We feel strongly about the benefit of pre-sales and crowdfunding for authors. Here are a few reasons why we feel that both the book industry and individual authors can benefit….
Changing Cost Structure
Crowdfunding and Pre-Sales platforms are changing the way publishing and book sales works. Generally, writers and publishers rely heavily on book sales to cover costs after money was spent for the first printing. But with per-sales platforms, the costs associated with printing and publishing are offset before printing costs are ever incurred. This allows for authors and publishers to gather support for their work, allowing for publishing with reduced up-front costs.
Because up-front costs are reduced with crowdfunding, books that may have seemed less marketable now to publishers have the opportunity to find their place in the industry. Works that normally would be turned away by publishing companies, now can find their audience before printing begins. This is leading to more indie authors finding their audiences before publishing begins. This in turn, leads to greater variety of authors and works in the marketplace.
Now that authors have a way to validate their ideas and build an audience before publishing, they are gaining the freedom to write what they really want. The pressure of producing works that seem commercially viable to publishing companies is not being reduced. The pressure to make a profit for a publishing company no longer has to drive the decision making process for what gets published and what gets left in the slush pile. Authors now can experience a greater freedom to engage their talents and passions to tell stories that resonate with their own audiences and tell the stories they really want to tell.
It used to be that an author couldn’t sell a book without using a publishing company. This meant that they would sell their rights to their own project to a publishing company. Publishers would then own the rights to their book and use the traditional online and bricks and mortar sales channels. This led to overall profit for the author of 15% maximum of the retail price of the book going to the author. Crowdfunding and Pre-Sales platforms are giving power back to the authors by allowing them to engage their audiences directly and keep 95% of their profits.
We think the landscape in publishing is changing and this is a really good things for established and new authors alike.