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E Publishing Models
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A discussion paper by JWT Smith (ISBN 1-891365-04-5, pp 293-298) on e publishing models points out that there have been two approaches towards shifting the paper model to the net: ‘ground up’ by the net users and ‘top down’ by the publishers.
The former ones have no formal structure and authenticity of information and controls (e.g.: peer reviews), whereas the latter have tried to focus on only revenue generation as the driving strategy.
Smith defines the ground rules for any e publishing model as follows:
1) Commercial e publishers:
They operate on the same guidelines as conventional print publishers and usually are the big names in conventional publishing. The author does not pay anything to the publisher towards cost of production of book. The publisher provides all services like editing, cover page design, obtaining ISBN no, copyright registration etc.
To maximize return on investment, the publishing house prefers to select best selling or highly reputed authors. Authors receive royalties’ up to 40%.
E-books are sold via their own websites and other e book resellers, distributors.
2) Subsidy Publishers:
These publishers charge a fee to the author for the various services associated in producing the book and marketing it ($200 - $500 per book).
Authors receive a royalty,ranging between 20- 50%.
Subsidy publishers charge for range of services such as formatting, editing, cover page design, ISBN registration, copyright registration, promotions. They package there services with different combinations. Also, they enjoy the publishing rights and have a percentage share the royalty revenues.
Print-on-demand (POD) publishing is a popular form of subsidy publishing, wherein the book is stored as an electronic file, to be printed out in "book format" only when it is actually ordered. It seems a cost effective strategy to test launch new authors and their works. POD publishing costs $200 to $1000 or more.
3) Self publishers
These are authors who choose to publish their e book on their own and in the bargain earn hundred percent revenues and keep all publishing rights. The main idea is to avoid the publishing, marketing, licensing costs and keep complete control over the design, price and marketing strategy.
4) Distributors or re sellers
These are book stores which sell e books. They offer a platform for the finished product or earlier print publication to be sold as e book and share percentage (20-30%) of the royalties. They do not charge the author.
There is no established e publishing model to be picked up off the shelf as the e publishing industry is still in an evolutionary phase. The business model to be adopted depends upon several factors: the buyers, kind of information and its shelf life, paying capacities and feasibility of e transactions.
Some examples of emerging options or their combinations that can be integrated to evolve a business model for e publishing are:
Are you an ebook author ? Find out how to market your ebook.
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