Science Fiction and Fantasy Writers of America

Image of a coffee cup, piping hot!

SFWA

Posts Tagged ‘Writer Beware’

MWA Weighs In On Harlequin Horizons

Thursday, November 19th, 2009

mwa_logoToday, Mystery Writers of America (a sponsor of Writer Beware, along with the Science Fiction and Fantasy Writers of America)  issued this announcement to its members:

———————————–

Dear MWA Members:

Recently, Harlequin Enterprises launched two new business ventures aimed at aspiring writers, the Harlequin Horizons self-publishing program and the eHarlequin Manuscript Critique service (aka “Learn to Write”), both of which are widely promoted on its website and embedded in the manuscript submission guidelines for all of its imprints.

Mystery Writers of America (MWA) is deeply concerned about the troubling conflict-of-interest issues created by these ventures, particularly the potentially misleading way they are marketed to aspiring writers on the Harlequin website.

It is common for disreputable publishers to try to profit from aspiring writers by steering them to their own for-pay editorial, marketing, and publishing services. The implication is that by paying for those services, the writer is more likely to sell his manuscript to the publisher. Harlequin recommends the “eHarlequin Manuscript Critique Service” in the text of its manuscript submission guidelines for all of its imprints and include a link to “Harlequin Horizons,” its new self-publishing arm, without any indication that these are advertisements.

That, coupled with the fact that these businesses share the Harlequin name, may mislead writers into believing they can enhance their chances of being published by Harlequin by paying for these services. Offering these services violates long-standing MWA rules for inclusion on our Approved Publishers List.

On November 9, Mystery Writers of America sent a letter to Harlequin about the “eHarlequin Manuscript Critique Service,” notifying Harlequin that it is in violation of our rules and suggesting steps that Harlequin could take to remain on our Approved Publishers list. The steps outlined at that time included removing mention of this for-pay service entirely from its manuscript submission guidelines, clearly identifying any mention of this program as paid advertisement, and, adding prominent disclaimers that this venture was totally unaffiliated with the editorial side of Harlequin, and that paying for this service is not a factor in the consideration of manuscripts. Since that letter went out, Harlequin has launched “Harlequin Horizons,” a self-publishing program.

MWA’s November 9 letter asks that Harlequin respond to our concerns and recommendations by December 15. We look forward to receiving their response and working with them to protect the interests of aspiring writers. If MWA and Harlequin are unable to reach an agreement, MWA will take appropriate action which may include removing Harlequin from the list of MWA approved publishers, declining future membership applications from authors published by Harlequin and declaring that books published by Harlequin will not be eligible for the Edgar Awards.

We are taking this action because we believe it is vitally important to alert our members of unethical and predatory publishing practices that take advantage of their desire to be published. We respect Harlequin and its authors and hope the company will take the appropriate corrective measures.

SFWA will be posting its own statement against this action shortly.

Harlequin Horizons: Another Major Publisher Adds A Self-Publishing Division

Thursday, November 19th, 2009

Writer BewarePosted by Victoria Strauss for Writer Beware

Hot on the heels of the launch of West Bow Press, Thomas Nelson’s new self-publishing division, Harlequin Enterprises has unveiled Harlequin Horizons, a company that “that offers aspiring romance writers the opportunity to self-publish their work and achieve their goals.”

The official press release is here.

Like West Bow Press, Harlequin Horizons is powered by self-publishing conglomerate Author Solutions, though its standard packages are considerably cheaper–from $599 to $1,599, as opposed to West Bow’s $999 to $6,499. You can also spend up to $3,499 for a specialty package (West Bow’s specialty packages top out at an eye-popping $19,999–are Christian writers richer, or is it just easier to persuade them to part with the big bucks?)

Both West Bow and Harlequin Horizons also give authors the chance to expend sizeable additional sums, such as $11,999 for a premium Christian publicist (West Bow) or a just plain premium publicist (Harlequin Horizons). Interestingly, while several of West Bow’s standard packages and all of its specialty packages include a bookseller return program, with Harlequin Horizons that’s available only as an extra.

Like West Bow, Harlequin Horizons wreaths self-publishing in nebulous, glowing verbiage, extolling benefits and ignoring downsides. With West Bow Press, you can Begin Your Legacy. With Harlequin Horizons, you can Reach the Stars. And just like West Bow, Harlequin Horizons cordially extends the carrot of commercial publication: “While there is no guarantee that if you publish with Harlequin Horizons you will picked up for traditional publishing, Harlequin will monitor sales of books published through Harlequin Horizons for possible pick-up by its traditional imprints.”

Unlike West Bow, Harlequin Horizons bears its parent’s name. And that is making some Harlequin authors quite unhappy.

On the Dear Author blog, a lively discussion of the new venture is summarized here. Authors’ concerns include dilution of the house brand (if low-quality self-published books carry the Harlequin name, the overall reputation of Harlequin may suffer), a loss of prestige for non-self-published Harlequin authors (the perception that “anyone” can get published by Harlequin), new authors spending money on self-publishing in the belief that it’s a path to getting noticed by Harlequin (well, of course; this is one of the new service’s major marketing pitches–no surprise, since Harlequin Horizons is a money-making enterprise), and the choice of Author Solutions as a partner (given the complaints about several Author Solutions brands–one of my blog posts is referenced).

In a followup post, some of these concerns are addressed by Malle Valik, Harlequin’s Digital Director, who reveals that while “Harlequin put its name on the Harlequin Horizons site to clearly indicate this is a romance self-publishing site,” Harlequin Horizons books will be branded HH (not Harlequin), and that “[t]he copyright is not associated with Harlequin.” As to why Harlequin is establishing a self-publishing division, Ms. Valik says,

Bowker reported in 2008 that more titles were published through self-publishing than traditional publishers. Self-publishing is a fast growing and vibrant part of the publishing industry today. Harlequin has decided to provide a romance focused self-publishing business for those that choose to go down the self-publishing road.

In other words–self-publishing is a big business, and Harlequin wants a piece of the pie. As I noted in my post on West Bow Press, the potential for new revenue is large indeed:

In 2008, according to PW, the number of on-demand and short-run titles (the bulk of which represent offerings by self-publishing companies) jumped by 132% (total growth since 2002: 774%), outstripping books produced by “traditional production methods”. Not only does adding a self-publishing line allow a publisher to cash in this trend, it presents the possibility of monetizing rejections. By the same token, the self-publishing service’s connection with a major publisher will be a major attraction for authors–especially if the publisher suggests that it may take the better-performing books commercial.

For the record, I don’t for one teeny tiny second believe that discovering new writers, or giving them a chance to “begin their legacies” or “reach the stars,” plays a major part here. That’s just a marketing pitch. This is about money. Now more than ever, commercial publishers need to shore up their bottom lines–and adding self-publishing divisions is an easy and profitable way to do so.

Harlequin Horizons offers more confirmation of this fact. But what it confirms even more is the ambition of Author Solutions. Over the past few years, Author Solutions has been absorbing its largest competitors. Now it seems to have come up with a lucrative new business strategy that offers even more possibilities for expansion. For that reason alone, I think we’ll be seeing more self-publishing divisions in the coming months or years.

(Something I didn’t know: Although only West Bow Press and Harlequin Horizons have received wide attention, they are actually the second and third such Author Solutions partnerships. According to this article in the Indianapolis Star, Author Solutions is also partnered with another Christian publisher, LifeWay. LifeWay’s website makes no mention of self-publishing, but a tiny link at the very bottom leads to Cross Books, “a Christian publishing company that blends the best attributes of self-publishing and traditional publishing.” Author Solutions isn’t named on Cross Books’ website, or at least nowhere that I could find, but the Terms of Use confirms the connection.)

Agent Inbox

Tuesday, November 17th, 2009

Writer BewarePosted by Victoria Strauss for Writer Beware

Yesterday, PW reported on the launch of AgentInbox, a new service from collaborative writing website WEbook (I’ve blogged about WEbook before).

“AgentInbox is a service that connects publication-ready authors with reputable, vetted literary agents,” says the service’s FAQ for writers. Writers enter their book’s “vital stats,” including title, genre, query letter, and all or part of the manuscript (there are several tutorials to help with the polishing process). They can then check AgentInbox’s roster of participating agents and choose which ones they’d like their submission to go to. WEbook staff pre-screens submissions, then forwards them on to the agents chosen.

According to PW,

AgentInbox will focus in particular on query letters while also ensuring the manuscripts adhere to basic editorial standards and readiness, said Ardy Khazaei, president of WEbook.

WEbook’s team of in-house and freelance publishing professionals will review pitch letters, make sure that the letters match the actual manuscript and that the manuscript is properly formatted, but the company will not make any recommendations about the quality of the content.

How does it work for agents? According to AgentInbox’s FAQ for agents, agents create a profile listing their interests and submission preferences. They can then check their submissions online, sort them by various categories including genre, and “[r]eject unsuitable submissions with a single click, and contact the gems directly.”

At present, AgentInbox is free for writers, though in future, premium services may be subject to a fee.

AgentInbox reminds me a lot of Creative Byline (about which I have also blogged), an automated submission service targeted to publishers. Creative Byline provides not just screening, but actual editorial feedback on writers’ materials–but otherwise the setup seems quite similar.

Both AgentInbox and Creative Byline are a riff on the manuscript display site, or electronic slush pile, which aims to attract agents and publishers by moving the acquisition process online, and to serve writers by promoting their work direct to publishing professionals, without the need for sending multiple queries. There are many iterations of this basic idea, from the static display site where writers’ submissions hang like banners in hopes someone will come along and view them (example: BooksandManuscripts.com), to supposedly more selective display sites where submissions are pre-screened for quality before being made available to registered agents and publishers (example: OnlyOneChapter), to crowd-sourced display sites where reader rankings drive submissions to the top for consideration by participating agents and editors (example: Authonomy).

The display site idea first surfaced in the late 1990’s. Despite innovations in concept and advances in technology, electronic slush piles have so far failed to establish themselves as a genuine alternative path to representation or publication (for writers), or as an alternative method of manuscript acquisition (for agents and publishers).

Will AgentInbox–which already has signed up an impressive roster of participating agents, one of whom, according to PW, has already found a client via the service–be the tipping point? Only time will tell. Worth noting, however: Creative Byline, which has been in business for more than a year and a half, continues to have difficulty expanding its publisher list (currently, only six publishers are signed up), and has reported no sales as a result of writers’ use of the service. Simply because agents can be more flexible in their acquisition guidelines than publishers, I’d expect a greater success rate for AgentInbox, at least initially. But I would also guess that unless AgentInbox staff do a bit more than just make sure that manuscripts are properly formatted, agents will lose enthusiasm for the service.

(Writers take note: whether or not it improves access to agents, AgentInbox won’t help with those most common of writerly gripes, form rejection letters and nonresponse. For agents, one of the advertised perks of the system is that they can “delete [submissions] or send automated rejections with a few clicks.”)

Revised Google Book Search Settlement Filed

Monday, November 16th, 2009

Writer Bewareby Victoria Strauss

On Friday, Google, the Association of American Publishers, and the Authors Guild filed a revised version of the Google Book Search Settlement. It’s now up to Judge Denny Chin to set dates for a notice period, an objection hearing, and the final Fairness Hearing.

A brief overview of the issues that led to the revision, and a summary of some of the changes, is provided by the New York Times.

One of the major concerns of Settlement critics, and also of the Department of Justice, which has urged the courts to reject the Settlement because of anti-trust concerns, was the issue of orphan works (in-copyright works whose authors can’t be found), and the fear that Google would gain a de facto digital monopoly over those works. The revision establishes the position of an “Unclaimed Works Fiduciary,” or trustee, who will be responsible for all decisions about orphan works, including whether to license rights in those works to third parties. Another potential monopolizing provision, which according to the Times “was widely interpreted as ensuring that no other company could get a better deal with authors and publishers than the one Google had struck,” has been dropped.

The concerns of European publishers, which have been distressed by Google’s digitization of thousands of European-published books included in US libraries (despite the fact that the Book Search Settlement was supposed to pertain only to US copyright holders), have been addressed by restricting Google’s database to books published in the US, Canada, UK, and Australia.

Another major change (per the Authors Guild’s upbeat overview of the revision): Google’s ability to monetize the database–which in the original Settlement was essentially unlimited–has been curtailed. “Future business models have been pared down to three: individual subscriptions, print-on-demand, and digital downloads. None of these business models can be implemented by Google without approval of the Registry’s board, and none can be implemented without notice to all claiming rightsholders, who will have the absolute right not to participate.”

Many commenters feel that substantial concerns remain.

According to Settlement critic James Grimmelman, a Google monopoly still looms. His argument is too subtle to summarize here, but he sums it up this way: “Settlement 2.0 confirms that Google will have the only game in town for the unclaimed works…The DOJ all but invited Google and the plaintiffs to empower the Registry to license Google’s competitors; they declined that all-but-invitation.”

The Electronic Frontier Foundation, for which privacy was a significant issue, feels that the revision leaves those concerns unaddressed. The ACLU agrees.

The Open Book Alliance, which has formally objected to the Settlement, calls the revision “a sleight of hand.” (What the OBA would have liked to see in an amended Settlement is described here.)

And as blogger Danny Sullivan points out in his coverage of the Settlement revision press conference, the copyright concerns that sparked the original lawsuit–that Google has turned copyright law on its head by requiring rightsholders to opt out of its database rather than in–remain entirely unaddressed (though it’s my impression that this issue is falling ever more steadily into the background as the Settlement grinds its way toward approval).

Google’s own summary of the revisions can be seen here.

Much more information, including discussions, objections, and documents, is available at The Public Index.

The deadline for claiming payment for books that were digitized without permission has been extended from January to March 31, 2010. However, given the changes, it would seem that consideration should also be given to those of us who, like me, opted out of the original Settlement, and now might want to reconsider. None of the many articles I’ve read address this issue.

Wanna Be a Virtual Author’s Assistant?…Maybe Not

Sunday, November 15th, 2009

posted by Victoria Strauss for Writer Beware

Writer BewareAs readers of this blog know, I’m fascinated by the strange phenomena that flourish at the fringes of the publishing world. So I was thrilled recently to discover yet another example: an online course that teaches people how to become Virtual Author’s Assistants.

What’s a Virtual Author’s Assistant, you may ask? The course website offers this explanation:

Author’s Assistants are people who work behind the scenes to create, organize and coordinate all the different pieces necessary to get a book published. To writers, they are miracle workers.

The world of publishing can be frightening, overwhelming and frustrating. An author’s assistant is the expert the writer turns to guide them step by step through the process.

From their homes, Virtual Author’s Assistants organize the publishing process for authors around the country and around the world.

Expert? As it turns out, potential Virtual Author’s Assistants need know nothing about the publishing industry. “[D]on’t worry. We’ll teach you. All you need is a love of books, a few basic business skills and a desire for fun and interesting work.” (Wow. Who knew this publishing stuff was so easy and entertaining? I must have missed that nugget of wisdom in my 25+ years as a writer and writers’ advocate. And gosh, I must be awfully dense, because after all that time, I’m still learning.)

(more…)

Blog Post/Article Roundup

Wednesday, November 11th, 2009

Writer BewarePosted by Victoria Strauss for Writer Beware

Some blog posts and articles that piqued my interest over the past few weeks.

Inspired by a silly piece by writer Jeff Rivera on GalleyCat, in which he, the owner of a self-publishing service, and an anonymous author question the usefulness of literary agents, agent Miriam Goderich of Dystel & Goderich provides an eloquent rebuttal: Who Needs an Agent? You Do.

From agent Holly Root: why not to sweat the small stuff. “There’s a ton of ink spilled online over do’s and don’ts for writers, and while I am a firm believer that knowledge is power and all, too much information can be paralyzing, and some of us on this side of the desk are guilty of making it seem much harder than it already is. If you really read and adhered to every.single.thing. every agent said online you would never finish a book or a query letter and if you did it would probably be a bland groupthinked mess, which actually will get you rejections.”

Agent Jennifer Jackson provides some helpful advice on query letters, including this explanation of what your query letter may say about you and your book (query-hating writers, pay heed): “Now, I’m not going to say that it’s not hard to sum up the book that the writer has spent months, or even years, producing in a way that will make someone want to read it. I think it’s a challenge. And you should definitely give it your best shot. Because, yes, the query is an important part of the initial submission. It sets the stage for reading the synopsis and sample pages. It can reveal things such as the writer’s background, whether their approach is professional, how they see their novel, and other intangible gut feeling responses.”

A pair of really informative posts from agent Rachelle Gardner: How Book Royalties Work and Is Your Book Worth It? (covers what commercial publishers spend on book production).

For writers who, like me, are not enamored of the relentless pressure to self-promote, this New Yorker parody of a marketing plan may make you laugh–or cry.

From writer Caroline Hagood, a short essay on writer’s block that I totally relate to. (For me, actually, what Ms. Hagood describes isn’t true block–it’s more the getting stuckness that I think all writers experience from time to time [and I experience a lot]. True block–the absolute dearth not just of ideas, but of words–is something else again.)

Speaking of being stuck: from Colson Whitehead and the New York Times, some not-exactly-serious ideas for what to write next.

Rights and Copyright

Sunday, November 8th, 2009

Posted by Victoria Strauss for Writer Beware

Writer BewareCopyright, literally, is “the right to copy.” It guarantees the authors of creative works–including books, artworks, films, recordings, photographs–the exclusive right for a set period of time to allow other people to copy and distribute the work, by whatever means and in whatever media currently exist. It also prohibits copying and distributing without the author’s permission. You own copyright by law, automatically, as soon your work is fixed in tangible form–i.e., the minute you write down the words.

Contained within copyright is the entire bundle of rights that an author can grant to others or utilize him/herself. For book authors, this includes the right to publish in book or other form, to make translations and audio recordings and films, to create serializations or abridgements or derivative works…the list goes on, and continues to expand as technology makes different forms of publication and distribution possible.

When you sign a publishing contract, you are granting the publisher permission to exploit (i.e., to publish and distribute for profit) some or all of your rights for a defined period of time. Because you own the copyright, granting rights doesn’t mean you lose or abandon those rights–merely that you authorize someone else to use them for a while, either exclusively (no one else can use them at the same time) or nonexclusively (you can also grant them to others). Eventually, once the contract term has expired or the book has ceased to sell in significant numbers, the publisher will cease publication and relinquish its claim on your rights. This is known as rights reversion. Sometimes reversion is automatic (as in a fixed-term contract); sometimes you must request reversion after the book has been declared out of print (as in a life-of-copyright contract). Once your rights have reverted, you are free to re-sell them if you can or use them yourself, as you choose.

For many readers of this blog, the above will seem pretty elementary. But confusion between rights and copyright is not unusual–not just among authors (one common misplaced fear, that granting rights to a publisher means you lose them forever, is often used as a justification for self-publishing), but among inexperienced publishers. If I had a dollar for every small press contract I’ve seen that hopelessly conflates rights and copyright (for instance, requiring writers to grant copyright, but then reserving a variety of subrights to the author), I could take my husband Rob out to a very fancy dinner.

Some suggestions to untangle the confusion and protect yourself:

- First and foremost, understand copyright and the rights it gives you. The US Copyright Office, the UK Intellectual Property Office, and the Australian Copyright Council all offer information. The more you know, the more likely it is that you’ll recognize bad contract clauses when you run across them.

- Except in specific circumstances, such as doing work-for-hire, don’t give away your copyright, not even temporarily. Inexperienced publishers sometimes ask for this, believing they need it to properly exploit authors’ rights. They don’t–and if things go wrong, it can work out very badly for you.

- You don’t necessarily need to be afraid of life-of-copyright contracts. In a fixed-term contract, you grant rights for a defined amount of time–say, three years. In a life-of-copyright contract, you grant rights for the duration of copyright (currently, in the USA and most of Europe, your lifetime plus 70 years). New authors often find life-of-copyright contracts very scary–but they’re standard in commercial publishing, and many smaller presses have them also. They are not intended to allow the publisher to hold your rights until 70 years after your death, but rather to create an open-ended situation in which the publisher can keep your book in print for as long as it continues to sell.

Of course, you need to evaluate the situation. For a new small publisher, life-of-copyright might not be such a great idea, since the failure rate for new publishers is very high. A fixed-term contract might be better, as it would at least ensure you got your rights back eventually, even if the publisher didn’t bother to return them before disappearing. And a life-of-copyright grant term must be balanced by a rights reversion clause (see below).

- Speaking of grant terms, make sure there is one. Whether it’s three years or life-of-copyright, your contract should state the term for which rights are being granted. I’ve seen small publishers’ contracts that lack this important detail.

- Make sure your contract includes some provision for rights reversion. While you want to grant rights to a publisher that will properly exploit them, you also want eventually to get your rights back. When and how this happens should be clearly spelled out in your contract.

A time-limited contract is one way to ensure reversion–but beware of automatic renewal clauses that make it difficult for you to terminate, or that rely on you remembering to send the publisher notice before the renewal date and thus can easily be forgotten. Beware also of excessive grant terms–for instance, the contract of one well-known author mill extends for seven years, which is longer than many commercially-published books remain in print. For a smaller publisher, three to five years, with the possibility of renewal if both parties agree, is probably the most you want to consider.

For life-of-copyright contracts, there should be a rights reversion clause detailing when the work will go out of print (ideally, this should be tied to minimum sales or royalty levels, rather than mere availability for sale, so that the publisher can’t hang on to your rights if your book is selling just a couple of copies a year) and what steps you can take to demand that the publisher return your rights (usually, a letter asking the publisher either to republish or return rights, and providing a timeframe for the publisher to respond). Never sign a life-of-copyright contract that does not include such a clause. Yes, they exist; I’ve seen them.

Also look for a clause requiring the publisher to publish within a specific period of time (say, 12-24 months), or else return rights. This will prevent the publisher from sitting on your book without ever publishing it, or from pushing the publishing date back indefinitely due to incompetence or malice.

- Last but very definitely not least, never rely on a publisher’s verbal assurances. A confused or devious publisher may assure you that, even though its contract requires you to give up copyright, “you aren’t really losing your copyright, because we’ll give it back later on.” Or, even though its life-of-copyright contract doesn’t include a reversion clause, “you don’t need to worry, because we never hold on to rights forever.” Maybe the publisher means it, maybe it doesn’t–but do you really want to risk signing with a publisher whose contract doesn’t match its promises? Along with Yog’s Law, a principle by which authors should always abide is this: If it’s not in writing, it doesn’t exist.

For more on copyright, including the reasons why you don’t need to register copyright for unpublished work and a discussion of several common copyright myths, see the Copyright page of the Writer Beware website.

Author Mills and a Request for Contact

Wednesday, October 21st, 2009

by Victoria Strauss

Writer BewareUnlike commercial or trade publishers, whose business model is based on book volume (selling as many books as possible from a limited number of authors), author mills’ business model is based on author volume (selling a limited number of books from as many authors as possible). The most famous example of an author mill is PublishAmerica, but there are others, such as VDM Verlag Dr. Mueller, an academic author mill.

Unlike vanity publishers or self-publishing services, author mills don’t charge upfront fees–which is why they can convincingly present themselves as “real” publishers–but they often do their best to turn their authors into customers, heavily encouraging them to buy their own books, or incentivizing self-purchases with special offers and discounts. Because of the need for author volume, editorial gatekeeping is lax (though many author mills, knowing how much authors crave validation, claim to be selective). Author mills protect their profits by doing everything on the cheap, with minimal or nonexistent editing, interior and cover design that’s straight-from-template, and no meaningful marketing or distribution, resulting in tiny sales for the average author mill book. They also often have exploitive, nonstandard contracts.

Because author mills are typically deceptive in the way they present themselves, many writers believe they are signing up with real publishers, and are bitterly disappointed by their publishing experience. Author mills may also be ineffectual, haphazard, or grudging about fulfilling their contractual obligations–so even writers who go into the relationship with their eyes open may not receive what they expect.

I’m currently writing an article on author mills, and as part of my research I’d like to hear from writers who have published with an author mill. I’m interested not just in writers who had problems, or whose expectations weren’t fulfilled, but in writers who chose an author mill specifically for what it could do for them, and were satisfied with the result.

Please email me at beware@sfwa.org. In accordance with Writer Beware’s policies, I’ll keep all information completely confidential (it will NOT be shared) unless you specifically give me permission to quote you (which I can do without using your name, if you prefer). Don’t worry if you get my autoresponder–I’m away from home at the moment, but will be back early next week and will reply then.

Thanks so much!

Why Referral Fees Present Ethical Problems

Thursday, October 15th, 2009

Posted by Victoria Strauss for Writer Beware

Writer BewareThis is a followup to my post on Thomas Nelson’s new self-publishing division, West Bow Press–specifically, on Nelson’s plans to pay referral fees to agents and others who refer writers to West Bow.

Agent Rachelle Gardner has written a thoughtful blog post on West Bow (I agree with much of her analysis), which has generated a lively comments thread. The issue of referral fees is discussed by a number of commenters, including Nelson’s Michael Hyatt, who says:

With regard to agents getting a referral fee, I don’t see how that is much different than the way it is now. (I was an agent myself for eight years, so I am speaking from my experience.) While the agent represents the author in a traditional relationship, his or her money comes from the publisher. In this case, the same is true. Obviously, as an agent of integrity, you wouldn’t make this recommendation to your client unless you (a) disclosed your compensation and (b) felt it was good for your client—just like traditional publishing.

Several commenters agree. However, I have some problems with this reasoning.

Referral fees are not analogous to commissions. An agent who sells an author’s work to a commercial publisher gets a percentage of what is paid to the author. An agent who gets a fee for successfully referring an author to a self-publishing service gets a percentage of what the author pays. In the first case, the author (not the publisher) is rewarding the agent for services rendered. In the second case, the publisher is rewarding the agent for services purchased. Big difference.

As to integrity, I’m sure there will be agents who will make responsible referrals, providing full disclosure and recommending West Bow only for authors they really believe will benefit. I’m also sure there will be agents who won’t. Some agents may even make referrals a standard part of their rejection letters (as successful agency Objective Entertainment has done with AuthorHouse), whether West Bow is appropriate for the author or not–and many authors will take such referrals more seriously than they otherwise might, since they’ll perceive that they are backed by the agent’s reputation and authority. Relying on integrity to ensure that an abuseable system isn’t abused is naive at best.

Another consideration: who will be most motivated by the prospect of a referral fee? Not, I would guess, agents who are making good money on rights sales, and thus have no need to nickel and dime their rejections (or, if they wanted to recommend West Bow for altruistic reasons, would likely do so whether there were a fee or not). For mid-level agents, however, and especially for amateur and disreputable agents, referral fees could be extremely attractive. When fraudulent editing service Edit Ink was paying fees to agents who sent it business, there were disreputable agencies that survived entirely on the income they got from those referrals. It’s true that Edit Ink dates back to the 1990’s, which is like a century ago in Internet time–but the basic motivator, easy money, is the same.

Of course, if the referral fees Nelson plans to pay are on the order of those offered by AuthorHouse’s Affiliate Program, even questionable agents may not be all that interested. If they’re more like Edit Ink’s, however (EI paid referrers 15% of what the author paid, and EI’s charges were typically in the thousands) the temptation will be more substantial.

In 2001, self-publishing service Xlibris (then independent, now part of the Author Solutions empire) attempted to launch a similar referral program, with agents who referred authors to Xlibris receiving a percentage of the fees authors paid the company for its services. At the time, memory of Edit Ink and other writers’ scams, several of which received considerable media coverage, was still current, and public criticism forced Xlibris to abandon the program. Public memory is short, though. This time around, I fear that many people will simply file Nelson’s referral fee plans in the “publishing is changing” drawer, which is a handy place to store issues you don’t much want to think about.

Thomas Nelson Adds Self-Publishing Imprint

Tuesday, October 13th, 2009

Posted by Victoria Strauss for Writer Beware

Writer BewareAs reported today in the Wall Street Journal, Thomas Nelson, a major independent Christian publisher, is adding a self-publishing line to its business.

Books from the new imprint, West Bow Press, will be designed, printed, and distributed by Author Solutions, the self-publishing mega-company whose brands include AuthorHouse, iUniverse, Trafford, Xlibris, and WordClay.

Per the WSJ article, “Thomas Nelson editors won’t edit the self-published manuscripts, but they will monitor sales to identify potential big sellers. Specific terms of the arrangement weren’t disclosed.”

Certainly this is an indication of the ambition and clout of Author Solutions, which over the past couple of years has acquired several rival companies, and attempted–in my opinion extremely misleadingly–to reinvent itself as an “indie publisher”.

But might it also be a sign of things to come in the commercial publishing world? According to the WSJ article, Nelson is “searching for new revenue as the book industry continues to struggle.” And that potential for new revenue is large indeed; in 2008, according to PW, the number of on-demand and short-run titles (the bulk of which represent offerings by self-publishing companies) jumped by 132% (total growth since 2002: 774%), outstripping books produced by “traditional production methods”. Not only does adding a self-publishing line allow a publisher to cash in this trend, it presents the possibility of monetizing rejections. By the same token, the self-publishing service’s connection with a major publisher will be a major attraction for authors–especially if the publisher suggests that it may take the better-performing books commercial.

I’ve speculated before about the possibility that more commercial publishers may add self-publishing divisions in order to keep their core publishing business afloat, as has Jane Smith at her How Publishing Really Works blog. I don’t often prognosticate about the future of publishing–but I have a hunch that this is something we’ll see more of in coming years.

Edited 10/14 to add: Michael Hyatt of Thomas Nelson has written a long blog post about West Bow Press.

It appears that there will be a referral fee component to the program. Nelson is looking “to work with agents and consultants as ‘WestBow Press Affiliates,’ so that they can help more authors realize their dream of getting published. Rather than simply send a rejection letter, they can now offer a legitimate alternative and earn a referral fee in the process.” Given the potential for abuse inherent in such referral programs, this is a dismaying development, and I hope that Nelson will reconsider.