When’s the Right Time to Leave Your Big Six Publisher?

Jane Knows

I received the following question from published author Lisa Earle McLeod—who I remember first meeting at a Foothills Writers Guild conference in South Carolina:

Hi Jane,

My first book, Forget Perfect, was published by Perigee (Penguin USA) in 2001. It did moderately well. Now 10 years later, as sales were starting to peter out, Forget Perfect was featured on The Today Show and NBC Nightly News, both within the last 30 days.

The book’s core message—don’t undervalue your own life, instead of trying to do everything perfectly, start defining yourself in the context of a larger purpose—resonates with the cultural climate of our times.

I’m going to update Forget Perfect and relaunch it.

Here’s the question, do I do it with Penguin or on my own?

Penguin wants to relaunch it, with a new cover and a new foreword. No additional advance, but the prospect of additional earnings (at the thrilling 7% rate).

But, per the terms of my original contract, I’m within my rights to ask for the rights to be reverted back to me (based on current sales volume).

So I could release it on my own, if I wanted to.

Based on my platform, Internet presence, mailing list and promotion plans, I’m confident that I can generate significant e-book sales.

Should I go with Penguin, or do it on my own?

If I do it on my own, I could generate more revenue and have more control of the process. If I go with Penguin, I have the cache of a big publisher, along with their editorial and cover expertise.

What would you do?

Peace,

Lisa

Wow … only 7%? That’s pretty miserable.

The more you have the following things in place—or are ready to jump into action—the more I’d tip in favor of you doing it on your own:

  • A strong e-mail list with a good open rate (25%+)
  • Well-established social media network that can help spread word of mouth
  • The right contacts to help place guest articles/posts on the right sites/blogs that target the book’s target audience
  • An existing website that can be quickly adjusted on the fly to focus on the re-release
  • A nice backlog of content connected to the book—or re-purposed from the book—that can be excerpted across sites/blogs interested in your work
  • Resources to hire a good publicist for the first 3 months of relaunch
  • Resources to hire a good cover designer

I know you’re business savvy enough to do this on your own and earn quite a bit of money doing it. The big questions for me would be:

  1. Do you have the time & energy to spend on it?
  2. Do you have the resources to hire help as needed?

I don’t think you need Penguin’s editorial help if the bulk of the book has already been through the editorial process, or you don’t anticipate sweeping changes.

[But, editorial tangent: I’d also be thinking of upsells, e.g., companion workbooks or tutorials or something to make your efforts go even further. You could always hire freelance editorial assistance if necessary.]

I wonder if the publisher would be willing to budge on that percentage if they knew you wanted to do this on your own? Seems silly of them not to offer a better deal, but not surprising.

For readers of this blog, what do you think? Is there a stronger advantage in sticking with Penguin, particularly for physical store distribution, even at 7% royalty? Make sure you check out Lisa’s site before giving your final answer!

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Anonymous

Wow, Jane. I think this is the best blog post you have ever done. I love that you are tackling this level of question and offering the depth of your expertise like only you can offer and inviting us to chime in. Bravo!

And congratulations to Lisa. I can see the value in Lisa’s books in today’s marketplace but it looks to me like her Internet presence needs a complete makeover.

However, for all the folks who like to say that traditional media is dead, it looks like traditional media CAN bring a book with waning sales back to life. What do you have to say about that?

But an author’s job is never done, right? It’s so important that traditional media and new media be complimentary with each other.

Given all the freelance professionals out there who can assist Lisa to reposition her book and her online presence, I think she should go for it. I agree wholeheartedly with all of Jane’s advice. In fact, I’d say this analysis from Jane is worth its weight in gold. I hope that becomes Lisa’s gold.

Anonymous

Wow, Jane. I think this is the best blog post you have ever done. I love that you are tackling this level of question and offering the depth of your expertise like only you can offer and inviting us to chime in. Bravo!

And congratulations to Lisa. I can see the value in Lisa’s books in today’s marketplace but it looks to me like her Internet presence needs a complete makeover.

However, for all the folks who like to say that traditional media is dead, it looks like traditional media CAN bring a book with waning sales back to life. What do you have to say about that?

But an author’s job is never done, right? It’s so important that traditional media and new media be complimentary with each other.

Given all the freelance professionals out there who can assist Lisa to reposition her book and her online presence, I think she should go for it. I agree wholeheartedly with all of Jane’s advice. In fact, I’d say this analysis from Jane is worth its weight in gold. I hope that becomes Lisa’s gold.

Bob

Christina, Bob McLeod here (Lisa’s husband).  I appreciate your insight and comments but was curious if you could elaborate on your thoughts regarding an internet makeover.  Feel free to email me offline.  Bob@triangleoftruth.com.  Thanks

Anonymous

Sure, Bob. So as not to steal Jane’s thunder here, I’ll just rattle off a few tips off the top of my head and then I expect that Jane has some more suggestions. Here we go:

Personally, I always prefer a blog on the front of a site because that’s typically the most dynamic page. I want to see the author in action right now, rather than thumb through a static site.

I need a second opinion on this, but I’d suggest a new headshot. This one is not as appealing as I am sure Lisa is in real life. Also the white background really washes her out.

The header takes up half of my screen (I’m on my small laptop, therefore it would be a bit better on my big laptop, but still…). Readers want content, not headers. And in this site’s case, we are mostly looking at white space.

It looks like this site is targeting corporations. I get that consulting is important here. But I think readers would prefer a site that takes them into account as well.

I don’t mind so many pages to choose from and they are nested well, but the four columns across the middle make my eyes confused. Which should I look at? Where do I start reading?

I like the logos in the bottom right corner but the other two pieces…”Smart People Tips” ??? that seems really general. Where’s the hook for the reader that ties back in with what Lisa is all about? How could this site tie into Lisa’s mission as a whole in a truthful, graceful, imperfect–subjects of her books– way?

And the testimonial type is so teeny-weeny, I would have to pass it over.

But remember, I’m a reader, not a corporation looking for a speaker or consultant, so I think the key to this site is making it appealing to all of Lisa’s audiences. Right now, all the white and beige and gray is not saying “imperfect” to me. Know what I mean?

Okay, that’s enough out of me. Hope this is helpful.

Anne R. Allen

Fantastic post from Jane and really useful site analysis from you, Christina. Friendly, attractive headshots and good “above the fold” content are so important.

Jane Friedman

This is a tough one, because these issues can be very subjective, and based on who you’re trying to attract.

A few suggestions, though, for a reader-driven presentation:
– Have the “Smart People Tips” above the fold
– Have sharing buttons / social media info above the fold
– Have major media logos above the fold

Actually, Lisa’s blog presentation is a great entry point for readers, and addresses many of Christina’s concerns, as well as mine:
http://www.lisamcleodblog.com/

The trick is probably melding this approach with the one that’s for the corporate consulting/speaking gigs.

A couple authors who I think have a good approach, and are also in the business field:

Michael Hyatt: http://michaelhyatt.com
Michael Ellsberg: http://michaelellsberg.com

Melinda VanLone

If I were her, I would absolutely do this book on my own. She already has the platform, the PR is already in motion. Don’t be afraid of it, jump right in. She might have a talk with the publisher on the way out though. If they offer her a better deal it might be worth it to stay. But they’ve been ignoring her for years. She doesn’t owe them anything at this point. Cover designers are easy to hire. As are production people (to set up the e files if it comes to that), editors, etc. This is where I think traditional publishers are biting off their noses to spite their faces. They seem to be giving established authors a reason to leave, instead of reasons to stay.

Jane Friedman

I couldn’t have said it better: “[Publishers] seem to be giving established authors a reason to leave, instead of reasons to stay.”

April Line

If I were Lisa,  I would first ask Penguin to negotiate on the terms (or have her agent/attorney do it for her).  It sounds like she still wants some of the advantages of going with the big house, like half (or less) of the work she’ll have to do to generate competitive sales in self- or e-pub.  

Generating buzz via social networking and well-placed blog content requires lot of toil, plus piles of diplomacy and the exhausting process of replying, following, and paying the networking forward.  That could be a full time job on its own for a period of months.  

I think, too, though that she has to look at the numbers.  Good editorial freelancers, graphic designers, and and publicity people don’t work cheap. Larger firms who may have smaller fees will want a cut of her profit. How much would it cost her to self-publish (even just in e-book)?  

Her own non-billable hours + hiring cover designer + hiring freelance editors + hiring a publicist = considerable resources that Penguin would put up on her behalf.  If she is 100% sure she can make all that back plus do better than a 7% return, and, like Jane said, if she’s up for the work, and like Jane suggested, Penguin won’t negotiate, then totally go the self-pub route.  

But as someone like Lisa with a successful firm to run and other writing to do and clients to tend to, I would go self-pub as a last resort.  Penguin will launch an ebook, too.  I wonder if her return is higher than 7% on ebook?

Jane Friedman

All points very well taken! Thanks for the thoughtful comment, April.

One thing I will add: I’m betting Lisa knows and has connections to many influencers, which can help greatly reduce the tireless effort, diplomacy, and networking time. 

That is to say: Lisa has been networking for decades. Her relationships (or her network) can be put into action immediately … unlike for a writer who is very new and still trying to get established.

shirleyhs

I too think this is a wonderful post–thanks Lisa for allowing the rest of us to see inside the issues faced by authors today (I had never thought of this one as a beginning author). And Jane your knowledge of all the bits and pieces in the machinery of contemporary publishing truly knocks me out. Thanks both of you for providing a great tutorial. If Penguin is smart, it will  make you an offer you can’t refuse. 

Jane Friedman

Thanks, Shirley. Let me add another round of thanks to Lisa for allowing this kind of insight into what’s happening with her and her publisher. Not many authors are willing to do it.

Cathy Yardley

It’s a complicated dilemma!  I think that print distribution shouldn’t be discounted.  Right now, print books don’t have a chance of getting into B&N unless they have a print run, not just POD.  (At least, that’s their latest policy.)  I would imagine this book doing great in airports, as well.  I would think that negotiating for a higher ebook royalty with Penguin is very reasonable.  Best of all, Penguin will have the sales reps and print distribution in place… I can imagine a print book like this, with this topic, doing well as a re-release and even boosting digital sales as people “see” the title and have their memory jogged.  I also agree that Penguin will have the staff to do the editing, the design, and the publicity while Lisa continues with her actual business.  It’s just a matter of how much time and money do you want to spend for the higher royalty, and if you’re interested in print or not.

Jane Friedman

What you say about Barnes & Noble is true (plus it’s likely to be the case for any type of bookstore that isn’t local/regional to Lisa). 

That said, B&N is reducing bookshelf space by 20 percent nationwide. Would they be likely to take a new edition of a book released 10 years ago? Maybe with this new publicity/attention, they would. But it’s not a sure thing!I like your suggestion of attempting to get a higher e-book royalty, though it’s tough-to-impossible to achieve these days. Most Big Six publishers won’t budge a point beyond 25%.

Guinevere

Why doesn’t Lisa negotiate a contract that gives Penguin the paperback reprint rights, and keep the e-book rights to herself? (if this question has been asked already, I apologize.) Eleven years ago, electronic rights didn’t exist. The book is still in print, and Lisa, you still have a contract that’s in effect, even though it gives you the right to ask for your rights to revert if you choose. So why not choose to keep/renew your current contract and do the e-book on your own? … All the commentary about the cost of freelance editorial/design etc. is moot, since you already have a cover (and presumably would want to keep it for your electronic edition, to maintain continuity) and your book has already been edited. So you could flow it straight into electronic formats. Those costs would be recouped pretty quickly. The only drawback I could see is getting it listed on Amazon/BN/etc. alongside your print edition. other drawbacks?

This is such an important discussion. Many writers who have a track record in print publishing (and who are well into their writing careers, such as Lisa and Jane and myself) are thinking about how to keep one foot in traditional publishing and dip one foot into digital publishing, without making too many gaffes. Some very young writers are doing digital publishing that’s entirely reader-supported; this is difficult for me to fathom right now. In addition, Jane, you offer Seth Godin, Tim Ferriss, et al. below as examples of folks for whom digital publishing hasn’t been harmful, but these guys have enormous worldwide followings. Will digital publishing put the “midlist writer” into extinction?–Joan Didion, as just one example, spent 30 years on the midlist before making an enormous hit with The Year of Magical Thinking. Her screenwriting supported her financially, but the books supported her creative work.

Thanks for this great post. /Jennifer Matesa (aka Guinevere)

Jane Friedman

Great observations! Appreciate your insightful comment.

I think the most important point here is that Lisa is already visible and a known author with an audience gathered around her. She may not have the presence of Godin et al, but if she has a direct line to her readers, that’s the important thing.

Other authors who reach their readers online/digitally:

– Chris Guillebeau
– Bob Mayer
– Chris Brogan
– Christina Katz
– Peter Bowerman

While most of these authors have traditional deals, their big income is not from traditional book sales. It’s from ebooks and digital products they create on their own OR from services/speaking & consulting.

Lisa might be able to convince her publisher to let her keep the e-rights, by nearly every Big Six publisher has stated they will not separate rights. There are exceptions to this, but it’s rare. I hope it becomes less rare.

Elle B

Fantastic post and comments! So hard to find good advice for NF authors. Now I have a roadmap. Thank you, Jane and readers.

Jane Friedman

Appreciate you stopping by!

Ed_Cyzewski

Great advice. The more I think about the viability of releasing books on my own, the more I think freelance publicists are going to be in high demand. That’s probably one of the biggest pieces of the puzzle required for an author who already has a published book. A friend of mine is a motivational speaker who released his own book, and I suggested that he hire a publicist to walk him through the details of marketing rather than trying to find a publisher for his already published book. 

Jane Friedman

Very much agree, Ed!

Lisa

Thanks for the feedback.

This is a hot topic.  One thing that always surprises when it comes up is the animosity some authors have towards big publishers. I want to be clear, my original contract with Penguin 11 years ago was one of the best things that ever happened to me.  They took a chance on an unknown, and they have supported my work ever since. Without Penguin, Forget Perfect would have been another half-baked, self-published, poorly done book. Let’s be honest, most the self-published book never achieve the quality that the big 6 do. My 7.5% royalty (my bad it’s 7.5 not 7%) is a standard author contract on a trade paperback. Our industry is changing, publishers need to make smart business decisions and so do authors.  
I’ll keep you all posted on the details. 

Pamela Beason

If Penguin will not give you a better contract that specifies a much better royalty and lays out their plan for publicity, you’d be much better off doing it on your own. You’ve already received much of what they can do for you–readers know about you! Take that and run with it.

Jane Friedman

Pamela makes a good point as far as a plan for publicity. It would also be interesting to find out what their planned print run would be!

Jane Friedman

Thanks for the clarification, Lisa! We look forward to hearing how things go. 🙂

Zeeen.com

Great discussion. I always emphasize partnerships for aspiring indie authors. 
Self-publishing doesn’t have to be “going it alone.” At it’s best you are establishing the right contacts (editor, publicist, etc.) directly instead of relying on a publisher to aggregate those people. 

So my recommendation would be to start networking for those people now. Tell Penguin what you’re thinking, giving them the opportunity to give you a better offer. Then based on your talent search and response from penguin make an informed decision.