• Home
  • business model

Tag: business model

JVs and affiliates – better together

It’s a fact of life – of my life certainly, and I’m pretty sure yours too – that you can’t do everything on your own. Sometimes you need to bring specific skills and experience into the business by recruiting, sometimes you need to partner with another company, such as software developers, to deliver a project.

But those aren’t the only options.

Entrepreneurs and small businesses are pioneering new, more flexible models for collaboration and for punching above their weight. Two of the most interesting are joint ventures and affiliate programmes, which are slightly different although the terms are often used interchangeably.

Joint ventures

Typically a joint venture is less formal than a full partnership, although it may be governed by a legal agreement. It usually involves two complementary rather than competing companies coming together to create a new product or service that will appeal to both their markets, or jointly promoting complementary products or services to mutual benefit.  Because it’s a two-way process, it typically involves negotiation to secure that mutual benefit. In marketing terms, however, joint ventures are more usually understood to mean an integrated marketing strategy bringing benefits to both companies. They could do reciprocal email campaigns promoting the other’s product/service/event to their subscribers, for example, or share synergistic assets to create a content marketing campaign that’s more than the sum of the parts.

When it’s done right, a JV is a win/win: your community (and therefore you) benefit because you can offer them something of interest and value, while you leverage your partner’s network and community to reach new customers. When it’s done poorly, because the fit isn’t right or the benefit isn’t equal, it’s irritating to one or both partners and their communities.

Affiliate programmes

In an affiliate relationship, there’s less in the way of cooperation: the provider of a product or service provides a unique affiliate link or code that another organisation can use, and the affiliate receives a percentage of any sales (and/or advertising revenue) derived from that link. In an affiliate relationship the product or service belongs entirely to the originating partner, and the affiliate serves only to broaden its reach – there’s usually little if any room for negotiation. Amazon is perhaps the most obvious example – it bills itself as the ‘most popular and successful’ affiliate programme on the web.

Where are the opportunities for publishers?

You could argue that any rights deal is a joint venture – whether that’s for a translation or film adaptation. Or indeed that it’s a reasonable way to describe the relationship between publisher and author. Certainly publishing on behalf of an organisation is a great JV opportunity for publishers, such as Nosy Crow’s relationship with the National Trust or my own white-labelling services for organisations.

But there are many non-traditional opportunities for using these models too, without getting into a fully-fledged joint venture. You don’t even need tracking URL technology for all of them, and one of the best things about them is that you don’t spend a penny until the sales roll in. Here are a few ideas to get you started:

  • Enlist co-authors for mutual benefit: for example one brings the time and ability to write while the other has the profile and reach to promote the book effectively. Patrick Vlaskovits, Neil Patel and Jonas Koffler brought a complementary set of skills to the table to create Hustle, published by Penguin.
  • Another twist on this is for the author of a general book to partner with experts in specific niches to create new ‘verticals’, as Michael E. Gerber did with the legendarily successful The E-Myth Revisited to create the E-Myth Expert series, for professions as diverse as vets, financial advisors and optometrists.
  • Your book launch will be rocket-fuelled if you get the right partners on board: in Launch, Jeff Walker describes how he generated over $1m revenue in an hour from a well-planned JV product launch. And since JV partners typically direct their subscribers to sign up on your landing page, you can simultaneously grow your mailing list at the same time, which over time is likely to be worth significantly more than the initial flurry of sales.
  • Run a multiple JV-partner direct marketing and/or social media campaign, providing marketing collateral or ‘swipe’ copy that they can use. Make it as easy as possible for them to promote your stuff, but allow them to adapt your copy and/or write their own too: they will have their own tone and stylistic quirks. (And hey, since as we’ve already established authors and publishers are by definition joint venture partners, why not make a suite of marketing collateral available to your authors too?)
  • You have great content. Your potential JV partner has a great platform and network, and platforms and networks run on content. Think creatively about what you can produce for them – a blog or vlog series, a webinar, free online training – to get the most effective exposure/content win/win.
  • Finally, and perhaps most obviously, why not take a leaf out of Amazon’s book and reward people who love your books and are willing to promote them? From the biggest (PRH) to small independents (Chronicle Books), savvy publishers run affiliate programmes typically offering up to 10% commission on sales, and often with an enhanced scheme for their own authors. In a world of horizontal selling and peer recommendations, this makes all kinds of sense.

If you’re a publisher or author running successful JV or affiliate schemes, I’d love to hear your story – perhaps you could share it in The Extraordinary Business Book Club?

membership economyAlison Jones (@bookstothesky) is a publishing partner for businesses and organizations writing world-changing books. She also provides executive coaching, consultancy and training services to publishers. www.alisonjones.com

Seth Godin’s three charges against publishers

“As repressed sadists are supposed to become policemen or butchers, so those with an irrational fear of life become publishers.” – Cyril Connolly

Publisher-bashing is a popular sport, particularly for authors. Always has been. We shouldn’t feel too special: we’re in good company along with lawyers, journalists, traffic wardens, estate agents and used-car salesmen as the punch-bag of the dispossessed and disenchanted.

Much of the bile against publishers comes from authors who feel themselves poorly served – either because they didn’t get a deal in the first place or because they found the terms or the treatment less than they’d hoped for.

But just occasionally you get a really interesting, constructive anti-publisher rant that serves the book industry and society well by asking good questions and offering good ideas.

George Monbiot attacked big scholarly publishers – aka ‘parasitic overlords’ – in an influential Guardian article in 2011.

Hugh Howey put the boot into big trade publishers with his Don’t Anyone Put Me In Charge post in 2014.

And Seth Godin did it this week on The Extraordinary Business Book Club podcast. He’s an author, of course, but he spent his early career as a book packager, so he has more industry insight than most.

Here are three of the charges he levels at publishers:

1) They don’t have the imagination to take risks

‘In [Unleashing the Ideavirus], I gave the advice that ideas that spread, win, and that an idea that’s not bounded by paper, is going to spread faster. How could I publish this as a traditional book?

I went to my book publisher, I said, “Here’s the deal. I’d like to publish this book, but a) I need you to bring it out in 90 days, and b) I want to give it away for free, online.”

They said, “We’d love to publish your next book, but we’re not going to do it in 90 days, and you can’t give it away for free, online.”

I made the bold decision to take my own advice, and I refused to take this book and do anything commercial with it. Instead, I just put the entire book for free, online. 3,000 people downloaded it the first day, 4,000 people the second day. By the end of a couple months, it was in the millions.

Then I started getting email from people that said, “We hate reading this in a PDF. Where’s the book?”

Because I had a background as a book packager, I know how to make a book. In three weeks, we turned it into a hard-cover, sold it only on Amazon, and it went to number 5 on the Amazon bestseller list, a book that we gave away, and that cost $40 in the year 2000.’

2) They’re locked in an outdated model

‘You would think that [publishers] are in the tree business or the paper business, the way they behave. They value paper books more than they value the spread of ideas… they think of the world in the scarcity model of paper. Once you get rid of that model, the opportunity for a book publisher is huge, because now, it’s true, anyone can publish their ideas, but very few people can curate them, and very few people have the wherewithal to promote them. The idea that an institution of people with good taste and resources, could find ideas on Monday, edit them on Wednesday, and promote them on Friday, is astonishing, but they’re just walking away from that and leaving it on the table.’

3) They serve the bookseller, not the reader

‘The giant cultural problem of western book publishers is, they think their customer is the bookstore… Since that’s your customer, that’s who you wake up in the morning, seeking to serve… I have discovered over time that the single best way for a book to spread, is for one reader to hand it to another reader.’

You might feel some of this is unfair, but you have to admit much of it hits home.

Publishers themselves would probably be the first to admit that as an industry, we’re not known for our responsive, risk-taking, entrepreneurial hustle. And to be fair, I see more and more publishers engaging directly with their readers – I’d like to think we’re making progress in this area at least.

But there’s much thoughtful criticism here that should challenge us. Do a quick audit: what risk-taking are you currently engaged in, and how are you learning from it? What opportunities are others seizing in your field from under your nose? What are you doing to connect directly with your readers and inspire them to share their love of your authors’ books?

And if you’re lucky enough to have one of those imaginative, challenging, high-maintenance authors on your list, make the most of them. Listen to what they’ve got to say and think about how you can support their ideas.

You might hit a home run, it might not work. But if you never try you’ll never know, until your author gets tired of not being heard and goes and gets the home run off their own bat, proving one again that if you want to innovate, you have to part company with your publisher.

future of the bookAlison Jones (@bookstothesky) is a publishing partner for businesses and organizations writing world-changing books. She also provides executive coaching, consultancy and training services to publishers. www.alisonjones.com

Here’s what book publishers can learn from the podcast model

Did you make the same mistake I did and assume podcasts are yesterday’s platform, that interest in them has plateaued (at best) and they’re not worth thinking about today? If so, here’s a short article that might help you re-think your stance. If you’re still not convinced have a look at the infographic in this article, paying close attention to the chart showing how podcast listening is on the rise.

What seemed like a fad that’s dying off is actually showing nice growth. I’m contributing to that growth as I now listen to a variety of podcasts during my daily work commute. As I leverage this medium I’m realising it offers some very important lessons for book publishers:

1) Simple, easy subscriptions

When I discover a new podcast I’m interested in I literally click once to subscribe and the content stream comes to me. What could be easier? More importantly, what’s the analogy in the book publishing world? How do I “subscribe” to an author, series or topic? We all have our favorite authors. Wouldn’t it be terrific if a single click could initiate a subscription to everything they write in the future? That includes having samples of their new books delivered automatically to your preferred reading app/device.

2) Steady rhythm

Your favorite podcasts are usually delivered on a predictable schedule. Some are daily while others are weekly. This rhythm leads to anticipation, knowing that today’s edition will be loaded on your device at the usual time. This is another concept that’s totally foreign to book publishers. Books are released according to seemingly random schedules and some publishers are still even locked into the old “season” model. If you’re going to enable readers to subscribe to an author or topic as described above, be sure to produce a steady, engaging stream of valuable content for your audience.

3) Discovery

This remains one of the hot topics, always on the minds of book publishers. If you’re focused on discovery think about this question: How well do each of your products enable discovery of your other, related products? Some publishers still rely on back-of-book ads, even in ebooks. How about automatically delivering other, related content to your audience? A good example is how NPR promotes new podcasts. Yes, they advertise by plugging new ones in old, established podcasts. But recently I noticed they took the bold step of automatically downloading the first segment of a new podcast onto my device. I don’t recall opting in to that and it might irritate anyone keeping a close eye on their data plans but it’s a novel concept. I wasn’t going to seek that new podcast out and now all I have to do is click “play” to try it out, yet another example of one-click access and engagement.

If you haven’t been paying attention to the podcast marketplace it’s time to take a closer look. Subscribe to two or three that look interesting and see what other lessons can be learned.

Joe WikertJoe Wikert is director of strategy and business development at Olive Software. This post was originally published on his blog, ‘Joe Wikert’s Digital Content Strategies‘, where he writes opinion pieces on the rich content future of publishing.

 

business

The business of books: Only connect

At the launch of BookMachine’s Snapshots III I kicked off the talks by raining hard on the book industry parade. (Sorry.)

While I was on holiday in Dorset last week I wandered into a charity shop in a pretty market town and remarked on the number of books they had crammed onto their shelves. The woman behind the counter said wearily: ‘We’re not taking any more books. Everybody’s getting rid of them and nobody wants them.’

She didn’t know I was a book person. She had no idea she’d just delivered a punch to my gut. It’s not the sort of thing people in my world, and my social media bubble, tend to say. But it is of course true, or at least there’s truth in it.

As publishers, we spend our time with people who love and appreciate books. This is NOT THE REAL WORLD. For many people in this country books are an outdated technology. An irrelevance.

The Reading Agency reported last year that:

  • 44% of of young people aged 16-24 don’t read at all for pleasure (for older adults, that figure is 36%)
  • Only 26% of 10-year-olds say they like reading

And for an industry that makes its money from the sale of books it’s a perfect storm because, as fewer people want to buy books, more books are being published than ever before at lower prices than ever before.

So what’s the answer? Well, there’s no one answer. There never is. But we can find AN answer, I believe, in the creating of connection.

We already know that for many readers a book is interesting only when it’s connected to something else, something beyond the book, that has meaning for them. If they love Bake-Off, they’ll buy the book. If they’re a devoted fan of the YouTuber of the moment they’ll queue up for a signed copy, if they’re at an event with a great speaker, they’ll buy the book at the back of the room, if they’re in a book club they’ll buy the book they’re discussing: they need a reason, they need a connection.

When we write and publish today, we’re engaging in a battle for attention that’s more sophisticated and segmented than ever before. The people who really get this are the platform builders like Pat Flynn, Seth Godin, Jeff Goins, Joanna Penn, Hugh Howey, Denise Duffield-Thomas – and many of these are indie authors because they want control and they can reach their people directly. They have podcasts, blogs, YouTube channels, businesses: they have fans and/or customers instead of a sales force, and their book reaches new readers who become new fans and/or customers. It’s the attention they’re monetising – for many of them the revenues from the book itself are just a side benefit.

When rapper Akala spoke at Futurebook last year, revealing that his self-published books outsell CDs at his gigs, he asked ‘Why would I need a publisher? I have my own customer base.’

The good news is that books have an irreplaceable role in this new online/offline economy of connection and attention, but we have reached a tipping point: readers need a reason to read them. They need meaningful context. And the most powerful reason is always human connection – directly with the author, or with other people who’ve read and loved the book. Which means that publishers need to find ways to support authors to find their tribe and build their platform.

If we don’t respond to that challenge, if we don’t recognise that we’re in the business of making people care and connecting them, we’re simply adding to an undifferentiated pile of books that nobody has a reason to read. We also risk being left with a world in which only celebrities or business-savvy authorpreneurs can succeed in the book market.

Publishers have traditionally thought of themselves as gatekeepers, but once the walls have come down it’s a bit pointless continuing to stand beside the gate. And, even worse, if you insist on standing there you’re going to miss the party that’s going on inside.

Maybe a better metaphor for our future is as table hosts. Publishers don’t own the venue any more, it’s not even our party, but we CAN host part of it: we can lead the conversation in our area, give a voice and a platform to people with something interesting to say, we can make ours the table everyone wants to come to, where the best conversations happen and the most interesting connections are made. We can be where the party is.

And that’s much more fun than guarding the gate, right?

future of the bookAlison Jones (@bookstothesky) is a publishing partner for businesses and organizations writing world-changing books. She also provides executive coaching, consultancy and training services to publishers. www.alisonjones.com. 

Bootstrapping your book

There are basically three ways to start a business. You can use your own private fortune, you can pitch to investors for funding, or you can bootstrap: start at the beginning, plough the early profits back into the business, own and earn every scrap of the company. None of them is intrinsically ‘better’ than another, each has its pros and cons, they’re just right for different people in different situations.

Continue reading

My 2016 ebook marketplace hopes and wishes

Rather than speculate on what might happen in the ebook sector this year I thought it would be wiser to simply list the developments I’d like to see. So although some, and perhaps all, of these are a long shot, here’s my short list of hopes and wishes for the ebook market this year.

Continue reading

Would you sell advertising space in your book, app, or e-book?

Publishers generally don’t sell advertising space. There’s an underlying fear that this will have a negative impact on readers. What is this fear based on and are there examples of how this model can work?

One of the criticisms of advertising is that it offends the consumer’s sense of good taste by insulting and degrading his intelligence. But surely that’s a criticism in itself? I’d like to think that as a consumer you are deemed intelligent enough to decide what is the right product for your needs.

Let’s start with some sums and a hypothetical situation for book publishers and an app build…

Continue reading

BookMachine Weekly BookWrap: publishing stories from around the web

Get the latest news and event info straight to your inbox

Account


+44 207 183 2399

Incubation at Ravensbourne | 6 Penrose Way | Greenwich Peninsula | SE10 0EW

© 2019 BookMachine We love your books