The $0.99 Dilemma

I have a YA epic fantasy novel (I know, not exactly social justice -themed, but I have tried to drop a few values among the swords and magic) that will hopefully be published before the end of the year.

Give that is my first foray into the world of fantasy, it has been recommended that I offer the ebook for $0.99. I would receive only a 35% royalty rather than the standard 70%. The idea is that the first book is so cheap – Less than that cup of coffee you’re holding. And it doesn’t cool off as you read your way through – that genre readers will take a risk on an unknown fantasy author. The quality of the book will hopefully hook a sold readership that will buy subsequent novels in the series (there are already two more written and a fourth on the way).

It makes economic sense. I have invested my own money in a professional editor and an artist who is designing the cover. Otherwise, it is my time and the sweat of my loyal friends at the Berkeley Writers Group. There are hardly any costs involved after the initial set up – website overheads, promotion etc. – but no trees are being felled, replaced, distributed, returned and pulped.

As a consumer, I have found myself dismissing any fiction ebook over $10 on principle, and used to be skeptical about a book under $5, assuming the author might not be ‘good enough’ to sell his/her book at a respectable price. The latter assumption has been somewhat modified since reading a number of excellent books for less than a fiver.

Jeff Rivera wrote an interesting article: Writers: Making a Living Off of Kindle?. He interviewed J. A. Konrath, the author of the Jack Daniels detective series. Mr. Konrath is making a living primarily from his ebooks and is justifiably proud of it. He points out that he is making more from his digital books than his tree books.

Mr. Konrath sells his latest novels electronically for $2.99. With Amazon’s royalty system, he will make $2.04 off each book. He sells his older novels for $1.99. The idea behind this is that people will probably hear of his latest and read that first. After enjoying the book, they can go in and order 5 for $10. They are now packed for their vacation! Even if they order them one at a time, his books are at the price level of an impulse purchase for most people.

But I am having a hard time offering up my baby for $0.99. It seems almost disrespectful to the characters after all I put them through. The book is 95,000 words long, has been critiqued, edited, have its cover professionally designed and undergone a manicure and pedi.

But this is where the businessman/woman comes in, where the agent steps back and sees the big picture. If this is the first in a series of exciting books that a large following will invest in and root for the characters, then there should be no barriers to the reader taking a chance with the first book.

So here are three questions that, if you are so inclined, I would appreciate you answering in the comments:

1) What is your first thought when you see that a book that caught your eye is priced at $0.99?

2) What is the highest price you would pay for an ebook from an author you have never read?

3) What is the highest price you would pay for any work of fiction in ebook format?

I appreciate your guidance. Happy to hear any feedback on the topic. For more on my foray into the world of fantasy, I blog weekly at elfwriter.com and tweet with the same handle.

Have a great weekend.

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Alon Shalev is the author of The Accidental Activist and A Gardener’s Tale. He is the Executive Director of the San Francisco Hillel Foundation, a non-profit that provides spiritual and social justice opportunities to Jewish students in the Bay Area. More on Alon Shalev at http://www.alonshalev.com/ and on Twitter (@alonshalevsf).

Elwin Cotman – Performing in Oakland and SF

Elwin Cotman is a member of the Berkeley Writer’s Circle and I want to promote two performances this weekend. Elwin describes himself as “a writer of fantasy fiction. I am the author of “The Jack Daniels Sessions EP.” I am as old as the movie “Purple Rain.”

Elwin Cotman

That description sums up Elwin’s style. You are listening to something flowing and literary, then suddenly laughing out loud. He is more than just an author giving a reading, he is a performer. For more on Elwin, check out his blog (gotta love the blog title).

The Jack Daniels Sessions

His two shows this weekend are:

5/27, 9pm – Cafe International Open Mic, 508 Haight Street, San Francisco

5/29, 7pm -Musick Box Co-op, 3404 Market Street,Oakland.

For those of you not living in the Bay Area, here are more tour dates:

+ Sat, 5/28, 4pm: Santa Clara, CA – Baycon Science Fiction Convention
+ Sat, 5/28, 7:00pm: Santa Cruz, CA – SubRosa community space
+ Tue, 5/31, 9:00pm: Redding, CA – House Reading/Show! at Gary Piazza’s – 1336 Tehama St
+ Thur, 6/2, 7:00pm: Portland, OR – 1,000 Words Reading at The Waypost
+ Fri, 6/3, 7:00pm: Vancouver, OR – The Space Art Collective
+ Sat, 6/4, 7:00pm: Portland, OR – Red and Black Cafe
+ Tue, 6/7, 7:30pm: Boise, ID – Hyde Park Books
+ Thur, 6/9, 7:00pm: Seattle, WA – University Bookstore
+ Fri, 6/10, 3:00pm: Olympia, WA – Last Word Books

Good luck, Elwin.

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Alon Shalev is the author of The Accidental Activist (now available on Kindle) and A Gardener’s Tale. He is the Executive Director of the San Francisco Hillel Foundation, a non-profit that provides spiritual and social justice opportunities to Jewish students in the Bay Area. More on Alon Shalev at http://www.alonshalev.com/and on Twitter (#alonshalevsf).

Find Me An Author Making A Living From E-books!

So there I was at a party to celebrate the season of goodwill and I get cornered by Scrooge (it’s okay –  he doesn’t have time for blogs). He is a businessman in the City and when I told him about my books, promptly asked what my marketing strategy was. Without waiting for an answer, he launched into a rather unflattering (and unfortunately rather accurate) analysis of the book industry and its bleak future.

When he stopped to inhale, I waxed lyrically (a combination of enthusiasm for my blogs and a very good glass of Merlot) about the e-book revolution and my publisher’s strategy of focusing on blogging and selling mainly e-books.

Thoroughly bored with me after about three sentences, he waved his hand and challenged me. “Get back to me when you find a fiction writer who is not already a best selling author and is making a living from selling e-books.”

Then he walked away, and I was left counting the hours before I could leave the party, get the kids to bed and fire up my laptop.

Blessed be the Goddess Google. I found someone. Thank you to Galley Cat, four writers who claim to have the “first word on the publishing industry.” Whether true or not, I am in your debt for this interview with J. A. Konath.  Since I am only going to summarize the interview and gloat, click here for the full interview.

J.A. Konrath is the author of the Jack Daniels series, his main protagonist is a Chicago cop who “chases seriel killers and other loonies.”His books are fast paced, with plenty of action, dialogue, and humor.

And yes, he has successfully built a career, which means a living wage selling his e-books, including outselling such successful competition as James Patterson.

“Unfortunately, the print world is flawed. The business model–where books can be returned, and where a 50% sell-though is considered acceptable–is archaic and wasteful. Writers get small royalties, little say in how their books are marketed and sold, and simple things like cover and title approval are unheard of unless you’re a huge bestseller.”

He also doesn’t want to put the time needed into self-publishing as what he really enjoys is actually writing. I hear you, sir!

Now down to business:

Mr. Konrath is averaging about 180 sales a day through Kindle. He also brings in royalties via the Nook, iPad and through Smashwords (a ‘meat grinder’ that prepares e-books in most major publishing formats).

With the royalty rates at 70% from Amazon and Konrath’s e-books selling for $2.99, that means he makes $2.04 per sale. This adds up to $134,000 a year. I tip my hat to you sir!

When the royalty rate for Amazon switches to 70%, I’ll be earning $2.04 on a $2.99 e-book. That’s $134,000 a year. I also plan on uploading three more e-books this month, which I expect will sell well because fans are anticipating them.

Konrath suggests that offering books for the price of a cup of coffee makes them impulse purchases and therefore so attractive. As a Kindle owner on a tight budget, I can testify that I am willing to buy a book by an author I don’t know for $3-5.

The challenge is how to make your books stand out from the masses. Konrath has tried the conventional route of reading in bookstores and conferences and no longer believes this is the right way to develop a visible writers platform and fan base. He is also focusing on his blog and website, as well as staying active on social networks.

Thank you, Mr. Konrath I am now armed and ready for the next skeptic I meet at a party!
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Alon Shalev is the author of The Accidental Activist (now available on Kindle) and A Gardener’s Tale. He is the Executive Director of the San Francisco Hillel Foundation, a non-profit that provides spiritual and social justice opportunities to Jewish students in the Bay Area. More on Alon Shalev at www.alonshalev.com

The Price of an ebook

In a recent blog post I referred to a marketing report that detailed the exploding market of ebook readers and the growth in the sales of ebooks. I just came across a draft that I had planned to share with you when Amazon.com seemed resistant to lowering the price of my kindle version of Oilspill dotcom from $9.99.

The basis of my argument was not just that the price was too high, but that I had another distributor, Smashwords, selling the ebook in all formats at $4.99. My kindle version of Oilspill dotcom was eventually reduced to $4.99 and actually began to sell. I have just noticed that Amazon.com have now further reduced the price to $3.19.

Fair enough. But this has got me thinking what exactly should the price of an ebook be? There are hardly any costs involved after the initial set up. There are website overheads, promotion etc., but no trees are being felled, replaced, distributed and returned.

For my recent birthday, friends gave me gift vouchers for Amazon, so that I could begin building a library on my newly purchased kindle. I am, now the consumer, finding myself dismissing anything over $10 on principle, and skeptical about a book over $5.

Jeff Rivera wrote an interesting article: Writers: Making a Living Off of Kindle? (Apr 19, 2010). He interviewed J. A. Konraith, the author of the Jack Daniels detective series. Mr. Konraith is making a living primarily off of his ebooks and is justifiably proud of it. He points out that he is making more from his digital books than his tree books (luv the name!). I will cover this article in the future, but want to share one particular aspect here.

Mr. Konraith sells his latest novels for $2.99. With Amazon’s new royalty system, he will make $2.04 off each book. He sells his older novels for $1.99. The idea behind this is that people will probably hear of his latest and read that first. After enjoying the book, they can go in and order 5 for $10. They are now packed for their vacation! Even if they order them one at a time, his books are at the price level of an impulse purchase for most people.

I love the idea of responding to the question of how much my book costs with: “Less than that cup of coffee you’re holding. And it doesn’t cool off as you read your way through.” Not sure I’ll persuade Starbucks to make my novel their Pick of the Month!

I would be interested to know what price you are willing to pay for a novel when you download to your eReader, computer, or phone?

Good Writing,
Alon
http://www/alonshalev.com/