#082 Paul Millerd: Profits in Publishing, Why Self-Publish, How Authors Make Big Money

Smart Friends

Links:

Scribe Media

Paul’s website

The Pathless Path by Paul Millerd

Good Work by Paul Millerd

Paul on X

Topics:

(00:00:00) - Intro

(00:03:15) - Introducing Paul, and the early days of the publishing industry.

(00:06:48) - The earliest days of publishing, distribution of profit, and printing methods.

(00:17:46) - The 2014 E-book collusion

(00:20:27) - The self-publishing surge, the $4.99 sweet spot, and where authors can optimize.

(00:24:47)- The history of paperbacks

(00:37:28) - Book deals and agents

(00:48:15) - The India market, publisher problems, and compounding disinterest.

(01:06:06) - The future of publishing

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Here’s what we explored in the episode:

• We dive deep into the quirky history of the publishing industry, tracing it all the way back to the 1400s.
• In the 19th century, authors could increase their earnings by co-investing in fixed costs, like print plates and bookbinding.
• Traditional Publishing has always seen hardcovers as “the real books” and sought to protect them and their profits.
• Trade paperback was published only after a successful hardcover, with those rights often sold separately.
• Self-publishing changed the game for authors, with Amazon enabling print-on-demand and much higher royalty percentages.
• If you are an author signing with a traditional publisher, realize YOU ARE NOT THE CUSTOMER–book retailers are their customers.
• Lots of authors who earned big money retained their rights.
• Stephen King retained his paperback rights an early successful book. After the hardcover version succeeded, he sold those rights for $400,000
• Harper Lee made significant earnings from To Kill a Mockingbird by retaining movie adaptation rights.
• Tom Clancy held on to his film and international rights. This later became highly lucrative as his popularity grew and more of his books got adaptations.
• Traditional Publishers often prioritize prestige, tradition, and their profits – which doesn’t always align with author’s goals.
• Indie authors can now disregard tradition and experiment with pricing strategies to maximize reach, revenue, and their own personal results.

Important Quotes from the podcast on Business and Entrepreneurship

There is no skill called “business.” Avoid business magazines and business classes. - Naval Ravikant

You have to work up to the point where you can own equity in a business. You could own equity as a small shareholder where you bought stock. You could also own it as an owner where you started the company. Ownership is really important.

Everybody who really makes money at some point owns a piece of a product, a business, or some IP. That can be through stock options if you work at a tech company. That’s a fine way to start.