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« Mark Glaser on Media Oldthink vs. Newthink | Main | The Potentially Longer Tail Opportunity for Independent Bookstores »

August 12, 2006


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» Fact-Checking The Long Tail from IPcentral Weblog
I think the Long Tail is a useful insight, and I thank Chirs Anderson for giving it to us. But my, do folks keep finding things to criticize with the book (not surprising when you consider it had to be... [Read More]



Joe, I haven't read the passage yet, but just an FYI, not all publishers or imprints within publishers calculate royalties from net receipts. Common practice in the trade book space -- where Chris' hard cover book falls -- would be 15% of the cover price of the book, not net which is common in computer and other series books.

Also, what he leaves out in his discussion of Lulu's 80% royalty is that the publisher offers little or no distribution. For small and independent publishers, the hefty fees charged by book distributors is substantial -- but also with substantial upside for the author and publisher alike.

Joe Wikert

Hi Renee. Yes, I'm very familiar with the trade practice of paying against cover price. But that would take the royalty amount even higher, much further away from what Anderson states in his book. Just to be clear: royalties against cover price are higher than royalties against net which are higher than royalties against profit, assuming the royalty *rate* is the same in all three calculations. Keeping with a consistent percentage, say, 15%, you're multiplying that rate against a shrinking number as you work down from cover price, then to net price and finally down to profit.

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