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![]() • Writing Books • Producing Books • Running Your Business • Marketing & Distributing • Fulfillment • Publishing Poynters Radio ![]() |
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Setting up and Running Your Publishing Business
Contracts and Publishing Law The Business of Book Publishing Setting up and Running Your Publishing Business
Anyone can be a publisher. The publisher is the one who puts up the money. If you invest in your own printing, you are a self-publisher. If you begin to take in manuscripts from others, you are a (small) publisher. If you grow, you become a large publisher. Your computer makes it easy and inexpensive to write, produce, publish and sell books. You can work from home and you do not need any governmental licenses. Book publishing is easy but it is not the same as other businesses; there is a lot to learn. Fortunately, there is also a lot of help available. Unlike most industries, people in publishing are helpful, friendly and supportive. Since each book is unique, there is very little competition and publishers rarely feel threatened by another book. Consequently, we do not mind sharing what we have learned about this wonderful book publishing industry. In fact, we like to say "The greatest challenge in book publishing is managing the day-to-day excitement." Many famous books got their start being published by the author; some still are. Self-publishing is an early-American tradition. In the early days of the New World, the person with the printing press was often the author, publisher, printer and bookshop. Some people think that most of those who self-publish do so because several publishers have turned them down. That is occasionally true. However, most people today weigh the advantages and disadvantages of selling out to a publisher and make an educated decision to publish themselves. Those who self-publish find they make more money, get to press sooner and keep control of their work. Self-publishing should not be confused with "Vanity" publishing where an author pays (an exorbitant price to) a publisher to turn his or her manuscript into a book. See Books that were Originally Self-Published, Document 155 for a list (free). Size matters. In book publishing, being smaller and newer is an advantage. Large (New York) publishers (there are only six Trade publishers left) are like a department store–they have something for everyone. The variety may not be great and the depth may not be much but they usually have at least one book on every subject. No one on the staff knows much about the subjects of the books and the books are treated as anonymous "products." Being so far from their audience, there is little personal interest in promoting the books. Smaller and medium-sized publishers tend to specialize in one or two niche areas such as business books, boating books or baby books. The owners and staff are usually participants in their books' subject matter. For example, those who publish parachute books, do it with a sense of mission-because they like to jump out of airplanes. And, they want to share skydiving with the world. Participants know where to find their market because they frequent the same stores, join the same associations, read the same magazines and attend the same conventions. The secret to effective book distribution is to make the title available in places with a high concentration of (your) potential buyers. When specialized publishers take on a book, they can plug it right in to their distribution system. For example, while some parachute books are sold in bookstores, over 90% are sold through parachute stores, skydiving catalogs, jump schools and through the US Parachute Association for resale to its members. Usually three or four calls to major dealers can sell enough books to pay the printing bill–before the book is even printed! So big publishers are good at getting a book into bookstores but that is of little use if the potential customer does not frequent bookstores. For a complete explanation on how to set up and run a publishing company, see our Document 624 How to Set up and Run a Successful Publishing Business. Planning. One of the biggest pitfalls in small publishing is the lack of sufficient planning, especially the first time around. You don't want to tie up funds by purchasing materials too soon and you don't want to miss some important publicity because you missed a filing date. See The Self-Publishing Manual. For a more detailed calendar, see Your Publishing Calendar, Document 620. It has a checklist to keep you on track. The Special Report Book Fulfillment shows you how to set up your office and shipping facility. Raising money. You will require $3,000-$5,000 to publish most books, more if the book is full of color or is unusually large. Printing will only eat up half that amount but you will need more to launch your promotion. The book trade is slow pay and it will be several months before cash begins to flow in. You must promote your book while it is new (it has a date on it); in book publishing, you can't start off small and slowly. On your first venture, the printer will probably want his money in installments: 1/3 to start, 1/3 when ready to print and 1/3 on the completion of the printing. After a book or two, he will no doubt give you normal 30 day terms, and want his money a month after he delivers the books to you. Do not expect the large national book printers to be interested in postponing the printing bill. They are printers, not publishers or banks. See Raising Money to Publish Books, Document 626. Contracts and Publishing Law
Getting listed, getting found. While it is not required to register your books or your publishing company, most publishers do want to be listed so that their books can be found (and purchased.) The International Standard Book Number (ISBN) is a worldwide identification system which has been in use since the late sixties. There is a different ISBN for each edition and each binding of every book so the number's use avoids errors in identifying the books ordered, shipped, received, etc. Publishers are finding that with the increased use of computers in the book industry, this system has become an essential element in the distribution of their books. Use the ISBN on invoices, catalogs, order forms, packing lists and the book itself. Contact the International Standard Book Numbering Agency, R.R. Bowker/Martindale-Hubbell. The charge is $225 for a block of 10 numbers and $800 for a block of 100 numbers and so on. See http://www.ISBN.org. You may request numbers and a log sheet for 10, 100, 1000, etc. titles. The ISBN will send you a logbook sheet with enough room for listing ten or more different book editions. Once started in the system, you will assign each of your new titles an ISBN suffix yourself and record it on the log sheet. Standard Address Number. The SAN identifies each separate address of every firm in the book publishing industry from publishers, to wholesalers, to libraries, to bookstores. SAN's sort out the billing and shipping addresses and help to determine which "Book Nook" an order is going to. A SAN may be requested when you apply for an ISBN. The seven-digit number should be printed on all stationery, purchase orders, invoices, etc. See http://www.ISBN.org Bar codes. The bar code on a book identifies the ISBN, which in turn identifies the publisher, title, author and edition (hard cover, etc.). The wholesalers, chains and other bookstores will not accept your book or audio without a bar code. Since most books have bar codes, it will look odd without one and it will not be taken seriously. The barcode you want is the "Bookland EAN/13 with add on" and it should be printed on the lower half of "cover 4" (the back cover) on hardcover and soft cover books. On mass-market paperbacks (usually sold in drug and grocery stores), the UPC barcode goes on the back cover. You want the Bookland EAN bar code and probably do not need the UPC bar code. Order a copy of Machine-Readable Coding Guidelines for the U.S. Book Industry ($7.50) from: The Book Industry Study Group, 160 Fifth Avenue, #604, New York, NY 10010, (212) 929-1393; (212) 989-7542. For bar code producers, see our suppliers list. The ISBN is printed above the bar code. You can get both the barcode and ISBN typeset at one place. Bar code/ISBN prints and negatives cost $10-$30. For more information and a list of bar code suppliers, see Poynter's Secret List of Book Promotion Contacts, Document 112 (free). Advanced Book Information is another Bowker service. By filling out their ABI form, your book will be listed in Books in Print and several other specialized directories. Books in Print is published in October of each year and is the most important book directory. See http://www.bowkerlink.com/ . There is no charge. For more information on the ABI, see The Self-Publishing Manual and Poynter's Secret List of Book Promotion Contacts, Document 112 (free). Library of Congress Catalog Card Number. Preassigned Card Numbers (PCN) appear on the copyright page of each book and are also included in the lists and reviews appearing in the leading journals of the book trade. The LC number differs from the ISBN in that one ISBN is assigned to each different edition of a work (hardcover, softcover, etc.); the LC number is assigned to the work itself, no matter how the books are printed or bound. Use of the number enables subscribers to the Library of Congress' catalog card service to order cards by number and thus eliminate the searching fee. LC numbers are essential if you want to sell to libraries. The Library of Congress card number must be requested prior to the publication of the book so that the number may be printed on the copyright page. New publishers should contact to the Copyright Office, http://www.LOC.gov, and secure "Proceedures for Securing Preassigned Libray of Congress Catalog Card Numbers" and their "Request for Preassignment of PCNC Number" application (form 607-7). http://www.loc.gov/loc/infopub/ You must complete the application to participate and obtain an accont number and password. Then you can apply for a PCN. Then the Library of Congress will send you your number. See http://pcn.loc.gov/pcn/pcn007.html There is no charge for the preassignment of a card number. An advance complimentary copy of each publication must be sent to the CIP Office, Library of Congress, Washington, DC 20540. This copy is used for final cataloging so that cards may be printed before the book is released. The CIP Office provides postage-free mailing labels for use in sending these advance publications. For more information on the PCN, see The Self-Publishing Manual and Poynter's Secret List of Book Promotion Contacts, Document 112 (free). Copyrights protect your Work like a patent but they are cheaper and much easier to secure. The copyright protects your text, photographs, drawings, maps, everything in the book except the title. Once you write a manuscript, called "creating a Work," you are automatically protected by Common Law copyright. If you send it to the Copyright Office, you are registering your copyright and you get some additional benefits. It is not necessary to register your copyright to be protected but it is recommended and most people do. To register your copyright, follow these three steps:
The new copyright term is for the author's life plus seventy years. Your ownership of the book is now a valuable part of your estate, so be certain your copyrighted material is mentioned in your will. The new copyright Form CO replaces Forms TX (for books), VA, PA, SE, and SR. Form eCO is online, provides tracking and comes with a reduced filing fee. The Business of Book Publishing
Computers. To be productive, people need good tools. The computer has transformed many businesses but its impact on the writing and publishing of books has been phenomenal. We can use computers to speed and improve our writing, editing, designing, typesetting, layout, sending, reproducing, marketing, promoting and distributing of our books. For the smaller and newer publisher, these are exciting times. Pricing. If your book's price is too high, you will be priced out of the market. If it is too low, your book will appear cheap and will not bring in the money you would like. To calculate the best price for your book, you must look at price from the bottom-up and from the top-down. See How to Price Your Book, Document 604. Newsletters. Newsletters can bring you fame, fortune, help a lot of people and fulfill your mission but they have to be part of your overall plan. Many book publishers produce a newsletter to keep in touch with their customers. See Newsletter Publishing, Document 611. Contracts. The person who drafts the contract has control over the agreement. We can supply you with Contracts on disk (so you do not have to keyboard them), books to explain book contracts and a list of book-publishing attorneys. Be smart and supply the contract. See the contracts section below . Liability. Book publishers want to be protected against lawsuits for copyright infringement, defamation (libel and slander), invasion of privacy and negligence. The first three are usually lumped together into "publishers' policies." Copyright infringement, defamation and invasion of privacy are easy to avoid and there have been few suits for negligence in books. For a full discussion of the liability issues as well as the alternatives, see Insurance for Publishers, Document 636. Inventory reduction. The preferred way to reduce inventory is to sell all the books at their full price. There are times, however, when what we would prefer and real life are not the same. Traditionally, the only solution to an overstock of books has been to remainder them, to sell them in bulk for a small fraction of their manufactured price. The money realized in traditional remaindering is so small it is nearly inconsequential. The only real advantage to this traditional method of reducing inventory is the gain in valuable floor space. Fortunately there are several (often better) alternatives to traditional remaindering. Some of these alternatives are new places to sell books and charitable donations/deductions. See Beyond Remainders, Document 633. See Free InfoKit.
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