Some Interesting Insights on the new Digital Publishing Paradigm

A friend just sent me this intriguing article on "Best Selling Author Turns Down Half A Million Dollar Publishing Contract To Self-Publish"

It provides a good insight into the minds of authors (especially good ones) in the new digital paradigm. I also got a good view of the traditional financial publishing model (which i assume is similar for other intellectual property like music) from quotes like:

"In paper, with rare exceptions, there's a big upfront sales push, followed by either total evaporation or by years of low backlist sales. Digital isn't like that."

".. getting half a million bucks and 14.9% royalties, forever, isn't as lucrative as no money up front and 70% royalties, forever."

"a publisher's advance represents: a loan, an insurance policy, a bet"

"If the loan is so big that you don't think you'd ever be able to make that much on your own, plus you won't have to pay it back, then sure, take it"

"...getting half a million bucks and 14.9% royalties, forever, isn't as lucrative as no money up front and 70% royalties, forever."


I guess part of the thinking behind this is that both delivery/distribution AND marketing can be achieved effectively online now. With Social Media, the author, especially a good one, can do his own marketing to reach his audience and get feedback. Before these channels became available very few authors will make such a decision.