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Traditional Publishing vs Amazon

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The traditional role of publishing houses was closely linked to the available space on the shelves of bookstores. The libraries with limited space to allocate to books should carefully select which books to promote. Therefore, to exist, a publisher should have a large sales force to ensure that the book would fare well and truly on the shelves of bookstores. Once the place assured in bookstores, publishing houses should have a major strike force in communications to promote their books (as in advertising or selections from books of some magazines and newspapers). A significant number of employees as well as financial means were necessary and therefore allowed to have a competitive environment that is relatively consolidated. The publishers had to choose which author to publish and collect the 80-90% of turnover.

The deal has however dramatically changed with the Internet Directories and with arrival of eBook.

The concept of scarcity of space is becoming less and less important because Amazon (Company) can offer an unlimited number of books and any individual can manage to have so many titles available online than any publisher.

A significant number of people can write books (just using a PC), it no longer needs to be selected by a publisher to have visibility - which is especially the case if the Print on Demand is the future of print publication.

The selection of newspapers and even experts lose their relative importance with the word of mouth (blogs, micro blogging / twitter, communities etc)

Studies have shown that people who buy a Kindle tend read more books than those who do not possess. The added value is enormous for readers: lower half price, access in seconds and the first chapter for free on their choice - for Amazon: a historical reference and a platform to track user's tastes.

The facts are simple: if Amazon knows the taste of readers and authors may submit books directly to Amazon - which function, has there left for publishers?

The role of publishers must change radically. So far, they have little knowledge of their readers. If the authors can sell their books directly through platforms such as Amazon, it will require the publishers to provide added value to authors. This requires a thorough knowledge of their readers: publishers must sell more books but seek authors for their readers. Using the concept of permission marketing (sent free books, gifts, and discounts), the publishers can collect data on their drives and send messages (email, SMS, Tweets, Facebook page post) to their readers who are personalized, relevant and desired.

As a result:

The author may sell the benefits of books, because his hearing has been well defined and targeted in its entirety, accurately and efficiently. The publisher will have built the list and have control.

afzal nawaz

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