Independent Publishing Statistically Speaking
I don’t think that independent publishing is going anywhere anytime soon. With advocates like Hugh Howey and even traditional authors dabbling in the platform, it is here to stay. This blog will show how the numbers support this assertion. As I researched this article, certain encouraging, and some surprising, trends emerged.
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For instance, from a July, 2014 article in Publishers Weekly, I discovered that the “Big Five” traditional publishers now account for only 16% of the e-books on Amazon’s bestseller lists and independently-published books represent 31% of e-book sales on Amazon’s Kindle Store. This is an encouraging statistic. The article also reveals that independently-published authors are “dominating traditionally published authors” in sci-fi/fantasy, mystery/thriller, and romance genres but and are also taking “significant market share in all genres.” Since my work is mostly in the mystery/thriller genre, I was encouraged to see this as well.
The article also had some interesting information around pricing. It said that $2.99 and $3.99 are currently the pricing sweet spots for most e-book bestsellers. Authors who price their books at these prices earn more than those whose average price is higher. Conversely, pricing books at 99 cents is not as popular as it used to be and does not result in higher sales as it once did.
Here are some other interesting items regarding pricing strategies. The article states that free books still work as a marketing tool, especially when an author offers the first book in a series for free. But, because so many of us are using this strategy, it has lost some effectiveness.
A strategy that Amazon has opened up for independently published authors is allowing pre-orders. PW states that this gives authors a sales advantage. In fact, one contributor to the article states that pre-orders should be used in the same way that offering books for free was used in the past.
One thing that surprised me in the article is that Non-fiction books earn more at higher prices. In fact, it went on to say that non-fiction authors are likely under-pricing their work and should experiment with higher prices. This could be a result of the old adage, “you get what you pay for”.
This article, as well as others in my research, talked favorably about the earning potential for independently published authors. Publishers Weekly states that indie authors are earning nearly 40% of the e-book dollars going directly to authors. This is supported by an August, 2013 report in the Huffington Post which reveals that independently-published authors earn between 60-100% of the net profit (depending on who they choose to publish and sell through), compared to the 12-15% royalties they would earn through the traditional publishing business model. We know this to be true for publishing with Amazon which remits 70% of the selling price to authors whose books are priced at $2.99 or more (and 30% for those priced less than $2.99).
The growth in independently published books has been steady as well. An article published by Digital Book World in October, 2014 states that the number of International Standard Book Numbers (ISBN) assigned to independently published authors increased by 17% from 2012 to 2013.
An article by Bowker in October, 2013 states that the number of self-published titles in 2012 jumped to more than 391,000, up 59 percent over 2011 and 422 percent over 2007. It went on to say that Ebooks continue to gain on print, comprising 40 percent of the ISBNs that were self-published in 2012, up from just 11 percent in 2007.
Perhaps the most telling statistics regarding come from The 7K Report written by Hugh Howey himself, arguably one of the most successful independently-published authors of all time. I’ve included some data to illustrate some of the most important statistics. The first chart shows the percentage by source for books that are on the Amazon Bestseller List for the Mystery/Thriller, Science-Fiction/Fantasy, and Romance genres.
As you can see from this graph, 55% of the best sellers came from independently-published authors. The most telling fact is that only 28% came from the “Big Five” publishing houses.
The second graph shows a different picture. In this category, gross revenue among bestsellers, “Big Five” books actually dominate. This is likely due to the much higher average price for these books.
This graph shows that 52% of the revenue in these genres goes to the “Big Five” publishers with only 24% going to independently-published authors. It can also be said, however, that there is almost an even split between revenue to the “Big Five” and to everyone else.
This next graph, however, shows where the authors are earning the most money in terms of the percentage of revenue authors earn in each category.
This graph shows that only 32% of the revenue brought in by best sellers in these genres goes to authors with 47% of the overall revenue going to Indie authors. Again, this is an encouraging statistic.
So, what do all of these statistics mean for independently-published authors today, and what do they mean for the future? In all of the articles that I read as research for this blog, the trends for independently-published authors have pointed to an increase in market-share, readership, and revenue in the past six to seven years. Recognition for indie authors is increasing. Platforms such as Amazon, Smashwords, CreatSpace and others are making it easier to produce quality independently-published work.
Photo Credit: www.culchieworks.com
Does this mean that everything is rainbows and unicorns for all of us? Not at all. As the spotlight swings toward independent publishing, like everything else that is recognized as successful, there will be those that seek to find the flaws. In my various blogs, I have talked about some of the flaws around the quality of independently-published work. I have made it my mission to work with other independently-published authors to help them raise the bar. There are plenty of readers out there for us, so let’s not compete. Let’s collaborate and succeed together.
I will continue to provide information on topics that I believe are helpful to indie authors. I learn something new every day as I try to become as successful as possible in this discipline that I love. Every sale of a book or comment that I receive on my blog is like a personal victory. It’s a great feeling and one that I want to share with fellow authors.