments, and are allowed to offer spotlights on their programs.

With the launch of Harlequin Horizons, Harlequin Enterprises no longer meets the requirements to be eligible for RWA-provided conference resources. This does not mean that Harlequin Enterprises cannot attend the conference. Like all non-eligible publishers, they are welcome to attend. However, as a non-eligible publisher, they would fund their own conference fees and they would not be provided with conference resources by RWA to publicize or promote the company or its imprints.

Sometimes the wind of change comes swiftly and unexpectedly, leaving an unsettled feeling. RWA takes its role as advocate for its members seriously.
According to agent Kristin Nelson of Pub Rants, "Harlequin was very surprised and dismayed" by the action RWA took.

In an effort to silence its critics, Harlequin has decided to remove its name from the previously titled "Harlequin Horizons" imprint. The company clearly hopes that this move to rename its self-publishing arm will mollify both RWA and the Harlequin authors.

Apparently neither Thomas Nelson nor Harlequin sees any conflict of interest in newbie authors being lured into spending significant sums of money in the hope that the parent company will offer a publishing contract.

But, wait!! Another county heard from.

Kristin Nelson also posted a letter from Mystery Writers of America (MWA), expressing concern over "the Harlequin Horizons self-publishing program and the eHarlequin Manuscript Critique service (aka 'Learn to Write')."

MWA had already written a letter to Harlequin, demanding a number of changes to put the critique service at arms-length from the publisher when the new Harlequin Horizons was announced.

My favorite line from the MWA communique was this: "We are taking this action because we believe it is vitally important to alert our members of unethical and predatory publishing practices that take advantage of their desire to be published."

Three cheers for MWA!

Corporate greed is a cliche these days. Ethical conduct by companies is now so rare that we remark upon it when we happen on a business with scruples.

I was unbelievably disappointed by Thomas Nelson's plan to pay a "referral fee" to any agent that steers a newbie author toward Nelson's WestBow self-publishing unit.

Where are the Christian writer trade organizations or networks? Why are THEY not concerned about Nelson's obvious conflict of interest issues? I find it fascinating that the romance writers and the mystery writers are speaking up, but not the Christian writers.

You can read both the letter from Harlequin and the MWA message on Kristin's blog here.

Wednesday, November 18, 2009

Barnes & Noble Creates a Poison Pill

In early January, billionaire investor Ron Burkle disclosed in a filing to the SEC that his Yucaipa Companies had purchased 8.3% (over 4 million shares) of Barnes & Noble stock. According to Publishers Marketplace (PM), two days later, Goldman Sachs upgraded its rating of the bookchain's stock from "sell" to "neutral."

Last week, Burkle filed new papers with the SEC, revealing that he had more than doubled his stake in B&N. Publishers Marketplace says that while Burkle's 16.8% holding is enormous, it is "still only about half as much as the big block of stock controlled by [B&N] chairman Len Riggio":
[The] question is how Burkle hopes to cash in on what has become a large position in Barnes & Noble. Together Burkle and Riggio truly control the company. Given Burkle's investment history, expect renewed speculation on the possibility of BN going private.
Then on Monday, Burkle announced yet another SEC filing revealing a further accumulation of B&N stock, raising his stake to 17.8%.

B&N's response was rapid. On Tuesday, the world's largest bookseller issued a press release announcing that its Board of Directors had approved the adoption of a "poison pill," which would be "exercisable if a person or group, without Board approval, acquires 20% or more of Barnes & Noble's common stock or announces a tender offer [hostile takeover] which results in the ownership of 20% or more of Barnes & Noble's common stock."

A poison pill is a strategy a company employs to ward off an unwanted suitor. The goal is to make the target company so expensive that the acquirer gives up its attempt to take it over.

B&N's poison pill is a very common approach called the shareholder rights plan. In this strategy, B&N announced its "stockholders will receive rights to purchase shares of a new series of preferred stock in certain circumstances."

If Burkle should acquire 20% of B&N or if he announces a hostile takeover that gives him 20% of B&N's stock, the shareholders will be permitted to convert their rights into common stock. The press release explains:
If the rights become exercisable, all rights holders (other than the person triggering the rights) will be entitled to acquire Barnes & Noble's common stock at a 50% discount.
More stock dilutes the value of the acquirer's holdings and makes it more expensive for him to continue trying to buy the company.

Under the terms of the Rights Plan, the rights will expire on November 17, 2012.
The ball is back in Burkle's court.

Tuesday, November 17, 2009

Gag Me With a Spoon

Regular readers of this blog know that there are two publishers I routinely mention when talking about creative and cutting edge initiatives: Thomas Nelson and Harlequin.

Both houses have shown resilience and a remarkable willingness to "think outside the box" in order to reinvent themselves in this tough publishing environment.

Last month here, I reported on Thomas Nelson's latest initiative:
. . . Thomas Nelson has launched a self-publishing imprint, WestBow Press--though they are outsourcing the bulk of the operation to self-publishing giant Author Solutions. AS will design, publish and distribute the books. Nelson's primary roles appears to be sharing revenue and promising customers an "opportunity to be discovered by parent company Thomas Nelson.... For authors who hope to one day be signed by a traditional publisher, this is an opportunity to get your foot in the door."
I was not happy:
If the book in question is the typical self-published mess and the writer is entertaining the fantasy that Nelson will soon be offering a contract, will WestBow disabuse the writer of such notions? Is WestBow going to offer a reality check, or are they simply going to collect a check?
Yesterday Harlequin followed Thomas Nelson's lead with this press release:
Harlequin Enterprises Limited . . . announced Tuesday the launch of Harlequin Horizons; a self-publishing partnership with Author Solutions, Inc. . . . Harlequin, Book Business magazine's 2009 Publishing Innovator of the Year, regards the self-publishing venture as an accessible opportunity for emerging authors to bring themselves to the attention of the reading public.
Like Thomas Nelson, Harlequin is waving the lure of "possibility":
Harlequin will monitor sales of books published through the self-publisher for possible pickup by its traditional imprints.
At least Harlequin didn't promise to pay a finder's fee to agents referring newbie authors to their vanity press the way Nelson is doing.

My girlfriends and I often joke about our jobs, saying there has to be easier ways to earn a living. Periodically, after a rough day, one or the other of us will groan, "Maybe I ought to just go down to Harry Hines and set up shop."

Harry Hines Boulevard is the Dallas street notorious for its prostitutes and hot sheet motels.

Although we joke about it, none of us would actually do it.

But I guess some people simply don't mind screwing others for money.

At least down on Harry Hines, BOTH partners in the transaction know what to expect and what each is getting from the deal.

Monday, November 16, 2009

Lies Told By the Self-Publishing Industry

One of the many obstacles facing newbie authors is that of overcoming their own impatience to be published. Lying in wait to use writers' hunger to see their works in print against them is the vanity press industry. Taking advantage of all the buzz about print-on-demand, the vanity presses have redoubled their efforts to lure unwary writers into paying to have their novels published.

Self-publishing does make sense for certain segments of the population. If you are wondering whether you should self-publish, go here to read my post from August, 2008, which will walk you through the decision-making process.

There are lots of "entrepreneurs" out there, looking to capitalize on newbie writers' naiveté by giving a few facts and a half-truth or two and then leaving it to the reader to infer something that never happened.

Example: On the website titled "Self-Publishing Resources" here, it says:
Many famous authors and their books were rejected multiple times. Publishers turned down Richard Bach’s Johnathan (sic) Livingston Seagull no less than 140 times; Margaret Mitchell’s Gone With the Wind received 38 “no’s,” while Stephen King’s Carrie was turned down 30 times. J. K. Rowling’s original work was pooh poohed by 12 publishers...guess who’s kicking themselves now that they passed on Harry Potter? And E. E. (sic) Cummings first work — The Enormous Room, now considered a masterpiece — was ultimately self-published...and dedicated to the 15 publishers who rejected it.
Yes, many famous authors were rejected multiple times. However, Bach and Mitchell were first published by Macmillan, King was first published by Doubleday, and Rowling was first published by Bloomsbury. And note the half-truth: e.e. cummings' first (and only) novel was The Enormous Room, but it was published by Boni and Liveright. It was his manuscript for No Thanks in 1935 that his mother financed. According to Emory University, "With characteristic sarcasm Cummings named the 14 publishers who had rejected the manuscript of No Thanks in the volume itself and said 'Thanks' to his mother, who had financed its publication."

On a website flacking his book about self-publishing here, John Kremer lists the following fifty famous authors who have self-pubbed:
Margaret Atwood, William Blake, Ken Blanchard, Robert Bly, Lord Byron, Willa Cather, Pat Conroy, Stephen Crane, e.e. cummings, W.E.B. DuBois, Alexander Dumas, T.S. Eliot, Lawrence Ferlinghetti, Benjamin Franklin, Zane Grey, Thomas Hardy, E. Lynn Harris, Nathaniel Hawthorne, Ernest Hemingway, Robinson Jeffers, Spencer Johnson, Stephen King, Rudyard Kipling, Louis L'Amour, D.H. Lawrence, Rod McKuen, Marlo Morgan, John Muir, Anais Nin, Thomas Paine, Tom Peters, Edgar Allen Poe, Alexander Pope, Beatrix Potter, Ezra Pound, Marcel Proust, Irma Rombauer, Carl Sandburg, Robert Service, George Bernard Shaw, Percy Bysshe Shelley, Upton Sinclair, Gertrude Stein, William Strunk, Alfred Lord Tennyson, Henry David Thoreau, Leo Tolstoi, Mark Twain, Walt Whitman, and Virginia Woolf.
The list above is sorted alphabetically, which is a bit misleading. Commercial publishing as we know it today did not really get its start until the middle of the 19th century. According to the Encyclopedia Brittanica, until 1750, Britain produced only 100 new titles a year. It wasn't until 1850 that mass production brought down the costs of books, and it was 1900 before that 100 titles a year became 6,000 titles a year.

A number of the famous commercial publishers we still recognize had their start during the 19th century: Harper & Brothers (HarperCollins) in 1833; Houghton Mifflin & Company in 1880; McGraw-Hill in 1888 and Macmillan in 1896. Prior to 1850, there was NO traditional publishing as we know it today. The business model was totally different with self-publishing being the norm. Therefore, it's comparing apples and oranges to list historical figures together with modern authors.

A quarter of the above authors were writing before the advent of modern commercial publishing and have no business being included on the list: William Blake; Alexander Dumas; Benjamin Franklin; Nathaniel Hawthorne; Alfred, Lord Tennyson; Lord Byron; Alexander Pope; Thomas Paine; Edgar Allen Poe; Percy Bysshe Shelley; and Henry David Thoreau.

And finally we have what I call "The Big Lie," the one everyone has heard: Stephen King owes his success to self-publishing.

In late October, 2005, I wrote about King's experiments in self-publishing. I called it bold, brave and inspired. Here's a portion of that post:
King first burst onto the public consciousness in 1974-75 with the release of his books, "Carrie" and "Salem's Lot." He tapped into readers' desire to be scared out of their wits . . . By 1995, he had become an icon, and e-publishing
was still in its infancy.

In early 2000, King proposed selling his novella, "Riding the Bullet," online through his publisher, Simon & Schuster. No one was prepared for the onslaught of fans trying to download the new release. In no time at all, he'd sold 400,000 copies of the novella online. Even though e-publishing had been around for more than five years by then, one estimate claims King's sales figures were greater than all the e-books sold on line collectively to that point.

Emboldened by his success, King came back a few months later and tried a second experiment. This time he left Simon & Schuster out of the equation--and I'll bet they weren't happy about it. King decided to sell his novel, "The Plant," directly to readers via Amazon. In a quixotic gesture, he opted to sell the serialized novel on the honor system for $2.50 per installment. He was forced to pull the plug because readers were downloading the installments without paying.
Again, I think there are legitimate reasons to self-publish. However, if you are thinking about it, please take the time to educate yourself. Don't let your impatience justify forking over several thousand dollars. Having a physical copy of your book is the start, not the finish. Remember: Even with a website or a listing on Amazon, you still need to find a way to drive traffic to your book.

Here's a quote that I have always liked:

Three hundred years ago a prisoner condemned to the Tower of London carved on the wall of his cell this sentiment to keep up his spirits during his long imprisonment: 'It is not adversity that kills, but the impatience with which we bear adversity.'

Friday, November 13, 2009

Point and Counterpoint

Another Author Strikes Back controversy.

On October 15, George Packer reviewed Mark Danner's book Stripping Bare the Body: Politics, Violence, War for the New York Times Book Review. Read that review here.

On November 4, Danner wrote a 1,400-word Letter To The NYT Editor, protesting the review. While it's not news for an author to protest a review, it is news for the Times to print such lengthy letters in their entirety. Read it (and Packer's response) here.

Greg Mitchell of Editor and Publisher wrote an article on the point-and-counterpoint duel here. And The Huffington Post picked up on the story, reprinting Mitchell's article.

I have come to believe that responding to critics and criticism is not a useful pastime. Below are my favorite quotes about critics:

Writing criticism is to writing fiction and poetry as hugging the shore is to sailing in the open sea. --John Updike

Do what you feel in your heart to be right. You'll be criticized anyway. --Eleanor Roosevelt

Abuse if you slight it, will gradually die away; but if you show yourself irritated, you will be thought to have deserved it. --Tacitus

Thursday, November 12, 2009

Note to My Readers

I wrote my post for Thursday at about 4 AM when I got up to take my scheduled antibiotics. When I resurfaced and re-read it at a decent hour, I made some changes, including to the title.

The Web of Domination

Herbert Marcuse, a Marxist philosopher and socialist, once said: "The web of domination has become the web of Reason itself, and this society is fatally entangled in it."

The irony of tying this post to a socialist is not lost on me.

Back on May 13, Amazon announced a new program called AmazonEncore. Here is the description of the program from their press release:
AmazonEncore is a new program whereby Amazon uses information such as customer reviews on Amazon websites to identify exceptional, overlooked books and authors that show potential for greater sales. Amazon then partners with the authors to re-introduce their books to readers through marketing support and distribution into multiple channels and formats, such as the Amazon Books Store, Amazon Kindle Store, Audible.com, and national and independent bookstores via third-party wholesalers.
You can read the entire press release here.

The first book to be re-released by the AmazonEncore program was Legacy, written by fourteen-year-old Cayla Kluver and self-published by her and her mother a year later. The book was released under the AmazonEncore imprint on August 18.

Yesterday, AmazonEncore issued a second press release, announcing they would be releasing three new books in February, 2010. All three books had previously been self-published by the authors using Amazon's BookSurge unit. According to the new press release, the three books are:
“Perfect on Paper: The (Mis)Adventures of Waverly Bryson” by first-time novelist Maria Murnane; “A Wish After Midnight” by Zetta Elliott, an American Library Association 2009 Notable Children’s Book author; and “They Never Die Quietly” by former book editor Daniel Annechino.
Read the press release here.

It would be easy to hail this initiative simply as an opportunity for deserving self-pubbed authors to get broader exposure. Unfortunately, I don't see it that way. Amazon has now crossed the line into publishing books under its own imprint instead of merely providing print-on-demand services to other publishers and writers.

Talk about vertical integration [See 10/20/06 post here for definition of vertical integration]. Amazon is using feedback from its Amazon.com customers to identify the most popular or well-received books printed by its own BookSurge unit to then make deals with authors to market their work through other Amazon units (i.e. Amazon Books Store, Amazon Kindle Store, Audible.com).

Back on 6/5/08, I did a post here that included this:
I have said repeatedly . . . I think Amazon poses a threat to the publishing industry. But, increasingly, I believe that threat stems from Amazon's vertical integration of the book market, not because I think the Kindle will become the dominant e-reader.
Now let's talk about the carrot-and-stick approach. Remember yesterday's post here? Amazon brought a dozen well-known agents to Seattle to "open a dialogue." There was supposition as to whether Amazon was trying "to do an end-run around publishers and make direct e-book deals with major authors." That was the carrot.

The new Amazon press release is the stick. Let me translate what Amazon was really saying during those cozy little talks with agents in Seattle:
"We are now poised to publish p-books (through BookSurge), e-books (through Kindle), and a-books (through Audible.com and Brilliance Audio). We can both distribute (CreateSpace) and sell those books (Amazon.com). And we can even sell used books (AbeBooks, Bookfinder and Gojaba) and soft-market the books we want to push through our social networking sites (LibraryThing and Shelfari). We have a hand in every point of the chain leading to the customer:

Manufacturer => Wholesaler => Marketing => Retailer

"Bottom line: We at Amazon are the future of publishing. Get on board while you can because otherwise you'll be left in our dust."