OLD POST ALERT! This is an older post and although you might find some useful tips, any technical or publishing information is likely to be out of date. Please click on Start Here on the menu bar above to find links to my most useful articles, videos and podcast. Thanks and happy writing! – Joanna Penn
An important consideration for your business is diversity of income streams.
You will end up with no power in that relationship, and no choice but to do what that company wants in order to continue working with them.
The Amazon/Hachette dispute has been the catalyst for my own move into direct sales of books, even though I have been selling courses online for a number of years now. Amazon represents 60% of Hachette's ebook sales in the US, and 78% in the UK, according to GoodeReader in June 2014. Once another company/platform has that much control over your business, negotiations are always going to be difficult.
Where do you receive your revenue from?
How many different sources does it come from? Is your business sustainable if any channel disappears or changes terms?
Indie authors love Amazon, because they pioneered self-publishing for ebooks and enabled authors to make a living online. But we're also aware of our dependency, and Amazon is a business, not a charity.
Jeff Bezos himself, in an interview on Charlie Rose, said that one day Amazon will be disrupted. It's also their business, so they get to change the rules when they want. So do Kobo, Nook, Apple and any other companies that sit between the author and the customer. I'm not talking about exclusivity here – I publish on all these platforms and plan to continue doing so, but I can still build my own channel on the side.
Building a direct channel for sales is one option to grow an income stream that has no intermediary except a buy button. It also enables the author a way to learn more about their customers and create a direct relationship through email.
So here are your options for direct sales. This is a chapter excerpted from my book on business for authors.
Sell ebooks/audiobooks/courses or other digital files from your website
Customers can manually transfer digital files onto e-reader or mobile devices in order to read them. This means you can sell .mobi files for Kindle and .ePub files for other devices, as well as PDF or any other formatted files directly from your site, and use a shopping cart through PayPal or other services to process the payments. Customers can purchase directly on your site, receive the download and you receive the money. There are a number of services you can use.
I've been using e-Junkie.com for a number of years, and the $10 fixed monthly payment/no transaction fee as well as affiliate options are great for selling online. However, it is Paypal or Clickbank only payments and the customer's experience is not that intuitive.
You can also just use a Paypal Buy button on your site, but again, it's not very sophisticated and nowadays, there are options that include email and social integration, as well as analytics. When I decided to sell my books directly from my website, I evaluated the following options:
- Great customer interface. Supports creators in 40 countries. It’s quick to integrate Gumroad onto your website, sell on Twitter, Facebook, YouTube, SoundCloud, and through your own email newsletter. You can set up discount codes. Detailed analytics.
- 5% + 25¢ per transaction with no additional monthly, hosting, or setup fees. Everything is covered–file hosting, file downloads, payment processing, payout deposits, customer support, analytics and dispute fees. Consideration for sales tax, including US rules
- Specifically doesn't accept Paypal – explained in detail here – but it's about control of the interface and customer experience
- Can be used for physical items as well as digital. Includes subscription content – great for serials, or for recurring delivery of content
- Used by Jim Kukral for his GoDirect book (all about direct sales!)
- Everything you need to promote and sell your ebooks to your social network. Specifically aimed at easily shareable. Customizable sales page – which is already very attractive with the default options. Ebooks only.
- Pay what you want pricing + discount coupons. PayPal only payment. You are paid directly after purchase. 5% per transaction, taken after PayPal fees.
- Google analytics integration
- Used by Chuck Wendig on his book pages
- Fantastically easy to set up and great design with a pop up within your website so the customer doesn't leave
- 5% + 25c per transaction. Can use both credit cards AND Paypal
- Easy social integration, as well as integration with Aweber mailing list. Responsive design means ability to buy on mobile devices
- Audio and video previews
- Can be used for physical, digital and services
- Used by CJ Lyons on her book pages
You should investigate all these as well as any other more recent developments in order to find what fits your business the best.
Personally, I am now using Selz for my ebook and (coming soon) non-fiction audiobook sales direct from my website. You can see examples on TheCreativePenn.com/Books and also JFPenn.com book pages. My main reason was that, as a customer, I like to be able to pay by Paypal or bank card, so I wanted both options. I also like the audio and video extras as I think multimedia will become every more crucial in sales. It also integrates with my Aweber email lists so I can develop a list of buying customers, separate to the list of people who download my free stuff. I'm still using e-Junkie for my courses as that is all set up and works well.
Sell print books/physical product from your website/online
Many authors buy and hold their own stock so they can sell signed copies of books from their websites. Other authors have DVDs, physical products like
- Gumroad, Selz, e-Junkie all have physical sales options
- Woocommerce has specific WordPress themes and customization for physical products and catalogues
- Shopify
I don't focus on physical sales in my business model so I can't share my experience. But if you're going to go ahead with physical sales, please do your research and consider print on demand or drop-shipping, where the product is made and delivered straight to the customer without you having to hold stock. Otherwise, you will need to pay for stock upfront, hold it or warehouse it, as well as shipping it. Lines at the post office are no fun, and neither is a pile of unsold stock in your house. Trust me, I've made that mistake and made a business decision to focus on digital products primarily because of it.
Sell physical products in person
The rise of the indie movement across all industries has seen a renaissance in craft fairs, local markets and people interested in buying directly from the creator. You may also be a public speaker wanting to sell books at the back of the room.
- Square – a small plugin card reader for your phone or iPad. Accepts all major credit cards. Deposits next day into your bank account. 2.75% price per swipe.
- Paypal Here – a separate card reader that works with your mobile. One off fee for the reader and then 2.75% for chip and pin cards or Paypal
- Intuit's Go Payment – Plug in swipe device with signature that works with your Apple or Android mobile and all major credit cards. Works with QuickBooks accounting software. Has pay-as-you-go or monthly rate charging with swipe rates 1.75% – 2.40%
Asking your customers for support
There are also a couple of other models that come under the ‘sell direct' umbrella.
- Crowd-funding. Sites like Kickstarter, IndieGoGo or PubSlush for books allow fans to contribute to costs upfront so special projects can be made. It generally works best for original ideas, rather than asking for readers to pay for editing a book by a first time author.
All of these require an author platform
If you want to sell directly, or if you want to explore crowdfunding or patronage, you will need an author platform and people who know who you are and are keen to buy. You will need traffic to your website, and you need an email list so you can tell people when there are books ready to buy. I've covered all these topics in ‘How to market a book‘ or you can check out the articles on marketing here.
Update for Dec, 2014 – EU VAT Tax on Digital Products
On 1 Jan, 2015, the EU introduced new VAT tax laws that impact anyone selling digital products to the EU – that includes authors who sell books or courses direct. Essentially, VAT is now calculated based on where the customer is located, NOT where the seller/vendor is located. The tax varies per country and to be compliant, businesses need to collect 2 pieces of evidence proving location.
Previously, there was an exemption limit for small businesses but this law gets rid of the limit so anyone selling anything and making any revenue above 0 must pay this VAT. Many of the companies above will help with sorting out this tax information, but many small businesses are pulling down their direct sales – myself included – until the law is revisited for small businesses. I am intending to create new courses in future but I will likely sell through Udemy or other sites that process the tax for you. I won't be selling direct because of this legislation.
For more information, please read this article.
Update April, 2016 – EU VAT Tax on Digital Products
I have returned to selling direct through SELZ and you can now purchase my ebooks/audios/courses direct from my site. So what has changed?
a) if you are in the UK (which I am) and sell to UK customers – but DON'T sell to any customers in other EU countries, then you're not liable – see the workflow https://whitehall-admin.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/415931/VAT_MOSS_Flow_chart_FSB_edit_V1_0.pdf
b) the selling sites e.g. SELZ now have the ability to restrict the countries you sell to – so I will (unfortunately) not sell to any customers in EU countries
c) If your online courses have a personal element e.g. Q&A extras, email, then you're not liable. But I also use Teachable.com which has a beta service for charging EU VAT if you're only doing electronic delivery.
Images: Top – Flickr Creative Commons money by Epsos; craft fair by Malisia;
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1 2 3 … 5 Next »And there is the catch. That elusive author's platform.
Like everyone, I've had to build my own ... like any business, it takes time.
Great article and summary. Also what I needed - Kick-In-Ass-Time - to reestablish those sales on my non-fiction site and add them moving forward on my fiction site. I used to do all my own non-fiction sales in pdf but with the rise of Amazon, I discontinued doing this. Lately with all the kerfuffle over Amazon-Hachette, I've been rethinking this. And your note today was the kicker. Thanks for shortening my research time and making it easier. Appreciate the article.
No worries - I wanted to do the research before I jumped into one of the options. I have PDFs as part of my multimedia courses, but am now selling ePub and mobi files for my books. DRM free :)
I hope it goes well for you!
Such a great, informative post. Thanks, Joanna!
This is definitely the future and all authors should be preparing for direct sales. Think MySpace -> Facebook and you'll understand why relying one on platform (whether it be social or sales) is dangerous.
However, this is something to consider:
"Customers can manually transfer digital files onto e-reader or mobile devices in order to read them."
While this is true, its not easy for the majority of people. My mother can hit the buy button from her Fire and be reading the next second. She wouldn't know where to begin if she had to download a .pdf, .mobi or .epub file. Amazon (like Apple did with the iPod) controls the device as well which means going direct now is more difficult. Most people will opt for the path of least resistance. If they have to side-load content on their own device, its less likely to happen. I think that's changing, but not quite there yet.
I agree that it is harder and there is some resistance to change - but I have had some purchases already, of the non-fiction stuff, and expect things to get easier over time. Maybe Selz or others will be able to implement a 'send direct to your device' button for the less tech savvy.
Also, this is not an either/or decision - it is having another channel of income, like adding Apple, Nook and Kobo as well as Amazon - so it's just another stream ... or trickle right now, that hopefully will become a stream :)
Great article, Joanna. This really is the way to go for independent authors. If your business is writing and selling books, you must consider a long term sales strategyat includes direct selling. Amazon may not always be the only kid in town, and it it unwise to entrust your future income into the hands of one or two outliers. If there is one thing indie authors can learn from the Amazon/Hachette dispute, is that even publishers are examining ways they can take back control of sales channels on their terms. We are already seeing that with big publishers like HarperCollins and Hachette. Several companies selling publishing services already offer plug-in sales pages for the author's website and take a small admin fee to fulfill both e and print book orders.
Thanks Mick, and the Amazon/Hachette thing has really been the final straw for me. I don't want to spend years building this author life to find myself locked into negotiations where I have no power. That's why I didn't ever want to submit my books to agents or publishers - the power differential really grates at me. Starting early is clearly a good idea :)
Wholeheartedly agree, Joanna. I knew from the beginning, that I'd be independent & do things differently. Occurrences, in the months since I began writing, have only confirmed this. If we're to build this author's life you mentioned, reaping the rewards of our labor, being creative, expanding our concept of marketing, and selecting tools that truly benefit us, will be key in doing so. Excellent article!
I love that you wrote this post! I think direct sales are poised to take off in the coming years. I feel like there are a growing number of consumers who are trying to avid contact with big companies wherever possible, plus buying direct gives them DRM-free books in multiple formats (or at least that's what they should get). It also gives authors another revenue stream, a higher rate of return on those sales, and I'd argue those customers who buy direct are more likely to be fans of the work. Of course, it can lead to discoverability issues if overall sales are low and direct sales pull purchases away from retailers, therefore keeping books at a lower rank, but in the long-term I think it's a sound strategy and more indies will begin to offer it going forward.
Personally, I try to only buy direct or from iBooks (my preferred reading app) now. If I can't find an author or publisher's book available in either of those sales channels, I either tweet or email them, and I've had very positive responses every time (both from self-published authors and small presses).
I think it will change over time as well, Paris, especially amongst the tech savvy Millennial generation, who are rejecting large corporates for the indie lifestyle. I've had a number of emails from people who want to buy direct because of objecting to the big companies, plus, it enables greater privacy this way I guess. I'm not some massive company trying to upsell them by learning all about their buying habits ...
on the other hand, I am a VERY happy Amazon customer, I use Prime, I'm a Kindle addict and spend lots there - I just like being able to provide for all markets!
I am planning to use Paypal for a set of PDFs I am going to write about what I have learnt about marketing over the last year, and will be putting that on my marketing blog soon. This is new for me, but I like the idea.
All the best with it, Julie!
Great collection of resources, thank you. I'm seeing a few indies using a combination of these ideas already. It will be interesting to see which ones work better long term and attract more authors.
Yes, there are definitely a number of options, with people split on which platform to use at the moment. I'm sure a front-runner will emerge but all the ones I mention are good options.
This is great info, Joanna! I've been considering adding a direct sales channel for my ebooks, and was not aware of some of these companies.
"Amazon represents 60% of Hachette’s ebook sales in the US, and 78% in the UK, according to GoodeReader in June 2014. Once another company/platform has that much control over your business, negotiations are always going to be difficult."
A lot of people think I'm an alarmist, but when Amazon initiated Kindle Unlimited and required exclusivity for participation by indies, I realized more than ever before that if we don't each develop our own solid platform (website) now, and Amazon or some other company is becoming so dominant that they can dictate terms to us, eventually we will have no choice but to accept whatever they demand. We cannot allow this to happen.
When I started writing my first novels in 2006, I posted everything on my website and sold a decent number of paperbacks as a result. After the Kindle took off, I removed my books from my website, leaving only excerpts. I sold a ton of Kindle ebooks in 2011, but after that sales began to drop off. The KDP Select free book approach worked for me for a while, but not so well anymore.
So, I recently pulled out of KDP Select, and I'm in the process of distributing my books everywhere. I put all nine of my books back on my website for everyone to read online for free. For those who want the convenience of an ebook or paperback, they can buy them from the vendor they choose. I may also add a donate button.
Some people won't like my writing style, so they'll read a chapter or two (or even a book or two) and go along their marry way. Did that cost me anything? No. But some readers will be delighted by writing and read everything I've done and want more. Those people will have become fans. And fans will support my writing. They will spread the word, maybe buy some ebooks or paperbacks, or possibly donate.
The biggest problem for most indies is discoverability. And yes, if you're offering your books to be read free on your website you have to work at getting people to your website. They are more likely to come, however, if you're offering free reads. And at least you have total control over your own website. And more control over your own destiny as an author.
By the way, there's another company you might want to add to your list for direct selling: Ganxy. I noticed that Claudia Christian Hall is using it on her website, and it looks good. Claudia also posts all of her novels on her website.
Your blog is always helpful and informative, Joanna, and I am a regular reader. Thanks!
Thanks Robert, and great to hear this is something you're already doing. I agree that exclusivity may be better for a short term game, but for the longer term, it's about building on multiple platforms. My income on the other platforms creeps up every month as the books are discovered - it all just takes time.
Jo, this is a great article. I've been thinking about selling through my site/blog for a while because I do sell quite a few of my paperbacks through the charity I work for. But the catch with this is that I also have to give them most of my profits so I treat these sales more like marketing. I have one question, though. How much traffic do you need for a site to make this work at all. (The million dollar question...!)
Thanks,
Helena
Hi Helena,
I think active and engaged readers is more important than traffic with no reason to be there :) but the principles of any kind of online selling apply really. But it certainly takes people finding you for it to be worthwhile - this may again be something for indie collectives to focus on.
I also agree that paperbacks are more about marketing unless you do a large print run upfront, which is not my business model.
Thanks for the roundup of options and recommendations! I'm really looking forward to the business for authors book.
I think it's a good idea to remind podcast listeners that they can support you by buying your books. It should be a no-brainer for Creative Penn listeners, because you publish nonfiction that relates directly to the subjects you cover in the podcast. It's probably even more important for authors who publish only fiction but have an online platform that attracts a different audience. I can see the appeal of the Patreon model, too, but personally I'm reluctant to sign up to subscription services because the monthly fees can kind of sneak up on you.
Thanks Alice (and thanks again for my notebook!)
I am pretty shocking about asking for support - I actually discuss this with Jim Kukral on the next podcast episode. I am going to make more of an effort though :) Thanks!