Self-Publishers and eBook Authors Need a CHAMPION to Assist Them in Gaining Access to the Library Lending Process

Amazon’s entry into public libraries and their own lending process through the Prime program has just quadrupled the activity in ebook lending. With this rapid growth of the ebook lending process comes some inherent problems as everyone rushes to get a piece of the action.

At the top of the ladder are the traditional publishers, Amazon and Overdrive. They are the people that have the most control. Their motive is profit. At the bottom rung are the libraries and the authors.

I have discussed this issue with several authors recently and the sentiment is the same. “How do I make a living if they’re going to give my ebook away?”

One author relayed this to me. “I spent 16 months of my life, writing and researching a 600 page technical book/ebook and the sales have been mediocre at best. The hardcover sells for $35.00 USD with the ebook at $19.95 USD.”

“Now my publisher is going to let over 11,000 libraries have access to the ebook version and I haven’t heard anything about me sharing in the income. There is no one to turn to. You know? No competition.”

There are Some Problems with the Current Lending Model?

The current model

The current model is a profit-orientated process designed to funnel readers to the retailer’s buy pages by creating an availability problem. Avid readers want something to read and the convenience of an online device that can access a library’s collection, means they can be reading an ebook in moments. Sounds good!

Retailers and publishers know that ‘lending leads to sales’. The one copy, one user rule insures them the sale of the ebooks to the libraries. Then the publishers jack up the price above even the current online price and start to bring in the money from the libraries. Oh, I forgot to mention, the profit margin on an ebook is in the 90 percent range.

Several publishers have opted out of the lending because they have not bought into the ‘lending leads to sales’ theory. One thing for sure is they control the selection of what is available.

They already have a delay built into the model so the new releases are not available until they have passed an established sales period. This is similar to the movie industry. They do the same thing with new releases by monitoring sales until it passes an acceptable level and then they release the movie to video and online viewing.

And the kicker is that accessing ebooks is not an easy process, as advertised. Just try maneuvering through the catalog and all the separate Internet pages to borrow an ebook.

Amazon

Amazon has a very sound strategy here. They already have the ebook content on their servers. First they throw the readers a bone by allowing some ebooks to be purchased by libraries for lending. Then they flood the device market with Kindles at below market pricing. Some reports say below the cost of production. Of course, the Kindles are using Amazon’s own proprietary format.

Next they add the Amazon Prime lending program which allows a member to borrow one ebook per month for about $6.50 a month. The Prime program does have several other features like free shipping and the ability to stream movies and videos at a price. This could be a trial balloon for something more dramatic like a Cloud-based service renting ebooks and circumventing Overdrive and libraries all together. All links lead to their buy pages and at the same time they are capturing the patron’s information and reading habits.

You know there is too much power here when Amazon includes a publisher’s ebooks without their permission. Of course, the publishers can withdraw their ebooks from the Amazon sales site but I don’t think that is going to happen often.

Amazon biggest benefit is the increased pressure on Barnes and Noble. This competition definitely will affect the Nook ebook availability and their exposure to the Library audience.

Libraries

With Libraries, the squeeze is on. Saddled with limited budgets and a growing demand for ebooks spurred on by the entry of Kindle users into the mix, the availability of new titles is few and far between. And the Nook users are now battling for access to ebooks that before were totally in their domain. The multiple formats, one access per ebook model insures that.

Add to this a movement by publishers to affix an artificial limit to the ebook life cycle. HarperCollins has already put in place a checkout limit of 26 before a library has to rebuy access to a title.

Libraries, who fought for ebook lending, how realize that the opportunity comes at a price. Not only is the demand crushing the system, but the motive behind the change was to sell more ebooks and devices to frustrated readers.

And the price the readers had to pay was the loss of privacy of their information. Now the retailers are capturing all the reading habits of the library patrons with no recourse. To read more about the privacy issue go to Librarian by Day by Bobbi Newman and Librarian in Black by Sarah Houghton.

Another problem is the decision making process. In the library setting, a reader browses the online card catalog looking at very limited information. Next the reader goes to the shelves, finds the book and scans it. Then they borrow it or not.

Unfortunately, with ebooks the catalog descriptions are card-based. Some do provide a sample of the works but that is a very limited number of titles at this time.

And the kicker is libraries, at this point, have no alternative. Avid readers and the authors deserve better.

How do eBook authors and Self-publishers make a Living using this Lending model?

The quick answer is THEY DON’T particularly if they’re just starting out in the business. Traditional authors, who are established in the marketplace and their ebooks are a byproduct of the hardcover publishing process, will do JUST OK with this, if it does indeed lead to more sales.

The newbie author who has to do their own marketing, fight for reviews and work hard at social networking to get word-of-mouth recommendations, are fighting an uphill battle. They need exposure and the lending process seems like the perfect opportunity.

You know when ebook self-publishing stars like Amanda Hocking, David Baldacci and John Locke have a hard time getting by the gatekeepers into the library ebook catalog, something is wrong with the system.

Send in the Champion

So from the self-publishing, ebook author’s and the libraries’ point of view, what is the best alternative to the current model? We need a champion. We need a leader to design and implement a system outside of the current model. One who would compete with the traditional publishers and Amazon. A Gutenberg-type system, filed with current ebook authors and titles. You know a system where libraries can access titles for free or at a reasonable fee.

So what would the ideal system look like?

I have nicknamed this system:

CSPILL or The Champion for Self-Publishers and Independents Library Lending program.

Here is a summary of the attributes of this hypothetical system.

1.      A catalog of ebooks would be established and available to all libraries for lending.

2.      All ebook authors would be eligible to submit their ebooks for inclusion into the CSPILL catalog. (Probably some restriction on sexual connect and such should be determined)

3.      Authors and publishers would be responsible for providing the ebook formatted files.

4.      The system would be Cloud-based and each ebook would always be available.

5.      The collection would have fee-structure like:

A.    Some authors would provide FREE access to their ebooks. (usually early titles)

B.     Other authors would provide their ebooks for a one-time fee for their ebooks with no limit to the life.

C.     Established authors would provide for a yearly fee their ebooks with a library opt-out option.

6.      Privacy Control: No collection of information like borrowing habits will be attempted.

7.      A Dust Cover Description will be provided for readers to search and select a title to borrow. This would also be furnished by the author/publisher.

8.      Access to buy page links will be included in the Dust Cover Summary.

9.      Provide an opportunity for readers to submit reviews and opinions for each title.

So What Does this Buy the Self-publisher and the eBook Author?

1.      Reader’s exposure to the author’s ebooks otherwise denied by publisher controls.

2.      Reader’s reviews and opinions that are so difficult to get by the independent author.

3.      Borrowing gives the reader a free trail of an author’s works rather than a small sample.

4.      A Dust Cover Description concept which would provide the reader with information to help make the decision on which title to borrow.

5.      Assist the ebook author with marketing and branding their style of writing.

A Champion needs to step up to the plate. I think it is a huge opportunity for an organization to provide the self-publisher and independent author a voice in the exploding ebook industry.

Ron Frisch, author of the Promised Valley Rebellion, summed up the thought on this. “Would it take much for a small group of people to set up a website performing the service you describe, to which every independent writer would soon flock? Could SPR or the Association of Independent Authors do it?”

What would happen if a consortium of ebook authors and self-publishers united, offered libraries FREE copies of their ebook for a limited number of copies so they could gain access and exposure to the vast library system?

With all the factors involved, the avid reader is going to be looking for ebooks they can read right now.

References and Good Reading on the Topic

Library eBooks: Is the eBook Ecosystem affected by theAmazon Library Lending Process?

eBook Authors: Is the New KindleLibrary Lending Program a New Opportunity for Self-publishers?

New Questions,Concerns About Kindle’s Lending Library—What About Authors? By Laura Hazard Owen

Amazon will lend Kindlebooks for free, but authors will get paid from Book Making by Michael N. Marcus

Kindle lending library for self-publishers by Henry Baum

Internet Librarian 2011: Keynote – Lee Raine From Librarian In Black by Sarah Houghton

Public Library eBooks on the AmazonKindle – We Got Screwed 

from Librarian by Day by Bobbi Newman

Libraries Got Screwed by Amazon andOverdrive

from Librarian in Black by Sarah Houghton

View my website: HBSystems Publications
Specializing in the ebook experience

Or EMAIL at: jrm@hbspub.com
Or go to my blog: The eBook Author's Corner

LinkedIn Profile: James Moushon
Author: Call Off The Dogs, a rendered eBook

CIA Agent Jonathon Stone
discovers another shooter in
the Kennedy Assassination

Library eBooks: Is the eBook Ecosystem affected by the Amazon Library Lending Process?

My usual blogging direction is toward the ebook author and the self-publishing world. With this blog I take a left turn and explore the Amazon Library Lending Process and how it affects the ebook ecosystem.

The Jungle

The Inhabitants

In the ebook jungle, the traditional publishers are indeed the king of beasts. They control the prices and the access to the ebooks. Even the authors who create the content have little say. If publishers don’t want you to borrow one of their titles, you can’t. If they want you to wait for a title, you wait.

The next level of control is Amazon. They play the leopard’s role in this habitat. No matter how you look at the lending program, all paths out lead to their sales pages. I don’t see them changing their spots, ever.

Then there is Overdrive. They are the facilitator in this process. They feed you directly into the lion’s den.

The hunters in this jungle are the readers. They get to borrow what is put on the table. It is not their choice what is available. The decisions are made by the control groups.

The Problems

For something that was highly sought, library ebook lending has some major problems. I guess we thought that the ebook library process would mirror the decades-old tradition of libraries and their lending practices. You know the days when the library purchased a book from any source and placed it on the shelf.

For sure, problems with the new process are swirling around the blogosphere like a down pour in the rain forest. Let’s check in on a couple of the more popular discussions.

Privacy of Information

There is a lot of discussion about Amazon using the library lending process to more accurately profile our wants and habits and using that information to sell more products. I think it is the penalty we have to pay to get a free copy to read. Amazon’s incentive is to get you to buy something but this concept is everywhere? If I am not going to buy a $14.99 ebook, all the marketing in the world is not going to change my mind. There are some great discussions on this topic and I see merit in both sides of the argument. (Check references listed below.)

Of all the bantering and opinions about how to solve the privacy problem, the most absurd is to just pirate the ebook file, put it on the Internet and let everybody share in the free copy. Didn’t this happen in the music business? I wonder if those folks are out of jail yet?

Or I could pay cash for a hardcover book and avoid security cameras.

All I know is when I go to the grocery store and start shopping, I have a list of needs but I am also looking for discounted items I can buy with my shopper’s card. Today I found some hotdogs on sale. Because I am a hotdog kind of guy, I purchased a couple extra packages.

Then I headed to the checkout. I have several alternatives. I can give the checker my shopper’s card, get my discount but give up my personal information and buying habits. Or I can have the checker process my order without my card, lose the discount and save my privacy.

And I have another alternative. I could use the pirates’ method and walk straight out the door, saving my privacy and getting my groceries free.

Checkout limits

This is an old business concept called a ‘click charge’. That is the payment for incremental usage of an item. In the Libraries’ version, the ‘clicks’ or checkouts are paid for in advance.

The ‘click charge’ concept in the digital world was tried in the 1990’s when businesses started converting their paper forms to electronic forms. Several software development companies created e-forms design software to assist companies in the conversion.

Once the process started and the software companies saw how popular digital forms were going to be and how much money businesses were saving on the e-forms, they decided they wanted more than just the money for the design software. They wanted a fee for each form designed. This was called a ‘click charge’. They sold a license for blocks of forms (usually 50 or 100 at a time). Once a company surpassed their block, they had to pay for a new batch.

Companies didn’t go for this very long. They looked for other alternatives. Eventually application software companies added e-forms to their systems. Now e-forms design software, with no extra fee, is everywhere.

By the way, the original e-form design companies are no longer in business. New ideas and competition drove them somewhere else.

Expansion of the Audience

With the low price point of the new Kindles there is a potential of three times as many patrons demanding to checkout ebooks. And it will get worse. In November, there will be a ‘Kindle Fire’ in the jungle. Because of the expanded audience and the way copy access is handled, Nook will take a direct hit on this one. Once free to roam the collections, Nook users will now compete with the Kindle users. This should deeply impact the library budgets, their collections and availability.

A quick look at my libraries’ James Patterson’s collection shows 718 access copies with only 36 copies available or 5 percent. Only one title is available that was published since 2009. With these stats many people move on to something else. They either select something else in the library catalog or because they have their Kindle in their hands, they just buy it. Amazon’s motive, I am sure.

Survival

As long as we have unlimited checkouts, the library must encourage early RETURNS.

The Principle of Maximizing Library Returns states that in the library lending process, returning one book earlier than the  loan expiration date, while keeping the titles available constant and with no checkout limit, will at some point yield a monetary return to the library.

Of course, all ebooks will never be checked out at one time but popular ebook titles will almost always create a waiting list. On hold, if you will.

So does the library buy access to more copies of the popular title or do they let their patrons wait for the title to be available? Trust me the wait can be very long.

So what happens when the reader is done with the title and returns it early? The next reader in the hold line has the opportunity to check the ebook out. If this happens often enough, the need for the library to purchase access to another copy of the ebook diminishes.

Let’s take a quick look at one title to illustrate the point.

Don’t Blink x James Patterson

There are Only 4 ebook access copies in my library’s collection.

There are 71 patrons on the waiting list. At the rate of a full 14 day checkout, it will take 248.5 days to meet the demand. If the ebook was returned early, let’s say 5 days, the wait decreases to 88.75 days. (Still a three month wait.)

A better scenario would be to purchase 6 more copies (about $60.00) and encourage early returns. A 5 day return would bring the demand down to a 35 day wait.                                                       

Click Charge Strategy

If the publishers elect to impose a checkout limit, then the libraries must modify their strategy. In a way it makes the process simpler. Just buy short and adjust up.

Maybe you could test this now with HarperCollins. Only buy one copy of a title. If you see a hold list developing, buy another. With this strategy at least you won’t get caught holding 10 copies of a title with no activity.

Managing your digital collection will be the key to handling ‘click charges’ and reordering.

I wouldn’t boycott but I would not embrace the limit system either. Just adjust your buying model and limit the bad apples. Libraries do have the final say on which ebooks they purchase access too.

Living in Harmony

So what does this mean to the ebook ecosystem? I do know the natives are getting restless. As new technology and software enter the ecosystem, the pressure on libraries to keep up will grow dramatically.

I believe that ‘Returns’ are a key for libraries to maximize their investment in their collections. The less days an ebook is on loan, the greater the opportunity for the library to not buy access to an additional copy. The patrons need an incentive to return the ebooks early.

In the end we need a new animal in the ecosystem. Competition could solve some of the problems. Whether it comes from Google or 3M or another player we need more choices. Maybe we are looking at Smashwords entering the lending business or Amazon themselves. They have access to the content and their selection should be much greater.

Library access to a source of self-published authors and their works at discounted pricing could help patrons get exposure to new writers and relieve some of the pressure from the Overdrive lending system we are seeing currently.

What are your thoughts?

What can we do to encourage patrons to return ebooks early?

Will libraries have to change the way they manage their collections?
Is the ebook lending privacy issue a major problem or our current way of life?
Will libraries ever be able to purchase a copy of an ebook, place it on their server and have unlimited distribution to their patrons, like they do hardcovers?

References

eBook Authors: Is the New Kindle Library Lending Program a New Opportunity for Self-Publishers? by James Moushon

Publishing Industry Forces OverDrive and Other Library eBook Vendors to Take a Giant Step Back from the blog Librarian by Day by Bobbi NewmanBottom of Form

Libraries Got Screwed by Amazon and Overdrive from the blog Librarian in Black by Sarah Houghton

Lessons For the eBook Industry – Study the E-Forms Industry Beginning by James Moushon

A Helping Hand

I need to thank Brenda Brown from the Chandler, Arizona Public Library. She helped me to be able to ‘see the forest for the trees’. Sometimes I get involved in the details and I don’t see the whole picture.

View my website: HBSystems Publications
Specializing in the ebook experience

Or EMAIL at: jrm@hbspub.com

LinkedIn Profile: James Moushon

Author: Call Off The Dogs, a rendered eBook

CIA Agent Jonathon Stone
discovers another shooter in
the Kennedy Assassination