The number one answer is money—to almost any question, probably. With publishing, money has the final vote. How much money a book is likely to make is the biggest factor when publisher’s take on a project. Since the profit margin in traditional publishing is shrinking (as self-publishing is swelling), publishers are more finicky about the manuscripts they consider. Many publishers are requiring their authors to assist more with marketing. In some cases they require an author to hire a publicist (at the author’s expense, of course) which typically costs between $2,500 and $5,000 per month. So, if you must put out that much money anyway, why not reap more of the benefits?
From figures I have heard and read, traditional publishing pays an author between 1-3% for a new author without a substantial platform (read following or notoriety) and 5-15% for an established author. Self-publishing allows the author to retain all of the profits which can be up to 40% of the wholesale price of a printed book and nearly 100% of e-books (probably more like 75-90% according to my accounting self).
At the conference I recently attended, David Cole spoke about his experience as a small publisher (Bay Tree Publishing). David said he must sell 2000-3000 copies of a book to begin to see profits (without returns from sellers). He gave us a breakdown on the costs associated with printing one of his titles.
Assume he prints 1,000 copies of one title. Typically with a book that retails for $20.00, the wholesale cost is $10.00. After subtracting the contracted distributor fees of 28%, you have $7.20 remaining. A royalty is paid to the author of $0.70, leaving $6.50. Printing and binding cost $2.50, marketing costs $1.00, and editor/design/production/proofreading /cover costs $3.00: this totals $6.50, leaving a zero sum—no margin, no profit. In fact, his overhead (phone, office expenses, mileage, wining & dining) aren't even covered. He said he doesn't add that in since he works from home (not good cost accounting practice!). In this scenario there are two ways to profit: sell more books or increase the selling price. Big publishers must sell tens of thousands of books to break even.
As a close second, the answer is control. The author has complete creative control of content and packaging. No agents or publisher’s editors will require you to change your story or plot in order to get published. Revisions and updates to the book can be made at any time. You can also get your book out quickly, without the 18-24 month delay. The typical self-publishing schedule is 3-6 months.
The number one drawback is also money. The author has to front the money for publishing costs and hiring a publicist is still a good idea.
Marketing remains a high priority either way you publish. New options for self-promotion are being invented every day. Barnes and Noble recently rolled out a tool to assist self-publishers on their website. Review avenues such as Kirkus Reviews and Publisher’s Weekly now offer self-publishers a way to get reviews. This used to be a major selling point for traditional publishers. They could get the work official reviews before publication. Google’s new book site is very self-publisher friendly.
E-books are dramatically changing even self-publishing. More authors are leveraging sites like Amazon to sell their works in an electronic format first. Then, after the title has gained a following, you can print publish. This method allows the author to “try out” a book and see if enough demand can be raised to warrant spending the money on printed books. 15% of books are currently published as e-books and will soon account for $3 billion of the $25 billion market. Industry analysts expect this percentage to rise dramatically in the next few years. As an author, remember this number includes ALL books published including textbooks. I am still looking for numbers reporting the percentages in different areas of publishing like fiction.
A hybrid between traditional and self-publishing is arising. Typically, the publisher and the author share costs and profits. Details are scarce so far.
That's my take with the information I have gathered so far. The biggest draw to traditional publishing by far is the ego gratification of being a real published author, not just some nut with a manifesto. The stigma of self-publishing is fading, but we all dread the comment "oh, so you're not really published." Remember--the work is what should be taken seriously, not your ego.
Summary:
Self-publishing Pros:
1. More profits
2. More control
3. No agent
4. Revise/update anytime
5. Many international distribution outlets available (Amazon, etc.)
6. Quicker turn-around
7. Able to get technical points (ISBN numbers, bar codes) yourself
8. Able to get reviews yourself
9. Distribution networks traditionally controlled by big publishers are now available
10. You retain the rights to your work and any form of publication and distribution
Self-Publishing Cons:
1. You must do all the work yourself or hire someone
2. You must finance the pre-production and printing
3. Challenge finding good freelancers.
4. Being the author AND the publisher
5. Sales can be difficult without a strong platform (can be helped by strong marketing)
6. Can be difficult to distribute to brick-and-mortar retailers (getting easier as the networks are opening to self- and small publishers)
Traditional Publishing Pros:
1. Lends prestige and credibility
2. Access to all distribution networks (including national bookstore chains)
3. A sales force to represent your book
4. Some support with publicity and promotion
5. Publisher assumes pre-production and printing costs
6. Possible advances on royalties
Traditional Publishing Cons:
1. Must have an agent to represent you (paying agent 10-15% off your take)
2. Lower profit on sales
3. Must wait 18-24 months to publish (start to see reward)
4. Publisher has final say on all creative decisions once the contract is signed. New authors (less than 10 books successfully published) will not be able to change the usual contract language to counter this.
5. Your retain the copyright, but the publisher owns all distribution rights for any format unless otherwise negotiated. New authors (less than 10 books successfully published) will not be able to change the usual contract language to counter this.
6. You will still be required to provide substantial assistance for marketing and promotion.
7. If your first book does not sell well, there is little hope they will publish a second.
